HIGHLIGHTS
- Maiden Beta Hunt Gold Mineral Reserve of 3.4 million tonnes
grading 2.8 g/t Au, containing 310,000 ounces.
- This 2P Gold Mineral Reserve does not account for the
potential for high-grade coarse gold occurrences, such as the
Father's Day vein, associated with the Shear Zone/Lunnon Sediment
intersection.
- Remaining Gold Mineral Resources have the potential to
provide additional reserves, with Western Flanks and A Zone
mineralization remaining open at both depth and along
strike.
TORONTO, Dec. 23, 2019 /CNW/ - RNC Minerals (TSX:
RNX) ("RNC") is pleased to announce a maiden Gold Mineral Reserve
of 310,000 ounces (3.4 Mt at an average grade of 2.8 g/t; see table
2) at its Beta Hunt gold mine located in Kambalda, Western Australia. The Gold Mineral Reserve
forms the basis for Beta Hunt's mine plan, which schedules
base-load feed to the company's 100% owned Higginsville treatment
plant. Along with the Higginsville mine, the company is feeding the
1.4Mtpa plant to 100% capacity.
The Maiden Gold Mineral Reserve remains open for potential
additions along strike and at depth from both the existing Gold
Mineral Resource (underpinning the Mineral Reserve) and from
exploration targets that will be drill-tested. These targets will
be tested in addition to high-priority targets at RNC's
Higginsville mine following the successful renegotiation of the
Morgan Stanley royalty which opens up these areas for immediate
exploration (see RNC news release dated December 19, 2019).
Paul Andre Huet Chairman and CEO
of RNC said, "We are very pleased with the results of the Maiden 2P
Gold Reserve at Beta Hunt, which now provides a fundamentally
strong basis for a robust production profile moving forward. It is
important to note that the Mineral Resource supporting the 2P
reserves does not account for any high-grade coarse gold
occurrences found at Beta Hunt which we have encountered
intermittently in the past. As we have previously stated, these
occurrences, when encountered, may provide a boost to production
but do not form the basis of our economic mine plan driven by the
average grade of the deposit.
Additionally, we believe there is incremental upside to be
unlocked via both the drill bit and our on-going cost reduction
program at site which remains a key focus for the company moving
forward."
Beta Hunt Mine - Gold Mineral Resources and Reserve
Estimates
Beta Hunt is a mechanised underground mine that has been in
operation since 1974 producing nickel, with gold production
commencing in 2015. The mine is primarily focused on gold
production, with a smaller nickel operation producing from adjacent
discrete mineralised zones. Production from gold areas at Beta Hunt
is currently 45,000 tonnes of ore per month.
The Gold Mineral Reserve for Beta Hunt is based on the
previously announced A Zone and Western Flanks Mineral Resource,
which contains a total Measured and Indicated Gold Mineral Resource
of 10.1 million tonnes grading 2.9g/t Au for 944,000 contained
ounces. The Beta Hunt Gold Mineral Resource was announced by
RNC on August 13, 2019 and can be
found on RNC's website at www.rncminerals.com and at
www.sedar.com. The Measured and Indicated Mineral Resources are
inclusive of those Mineral Resources modified to produce Mineral
Reserves.
The following table presents the current Beta Hunt Gold Mineral
Resource Estimate:
Table 1: Beta Hunt Mine Gold Mineral Resources
Resource1.2.3.4,5
|
Measured
|
Indicated
|
Measured &
Indicated
|
Inferred
|
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Western
Flanks6
|
447
|
2.8
|
40
|
7,001
|
3.0
|
670
|
7,448
|
3.0
|
710
|
2,481
|
3.1
|
250
|
A
Zone7
|
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 Measured and
Indicated Mineral Resources are inclusive of those Mineral
Resources modified to produce Mineral Reserves.
|
3.
|
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.
|
4.
|
Gold Mineral
Resources are reported using a 1.6 g/t Au cut-off grade.
|
5.
|
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,).
|
6.
|
Mineral Resource
Estimate as of 26 June 2019.
|
7.
|
Mineral Resource
Estimate as of 9 August 2019.
