RNC will host a call/webcast on January 18 at 10:00 a.m.
(Eastern Time) to discuss its 2017 outlook. North American
callers please dial: 1-888-231-8191, international callers
please dial: (+1) 647-427-7450. For the webcast of this
event click [here] (replay access information
below).
TORONTO, Jan. 18, 2017 /CNW/ - RNC Minerals (TSX: RNX)
("RNC") is pleased to announce the discovery at its Beta Hunt Mine
in Western Australia of a
significant extension of the A Zone gold structure and a re-design
of the mining approach for the Western Flanks to larger and more
productive bulk mining based on new data showing greater continuity
of grade between previously interpreted vein structures.
Drilling highlights from the extension of the A Zone
include:
- WF16-016 - 4.45 m at 7.31 g/t including 2.05 m at 10.15
g/t
- WF17-008 - 4.45 m at 4.77 g/t, including 1.5 m at 11.38
g/t
- WF16-015 - 2.85 m at 6.71 g/t, including 1.00 m at 8.74
g/t
- WF16-014 - 2.80 m at 4.24 g/t including 1.00 m at 7.99 g/t
(see Table 1 for full assay highlights)
"We will achieve a key milestone this month with the first large
Western Flanks stope beginning production this month enabling us to
achieve the previously announced 60,000 ounce annualized run rate
gold production during Q1 and production of 65-70,000 ounces of
gold at Beta Hunt in 2017. The development of this first much
larger 20 m wide stope is also leading to a re-interpretation of
Western Flanks mineralization as being more continuous and amenable
to much larger bulk stopes, rather than those previously planned on
the multiple narrower 3-10 metre wide veins. This re-interpretation
has the potential to increase the Western Flanks resource and
decrease development and production costs. Beta Hunt's tremendous
resource potential is further underscored by the high grade A Zone
drilling results that extend its strike length by more than 40%.
More importantly, this southern-most extension of the A Zone has
the potential to become another important production area in the
near-term as it lies within 35 metres of existing infrastructure
and is above the current development level of the Western Flanks
decline." said Mark Selby, President
and CEO of RNC.
Beta Hunt Production Update
Production from the first
large, higher grade (3+ g/t) Western Flanks stope will commence
this month and is expected to put the mine on track to achieve
previously announced guidance of annualized production rates of
60,000 ounces of gold in the first quarter of 2017. This first
large high grade stope, combined with a large A Zone stope, and
several smaller high grade mining areas coming online by
March 2017, is expected to deliver
full year 2017 gold production of 65-70,000 ounces at an
all-in-sustaining-cost of $US900-1,000 per ounce. During 2017, it is
expected that costs will initially be higher and then decrease as
production levels rise. Costs will also be affected by the level of
nickel production which, given recent market volatility, is under
consideration.
Fourth quarter 2016 mined gold production of approximately 7,600
ounces fell short of forecast as a result of one-time equipment
availability issues during the Christmas period in late December.
Since the resolution of these issues in late December, annualized
mined gold production from Beta Hunt has averaged over 40,000
ounces – the highest gold production rate yet
achieved for the mine.
Preliminary results of the recently completed latest toll at the
FMR Mill indicated that run-of-mine material (excluding lower grade
development ore) graded 2.65 g/t to the end of December, in line
with guidance for grades between 2.45-2.65 g/t during the fourth
quarter. Recoveries are estimated at 94%, slightly higher than our
93% target. Final production figures will be incorporated into
RNC's year-end reporting after final tolling results for gold and
nickel have been completed.
Reed Mine Production Update
For the year ended
December 31, 2016, VMS's 30% share of
metal contained in concentrate production from the Reed Mine was
5.0 kt of copper and 1.4 koz of gold. In 2017, RNC expects its 30%
share of production from the Reed Mine to be 4-5 kt of copper and
0.8-1.1 koz of gold. Hudbay Minerals (the operator) has not
provided guidance for the Reed Mine. The above guidance is RNC
management's estimate of our expected 30% share of 2017
production.
Extension of Beta Hunt A Zone
Six drill holes
intersected the southern extension of the A Zone (Figure 1)
extending the existing strike length of 1.2km by 500 metres or more
than 40%. The southern extension occurs directly below the
previously mined contact-related historical Hunt nickel deposit
(Figure 2).
The presence of shear-hosted gold mineralisation directly below
nickel mineralisation is characteristic of the Beta Hunt Mine. In
areas of historic nickel mining, this association can be used as a
guide to test for gold mineralisation below. The mineral potential
of this area was first highlighted by WMC in the 1980s. While
mining the nickel from the Hunt deposit (Figure 2), anomalous
visible gold was occasionally noted below the ultramafic contact.
