TORONTO, Jan. 8, 2020 /CNW/ - RNC Minerals (TSX: RNX)
("RNC" or the "Company") is pleased to announce record consolidated
gold production, since acquiring the HGO mine and mill, of 9,620
ounces for the month of December 2019
from its Beta Hunt and Higginsville mines in Western Australia.
For the fourth quarter of 2019, production was 26,874 ounces.
For the second half of 2019, production totaled 51,090 ounces,
exceeding company guidance of 42,000 to 49,000 ounces. Full year
2019 production was 64,277 ounces.
Given the strong cash generation from its operations, during
December 2019 RNC elected to pay down
$3 million in debt early (thereby
reducing 2020 interest costs), finishing the year with a strong
cash balance of $34 million.
Paul Andre Huet, Chairman &
CEO, commented: "The gold production results for the second half of
2019 were very strong, with a total of 51,090 ounces produced
exceeding the upper end of the range of our previously announced
second half 2019 guidance of 42,000 to 49,000 ounces. The monthly
production results for December continue to demonstrate the
consistently improving production RNC has achieved since the
acquisition of the Higginsville Gold Mine and Mill.
We are also very pleased to have been able increase our cash
position to $34 million at year end,
$9 million higher than $25 million at September
30, 2019. This strong cash position is net of an early
$3 million debt payment we elected to
make to reduce our interest costs in 2020."
Mr. Huet continued, "I would also like thank all our personnel
at our Western Australian operations for demonstrating true
resilience in the face of a very difficult situation with respect
to the ongoing wildfire situation throughout Australia. The first priority at RNC is the
health and safety of our personnel, and we implemented our
multi-stage fire safety plan to ensure this. Our personnel have
been in direct contact with the relevant Australian authorities
during this challenging period and have also provided direct
assistance to DFES (Department of Fire and Emergency Services) via
the use of some of our heavy equipment and resources.
With respect to operations, we experienced minor disruptions in
ore haulage from Beta Hunt due to road closures in the region,
however we continued to process ROM stockpiles and Baloo material
throughout this period. We are pleased to report that ore supply
from Beta Hunt and the delivery of reagents to the mill has been
restored and our mill is operating at full capacity with feed from
both sites.
Overall the impact of the fires on HGO is not expected have any
material impact on our first quarter production nor our anticipated
2020 plans thanks to the outstanding efforts of firefighters,
volunteers on the ground and the HGO team.
Lastly, we look forward to providing 2020 annual production and
cost guidance to investors in the coming weeks."
As initially stated in RNC's third quarter 2019 results news
release dated November 6, 2019, and
regularly since, RNC will now be transitioning to quarterly
reporting of production results, effective January 1, 2020. In keeping with standard
industry practice, the Company will also provide annual production
and cost guidance for 2020 during the first quarter of 2020.
About RNC Minerals
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 facility is a low-cost 1.4 Mtpa processing
plant 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 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 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