1,750oz Gold Recovered from 274 kg of
Rock
TORONTO, Sept. 24, 2019 /CNW/ - RNC Minerals (TSX: RNX)
("RNC") is pleased to announce that additional high-grade coarse
gold has been recovered at its Beta Hunt Mine in Western Australia.
An estimated 1,750 ounces of coarse gold has been recovered from
274 kg of rock (see Figure 1)1. The discovery occurred
on the 16 Level A Zone, 160 metres south and 25 metres below the
Father's Day Vein discovery and on the same level as the high-grade
gold mined in June 2019 (see Figure 2
below for a long section showing main section of A Zone).
Note 1: The accuracy of this
estimate at this stage is considered to be +10%/-25% as it is based
on the measurement of the estimated gold content for each of the
samples by specific gravity determinations.
It is important to note that these high-grade coarse gold
discoveries exposed by normal mining practices are not included in
the updated Beta Hunt Measured and Indicated Mineral Resource
estimate of 944koz (10,104kt at 2.9 g/t) and Inferred Mineral
Resource of 406koz (4,109kt at 3.1 g/t)2. These
occurrences are best considered as a potential periodic significant
bonus to mine production. With the addition of the Higginsville
mill and mine in June, RNC now has the ability to monetize these
high-grade discoveries more efficiently compared to previous toll
milling arrangements.
Note 2: Reference is made to the Technical
Report Western Australia Operations – Eastern Goldfields: Beta Hunt
Mine (Kambalda) and Higginsville Gold Operations (Higginsville)"
dated September 17, 2019 available
for download on RNC's website and under RNC's profile on
Sedar.com
Paul Andre Huet, Chairman and CEO
commented: "Once again we have encountered an area of high-grade
coarse gold in the same geological setting as the Father's Day
Vein. Approximately 20 ounces of gold was expected to be recovered
from this area where 1,750 ounces were recovered. This further
highlights the potential of the Beta Hunt Mine, demonstrating the
significant upside impact these high-grade discoveries can have on
operational cash flow generation.
We will look to quickly monetize this gold to capitalize on
current A$2,250/oz Australian gold
prices. This will continue to bolster our already strong treasury
position following our recently completed C$18.5mm bought deal financing.
Mr. Huet continued, while these high-grade discoveries are
welcome contributors to our bottom line, we remain squarely focused
on our newly outlined cost cutting strategy at both the operational
and corporate levels. We invite investors to review our recently
updated presentation outlining this strategy on our website."
Qualified Person
The disclosure of scientific and technical information contained
in this news release has been approved by Stephen Devlin Vice President Exploration and
Growth for SLM, a Qualified Person under NI 43-101.
The recovered coarse gold quantities were determined and
compiled at the Beta Hunt mine site by Beta Hunt Mine staff who are
full time employees of Salt Lake Mining Pty Ltd, a 100% owned
subsidiary of RNC.
Gold content of rock specimens containing coarse gold was
determined using the non-destructive specific gravity method
according to the calculation in Figure 3.
Where Au_g is the contained gold weight of the rock
specimen in grams, Gold SG is the specific gravity of
gold and equals 19.3, Dry Weight_g is the dry weight in
air of the rock specimen measured via laboratory scale adjusted for
container mass, Water Mass ml is the mass of water
displaced by the rock specimen measured by placing the rock in
water and weighing the displaced water, Host Rock SG is
the estimated specific gravity of the host rock (gangue material in
the specimen) based upon interpreted relative proportions of quartz
and basalt in the host rock and in this case ranges from 2.7 to
2.8.
The error in this estimation method is primarily related to the
estimation of Host Rock SG. The values determined for
Au_g is considered to be accurate within a range
of +10% to -25% of the determined value.
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. The
robust Beta Hunt gold mineral resource is underpinned by multiple
gold shears with gold intersections along a 4 km strike length
which remains open in multiple directions. The gold mineral
resource is 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 has a 28% interest in a nickel joint venture that
owns the Dumont Nickel-Cobalt Project located in the Abitibi region
of Quebec. Dumont 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 Board and management team focused
on delivering shareholder value. 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 estimated
1,750 ounces of coarse gold at the Beta Hunt Mine, 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.
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