- 395% increase in global Measured & Indicated resource to
944 koz
- 195% increase in global Inferred resource to 406 koz
- Low discovery cost for Measured and Indicated resource of
A$7.30 per oz
- Beta Hunt Resource update provides solid resource base for
integrated Beta Hunt-Higginsville Gold Operations (HGO)
- Resource definition and exploration focus will now shift to
optimizing historical resources near Higginsville Mill
TORONTO, Aug. 13, 2019 /CNW/ - RNC Minerals (TSX:
RNX) ("RNC") is pleased to announce that a technical report
prepared in respect of its gold resource update for the Beta Hunt
Mine, Kambalda, Western Australia
("Resource Update") has been filed under RNC's profile on SEDAR at
www.sedar.com and on RNC's website at www.rncminerals.com.
This Resource update represents a substantial increase to the
mineral resource for the Beta Hunt Mine at a low discovery cost of
A$7.30/oz. The Measured and Indicated
Resource of 944 koz and Inferred Resource of 406 koz includes
current resources for the Western Flanks Zone (see RNC news release
dated June 27, 2019) and the A Zone
based on the recently completed resource definition drilling
program at Beta Hunt.
"This increase in the Beta Hunt resource size is an outstanding
result at a low discovery cost of A$7.30/oz. We are aiming to convert these
resources into reserves, which we expect will be
completed in the fourth quarter. These reserves will support the
design of an optimized mine plan and updated production
profile for Beta Hunt." said Paul Andre
Huet, Chairman and CEO. "The resource remains open down
plunge - we expect to continue building on the resource inventory,
which will place RNC in a stronger position as we move forward
with a systematic review of the entire historical HGO resource
inventory."
The recently completed resource definition drilling program at
Beta Hunt has significantly added to the resource base of the mine
by upgrading and extending the mineral resources at Western Flanks
and A Zone (Table 1). A total of 16,144 metres of drilling in 135
drill holes were completed at Western Flanks during the current
grade control, resource definition and exploration drilling
program1. Mineralization at Western Flanks has now been
defined across a 1.2 km strike length and to a depth of 150 to 250
metres below the basalt contact. At A Zone, a total of 23,233
metres of drilling in 194 drill holes were completed.
Mineralization at A Zone has now been defined across a 1.8 km
strike length and to a depth of 200 to 400 metres below the basalt
contact.
The increase in Measured and Indicated Resource for both Zones
was achieved at a discovery cost of A$7.30 per ounce.
1. Previously
reported as 16,876 metres in 144 holes. Corrected for
mis-assignment of A Zone holes.
|
Mineral Resource Estimate
The following table presents the current Beta Hunt Mineral
Resource Estimate:
Table 1: Beta Hunt Mine Gold Mineral Resources
Resource1.2.3.4
|
Measured
|
Indicated
|
Measured &
Indicated
|
Inferred
|
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Western Flanks
5
|
447
|
2.8
|
40
|
7,001
|
3.0
|
670
|
7,448
|
3.0
|
710
|
2481
|
3.1
|
250
|
A
Zone6
|
254
|
2.7
|
22
|
2,403
|
2.7
|
212
|
2,657
|
2.7
|
234
|
1,628
|
3.0
|
156
|
Total
|
701
|
2.8
|
62
|
9,404
|
2.9
|
882
|
10,104
|
2.9
|
944
|
4,109
|
3.1
|
406
|
1.
|
Mineral Resources
are not Mineral Reserves and do not have demonstrated economic
viability. There is no certainty that all or any part of the
Mineral Resources estimated will be converted into Mineral
Reserves.
|
2.
|
The Mineral
Resource estimates include Inferred Mineral Resources that are
normally considered too speculative geologically to have economic
considerations applied to them that would enable them to be
categorized as Mineral Reserves. There is also no certainty that
Inferred Mineral Resources will be converted to Measured and
Indicated categories through further drilling, or into Mineral
Reserves once economic considerations are applied. Mineral resource
tonnage and contained metal have been rounded to reflect the
accuracy of the estimate, and numbers may not add due to
rounding
|
3.
|
Gold Mineral
Resources are reported using a 1.6 g/t Au cut-off
grade
|
4.
|
Mineral Resources
described here are based on information compiled by Paul Ellison,
Senior Geologist for Salt Lake Mining Pty.Ltd. Paul Ellison is an
employee of Salt Lake and is a member of the Australasian Institute
of Mining and Metallurgy (MAusIMM,).
|
5.
|
Mineral Resource
Estimate as of 26 June 2019.
|
6.
|
Mineral Resource
Estimate as of 9 August 2019
|
The gold Mineral Resources for the Western Flanks Zone and A
Zone increased significantly compared to the prior gold Mineral
Resource estimate of December 31,
2017 as a result of infill and exploration diamond drilling
completed since that date.
Comparison to Previous Mineral Resource (December 2017)2
Western Flanks Mineral Resource
- Measured and Indicated resource increased by 565 koz to 710
koz
- Inferred resource increased by 165 koz to 250 koz
A Zone
- Measured and Indicated increased by 143 koz to 234 koz
- Inferred increased by 50 koz to 156 koz
- A Zone now includes the Western Flanks East Resource previously
reported separately
Total
- Measured and Indicated gold Mineral Resources increased by 705
koz to 944 koz
- Inferred gold Mineral Resource increased by 198 koz to 406
koz
2. Inclusive of
mine depletion
|
Mineral Resources for Western Flanks and A Zone are reported at
a 1.6 g/t Au cutoff. The comparisons noted above are to the
previous Mineral Resource estimate reported at a 1.8 g/t Au cut-off
and effective December 31, 2017 which
was published by press release on April 26,
2018 and can be found on RNC's website at
www.rncminerals.com and at www.sedar.com. See below for
further detail regarding the basis for, and effect of, this
change.
