Highlights
- Western Flanks mineralization extended a further
200 m north of previous drilling with
broad zones of mineralization not included in the recently
announced Mineral Resource (see RNC news release dated August 13, 2019). Key intersections include
(estimated true widths):
-
- WFN-086 – 2.0 g/t over 21.2 m
(including 2.6g/t g/t over 8.4 m) and
41.4 g/t over 1.64 m (including 99.2
g/t over 0.7 m)
- WFN-087 – 2.3 g/t g/t over 6.2
m (including 7.8 g/t over 0.5
m)
- New drill hole FZ350-001 confirms the Fletcher Shear Zone as
the third major mineralized system at Beta Hunt. Intersection
extends the discovery 150 m down dip.
The Fletcher Shear Zone has a potential strike length of 2 km.
Intersections include:
-
- FZ350-001 – 5.6 g/t over 1.9
m, 1.2 g/t over 17.5 m
(including 5.9 g/t over 0.5 m) and
3.2 g/t over 1.9 m
- Work has commenced on a review of existing nickel resources
and potential targets at Beta Hunt with the objective of providing
additional by-product revenue. Although early stages, work to date
is showing positive results with the identification of coherent,
high grade nickel mineralization from historical drilling above the
Western Flanks gold mineral resource.
TORONTO, Sept. 16, 2019 /CNW/ - RNC Minerals (TSX: RNX)
(RNC) is pleased to announce results of the recently completed
Exploration drilling program that was drilled from underground
positions within the Beta Hunt mine. A total of six holes were
completed for 2,190 m. Drilling
targeted three shear zones – Fletcher (one hole), Western Flanks
north (four holes) and East Alpha (1 hole). Drilling
was designed to test conceptual targets, and to investigate the
potential for extension of the Western Flanks Mineral Resource to
the north. The balance of the original 5,000
m planned for exploration drilling has been deferred for the
time being to focus on other priorities. Exploration at Beta Hunt
will continue to focus on the identification of gold and nickel
drill targets based on a review of historic (and current) drill
holes, supported by an improved understanding of the mineralization
and geological controls generated by the 2019 resource definition
drill program.
Paul Andre Huet, President and
CEO of RNC, commented "The extension of the Western Flanks
mineralization is very positive for RNC, as it is consistent with
our view regarding the potential for continued mineral resource
additions at Beta Hunt. With our recent results, we have
extended the strike length of the Western Flanks shear zone by an
additional 200 m to the north of the
current resource base. The potential for the Fletcher zone to be
added as Beta Hunt's third major mineralized zone is progressing
well based on our recent drilling, leading us to identify further
high priority drilling targets along the shear. Our drilling
campaign this year resulted in a major increase (+395%) to our
Measured and Indicated resource base, now totaling 944 koz. These
ounces came at an extremely low discovery cost of $7.30 per oz. Overall, I am extremely pleased
with the ongoing drilling program, which has intersected
mineralized zones beyond our already significantly increased
mineral resource base."
Fletcher
In 2016, an exploration drill hole, WF14-98, first intersected
the Fletcher Shear Zone (FSZ) – refer RNC news release dated
July 6, 2016. Drilling tested
a conceptual gold target using the A-Zone and Western Flanks shear
zones as structural analogues. Drilling confirmed the existence of
a third significant mineralized shear zone within the Beta Hunt
sub-lease with the discovery hole yielding two mineralized
intervals within the FSZ - results reported below use estimated
true thicknesses1.
- WF14-98 (Lode A) - 2.67g/t Au over 6.2
m including 3.1g/t Au over 3.1
m; and
- WF 14-98 (Lode B) - 2.32g/t Au over 11.2
m, including 3.8 g/t Au over 4.8
m.
The recent drill hole, FZ350-001 (642.1
m), targeted the down-dip extension of the FSZ, 150 m down dip of the WF14-98 intersection. The
follow-up hole was collared on the 350L crosscut of the Western
Flanks. Drilling was successful in intersecting the extension of
the FSZ in the targeted position (Figure 2). The FSZ comprised
biotite-pyrite altered, foliated and irregularly quartz veined
basalt – similar to that found at Western Flanks. Assay results
confirmed a broad zone of gold mineralization of similar widths to
the up-dip hole:
- FZ350-001: 1.21 g/t Au over 17.5
m including 5.87g/t over 0.54
m
The lower gold grades compared to WF14-98 appear related to
reduced quartz veining and a 4.5 m
wide porphyry intruding into the FSZ at this location which carries
an average grade of 0.3 g/t Au.
