New discovery includes 95kg specimen stone
containing an estimated 2,440 ounces of gold and a 63kg specimen
stone containing an estimated 1,620 ounces of gold
TORONTO, Sept. 9, 2018 /CNW/ - RNC Minerals (TSX: RNX)
("RNC"), is pleased to announce a new high-grade gold discovery at
its Beta Hunt Mine. Over the past week, approximately 9,250 ounces
of high grade gold was produced from a 44
m3 cut (130 tonnes) on 15 level at the Beta Hunt
Mine (equal to over 70 ounces/tonne or 2,200 grams/tonne). The high
grade gold (coarse gold and large gold-containing specimen stones)
includes approximately 190 kg of specimen stone, the largest of
which is 95 kg with an estimated gold content of 2,440 ounces and a
second large specimen stone of 63kg with an estimated gold content
of 1,620 ounces. Final ounces will be determined once the coarse
gold is processed and/or sold over the next week which is expected
to yield approximately $C15 million
in cash. All of the high grade coarse gold is hand picked, direct
ship ore and immediately sent from site directly to the Perth
Mint.
"Recovering 9,250 ounces of high grade coarse gold from a single
cut on the 15 level at our Beta Hunt mine, including specimens
which could rank among the largest ever discovered, underlines the
importance of this discovery. Just 8 weeks earlier, at the end of
June 2018, 1,500 ounces of high grade
gold were recovered from other sediment structures on the 14 and 15
levels. These discoveries highlight the high-grade gold potential
of Beta Hunt." said Mark Selby,
President and CEO of RNC.
RNC is the first owner of the Beta Hunt Mine to focus on
drilling deeper in the Lunnon Basalt in its search for gold, and
therefore the first owner to discover and mine gold from newly
discovered coarse gold located entirely within the Lunnon
Basalt. Previous bonanza grade specimen stone occurrences at
Beta Hunt were associated with the nickel-sulphide bearing contact
between the Lunnon Basalt and the overlying Kambalda Komatiite
where nickel mining has been focused by RNC and previous
operators.
Based on diamond drilling and underground mapping, there
are two or more Lunnon sediment bands which are a zone of narrow
(< 0.3m), strongly pyritic black
shale horizons positioned approximately 150m stratigraphically below the Lunnon
Basalt/Kambalda Komatiite nickel contact (see Figure 2 below). This
sediment horizon is well documented in published literature and is
recognized as a marker unit in differentiating the Upper and Lower
Lunnon Basalt. The sediment horizon is now also interpreted by
geologists at the Beta Hunt Mine as a zone of chemical interaction
between the gold bearing fluids and pyritic sulfides, which under
the right conditions, allow large gold crystal growth and extremely
high-grade gold deposition. This interpretation is based on
geological mapping and interpretation of structures on 14 and 15
Levels, where 1,500 oz of specimen gold was discovered and mined in
the second and third quarter. The structure found last week is
located in a dilation zone which contains sheared pyritic
sediments, porphyry and Lunnon basalt and large amount of coarse
gold and specimen stone.
Understanding the depositional model for this new gold
mineralization provides potential for future exploration and
discovery of high grade gold material at the sediment marker layer,
which runs along all known shear structures located at Beta Hunt
Mine.
Beta Hunt Sale Process Update
Given the significance of this discovery to the exploration
potential and value of Beta Hunt, RNC has decided to consider all
alternatives, including a sale, to maximize the value of Beta Hunt
for RNC shareholders. As a result of the discovery and related
developments, RNC is no longer in exclusive discussions with a
preferred bidder for Beta Hunt.
The strategic process regarding RNC's 100% owned Beta Hunt Mine
(announced March 22, 2018), is being
led by financial advisors PCF Capital Group and Haywood Securities
Inc.
Please note that although there can be no assurance as to the final
result of this process, RNC believes that this direction is in the
best interests of the corporation and its shareholders.
Qualified Person
The disclosure of scientific and technical information contained
in this news release has been approved by Kevin Small, Vice-President, Project Development
of RNC, a Qualified Person under NI 43-101.
Conference Call / Webcast
RNC will host a call/webcast
on Tuesday, September 11 at
10:00 a.m. (Eastern Time) to discuss
the discovery. North American callers please dial:
1-888-231-8191, international callers please dial: (+1)
647-427-7450. For the webcast of this event click
[here] (replay access information below).
Live Conference Call and Webcast Access Information:
North American callers please dial: 1-888-231-8191
Local and international callers please dial: 647-427-7450
A live webcast of the call will be available through Cision's
website at: www.newswire.ca/en/webcast/index.cgi
A recording of the conference call will be available for replay
for a one week period beginning at approximately 1:00 p.m. (Eastern Time) on September 12, 2018, and can be accessed as
follows:
North American callers please dial: 1-855-859-2056; Pass Code:
2586118
Local and international callers please dial: 416-849-0833; Pass
Code: 2586118
About RNC Minerals
RNC is a multi-asset mineral
resource company with a portfolio of nickel, cobalt, and gold
production and exploration properties. RNC has a 28% interest in a
nickel joint venture with Waterton that owns the Dumont
Nickel-Cobalt Project located in the Abitibi region of Quebec which contains the second largest
nickel reserve and eighth largest cobalt reserve (the largest
undeveloped nickel reserve and second largest undeveloped cobalt
reserve in the world). RNC has a 100% interest in the producing
Beta Hunt gold and nickel mine located in Western Australia and a 35% interest in Orford
Mining Corporation, a mineral explorer focused on highly
prospective and underexplored areas of Northern Quebec and the Carolina Gold Belt in
the United States. RNC also has a
27% stake in the Reed Mine in Manitoba. RNC has a strong management team and
Board with over 100 years of mining experience at Inco and
Falconbridge. 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 and Reed mines as well as the and the potential of
the Dumont development project and Orford Mining's Qiqavik, West
Raglan, Jones-Keystone Loflin and Landrum-Faulkner exploration
properties.
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; 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