TORONTO,
Nov. 28, 2016
/CNW/ - RNC Minerals ("RNC") (TSX: RNX) (OTCQX:
RNKLF) welcomes the announcement on November 27, 2016 of a nickel offtake agreement
entered into by Western Areas Ltd and the Tsingshan Group
("Tsingshan"), China's largest
stainless steel producer, as further validation of RNC's roasting
approach as a more valuable alternative to traditional nickel
smelting and refining for nickel sulphide concentrate. RNC first
successfully demonstrated this process in 2011. After working with
RNC in 2012 and 2013, Tsingshan began the construction in 2014 of
the first plant to directly utilize nickel sulphide concentrate as
part of the stainless steel production process.
Mark Selby, President and CEO of
RNC, commented, "We believe this agreement is another significant
milestone for sulphide nickel concentrate producers and further
confirms RNC's roasting approach as a valuable alternative to
traditional smelting and refining. RNC's roasting approach is a
simpler, lower cost, higher recovery alternative that should allow
sulphide concentrate producers to capture significantly higher
payabilities. We are very excited by the initial feedback on our
marketing of test samples of NiCal-30, the roasted concentrate from
Dumont, with potential payabilities exceeding our expectations. We
expect to complete our initial marketing of NiCal-30 in early 2017
and expect to incorporate this market feedback into a feasibility
study update for Dumont."
Mr. Selby continued, "I am happy with the progress at our Beta
Hunt Mine under the new leadership of Kevin
Small, Director, Mining Operations, as ore grades to date in
November have exceeded our expectations and the ramp up is on track
to deliver our guidance."
RNC's Roasting Approach
RNC continues to work to develop the market for roasted nickel
concentrates from its own Dumont concentrate and other nickel
producers. Samples of roasted concentrate from RNC's Dumont Nickel
Project, under the product name NiCal-30, have been shipped to a
number of potential customers (alloy steel producers, stainless
steel producers, and nickel pig iron producers) in Europe and Asia and initial feedback has exceeded
expectations. RNC expects this phase of the work to be completed in
early 2017.
Beta Hunt Update
The Beta Hunt Mine is successfully ramping up under the new
leadership of RNC's Director, Mining Operations, Kevin Small, with run-of-mine ore grades to date
in November of 2.65 g/t, exceeding our expectations of 2.5 g/t.
Mined gold production is expected to be in line with previously
announced guidance of 8.5-10,000 ounces during Q4 2016, targeted
annualized gold production rates of 60,000 ounces per annum early
in Q1 2017, and 2017 gold production in excess of 60,000
ounces.
About RNC
RNC is a multi-asset
mineral resource company focused primarily on the acquisition,
exploration, evaluation and development of base metal and precious
metal properties. RNC's principal assets are the producing Beta
Hunt nickel and gold mine in Western
Australia, the Dumont Nickel Project located in the
established Abitibi mining camp in Quebec and a 30% stake in the producing Reed
Mine in the Flin Flon-Snow Lake region of Manitoba, Canada. RNC also owns a majority
interest in the West Raglan and Qiqavik projects in Northern Quebec. RNC has a strong management
team and Board with over 100 years of mining experience at Inco and
Falconbridge. RNC's common shares
trade on the TSX under the symbol RNX. RNC shares also trade on the
OTCQX market under the symbol RNKLF.
Cautionary Statement Concerning Forward-Looking
Statements
This news release contains "forward-looking
information" including without limitation statements relating to
the the liquidity and capital resources of RNC, production and cost
guidance, the potential of the Beta Hunt and Reed mines, and the
potential of the Dumont, West Raglan and Qiqavik
projects.
Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of RNC to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Factors
that could affect the outcome include, among others: failure of the
parties to sign definitive agreements and satisfy conditions of
closing; future prices and the supply of metals; the results of
drilling; inability to raise the money necessary to incur the
expenditures required to retain and advance the properties;
environmental liabilities (known and unknown); general business,
economic, competitive, political and social uncertainties;
accidents, labour disputes and other risks of the mining industry;
political instability, terrorism, insurrection or war; or delays in
obtaining governmental approvals, projected cash costs, failure to
obtain regulatory or shareholder approvals. For a more detailed
discussion of such risks and other factors that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements, refer to RNC's filings with
Canadian securities regulators available on SEDAR at
www.sedar.com.
Although RNC has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date
of this news release and RNC disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or results or otherwise, except as required by
applicable securities laws.
SOURCE RNC Minerals