The confirmation that the FSZ comprises a broad mineralized zone
provides added confidence and evidence that the FSZ is Beta Hunt's
third major mineralized shear zone system. Drilling has confirmed
it has over 150 m of down dip extent,
while potential remains for the system to extend over 2 km of
strike.
Potential also exists for nickel mineralization to occur along
the basalt/ultramafic contact, directly above the Fletcher shear
zone in a similar geological setting to the nickel trough
mineralization found directly above the A Zone and Western Flanks
shear zones. This target will be considered as part of the
next phase of drilling at Beta Hunt which is currently under
consideration by management.
___________________________
|
1 Previously reported as down hole
widths (RNC news release dated July 6, 2016)
|
Western Flanks (north)
Much of the success of the recently completed resource
definition program in defining a Mineral Resource of 710,000 oz
(Measured and Indicated) and 250,000 oz (Inferred)1 was
built on the extension to the north of the previously defined
resource. To further test the northern strike potential of the
Western Flanks, four exploration holes (1,229.4 m), tested for mineralization on sections
100 m and 200
m north of previous drilling. All four holes intersected
Western Flanks shear-style mineralization, with the strongest
intersections on the most northern section as follows (all
intersections are estimated true widths).
- WFN-084: 1.2g/t Au over 9.9 m and
3.2 g/t Au over 3.5 m
- WFN-085: 2.2 g/t Au over 3.4
m
- WFN-086: 2.0 g/t over 21.2 m
including 2.6 g/t Au over 8.4 m
(including 22.0 g/t over 0.3 m)
- WFN-087: 2.3 g/t over 6.2 m
including 7.8 g/t Au over 0.5 m
1.
|
Reference is
made to the Technical Report on the Beta Hunt Mine, Kambalda
Western Australia, dated August 12, 2019. The report is available
for download under Royal Nickel Corporation's profile on
Sedar.com.
|
Drill results show the Western Flanks shear zone continues to
extend a further 200 m further north
of previous drilling and highlights the potential for significant
additions to the recently completed mineral resource estimate. The
Western Flanks mineralized system now extends continuously over 1.4
km in strike to a depth of 150 m to
250 m below the basalt contact and
remains open at depth and along strike to the north.
East Alpha
Drill hole EA63-031 (318.1 m) was
the first hole designed to specifically test the East Alpha shear
zone interpreted to be associated with, and directly below, the
East Alpha nickel trough. Drilling targeted 100 m below the ultramafic/basalt contact and
historic drill hole EA63-13 (4.8 m @
5.9 g/t Au down hole). Best result recorded in the drill hole was
0.53 g/t Au over 3.3 m (est. true
width) associated with sheared basalt and associated quartz breccia
veining. The main East Alpha shear was intersected from
135 m to 161
m (down hole) and comprises sheared basalt hosting
extensional quartz-carbonate veining and pyrite alteration. Early
results (0.8 g/t Au from 157 m to
158 m down hole) although not showing
mineable grade do highlight the need for further evaluation of East
Alpha geology to fully understand the results of this initial
hole
Nickel
Work has commenced on a review of existing nickel mineral
resources and targets to take advantage of the current nickel price
with the objective of supplementing gold revenue. The nickel
mineral resources for Beta Hunt previously reported by RNC
(effective as of February 1, 2016)
are- Measured and Indicated 379 kt @ 4.2% Ni (15,840 t Ni),
Inferred 216 kt @ 3.4% Ni (7,400 t Ni). Since the effective date of
this estimate (February 1, 2016), RNC
has processed a total of 124 kt grading 2.6% Ni (3,354 t contained
Ni) from the Beta Hunt mine.
Beta Hunt has the advantage of having existing mine development
adjacent to nickel mineral resources that would provide the
potential for short term production without interfering with the
planned gold production. The operation is currently assessing
requirements to allow for nickel production to be placed on a more
sustainable basis.
Preliminary review of historic drilling is already providing
significant encouragement. An example of work to date has already
indicated continuous, high-grade nickel mineralization located
above the Western Flanks gold Mineral Resource (Figure. 4) This
mineralization is outside of any nickel mineral resources
previously reported by RNC and occurs parallel to the
historically-mined D Zone nickel trough (above A Zone gold Mineral
Resource) 150 m to the east.
In addition to the nickel mineralization on the
ultramafic/basalt contact, there is also the potential for coarse
gold to occur on or just below this contact, as occurred on the
A-Zone contact. Historical records show 3,295 oz gold was mined
from specimen stone by WMC at or just below the nickel contact at
the top of the A Zone shear. Coarse/Specimen gold
mineralization is intermittently found where the mineralized shears
intersect iron sulphide-rich contacts represented by the main
basalt/ultramafic contact and pyritic interflow sediment.