Historic drill holes in the area contained anomalous gold.
Significant assays from the six recent drill holes are provided in
Table 1.
Beta Hunt Western Flanks Reinterpretation
The first
large Western Flanks stope, expected to yield significant tonnages
in excess of 3 g/t, is being brought online this month. Additional
work and development of the first Western Flanks stope as a large
20 metre wide high grade stope has led to a re-interpretation of
Western Flanks mineralization as much more continuous and amenable
to larger-scale bulk mining as compared to the previous approach of
mining multiple, narrower 3-10 metre wide veins. A bulk sample was
taken from slots in the Western Flanks 302 area to validate that
the gaps between the lodes in the block model are carrying gold.
The information is being applied to update the mine block model and
facilitate planned bulk mining of Western Flanks.
Table 1: Significant assay results from the A Zone
Extension
|
Downhole
From
(m)
|
Downhole
To
(m)
|
Interval
(m)
|
Gold
g/t
|
WF17-008
|
|
76.05
|
76.35
|
0.30
|
20.40
|
and
|
80.60
|
83.60
|
3.00
|
5.97
|
including
|
80.60
|
81.35
|
0.75
|
9.13
|
and
|
83.30
|
83.60
|
0.30
|
14.6
|
and
|
98.45
|
102.90
|
4.45
|
4.77
|
including
|
101.00
|
102.50
|
1.50
|
11.38
|
WF16-016
|
|
81.00
|
85.45
|
4.45
|
7.31
|
including
|
83.40
|
85.45
|
2.05
|
10.15
|
WF16-015
|
|
61.75
|
64.60
|
2.85
|
6.71
|
including
|
62.55
|
63.55
|
1.00
|
8.74
|
WF16-014
|
|
55.00
|
57.80
|
2.80
|
4.24
|
including
|
56.00
|
57.00
|
1.00
|
7.99
|
WF16-013
|
|
40.80
|
44.00
|
3.20
|
2.69
|
including
|
43.25
|
44.00
|
0.75
|
9.34
|
WF16-011
|
|
31.80
|
33.28
|
1.48
|
4.05
|
including
|
32.10
|
32.45
|
0.35
|
10.60
|
1. All
downhole intervals. True thickness to be determined
|
2. All
gold assays uncut.
|
|
Compliance Statement (JORC 2012 and NI 43-101)
The
technical information in this news release relating to results at
the Beta Hunt Mine is based on information compiled by Steve Devlin, who is a Member of the Australian
Institute of Mining and Metallurgy. Mr. Devlin is a full time
employee of Salt Lake Mining Pty Ltd and has sufficient experience,
which is relevant to the style of mineralization and type of
deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012
edition of the "Australasian Code for Reporting of Exploration
Results".
Drill core sampling was conducted by SLM personnel. Samples are
shipped to SGS Mineral Services of Kalgoorlie for preparation and
assaying by 50 gram fire assay analytical method. First sample of
each sample submission incorporates a barren rock sample as a flush
to clean the lab crusher and pulveriser and as a check for
contamination. Analytical accuracy and precision are monitored by
the analysis of insertion of additional blank material and
certified standards. The lab is also required to undertake a
minimum of 1 in 20 wet screens on pulverised samples to ensure a
minimum 90% passing at -75µm.
The disclosure of scientific and technical information contained
in this news release has been approved by Alger St-Jean, P. Geo.,
Vice President Exploration of RNC, Johnna
Muinonen, Vice President Operations of RNC and Kevin Small, Director, Mining Operations of RNC,
all Qualified Persons under NI 43-101.
Conference Call / Webcast
RNC will be hosting a
conference call and webcast today beginning at 10:00 a.m. (Eastern Time).
Live Conference Call and Webcast Access Information:
North American callers please dial: 1-888-231-8191
Local and international callers please dial: 647-427-7450
A live webcast of the call will be available through CNW Group's
website at: www.newswire.ca/en/webcast/index.cgi
A recording of the conference call will be available for replay
for a one week period beginning at approximately 1:00 p.m. (Eastern Time) on January 18, 2017, and can be accessed as
follows:
North American callers please dial: 1-855-859-2056; Pass Code:
53770169
Local and international callers please dial: 416-849-0833; Pass
Code: 53770169
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 gold
and nickel 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 liquidity and capital resources of RNC,
production guidance and the potential of the Beta Hunt and Reed
mines.
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: 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