3,200 oz Gold Recovered
TORONTO, Oct. 17, 2019 /CNW/ - RNC Minerals (TSX: RNX)
("RNC") is pleased to announce that another high-grade coarse gold
discovery has been made at its Beta Hunt Mine in Western Australia.
An estimated 3,200 ounces of coarse gold has been recovered from
the 15 Level A Zone approximately 30 metres north of the Father's
Day Vein that was uncovered last year (see RNC news release dated
September 9, 2018). Work was being
undertaken in the area in preparation for stope production which is
expected to take place late this year or early next year.
Paul Andre Huet, Chairman and CEO
commented: "This is yet another example of Beta Hunt delivering
rich pods of high-grade coarse gold. This high-grade occurrence is
within 30 metres of the Father's Day Vein discovery announced last
year. We anticipate mining stopes in this encouraging area towards
the end of 2019 or early 2020. These high-grade gold occurrences
provide additional cash generation beyond what is forecasted by our
steady state mine model, which excludes these high-grade
zones."
Mr. Huet continued, "As I have previously highlighted, RNC aims
to monetize each coarse gold occurrence through our mill as quickly
as possible in order to take advantage of the current high
Australian dollar gold price. That said, our primary focus remains
on aggressively pursuing cost reduction initiatives across all of
our operations."
Figure 1 below shows the gold vein drilled in preparation for
its removal and Figure 2 shows some of the recovered coarse gold
taken to the surface. The combined weight of the rock in Figure 2
is approximately 60 kilograms and contains approximately 520 ounces
of gold (see Figure 1 and 2)1 making up part of the
estimated 3,200 ounces of gold recovered from this area.
Figure 3 is a longitudinal section of the A Zone highlighting
the location of the latest coarse gold discovery. This discovery is
consistent with RNC's geological interpretation of the Father's Day
Vein style coarse gold occurring where mineralized shears intersect
sedimentary sulphides (the sediment/shear intersection horizon
shown in figure 3).
As previously announced, these high-grade coarse gold
discoveries exposed during normal mining practices are not included
in the updated Beta Hunt Measured and Indicated Mineral Resource
estimate of 944 koz (10,104kt at 2.9 g/t) and Inferred Mineral
Resource of 406 koz (4,109 kt at 3.1 g/t)2. These coarse
gold occurrences are best described as periodic upside to mine
production. The addition of the Higginsville mill in June this year
provides RNC the ability to monetize these high-grade discoveries
more efficiently compared to previous toll milling
arrangements.
Note 1: The accuracy of this estimate at this stage is
considered to be +10% to -25% as it is based on the measurement of
the estimated gold content for each of the samples by specific
gravity determinations.
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
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 following calculation.
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
3,200 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