Going Forward
The reported drilling results will contribute to our updated
exploration strategy for Beta Hunt. The strategy aims to continue
to grow the Western Flanks shear zone, test additional areas along
the 2km strike potential of the FSZ and target more prospective
segments of the East Alpha shear. To support this process a
systematic review and re-sampling program on all historical core
has commenced to drive our updated geological model for mine
planning and future drill program design.
With respect to nickel, work will continue on re-evaluating
existing resources and exploration opportunities with the aim of
prioritizing future work which most likely will include drilling to
test newly identified targets as well as upgrading/extending
current nickel resources.
Table 1: Beta Hunt selected drill results from exploration
drilling program received since June 26,
2019
Hole
ID
|
|
from
(m)
|
to
(m)
|
interval
(m)
|
Estimated
True
Thickness
(m)
|
Gold1.
(g/t)
|
WFN-084
|
|
140.00
|
153.35
|
13.35
|
9.94
|
1.15
|
and
|
160.00
|
164.70
|
4.70
|
3.50
|
3.16
|
WFN-085
|
|
299.80
|
306.00
|
6.20
|
3.41
|
2.15
|
WFN-086
|
|
118.00
|
149.70
|
31.70
|
21.24
|
1.97
|
including
|
118.00
|
130.20
|
12.50
|
8.38
|
2.59
|
including
|
130.00
|
130.50
|
0.50
|
0.34
|
20.96
|
and
|
340.00
|
342.45
|
2.45
|
1.64
|
41.38
|
including
|
340.50
|
341.50
|
1.00
|
0.67
|
99.20
|
WFN-087
|
|
199.00
|
212.00
|
13.00
|
6.24
|
2.29
|
including
|
210.00
|
211.00
|
1.00
|
0.48
|
7.84
|
EA63-031
|
|
64.00
|
68.00
|
4.00
|
3.33
|
0.53
|
FZ350-001
|
|
0.00
|
7.00
|
7.00
|
4.62
|
1.76
|
and
|
24.89
|
32.20
|
7.31
|
4.82
|
3.02
|
and
|
520.00
|
547.93
|
27.93
|
17.46
|
1.21
|
including
|
546.20
|
547.06
|
0.86
|
0.54
|
5.87
|
and
|
574.00
|
577.00
|
3.00
|
1.86
|
5.60
|
and
|
616
|
619
|
3.00
|
1.86
|
3.25
|
Table 2: Location and status of holes drilled in the current
Exploration drilling campaign beginning June
26, 2019.
Drill
Hole
|
Easting
(m)
|
Northing
(m)
|
Elevation
(m)
|
Azimuth
(deg)
|
Dip
(deg)
|
Total Length
(m)
|
Area
|
FZ350-001
|
374830
|
543915
|
-348.2
|
250
|
-42
|
642.1
|
Fletcher
Zone
|
WFN-084
|
374549
|
544427
|
-232.4
|
207
|
-36.4
|
255
|
Western Flanks
North
|
WFN-085
|
374549
|
544427
|
-232.4
|
209
|
-55.9
|
375
|
Western Flanks
North
|
WFN-086
|
374427
|
544427
|
-232.4
|
260.3
|
-33.9
|
203.6
|
Western Flanks
North
|
WFN-087
|
374549
|
544425
|
-234.735
|
256.8
|
-54
|
395.8
|
Western Flanks
North
|
EA63-031
|
375817
|
543181
|
-610.075
|
72.1
|
-37.7
|
318.1
|
EAST_ALPHA
|
Compliance Statement (JORC 2012 and NI 43-101)
The disclosure of scientific and technical information contained
in this news release has been reviewed and approved by Stephen Devlin, Vice-President, VP Exploration
& Growth, Salt Lake Mining Pty Ltd, a 100% owned subsidiary of
RNC, a Qualified Person for the purposes of NI 43-101.
Drill core sampling was conducted by Beta Hunt 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.
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 toresults of
exploration at the Beta Mine, the potential to generate revenue
from nickel production and information about the timing,
potential, extent and success of mining at the Beta Hunt Mine and
Higginsville Gold Operations and the ability to monetize
mineralized material at the Beta Hunt Mine..
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.
Cautionary Statement Regarding the Beta Hunt Mine and
Higginsville
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 SLM'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. 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 the Corporation'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