Dear Tiger Shareholder:
This is an extract from the Annual Report of ECR Minerals, the manager and operator of the Itogon Gold and Silver Project of our company. It provides a description of the work program and is good guidance.
Subject: Extract from ECR Resources annual report
ITOGON GOLD-SILVER PROJECT, PHILIPPINES
In late April 2013 ECR entered into an earn-in and joint venture agreement (the “Agreement”) with Cordillera Tiger Gold Resources, Inc. (“Cordillera Tiger”) and Tiger International Resources, Inc. (“Tiger”) in relation to the Itogon gold-silver project in the Philippines. Tiger is a company listed on the TSX Venture Exchange and is the parent company of Cordillera Tiger. Cordillera Tiger is a Philippine corporation and the holder of the exploration permit (the “EP”) that represents the Itogon project.
The Agreement gives ECR the exclusive right and option to earn a 50% interest in Cordillera Tiger and thereby in the Itogon project by obtaining, for Cordillera Tiger, a mining licence in respect of the project within five years of commencement of the earn-in and by making certain staged payments to Tiger.
Under the terms of the earn-in, ECR will fund all expenditure required
for Cordillera Tiger to obtain a mining licence, and through Cordillera
Tiger, ECR will be the operator of the Itogon project during the
earn-in. After a mining licence is obtained ECR and Tiger would fund
development of the project pro rata, or the non-funding partner would
ECR was able to complete its due diligence as to the Itogon project, with a positive outcome, in July 2013, and in December 2013 the final condition for commencement of the Company’s earn-in was satisfied. This condition was met by the submission by Cordillera Tiger of certain documents to the Philippine Mines & Geosciences Bureau, following receipt by Cordillera Tiger in November 2013 of a renewal of the EP for a second two year term. Following satisfaction of this condition the earn-in has commenced and exploration is now underway with ECR, through Cordillera Tiger, as the operator of the project.
Attributes of the Itogon project
The Philippines is a low cost operating environment with skilled labour and mining services readily available. The Itogon project area is in moderate to rugged terrain readily accessible from the city of Baguio via a combination of paved roads and unsealed vehicle tracks. The Baguio district has produced large quantities of gold and copper, and mining continues today.
A drilling programme is proposed to generate information as to the overall grade of the deposit, as well as to assess its cohesiveness and whether it can be mined in bulk, either by open pit or underground techniques, or as discrete higher grade zones mineable underground. It is intended that a resource model will be generated using the results obtained, and this will allow engineering studies to be carried out to consider mining options as well as other parameters.
In addition to drilling, a programme of surface channel sampling is underway with the objective of verifying a selection of historical channel sample runs. Historical surface channel sampling results include 50m at 3.23g/t gold, 17m at 1.76g/t gold, 23m at 2.32g/t gold, and 40m at 1.68g/t gold.
A programme of stream sediment and soil sampling is intended to cover the entirety of the tenement outside the main prospect area, and is intended to help identify any extensions to the mineralised zone outlined by historical information and any other deposits that may exist within the tenement boundaries. The main prospect area covers only a small part of the total 330 hectare area of the EP.
An exploratory tunnel into the lower part of the main prospect area is known to exist and may be of substantial length. It is planned that as far as possible this tunnel will be rehabilitated, mapped and sampled in order to provide additional information as to the continuity and tenor of gold and silver grades at depth.
Surface channel sampling commenced in January 2014 and assay results
from this programme are expected by April 2014. The tenement wide
stream sediment and soil sampling and rehabilitation of the historical
exploratory tunnel are planned to commence in April 2014. An initial
1,050m drilling programme is planned to commence during March 2014.
The multiple sub-parallel veins strike along the ridge and have been mapped historically over a length of 450m, with vein outcrop mapped a further 150m down the ridge at the Danglay River valley floor. Historical sampling has identified significant gold-silver mineralisation in the veins as well as their alteration haloes, in intervening quartz veinlet stockworks and in the host rock. The veins are indicated to be steeply dipping and the width of the mineralised zone has been mapped historically at up to 250m.
The drilling programme is aimed at establishing an open pit type resource along and below the ridge as well as seeking to identify high grade underground type ore enclosed within the lower grade ore. The situation of the deposit within the ridge is expected to prove favourable for either an open pit or underground mining scenario.
The results of the full 3,850m drilling programme are intended to enable the completion of a resource estimate, which will be compliant with a Standard, as that term is defined in the AIM Rules for Companies.
Drilling will primarily be by reverse circulation (RC) percussion with some diamond drilling. The proposed programme is composed of 24 angle holes up to 200m deep and on seven sections 50m to 80m apart along strike. Most of the planned holes are 150m deep and all are -60 degree inclination.
An initial phase of 1,050m of drilling is planned ahead of a second phase of 2,800m, and the results of drilling will be a crucial indicator as to whether the Itogon project is in fact as promising as it currently appears.
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