- High Density Gravity Survey Program
-
- A recent high density gravity survey has delineated a new
geological structure at the Company's Higginsville Operations
("HGO").
- The new structure extends for approximately 5 km, and runs
sub-parallel to the major regional Zuleika, Speedway and Boulder
Lefroy shears which controls the bulk of the gold mineralisation
between the Golden Mile (60 Mozs).and Norseman (6
Mozs) mining centres.
- The new structure is located 5 km north of the previously
mined 1.0 Moz Trident underground mine and the HGO mill.
- The Company will look to fast track exploration in this area
as part of its expanded exploration focus at HGO.
- Approval for Baloo Stage
2
-
- Approval for Baloo Stage 2
has been received from the Department of Mines, Industry
Regulation and Safety, with mining expected to commence mid-2020
and extend to January 2021.
TORONTO, Jan. 29, 2020 /CNW/ - RNC Minerals (TSX:
RNX) ("RNC" or the "Company") is pleased to announce the results of
a recently completed high density gravity survey program at
Higginsville. The program has identified a newly interpreted
structure extending over 5 km north of the previously mined high
grade 1.0Moz Trident gold deposit. The new structure is considered
to have high potential for mineralization at depth and will be the
focus of a new round of drilling by RNC as part of its 2020
exploration program.
RNC is also pleased to announce that Stage 2 of the Baloo open
pit has been approved by the Department of Mines, Industry
Regulation and Safety. Baloo Stage 1
was originally forecast to be completed at the end of January,
however recent grade control and extensional drilling has extended
Baloo Stage 1 until June 2020. Baloo
Stage 2 will begin upon completion of Stage 1,
notwithstanding the potential for further additions to the Stage 1
mine plan.
Paul Andre Huet, Chairman &
CEO, commented: "Although early stage, our interpretation of the
potential size of this new structure is an exciting development for
our HGO-focused exploration activities. With the Morgan Stanley
Royalty recently renegotiated in December
2019, it now makes sense to explore these and many other
areas across the Higginsville tenement package which holds strong
potential for new discoveries.
While exploration begins in earnest at HGO, production remains
on target at both our operations. Considering that both
Baloo Stage 1 and 2 pits were
initially expected to be completed by mid-2020, the extension of
Baloo out to early 2021 is a testament to the quality of the open
pit opportunities at Higginsville. We expect the extended Baloo
life to provide the additional production and mining flexibility
that comes from operating two open pits over the course of this
year."
High Density Gravity Survey
As part of the renewed focus on exploration at Higginsville, a
high density gravity survey was conducted over a 60 km2
area covering a 5km strike distance north of the previously mined
1.0 Moz Trident gold deposit and HGO mill. The survey area had
previously been the focus of reconnaissance aircore drilling and
limited bedrock drilling as part of a regional approach by previous
owners. However, following the renegotiation of the Morgan Stanley
royalty, exploration re-commenced in this area and the survey was
conducted. The aim of the survey was to define both shear-hosted
and paleochannel structures on 200 m
X 100 m line spacings. The survey
(see Figure 1) was conducted in December, 2019.
Results from the gravity survey highlight a new 5km long
north-south structure (see Figure 2) interpreted to be a splay off
the main Burke-Barcelona
mineralised shear which lies parallel and west of the regionally
significant Zuleika Shear. The new
gravity defined structure, combined with historical shallow aircore
drilling (including a best intersection of 4
m of 1.7 g/t in HIGA157, from 16m), highlights the prospectivity of the full 5
km length of the structure and enhances the potential for
mineralisation at depth.
Follow-up RC bedrock drilling is planned to test the newly
interpreted structure at depth for primary mineralisation as part
of HGO's 2020 exploration plans.
Baloo Stage 2 Approval
On 24th January 2020, RNC received
notice from the Department of Mines, Industry Regulation and Safety
that mining of Baloo Stage 2 has
been approved.
Mining of the second stage will follow completion of Stage 1
which is currently scheduled for late June
2020, notwithstanding the potential for further
mineralization discoveries within the Stage 1 mining area. To date,
grade control and resource definition drilling has continued to add
additional expected production to the Stage 1 mine schedule.
As part of the HGO open pit "production pipeline", it is
expected that Baloo Stage 1 and 2
will be mined in conjunction with a series of additional open pits
commencing with Fairplay North and Pioneer (mining at the former
has already begun). Additional resource definition and grade
control drilling is underway in a number of other areas to continue
to define the pipeline of open pits.
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, FAusIMM, 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.
About the Gravity Survey
The gravity survey was designed to cover the Burke-Barcelona mineralised corridor north of the
Higginsville mill. Data collection was undertaken by Atlas
Geophysics Pty Ltd on a 200m by
100m grid using a Scintrex CG-5
gravity meter. The gravity data were reduced to the sea-level datum
by standard reductions (Tide, drift, height, temperature, pressure,
tilt, free air, and bouguer corrections) using a bouguer density of
2.67 g/cm3 to reflect the underlying geology. The
collected data was processed by Resource Potentials Pty Ltd. The
image presented in this announcement is a bouguer anomaly-2.67-1VD
image with an underlying regional gravity colour over
aeromagnetics.
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