Summary
- Guidance for the second half 2019:
-
- Production 42,000-49,000 oz
- AISC US$1,150-$1,250 per oz
- Mining of Baloo Stage 1
& growing pit pipeline – Baloo Stage 1 mining is performing well and
meeting expectations. Results from grade control drill program have
identified additional mineralised material that is expected to
extend Stage 1 mining into the first quarter of 2020. Mining
approval applications for Baloo
Stage 2 remain on track for submission during the fourth
quarter. In addition to Baloo, a second open pit is fully permitted
and available for immediate mining as part of the growing pipeline
of open pits.
- Exploration - Drilling north of a major fault
previously thought to truncate the main Baloo mineralization has
returned strong results, including 8.7g/t over 3 m from 63 m
downhole1 in drill hole BLOR003 (see below for
additional drill results). These results demonstrate the potential
to extend the Baloo open pit to the north, with additional
follow-up drilling planned during the fourth quarter.
- New Beta Hunt Reserve - Remains on track to be
completed in the fourth quarter of 2019.
- Re-sampling Historic Beta Hunt Drill Holes –
This project has identified a number of new intersections that
confirm or extend known mineralised areas,
including2:
-
- WFN-034 – 3.2 g/t over 4.9
m
- WFN-042 – 6.6 g/t over 1.4
m
1
|
Drilling intervals
reported for Western Flanks are estimated true
thickness.
|
2
|
Drilling intervals
reported for Baloo are down-hole lengths. True thickness cannot be
estimated with available information.
|
TORONTO, Oct. 15, 2019 /CNW/ - RNC Minerals (TSX: RNX)
("RNC" or the "Company") is pleased to announce that for the six
month period ending December 31,
2019, management is targeting production of between 42,000
to 49,000 ounces of gold at an average all-in-sustaining-cost
(AISC)3 of US$1,150 to
US$1,250 per ounce.
3.
|
Non-IFRS: the
definition of these measures are included in the Non-IFRS Measures
section of RNC's MD&A dated August 14, 2019.
|
Paul Andre Huet, Chairman &
CEO, commented: "This is the first time, since completion of the
Beta Hunt drilling campaign and acquisition of Higginsville Gold
Operations ("HGO") mine and mill, that the Company has provided
production and cost guidance, demonstrating our commitment to
keeping shareholders informed and more clearly able to measure our
performance. As we have previously communicated, our focus moving
forward remains on delivering on our production guidance, while
continuing to reduce costs through all levels of our business.
Third quarter 2019 production of 24,216 ounces is an excellent
result for RNC's first full quarter of production since acquiring
the Higginsville Gold Operation (HGO). We look forward to
continuing the momentum into the fourth quarter and building on
what has already been a great start. At Baloo, we are encouraged by
ongoing exploration results to the north and additional results to
the east of the current pit, both of which have the potential to
extend the current open pit".
Mr Huet also noted, "At Beta Hunt, our maiden reserve estimate,
based upon our updated resource estimate announced in August,
remains on track for delivery in the fourth quarter. This will be a
meaningful step forward for the Company and will position us to
deliver our 2020 production and cost guidance to the market early
next year, as is industry standard."
Mining of Baloo Stage 1 is
performing well to expectations. A grade control drill program in
the northern end of the pit has identified additional mineralised
material east of the area where the Company is currently mining.
This material, which can be accessed via a small cut back, is
expected to extend Stage 1 mining into the first quarter of
2020.
Baloo Stage 2 mining approvals
remain on track to be submitted to the appropriate authorities in
the fourth quarter of 2019.
Exploration drilling comprised of five reverse circulation (RC)
drill holes north of a major fault (Buldania Fault) previously
thought to truncate the main Baloo mineralization, has intersected
strong mineralization including 8.7 g/t over 3 m from 63 m
downhole in drill hole
BLOR003. Further drilling is expected to be
conducted over the fourth Quarter to determine the full extent of
mineralization.
As part of the growing pipeline of open pits, a second fully
permitted open pit is available for immediate mining upon the
completion of current mining at Baloo, providing additional
flexibility to the Higginsville operations.
Table 1: Baloo North - RC
drilling significant (> 1g/t Au) drill results from exploration
drilling program September 2019 [NTD:
Need balanced disclosure (not just the good).]
