Announcement PDF 20 MAY 25 JANUARY 2017 ASX 2017 ANNOUNCEMENT ASX ANNOUNCEMENT OMMANEY RC DRILLING RESULTS – Table 1 We refer to the ASX Announcement of 18 May 2017 re initial drilling results and provide a supplementary announcement with a complete Table 1 Report. As stated in the previous release the reported intervals of anomalous Gold (Au) and Tungsten (W) in recent drilling at Ommaney are initial results from multi-element analysis of 5m composites that do not represent economic intersections of metal but are indicative of the alteration system that MRG is pursuing at the prospect in its exploration for gold mineralisation. Further analysis of the multi-element results from this program will determine if any of these wider intervals of drilling are assayed in more detail (at 1m intervals), or if the multi-element assay results reported to date are sufficient for MRG to vector future exploration programs at the prospect. MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ 12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890 www.mrgmetals.com.au / info@mrgmetals.com.au TABLE 1 REPORT – OMMANEY REVERSE CIRCULATION DRILLING SAMPLING TECHNIQUES AND DATA Criteria JORC Code explanation Sampling techniques Nature and quality of sampling (e.g. cut channels, The sampling has been carried out using Reverse Circulation drilling (RC), using a random chips, or specific specialised industry Schramm T685WS drilling rig. 5m spear composites of material from cyclone in standard measurement tools appropriate to the addition to 1m cone split samples (and archives) were collected for each drill minerals under investigation, such as down hole hole. Rock chips were logged onsite by a geologist and a record of chips was gamma sondes, or handheld XRF instruments, collected and stored. A total of 7 holes were drilled in the program, at depths etc). These examples should not be taken as ranging from of 132m to 366m below surface. limiting the broad meaning of sampling. Drilling techniques Drill sample recovery Commentary Include reference to measures taken to ensure The drill hole collars were located by handheld GPS. Sampling was carried sample representation and the appropriate out under MRG Metals Ltd protocols and QAQC procedures as per current calibration of any measurement tools or systems industry practice. See further details below. used. of the determination of mineralisation Aspects RC chips were sampled by two methods: that are Material to the Public Report. 1) A cone splitter was used to generate one, 3kg sample per metre of RC drilling. In cases where ‘industry standard’ work has 2) The remaining sample piles were composited to 5metre intervals (3kg been done this would be relatively simple (e.g. samples) using a plastic spear. ‘reverse circulation drilling was used to obtain All 5m composites were submitted to the laboratory for full multi-element assay 1 m samples from which 3 kg was pulverised to (including fire assay for Au,Pt,Pd), while 1m samples were stored. Results of these assays determine anomalous intervals and are considered only indicative produce a 30 g charge for fire assay’). In other of metal content. cases more explanation may be required, such Where 5m composite assays indicate that Au may be elevated to economic as where there is coarse gold that has inherent levels, the 1m cone split samples will be submitted for fire assay. None of the sampling problems. Unusual commodities or intervals reported indicate Au grades that could be considered economic and the mineralisation types (e.g. submarine nodules) corresponding 1m samples have not been submitted for assay. may warrant disclosure of detailed information. A Schramm T685WS Reverse Circulation drilling rig, operated by Drilling Australia Drill type (e.g. core, reverse circulation, openPty Ltd using a face sampling bit was used to complete the program. hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, facesampling bit or other type, whether core is oriented and if so, by what method, etc). Recoveries were assessed by visual estimate of the sample volume recovered for Method of recording and assessing core and chip sample recoveries and results each metre interval drilled. Recovered sample volumes were within industry assessed. expectations. Samples recovery was reduced for the first 6 metres of each hole due to losses from the hole annulus, and occasionally when the sample was wet due to water inflows at drill rod changes. These reduced volume intervals are recorded but are not considered to have significant effect on sampling over at critical intervals. Measures taken to maximise sample recovery and Sampling was undertaken using a combined cyclone and cone splitter. All of the ensure representative nature of the samples. sample recovered but not split to 1m samples was captured and used to generate 5m composites for multi-element assay. None identified. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/ coarse material. Logging Whether core and chip samples have been RC chips were geologically logged by MRG geologists at the drill site. geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. logging is qualitative or quantitative in Qualitative logging of RC chips (lithology, alteration mineralogy, sulphides, Whether nature. Core (or costean, channel, etc) weathering, etc) is designed to be supported by multi-element assay analysis. A photography. record of chips at 1m intervals has been collected and stored for future reference. The total length and percentage of the relevant intersections logged. All holes were logged in full. MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ 12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890 www.mrgmetals.com.au / info@mrgmetals.com.au Criteria Sub-sampling techniques and sample preparation Quality of assay data and JORC Code explanation Commentary If core, whether cut or sawn and whether quarter, half or all core taken. No diamond core was generated by this drilling program. