Mt Ridley to Acquire High-Grade Philippines Epithermal Gold Project
13 February 2018
Mt Ridley Mines Limited to acquire 100% of the issued capital of Prometheus Developments Pte Ltd which holds rights to the Diwalwal Mineral Field, Compostella Valley, Mindanao, Philippines.
- Mount Ridley Mines Ltd (ASX: MRD) (or “the Company”) has agreed (subject to due diligence and shareholder approval) to acquire 100% of the issued capital of Singapore based Prometheus Developments Pte Ltd (“Prometheus”) via the issue of approximately 1.506 billion Shares in the Company.
- Prometheus has entered an Investment Agreement with Paraiso Consolidated Mining Corporation (“Pacominco”) and a Joint Venture agreement with JB Management Mining Corporation (“JB Management” or “JBMMC”). These agreements allow Prometheus to acquire an 80% economic interest and 40% legal interest in three mining tenements covering the Diwalwal Gold Project. These agreements are outlined as follows;
- Pacominco Investment Agreement: On 20 October 2017 Prometheus entered into the Pacominco Investment Agreement that will allow Prometheus to earn an economic interest of up to 80% in the Pacominco Gold Project and a legal interest in Pacominco of up to 40%. Pacominco in turn has a Joint Operating Agreement (“JOA”) with the Philippine Mining and Development Corporation (“PMDC”) that governs the tenure, reporting responsibilities, exploration, development, processing and utilization of resources on the project area. In accordance with Philippines Law, a Philippine owned company Perentie Mining Infrastructure Corp (“Perentie Infrastructure” or “PIMC”) will hold a 40% ownership on completion of the obligations of Prometheus under this Investment Agreement. Prometheus in turn has an agreement to receive all cash distributions from the Investment Agreement therefore giving Prometheus an aggregate 80% economic interest in the Pacominco Investment Agreement (on completion of Prometheus obligations).
- JB Management Joint Venture: On 20 October 2017, Prometheus executed a Joint Venture Agreement with JB Management covering 452.29 hectares (Contract Area) on the Diwalwal Mineral Reservation that will allow Prometheus to earn an economic interest of up to 80% in the Contract Area and a legal interest of up to 40% in the joint venture company (to be incorporated). JB Management also have a JOA with the National Resource Development Corporation (“NRDC”). Perentie Infrastructure will hold a 40% ownership on completion of the joint venture obligations of Prometheus. Prometheus in turn has an agreement to receive all cash flows from the Joint Venture therefore giving Prometheus an aggregate 80% economic interest in the JB Management Joint Venture (on completion of Prometheus obligations).
- The Philippine Mining and Development Corporation (“PMDC”) completed 21 diamond drill holes in 2006 and outlined significant gold mineralisation immediately adjacent to and below the JBMMC lease boundary. Note that these drill holes are beneath the agreement area which has a boundary based on an elevation of 600m ASL1.
- The Diwalwal Gold Project is situated along the Philippine fault approximately 80 kilometres south of Medusa Mining Limited’s (ASX: MML) Co-O Gold project (JORC Inferred and Indicated Resources of 1.34 million ounces) (ASX: MML announcement "Annual Mineral Resources and Ore Reserves Update Statement" 07/08/2017) with annual production of approximately 90,000 ounces of gold.
- There are numerous adits that cross cut significant gold mineralisation throughout the areas covered by the Pacominco Investment Agreement and the JB Management Joint Venture areas that should provide relatively easy access for the commencement of underground exploration drilling.
- Underground diamond drilling is currently being planned for execution in April 2018 at the Balite and Buenas Tinago veins with a view to confirming historical high-grade gold mineralisation in addition to identifying additional mineralisation.
- MRD would like to thank the PMDC, in particular, Chairman Atty Alberto Sipaco for his support in assisting with the completion of these agreements in order to advance the Diwalwal Gold Project. In particular we would like to thank him for his invaluable assistance with the local community and other interested parties.
FIGURE 1: Chief Geologist Martin Dormer at the JB Management adit.
FIGURE 2: Clemente Arguanta (Pacominco), Rueben Arbaquez (Pacominco), Martin Dormer (Prometheus), Robert McKenna (Prometheus), Kabir Osman (Prometheus), Chr. Joselito Brillantes (JBMMC), Manuel Brillantes (JBMMC), Karen Brillantes (JBMMC), Chay Kee Tan (Prometheus).
FIGURE 3: Robert McKenna (Prometheus), Kabir Osman (Prometheus), Attny. Alberto Sipaco (PMDC), Esmeraldo Salvana (PACOMINCO)
Exploration Update: Mt Ridley Project, Albany - Fraser Ridge
7 February 2018
Mount Ridley Mines Ltd (ASX: MRD) (or "the Company") is pleased to announce an exploration update at its 100% owned Mt Ridley Project in the Albany Fraser Range Province (WA).
