Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Mining Group's Drilling Finds More Economic Copper And Gold At Comval Target

Mining Group (ASX: MNE) has confirmed the presence of additional economic copper and gold mineralisation from initial drilling of the Kapangawan target, as well as uncovered near surface gold from trenching at another target within the Comval Project in the Philippines.

Best intercepts returned from drilling were 11.4 metres at 1.94 grams per tonne (g/t) gold, including 5 metres at 3.33g/t gold and 1 metre at 7.57g/t.

This intercept was hosted within strongly altered andesitic volcanics and provides encouragement that mineralisation not only occurs within the skarns but also within altered volcanic rocks, adding to the prospectivity of the target.

Similar mineralisation was observed at Tagpura North, with potential for gold mineralisation to occur in both the skarns and volcanic lithologies.

Zeff Reeves, managing director, commented: "The first pass drilling at the newly discovered Kapangawan skarn has encountered a number of massive magnetite lenses containing copper and gold mineralisation."

"These results are significant in that they provide evidence that the Kapanganwan skarn, previously identified from ground magnetics, contains economic grades of copper and gold and, in conjunction with the Tagpura North discovery, has the potential to add further resources to our resource inventory at Comval."

Additionally, trenching carried out at the Tandawan gold target has returned high grade gold of 5 metres at 5.69g/t gold, including 1 metre at 16.64g/t gold and 2 metres at 11.49g/t gold.

Reeves added: "As time goes on and we complete first pass work on each of the targets, the Comval Project continues to deliver positive results which gives us the confidence that we can achieve the resource targets we have set in order to deliver a robust, low cost copper and gold resource.

"With our key prospects Bayag Bayag, Tagpura North and Kapangawan all delivering ore grade results, we are now in a position to delineate each of these targets and begin converting them into resources.

"While the copper-gold skarn targets form the core of our focus, we are still discovering the tremendous potential for near surface high grade gold resources through first pass work, such as the results Tandawan is delivering and we will also continue to work these targets up."

Kapangawan drilling

The initial diamond drilling program at the Kapangawan Prospect was designed to test the high intensity magnetic and surface geochemical anomaly.

The three hole program drilled to a total of 433.9 metres has intersected multiple lenses of massive magnetite skarn hosted with a limestone and andesitic volcanic sequence.

The Kapangawan magnetic anomaly is considered to be about 400 metres in length and 150 metres wide and is interpreted to consist of multiple lenses of massive magnetite +/- copper and gold mineralisation.

The drilling program was designed to test 3D magnetic models constructed from detailed ground magnetic survey data.

One drill hole also intersected two lenses of thin higher grade copper mineralisation associated with massive magnetite.

All holes have intersected zones of over 40% iron and have been re-submitted for assay of ore grade iron ore.

Tandawan trenching

Mining Group has begun systematic work over the Tandawan Prospect to further delineate and assess the potential for high grade gold mineralisation.

Four across strike trenches have been completed with results now received for CCPCH00013, CCPCH00015 and CCPCH00017.

The trenching results have confirmed the presence of high grade gold, hosted within moderately west dipping shear zones within a sequence of andesitic volcanics and intrusive diorites.

Trenches were designed to test the surface expression of the previously sampled artisanal tunnels and understand the structural orientation of the hosting shear zone.

Previous work interpreted the mineralised zone to be epithermal in nature but more recent detailed mapping has provided evidence that mineralisation is contained within shear zones associated with geological contacts.

The Tandawan Prospect has now been mapped and sampled for over 200 metres along strike.

A second shear zone has been mapped about 80 metres to the west which has been sampled within trench CCPCH00019 (awaiting assays) and two additional trenches are also designed to test this shear further to the south.

Analysis

The confirmation of additional potentially economic grade copper and gold mineralisation at the Kapangawan target is an important step for Mining Group as the three key prospects - Bayag Bayag, Tagpura North and Kapangawan - at the Comval Project have all now delivered ore grade results, paving the way for the company to begin converting them to resources.

This in turn will contribute to growing the resource base of the larger project.

Comval is located on the highly prospective Philippines fault zone that hosts numerous copper, gold and copper-gold deposits.

These include Medusa Mining's 6.3 million tonne at 9.6g/t gold Co-O Mine, St Augustine's 962.3 million tonne at 0.25% copper and 0.3g/t gold King-King Project, and Xstrata/Indophil's 2.5 billion tonne at 0.6% copper, 0.2g/t gold and 70 parts per million molybdenum Tampakan Project.

The Comval Project also has an infrastructure advantage being located close to existing infrastructure with sealed road access and 70 kilometres from an existing port.

Recent exploration results confirm the probability of increasing copper and magnetite resources and the potential for high grade gold deposits.

Mining Group is in the process of undertaking a fully underwritten non-renounceable entitlements issue of up to A$2.13 million to advance the Comval Project.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.