Limited Restart of Mining Now Well Underway -
Development Sufficiently Advanced to Allow Mining Below Father's
Day Vein During May
TORONTO, May 8, 2019 /CNW/ - RNC Minerals (TSX: RNX)
("RNC") today announced that the purchase option agreement entered
into on March 26, 2019 with Westgold
Resources Limited for its Higginsville Mill and Gold Mining
Operations ("HGO") has been extended until May 12, 2019, to allow the parties additional
time to settle definitive documentation and confirm the exercise of
the option. The parties confirm that due diligence is substantially
complete and they are progressing towards finalisation of the
deal.
RNC also announced gold mined production results for the first
quarter of 2019 of 3,716 ounces. Production levels (see Table 1
below) reflect RNC's decision in November
2018 to temporarily ramp down mining in order to focus on
drilling off the main shear zone resources and complete an updated
resource estimate. On March 28, 2019,
RNC announced the drilling program had sufficiently advanced to
allow for commencement of a limited restart of mining in areas with
mine development already in place. The timing for a full ramp-up
decision has remained unchanged and will be based on completion of
the resource update expected by the end of the second quarter of
2019.
Mark Selby, President and CEO,
commented, "We are now entering an exciting phase at Beta Hunt. The
limited restart, which began during the first quarter, has already
achieved a 40,000 ounce annualized run rate in April 2019 after production in the first quarter
for both coarse gold and overall production were in line with our
previously announced ramp down. Development is now sufficiently
advanced to allow mining activities to begin this month underneath
the Father's Day Vein Discovery on 16 Level. This development will
target a 1,406 g/t intersection sitting just 7 metres below the
Father's Day Vein area. We remain on track to complete an updated
resource estimate by the end of June and fully restart production
later this year which, pending a successful conclusion to the
Westgold transaction, will be delivered to a fully integrated Beta
Hunt - Higginsville operation. The combination of the Higginsville
Mill with the production potential of our Beta Hunt mine is
expected to provide significant synergies, including a 35% cost
saving per tonne (or in excess of US$100/oz) versus our current toll milling
arrangements."
First Quarter Production
50.3 kt of material was milled at an average grade of 3.20 g/t
to produce 5.2 koz of gold, a 38% decrease from the first quarter
of 2018. Milling grades were 36% higher compared to the first
quarter of 2018 as higher grade mined material was processed. 6.4
koz of gold was sold during the first quarter of 2019.
34 kt of material was mined at Beta Hunt at an average grade of
3.36 g/t to produce 3.7 koz during the first quarter, a 73%
decrease versus the first quarter of 2018. Mined production was
lower due the planned temporary ramp down of mining during the
first phase of the ongoing 40,000 meter drilling program.
Table 1: Beta Hunt Mine Q1 2019 and 2018 Production
Results
Beta Hunt Gold
Operation1
|
Q1 2018
|
Q1
2019
|
%
Change
|
Gold tonnes mined
(000s)
|
169
|
34
|
-80%
|
Gold mined grade (g/t
Au)3,4
|
2.54
|
3.36
|
+32%
|
Gold mined – coarse
gold / specimens (ounces)
|
381
|
69
|
-82%
|
Gold mined
(ounces)
|
13,399
|
3,647
|
-73%
|
Total gold mined
(ounces)2,3,4
|
13,780
|
3,716
|
-73%
|
Gold tonnes milled
(000s)
|
110
|
50
|
-55%
|
Gold mill grade (g/t
Au)
|
2.36
|
3.20
|
+36%
|
Gold Recovery
(%)
|
90%
|
94%
|
+4%
|
Gold milled
(ounces)
|
8,372
|
5,168
|
-38%
|
Gold sales
(ounces)1
|
7,978
|
6,375
|
-20%
|
1.
|
Note: numbers may not
add due to rounding.
|
2.
|
The difference in
gold sales ounces and gold mined ounces is due to timing
differences in receipt of gold sales depending on completion date
of tolling campaigns.
|
3.
|
Final grades are
determined once mined material has been processed.
|
4
|
As of March 31, 2019,
48.9 kt of gold mineralization remained on the ROM pad for
tolling.
|
About RNC
RNC has a 100% interest in the producing Beta Hunt gold mine
located in Western Australia where
a significant high grade gold discovery - "Father's Day Vein" - was
made in September 2018. RNC is
currently completing a 40,000 metre drill program, the results of
which will be incorporated into an updated Mineral Resource
Estimate and mine plan targeted for Q2 2019. Beta Hunt gold
resource potential is underpinned by multiple gold shears with gold
intersections across a 4km strike length which remain open in
multiple directions adjacent to an existing 5km ramp network. RNC
also has a 28% interest in a nickel joint venture that owns the
Dumont Nickel-Cobalt Project located in the Abitibi region of
Quebec which contains the second
largest nickel reserve and eighth largest cobalt reserve in the
world. RNC owns a 33% interest in Orford Mining Corporation, a
mineral explorer focused on highly prospective and underexplored
areas of Northern Quebec. RNC has
a strong management team and Board with over 100 years of mining
experience. 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 Mine and Dumont
Nickel – Cobalt Project.
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; results of exploration programs; accidents,
labour disputes and other risks of the mining industry; political
instability, terrorism, insurrection or war; or delays in obtaining
governmental approvals, projected cash operating 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, including the most recent Annual
Information Form, 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