Proactive Investor's  Instablog

Mining Group (ASX: MNE) has grown its cash reserves by $2.5 million following the issue of the shortfall of shares under its recent partially underwritten pro-rata renounceable entitlement issue.

The funds raised will go towards advancing exploration at the company's prospective Comval copper-gold project in the Philippines, located on the highly prospective Philippines Fault Zone host to numerous large scale copper and gold porphyries.

Recent surface mapping and sampling at the project has extended the prospective target area for further skarn and porphyry mineralisation a further 800 metres north of the historic Tagpura open pit mine.

This brings the total strike length to 2.5 kilometres from Bayag Bayag in the south to Kapangawan in the north with multiple mineralised skarn and diorite outcrops identified that have been mapped and sampled.

Channel sampling across outcropping diorite at Tagpura North returned anomalous copper results, including two samples over 1% copper.

The channel returned 11 metres at 0.46% copper and 0.11 grams per tonne (g/t) gold, and represents a high priority porphyry target.

Channel sampling at Tagpura East also identified further mineralised skarn, with a channel returning a wide anomalous copper zone of 62 metres at 0.15% copper and 0.13g/t gold within skarn altered limestones.

Mining Group is targeting two types of mineralisation at Comval - high grade skarns at Tagpura, Mangob and Bayag Bayag; and porphyry at Kalimantan and Bayag Bayag.

High grade skarns are typically lower tonnage, while porphyry targets are generally large tonnage.

Comval, which is strategically located just 70 kilometres from an existing port, is located at the site of a historical copper mine that produced on a commercial scale in the 1980s.

The project hosts three deposits known to host copper and gold bearing ore and Mining Group has recently discovered a fourth deposit, known as Bayag Bayag.

Mining Group has 80% ownership of Comval, which includes two granted exploration permits totalling 4,310 hectares.

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