|
The maiden Gold Mineral Reserve for Beta Hunt is 3.4 million
tonnes grading 2.8 g/t Au for 310,000 contained ounces. The Mineral
Reserve is based on the Measured and Indicated Mineral Resource
only. Table 2 below outlines a summary of the Beta Hunt Gold
Mineral Reserve:
Table 2: Beta Hunt Mine Gold Mineral Reserve as at
November 01,
20191,2,3,4
Mining
Area
|
Proven
|
Probable
|
Total
|
Tonnes kt
|
Grade g/t
|
Ounces Koz
|
Tonnes Kt
|
Grade g/t
|
Ounce koz
|
Tonnes kt
|
Grade g/t
|
Ounces koz
|
Western
Flanks
|
170
|
2.7
|
15
|
2,900
|
2.9
|
260
|
3,000
|
2.9
|
280
|
A
Zone
|
81
|
2.9
|
8
|
300
|
2.4
|
23
|
390
|
2.5
|
31
|
Total
|
250
|
2.8
|
23
|
3,200
|
2.8
|
290
|
3,400
|
2.8
|
310
|
|
|
Notes:
|
|
1.
|
The Mineral Reserve
is reported at a 2.0g/t cut-off grade
|
2.
|
Key assumptions used
in the economic evaluation include:
|
|
- a metal price of
US$1,400 per oz gold and an exchange rate of 0.69 US$:A$
|
|
- Metallurgical
recovery of 94%
|
|
- Operating Mining,
Processing and G&A costs of A$105.35/t (A$, excluding capital)
|
3.
|
The Mineral Reserve
is depleted for all mining to November 01, 2019.
|
4.
|
The tonnes and grades
are stated to a number of significant digits reflecting the
confidence of the estimate. Since each number is rounded
individually, the table may show apparent inconsistencies between
the sum of rounded components and the corresponding rounded
total.
|
The Beta Hunt Gold Mineral Reserve is reported at a 2g/t cut-off
grade and is based on a gold price of US$1,400/oz as well as current mining,
processing, administration and royalty costs. Mining is based on a
top-down, sub-level open stoping method.
As previously outlined, the high-grade coarse Father's Day style
gold occurrences associated with the Shear Zone/Lunnon Sediment
intersection horizon are not accounted for in the Gold Mineral
Reserve. These occurrences are best considered as a potential
periodic significant bonus to mine production.
Independent mining consultants Entech Pty Ltd of Perth, Western
Australia undertook the work to calculate the Gold Mineral
Reserve estimates in consultation with RNC site-based mine
engineers.
Technical Report
The Gold Mineral Reserve estimate for both Western Flanks and
the A Zone will be detailed in a technical report prepared in
accordance with NI 43-101 to be filed on SEDAR within 45 days of
the date of this press release.
Compliance Statement (JORC 2012 and NI 43-101)
The Gold Mineral Reserve estimates set out in this release were
calculated by Entech Pty Ltd of Perth, Western
Australia, who were employed by RNC Minerals to undertake
the Gold Mineral Reserve estimate for Beta Hunt. The Gold Mineral
Reserve estimates have been prepared using accepted industry
practice and classified in accordance with the JORC Code, 2012
Edition by Ross Moger, under the
supervision of Shane McLeay,
FAusIMM. Both are employees of Entech Pty. Ltd (SLM).
Mr McLeay is a mining engineer and Fellow of the AusIMM 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. Stephen Devlin, FAusIMM, Vice
President Exploration and Growth for Salt Lake Mining Pty Ltd, a
100% subsidiary company of RNC Minerals, 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.
About RNC
RNC is focused on growing gold production
and reducing costs at its integrated Beta Hunt Gold Mine and
Higginsville Gold Operations ("HGO") in Western Australia. The Higginsville treatment
which plant forms part of HGO, is a low-cost 1.4 Mtpa processing
facility which is fed at capacity from RNC's underground Beta Hunt
mine and open pit Higginsville mine. At Beta Hunt, a robust gold
mineral resource and reserve is hosted in multiple gold shears,
with gold intersections along a 4 km strike length remaining open
in multiple directions. HGO has a substantial historical gold
resource and highly prospective land package totaling approximately
1,800 square kilometers. 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
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 Regarding the Beta Hunt
Mine
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 An
updated mineral resource estimate is summarized in the "Technical
Report on The Beta Hunt Mine, Kambalda, Western Australia" dated September 17, 2019. It is further cautioned that
mineral resources are not mineral reserves and do not have
demonstrated economic viability.
Cautionary Statement Concerning Forward-Looking
Statements
This news release contains "forward-looking information"
including without limitation statements relating to the mineral
resource and reserve estimates and the potential of 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.
SOURCE RNC Minerals