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. RC chips were sampled by two methods: 1) A cone splitter was used to generate one, 3kg sample per metre of RC drilling. 2) The remaining sample piles were composited to 5metre intervals (3kg samples) using a plastic spear. 5m composites were submitted to the laboratory for full multi-element assay (including fire assay for Au,Pt,Pd), while 1m samples were stored. Results of these assays determine anomalous intervals and are considered only indicative of metal content. Where 5m composite assays indicate that Au may be elevated to economic levels, the 1m cone split samples will be submitted for fire assay. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Samples were prepared at the ALS laboratory in Perth. Samples were dried, and the whole sample crushed and pulverised to 85% passing 75um, and a reference sub-sample of approximately. 200g retained. A nominal 30g was used for the analysis. Quality control procedures adopted for all subsampling stages to maximise representation of samples. RC cone splits and spear composite weights monitored at the rig to ensure consistent sample sizes. At the laboratory entire samples were pulverised to 85% passing 75um, a sample of the pulverised portion is sent for assay. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/ second-half sampling. Field duplicate samples were taken at a rate of approximately 1 in 100 samples. For each 1m cone split interval a corresponding archive sample was collected. Whether sample sizes are appropriate to the grain size of the material being sampled. Sample sizes are considered appropriate to give an indication of mineralisation given the particle sizes present in the rock and the practical requirement to maintain manageable sample weights. The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. Samples submitted to ALS laboratories were crushed and pulverised. Near total digestion by multi-acid (including HF) followed by ICPAES and ICPMS analysis of ALS’s ME-MS61 element suite. Au, Pt, Pd analysis by 30g fire assay with ICP-AES finish. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. No geophysical tools were used in this program. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. MRG QA/QC protocol for drilling is for Field Standards (Certified Reference Materials) and Blanks inserted at a rate of 5 Standards and 4 Blanks per 100 single metre samples. Field duplicates were inserted at a rate of approximately 1 in 100. For this program the relevant samples were part of a total batch of 384 samples were submitted including QC samples. This batch included 14 Blanks, 16 Standards, and 3 field duplicates. At the Assay Laboratory additional Repeats, Lab Standards, Checks and Blanks are analysed concurrently with the field samples. Results of the field and Lab QAQC samples were checked on receipt of the assays. All assays met QAQC protocols, showing no levels of contamination or sample bias. laboratory tests Verification of sampling and assaying The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Twin holes were not employed during this part of the program. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Field logging was carried out on a Panasonic Toughbook computer. Logging data is submitted electronically to the MRG Metals Ltd Victorian office. Assay files are received electronically from the Laboratory. All data is stored in a Company database system. Discuss any adjustment to assay data. No assay data was adjusted. The lab’s primary Au field is the one used for analysis purposes. MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ 12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890 www.mrgmetals.com.au / info@mrgmetals.com.au Criteria Location of data points Data spacing and distribution Orientation of data in relation to geological structure JORC Code explanation Commentary Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Drill hole collars locations were determined by hand-held GPS, with an accuracy of 5m in Northing and Easting. Down hole surveys were completed every 30m where practicable during drilling. No follow-up down hole directional surveying is planned for these holes. Specification of the grid system used. Grid projection is GDA94, Zone 51. Quality and adequacy of topographic control. Relative Levels are allocated to the drill hole collars using current Digital Terrain Model’s for the area. The accuracy of the DTM is estimated to be better than 10m. Data spacing for reporting of Exploration Results. Drilling was exploratory and designed to test anomalies identified at surface and from previous drilling. No grid based drilling was undertaken. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. This drilling was exploratory in nature and there are no current plans to utilise the results for Mineral Resource estimation purposes. Whether sample compositing has been applied. 5m sample compositing using a spear method was used to generate samples for multi-element analysis during this drilling program. Drilling orientation was designed to intersect structures and dominant foliation in the rock at as high angle as possible as determined from structural analysis of oriented core in previous drilling nearby. The reliability of this analysis of drilling orientation is reduced with distance from diamond drill holes. Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. The orientation of any mineralisation is not known at this stage of exploration. Holes were designed to intersect zones of anomalous geochemistry and alteration identified in previous drilling. The effect of drill hole orientation on sampling bias cannot be determined with reliability at this stage. Sample security The measures taken to ensure sample security. Samples were sealed in appropriate containers and transported by company vehicle to the Centurion Transport Depot in Kalgoorlie, WA. They were then forwarded by ALS to their Laboratory in Perth for assaying. Audits or reviews The results of any audits or reviews of sampling techniques and data. No specific audits or reviews have been undertaken at this stage in the program. MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ 12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890 www.mrgmetals.com.au / info@mrgmetals.com.au SECTION 2: REPORTING OF EXPLORATION RESULTS Criteria JORC Code explanation Mineral tenement and land tenure status Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. Exploration done by Acknowledgment and appraisal of exploration by other parties other parties. Commentary The drilling occurred within tenements E28/2338 held by MRG Metals (Australia) Pty Ltd, a wholly owned subsidiary of MRG Metals Ltd. The tenement is subject to Native Title granted to the Ngadju Group. The tenement subject to this report are in good standing with the Western Australian Department of Mines & Petroleum. Previous exploration over the Project area has been undertaken by Sipa Resources and Newmont. Where relevant, data from these earlier surveys has been incorporated into MRG databases. Geology Deposit type, geological setting and style of mineralisation. Exploration is targeting orogenic gold deposits in the Albany-Fraser Belt and re-worked margin of the Yilgarn. Drill hole Information A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: Refer to tables included in the body of report.  easting and northing of the drill hole collar  e lev ation or RL (Re duce d Le ve l – e le v ation Data aggregation methods abov e s ea lev e l in m e tr e s) of the dr ill hole c ollar  dip and azimuth of the hole  down hole length and interception depth  hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. In reporting Exploration Results, weighting averaging Intervals are reported as down-hole length-weighted averages of grades. No techniques, maximum and/or minimum grade top cuts have been applied to the reporting of the assay results. truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. These relationships are particularly important in the Relationship between reporting of Exploration Results. mineralisation widths and intercept If the geometry of the mineralisation with respect to lengths the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should a clear(with statement this Appropriate maps andbe sections scales)toand effect (e.g. ‘down hole length, true notfor known’). tabulations of intercepts should bewidth included any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. Diagrams No high-grade results were reported. Standard aggregation is indicative of drilling intervals with anomalous elements (Au and W) from background levels. No metal equivalent values are used. The geometry of any mineralisation is not known at this stage. All assay results are based on down-hole lengths. No significant discovery is being reported. Anomalous multi-element geochemistry in assay results is being reported. Intervals of anomalous multi-element geochemistry (including Au) are reported. No samples returned high-grades of Au MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ 12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890 www.mrgmetals.com.au / info@mrgmetals.com.au Criteria JORC Code explanation Commentary Other substantive exploration data Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. Intervals of anomalous W are established to be correlated with strong sericitebiotite (+/- albite and pyrite) alteration zones first identified in diamond drilling. These intervals typically do not have Au elevated from background levels. Intervals of anomalous Au identified in RC drilling have a loose association with quartz veining but not with the strong alteration observed in core. Further work The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. Review of the multi-element geochemistry may be followed by assay of 1m intervals considered to be of interest. Further exploration work at project is planned but the details of future programs is still to be determined Andrew Van der Zwan Chairman The information in this report, as it relates to Exploration Results is based on information compiled and/or reviewed by Mr. Benjamin McCormack, who is a member of the Australian Institute of Geoscientists (AIG). Mr. McCormack is a consultant to the Company and has the relevant experience with the mineralisation reported on to qualify as a Competent Person as defined in the 2012 Edition of the “ Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves “. Mr. McCormack consents to the inclusion in the report of the matters based on the information in the form and context in which they appear. MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ 12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890 www.mrgmetals.com.au / info@mrgmetals.com.au