At Western Flanks, the resource definition drill program has
extended the resource by over 400 metres to the north and 50 metres
down dip (Figure 2), intersecting significantly greater thicknesses
of mineralization in many areas. A revised geological model
for mineralization at Western Flanks based on information from
recent drilling and mining has significantly enhanced the
understanding of the structural controls on mineralization and has
provided improved parameters for resource modeling.
At A Zone, the resource model now incorporates the previously
reported Western Flanks East resource which is the southern strike
extension of the A Zone.
A lower cut-off grade of 1.6g/t Au was used for reporting
purposes and reflects lower milling costs that are a result of
owning our own mill, lower mining costs and a higher gold price
when compared to the 1.8g/t Au cut-off used for the 2017 Mineral
Resource estimate.
The grade-tonnage curve shown below (Figure 4) shows the impact
of varying cut-off grades for Beta Hunt. For example, using a 1.8
g/t Au cut-off as used in the 2017 Beta Hunt Resource estimate
yields:
8,679 kt @ 3.1 g/t Au containing
944 koz1
Which compares to the 2017 Western Flanks Indicated resource
estimate at 1.8 g/t cut-off of:
2,353 kt @ 3.2 g/t Au containing
239 koz1.
Evaluating the 2019 Mineral Resource using a higher cut-off
grade of 2.7 g/t Au yields a Measured and Indicated resource of
4,310 kt @ 4.0 g/t Au containing 557 koz1 ounces
which would still be three times larger on a contained gold basis
than the previous 2017 Measured and Indicated resource.
1. The reader is
cautioned that these figures should not be misconstrued with a
Mineral Resource Statement. The figures are only presented to show
the sensitivity of the block model estimates to the selection of a
cut-off grade
|
The high-grade coarse Father's Day style gold occurrences
associated with the Shear Zone/Lunnon Sediment intersection horizon
are not represented in the resource model due to the extreme
nuggety nature of this type of bonanza mineralization. These
occurrences are best considered as a potential periodic significant
bonus to mine production.
On the basis of these resource estimate updates, RNC Minerals
plans to complete a gold reserve estimate at Beta Hunt mine that we
expect will support resumption of full-scale production at Beta
Hunt in Q4 2019.
Expansion Potential
The successful definition of
significant mineral resources along the Western Flanks and A Zone
shear zones highlights the exploration potential of the other
shears on the property including the fault offset of the
mineralized shear system to the south of the Alpha Island Fault
(Figure 5). Historical drilling has demonstrated that these shears
contain gold mineralization. Stage 1 of the planned exploration
drilling program designed to test three shear zones from
underground positions was recently completed with assays pending -
these will be released once final results are received and
validated.
At this stage, however, following the recent acquisition of the
Higginsville Gold Operations (HGO), the balance of the Beta Hunt
exploration drilling program is to be deferred while exploration
and resource definition activities will be focused on opportunities
for short term additions to the resource base at HGO.
Compliance Statement (JORC 2012 and NI 43-101)
The
Mineral Resource estimates set out in this release have been
prepared using accepted industry practice and classified in
accordance with the JORC Code, 2012 Edition by Paul Ellison, MAusIMM, under the supervision of
Stephen Devlin, FAusIMM. Both are
employees of Salt Lake Mining Pty. Ltd (SLM), a 100% owned
subsidiary of RNC Minerals.
Mr. Ellison is a Senior Geologist for SLM and has sufficient
experience that is relevant to the style of mineralization and type
of deposit under consideration and to the activity being undertaken
to qualify as a Competent Person as defined in the JORC Code, 2012
Edition.
Mr. Devlin is Vice President Exploration and Growth for
SLM and has sufficient experience that is relevant to the
style of mineralization and type of deposit under consideration and
to the activity being undertaken to qualify as a Competent Person
as defined in the JORC Code, 2012 Edition and fulfils the
requirements to be a "Qualified Person" for the purposes of NI
43-101.
Mr. Devlin has reviewed and approved the disclosure of the
technical information included in this news release.
The "JORC Code" means the Australasian Code for Reporting of
Mineral Resources and Ore Reserves prepared by the Joint Ore
Reserves Committee of the Australasian Institute of Mining and
Metallurgy, Australian Institute of Geoscientists and Mineral
Council of Australia. There are no material differences
between the definitions of Mineral Resources under the applicable
definitions adopted by the Canadian Institute of Mining, Metallurgy
and Petroleum (the "CIM Definition Standards") and the
corresponding equivalent definitions in the JORC Code for Mineral
Resources.
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. All diamond
drilling samples submitted for assay will include at least one
blank and one Certified Reference Material ("CRM") per batch,
however small the batch of drillhole samples, plus
one CRM or blank every 20 samples. In samples with observed
visible gold mineralization, a coarse blank is inserted after the
visible gold mineralization to serve as both a coarse flush to
prevent contamination of subsequent samples and a test for
gold smearing from one sample to the next which may have
resulted from inadequate cleaning of the crusher and pulveriser.
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. Where problems have been identified in QAQC checks,
SLM personnel and the SGS laboratory staff have actively pursued
and corrected the issues as standard procedure.
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. Beta Hunt gold resource potential
is underpinned by multiple gold shears with gold intersections
across a 4 km strike length which remain open in multiple
directions adjacent to an existing 5 km ramp network. RNC has a
100% interest in the Higginsville Gold Operation in Western Australia, which is comprised of a low
cost 1.3 Mtpa gold mill and a substantial portfolio of gold
tenements. In addition, RNC owns 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 ninth largest cobalt
reserve in the world. RNC also owns a 24% 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 mineral
resource estimates and the potential of the Beta Hunt Mine and
Higginsville Gold Operations.
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