TORONTO, Aug. 23, 2019 /CNW/ - RNC Minerals (TSX: RNX)
("RNC") is pleased to announce that mining is underway at its Baloo
Stage I open pit. The fully funded and permitted Baloo Stage I pit
is expected to provide material to supply the HGO plant with
approximately 30,000 tonnes per month until year end. Baloo Stage II is currently in the permitting
process. The Baloo material that has been processed at the
Higginsville Gold Operations (HGO) mill has had grades ranging
between 1.8 to 2.8 g/t Au, an excellent grade for a shallow open
pit mine. The Baloo Stage I open pit is the first of a series of
open pits RNC is looking to put into production to maximize
own-sourced feed for the HGO plant which, along with Beta Hunt
material, will increase blending options to achieve optimal
recoveries.
Paul Andre Huet, Chairman and
CEO, commented, "The commencement of processing of Baloo material
through the HGO mill is a another big step forward in the
transformation of RNC into an integrated multi-mine gold operation
and supports our belief in the quality of the resource potential of
the nearly 400 square kilometre HGO land package that we acquired
and the growth trajectory of the combined Western Australia operations. We are looking
forward to providing production and cost guidance for the balance
of 2019 in the near future".
First material from Baloo Stage I was mined in early
August 2019 with first mineralization
being uncovered at a depth of only 3 metres. The Stage I Baloo open
pit also has excellent potential for expansion beyond the end of
2019. A reinterpretation of historical drill holes has highlighted
the potential to extend the Baloo pit further north beyond a large
NE-SW fault previously thought to terminate the mineralization. A
systematic review of the entire HGO resource inventory with a focus
on areas with a short-term potential for mill feed, similar to
Baloo, is well underway.
About RNC Minerals
RNC is currently focused on the integration of its Beta Hunt
Gold Mine with its recently acquired Higginsville Gold Operation
("HGO") in Western Australia.
A significant high-grade gold discovery - "Father's Day Vein"
- was made in September 2018 at Beta
Hunt. The significant 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 HGO, which is comprised of a low cost 1.4 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 liquidity
and capital resources of RNC, production guidance and the potential
of the Beta Hunt Mine, Higginsville Gold Operation and Dumont Nickel – Cobalt Project. As noted,
RNC anticipates providing guidance in the coming weeks. RNC
cautions readers not to annualize July production unless and until
supported by such guidance.
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.
The decision to produce at the Beta Hunt Mine was not based
on a feasibility study of mineral reserves, demonstrating economic
and technical viability, and, as a result, there may be an
increased uncertainty of achieving any particular level of recovery
of minerals or the cost of such recovery, which include increased
risks associated with developing a commercially mineable deposit.
Historically, such projects have a much higher risk of economic and
technical failure. There is no guarantee that anticipated
production costs will be achieved. Failure to achieve the
anticipated production costs would have a material adverse impact
on RNC's cash flow and future profitability. Readers are cautioned
that there is increased uncertainty and higher risk of economic and
technical failure associated with such production decisions An
updated mineral resource estimate is summarized in the "Technical
Report on The Beta Hunt Mine, Kambalda, Western Australia" dated August 12, 2019. It is further cautioned that
mineral resources are not mineral reserves and do not have
demonstrated economic viability.
A production decision at the Higginsville gold operations was
made by previous operators of the mine, prior to the completion of
the acquisition of the Higginsville gold operations by RNC and RNC
made a decision to continue production subsequent to the
acquisition. This decision by RNC to continue production and, to
the knowledge of RNC, the prior production decision were not based
on a feasibility study of mineral reserves, demonstrating economic
and technical viability, and, as a result, there may be an
increased uncertainty of achieving any particular level of recovery
of minerals or the cost of such recovery, which include increased
risks associated with developing a commercially mineable deposit.
Historically, such projects have a much higher risk of economic and
technical failure. There is no guarantee that anticipated
production costs will be achieved. Failure to achieve the
anticipated production costs would have a material adverse impact
on RNC's cash flow and future profitability. Readers are cautioned
that there is increased uncertainty and higher risk of economic and
technical failure associated with such production
decisions..
SOURCE RNC Minerals