Target
|
Hole
ID
|
From
(m)
|
To
(m)
|
Interval
(downhole
m)1.
|
Gold
(g/t)2.
|
Baloo Fault
Offset
|
BLOR0003
|
63
|
66
|
3
|
8.7
|
|
|
|
|
101
|
102
|
1
|
3.9
|
Baloo Mission
Fault
|
BLOR0004
|
31
|
32
|
1
|
1.2
|
1.
|
Drilling intervals
reported for Baloo are down-hole lengths. True thickness cannot be
estimated with available information
|
2.
|
Un-cut gold
assays
|
A comprehensive review of the large existing historical HGO
resource base has commenced. To date, the review has identified a
number of potential areas for follow up drilling which have the
potential to provide additional long-term feed to the HGO
processing plant.
At Beta Hunt, work on the new Beta Hunt mine reserve remains on
track to be completed in the fourth quarter of 2019. This work has
also identified a number of bulk mining opportunities which have
the potential to improve productivity and lower costs.
A review of historic drill holes at Beta Hunt (involving
assaying of previously un-sampled drill core) has returned
encouraging results. The reviewed intersections have confirmed, and
in some cases extended, known areas of Western Flanks or A Zone
mineralization. Selected intersections include:
- WFN-034 – 3.2 g/t over 4.9 m
- WFN-042 – 6.6 g/t over 1.4 m
- WF13-11 – 1.7 g/t over 5.0 m
Note: Widths reported for Western Flanks are estimated true
thickness.
This review work has been expanded to include potential nickel
targets located adjacent to existing infrastructure which could
potentially provide near and medium term by-product nickel
credits.
Table 2: Beta Hunt - re-sample project, historical drill
core, assay results (> 1g/t Au), September 2019
Location
|
Hole
ID
|
From
(m)
|
To
(m)
|
interval
(down-
hole
m)
|
Estimated
true
thickness
(m)
|
Gold
(g/t)1.
|
Western
Flanks
|
WFC325-05
|
7
|
8
|
1
|
1
|
1.35
|
30.2
|
31
|
0.8
|
0.8
|
1.44
|
33.5
|
34.3
|
0.8
|
0.8
|
1.57
|
Western
Flanks
|
WF13-11
|
0
|
0.85
|
0.85
|
0.85
|
1.31
|
18
|
19.2
|
1.2
|
1.2
|
1.57
|
24
|
29
|
5
|
5
|
1.73
|
Western
Flanks
|
WFN-034
|
116.5
|
117.2
|
0.7
|
0.6
|
3.21
|
119.5
|
122.6
|
3.1
|
2.5
|
2.03
|
132.2
|
138.2
|
6
|
4.9
|
3.22
|
Western
Flanks
|
WFN-031
|
107
|
108
|
1
|
0.8
|
2.32
|
109.5
|
110.2
|
0.7
|
0.6
|
2.32
|
Western
Flanks
|
WFN-042
|
110
|
111
|
1
|
0.6
|
1.21
|
114
|
115
|
1
|
0.6
|
3.74
|
117.9
|
119.6
|
1.7
|
1.4
|
6.62
|
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.
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, 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.
At Beta Hunt Mine drill core sampling was conducted by RNC
personnel. Samples are shipped to SGS Mineral Services of
Kalgoorlie for preparation and assaying by 50 gram fire assay
analytical method. First sample of each sample submission
incorporates a barren rock sample as a flush to clean the lab
crusher and pulveriser and as a check for contamination. Analytical
accuracy and precision are monitored by the analysis of insertion
of additional blank material and certified standards. The lab is
also required to undertake a minimum of 1 in 20 wet screens on
pulverised samples to ensure a minimum 90% passing at -75µm.
At the Higginsville Gold Operation reverse circulation chip
sampling was conducted by RNC personnel. Samples are transported to
Bureau Veritas Minerals Pty Ltd of Kalgoorlie and Perth for preparation and assaying by 40 gram
(approx.) fire assay analytical method. Analytical accuracy and
precision are monitored by the analysis of duplicates, additional
blank material and certified standards inserted in the sample
stream. Samples are weighed as received, dried and split to less
than 3kg then pulverised by LM-5 to ensure a minimum 90% passing at
-75µm.
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 and cost 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