Sydney-based MGT Resources (ASX:MGS) is continuing exploration at its Summer Hills mining lease, the main tenement within its producing Mt Garnet tin project.
The project is located 100 kilometres south-west of Cairns in North Queensland.
Best result from drilling at the Summer Hill prospect was a broad mineralised zone of moderate grade of 20 metres at 0.6% tin from 12 metres including 1 metre from 12 metres depth at 5.95% tin.
The focus of the campaign is to discover higher grade deposits to blend with our lower grade ore as well as increase the JORC resource tonnage.
MGT sold its first shipment of tin in early 2013 via campaign production of tin concentrates. A processing plant is located on the mining lease which is wholly surrounded by the Summer Hills ML 20547.
The results to date would point to long intercepts at a shallow depth providing for lower mining extraction costs near surface.
A number of tin mining and exploration targets are located within the Summer Hills ML.
Grades of up to 15.75% tin have been previously intersected in drilling on the Summer Hills mining lease.
In terms of grades, 1% tin is roughly equivalent in value terms to 4 grams per tonne of gold or 3% copper grades.
Further results from the remainder of this phase drill programme are yet to be received.