- New HP FLTEM geophysics to commence at Keith's and Winston's
- Broken Hill style gold target geochemistry infill
- Deeper drilling on new defined anomalies
The Company's long awaited HP FLMTEM geophysics survey is due to commence late this week. The Company, along with other explorers, has been in a long list of proejcts awaiting availability of the highly sought-after, arrival of the updated HP MLTEM survey equipment.
Two new project areas previously untested by EM have been selected. These targets are at Keith's and Winston's targets.
Figure 1. Mount Ridley regional gravity completed May 2017.
The Keith's target has been selected due to anomalies arising from magnetic and gravity surveys that have been followed up with Air Core drilling, geochemistry and infill further gravity surveys.
Quaterly Report for 31 December 2017
31 January 2018
Mount Ridley Mines Ltd Mount Ridley Mines Ltd (ASX: MRD) (or “the Company“) announced in the September Quarterly of 2017 that due to seasonal and access difficulties proposed exploration activities were postponed and in the process of being planned. The company has finalised its planning and 2018 exploration programs are due to commence:
- Geophysics surveys booked for late January at the Winston and Keith Prospects;
- Gold anomalism identified during the recently completed geochemistry survey in the search for Broken Hill Style Mineralisation. Infill and extension geochemistry has been planned on 50 x 100m spacing
A coincident nickel, copper and sulphur geochemistry target identified in 2017 which included infill air core drilling in April and May (ASX announcement 20 June 2017) confirmed and identified an area of interest at Keith’s. This target will form part of the HP MLTEM survey.
A planned 50m x 100m infill sample auger programme originally targeting Broken-Hill type lead-zinc mineralisation identified a low-level gold anomaly within the south west section of the auger geochemistry program. With background levels below detection recorded over a large portion of the geochemistry survey area, an anomalous zone of up to 11 ppb gold in soils has been identified in what appears to be a favourable magnetic complex. An infill auger survey with spacing of 100m x 50m will be conducted to confirm the anomalous values.
- HPMLTEM surveys booked at Keith’s and Winston’s
- Infill auger geochemistry at the Broken Hill style area targeting gold anomalism planned
- RC drilling to test greatest geochemistry potential and any new bedrock EM features
- Down hole EM of new deeper drilling targeting
The Company held its AGM on 30 November 2017, with all resolutions passed unanimously.
As previously announced, the Company has also been negotiating a potential acquisition, with its securities being suspended from trading whilst it liaises with ASX in relation to this. The Company will provide the market with an update as soon as it is able.
Quaterly Report for 31 September 2017
27 October 2017
Mount Ridley Mines Ltd Mount Ridley Mines Ltd (ASX: MRD) (or “the Company“) announced on 31 August 2017 that due to seasonal and access difficulties proposed exploration activities were in the process of being planned including an internal review.
- Proposed extensional bedrock air core drilling testing defining Ni/Cu/S geochemistry geological, gravity and magnetic features identified at The Lake and Keith’s
- Geophysics surveys booked for January at Winston’s, plus also The Lake and Keith’s target areas
- Gold geochemistry identified during the Broken Hill type geochemistry survey, infill and extension geochemistry planned
The Company is currently doing internal data reviews of the Mount Ridley project. A number of targets have been identified across commodities of interest including Ni/Cu and gold.
Due to the location close to Esperance on WA’s south east coast, access in this lake laden project area has proven to be challenging. Hence the Company is gearing up and booking rigs and EM crews for when access is dryer and warmer over the coming months.
Two coincident nickel, copper and sulphur geochemistry targets were identified in the first quarter of 2017 and infill air core drilling in April and May (ASX announcement 20 June 2017) have confirmed and identified two areas of interest at The Lake and Keith’s. These two targets will have additional air core drilling, planned for October/November depending on access.
Further results pending, the Company will evaluate whether to commence immediately with RC drilling or plan HP EM surveys for deeper target identification.
A 500m x 100m sample spacing auger programme targeting Broken-Hill type lead-zinc mineralisation of 1,064 samples (ASX announcement 20 June 2017) has been modelled. Data to date has not produced any Broken Hill style lead-zinc anomalies that warrant further exploration activities.
However, a low-level gold anomaly has been identified within the south west section of the auger geochemistry program. The gold anomaly is of interest as this part of the Albany Fraser belt historically hasn’t been expected to produce significant anomalism in gold. With background levels below detection recorded over a large portion of the geochemistry survey area, an anomalous zone of up to 11 ppb gold in soils has been identified in what appears to be a favourable magnetic complex. An infill auger survey with spacing of 100m x 50m will be conducted to confirm the anomalous values.