Recent development recovers a 43kg specimen stone containing an estimated 1,100 ounces of gold
TORONTO, Sept. 16, 2018 /CNW/ - RNC Minerals (TSX: RNX) ("RNC"), is pleased to announce that it has doubled the strike length of this high grade coarse gold structure, to approximately 10 metres, after restarting development in the new high grade gold discovery area "Fathers Day Vein" at its Beta Hunt Mine in Australia (see RNC news release dated September 9, 2018). Airleg development towards the initial discovery area intersected the structure last Friday and the break through into the original discovery area is expected today. A 43kg specimen stone containing an estimated 1,100 ounces of gold and a second 7kg specimen containing 190 ounces was recovered from this most recent development. An updated estimate of ounces from the Fathers Day Vein is expected to be provided later this week after final outturns from last week's shipments to the Perth Mint have been received and initial estimates from the recovery and shipment of coarse gold and specimen stones from the most recent development are completed. Final numbers from this most recent development should be known within 2 weeks once all processing by the Perth Mint has been completed.
"The Fathers Day Vein delivers additional gold and cash flow from this further extension with additional potential up-dip still to be developed. I am looking forward to the production estimates incorporating these additional ounces expected later this week. The Beta Hunt team has done a great job moving the operation forward over the last 12 months and I congratulate every person working at Beta Hunt for the incredible Fathers Day Vein discovery last week. RNC is currently developing plans to unlock the high-grade gold potential of the mine which remains largely unexplored." said Mark Selby, President and CEO of RNC.
Airleg development resumed last week and began driving towards the current face on the left side of the initial discovery area (see Figure 1) and intersected the structure last Friday (September 14, 2018) effectively doubling the strike length of the high grade coarse gold structure. The structure remains open up dip with a substantial amount of coarse gold remaining in the face (see Figure 2)
Fathers Day Vein Discovery (see RNC news release September 9, 2018)
This discovery was made on Father's Day in Australia and has been named the "Fathers Day Vein".
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.
The Lunnon Basalt contains a subaqueous sediment horizon which well documented in published literature and is recognized as a marker unit in differentiating the Upper and Lower Lunnon Basalt. Whereas the Upper has lower MgO content than the Lower sequence. 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. Understanding the depositional model for this new gold mineralization provides potential for a completely new level of high grade gold specimen stone to be discovered.
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 Q2/Q3. The structure found in early September is located in a dilation zone which contains sheared pyritic sediments, porphyry and Lunnon basalt and a large amount of coarse gold and specimen stone. This underlines the potential of future exploration and discovery of coarse gold material grading in several ounces per tonne. The sediment marker layer, which runs along all known shear structures located at Beta Hunt Mine, provide significant exploration potential in the near future.
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.
About RNC Minerals
RNC is a multi-asset mineral resource company with a portfolio of gold production and nickel, cobalt, assets and exploration properties. RNC has a 100% interest in the producing Beta Hunt gold and nickel mine located in Western Australia where a significant high grade gold discovery was recently made. RNC also has a 28% interest in a nickel joint venture 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 in the world. RNC owns a 35% interest in Orford Mining Corporation, a mineral explorer focused on highly prospective and underexplored areas of Northern Quebec and the U.S. Carolina Gold Belt. 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
For further information: Rob Buchanan, Director, Investor Relations, T: (416) 363-0649, www.rncminerals.com