RNC Minerals Announces High-Grade Gold Results at HGO and Drilling Program at Paleochannel Targets
Summary
Paleochannel Project
- The paleochannel project is an integral component of HGOs expected Life of Mine Plan, with drilling to date focused on two priority areas within the paleochannel system - Mitchell and Jupiter.
- The paleochannel system extends for over 7 kilometres south of current mining operations (Fairplay North) and provides multiple exploration targets along its length including extensions of the paleochannel and the hard rock potential at depth.
- Planning for the first of the high-grade primary gold mineralization targets is underway which will test the continuity of the mineralization below the Jupiter paleochannel.
- This mineralization, first identified by historical drilling in 2012, had not been followed up because of the prior onerous royalty attached to the tenement, which is now being eliminated (see RNC news release dated May 11, 2020).
o Drill intersection1, 2 highlights from the Jupiter primary mineralization are listed below:
- JUPR037:-234.0 g/t over 2 m downhole from 90 m
- JUPR025:-39.2 g/t over 2 m downhole from 64 m
- JUPR031:-4.2 g/t over 17 m downhole from 54 m
- JUPR030:-4.7 g/t over 7m downhole from 70 m
1. Estimated true widths are 60%-70% of downhole widths
2. Intersections previously reported by Alacer Gold Corp. (news release, March 26, 2013).
Pioneer Deposit
- New drilling by RNC has extended gold mineralization at Pioneer and outlined a high-grade shallow, south plunging shoot which shows clear potential for underground development. Pioneer is part of HGOs near term mine plan.
o Highlights from the 2020 drill program include1:
- PORR0142: 5.4 g/t over 17.0 m from 67 m, including 10.7g/t over 6.0m
- PORR0186: -3.9 g/t over 18.0 m from 60 m
- PORR0184: -8.5 g/t over 5.0 m from 97 m, including 16.0g/t over 2.0 m
- PORR0138: -6.7 g/t over 9.0 m from 57 m
1. Estimated true widths (Note: true widths approximate downhole widths).
Baloo Mine extended to South
- Grade control drilling in the Baloo pit has extended high-grade gold mineralization beyond the pit design at the southern end of the pit.
- Six follow-up RC holes testing the extension of the mineralization at depth were completed and confirmed the presence of mineralization below the current pit.
o Highlights from the 2020 drill program include1:
- BLOR0044: -5.5 g/t over 3.0 m from 21m
- BLOR0048: -7.3 g/t over 2.0 m from 16 m
1. Drillhole intervals are estimated true widths.
- The deeper extensions of the Baloo mineralization, below the current pit design, will be tested with infill diamond drilling later in 2020. The historical highlights summarized below underscore the underground potential of this deposit.
o Highlights of historical gold drill results1, 2 from S2 Resources:
- SPC0258: -5.1 g/t over 8.0 m from 106 m
- SPD0100: -8.4 g/t over 7.6 m from 125.2 m
SPD0101: 5.0 g/t over 9.8m from 111.5 m
1. Drillhole intervals are estimated true widths. (Note: true widths approximate downhole widths).
2. Intersections previously reported by S2 Resources Ltd. (ASX news releases, February 10, 2016 and December 8, 2016).
Note: Tables showing complete results and drill hole locations can be found at the end of this news release.
TORONTO, May 19, 2020 - RNC Minerals (TSX: RNX) ("RNC" or the Company" - https://www.commodity-tv.com/play/rnc-minerals-new-strategy-as-a-gold-company-with-straight-forward-plans/ ) is pleased to announce positive results from ongoing drilling at Higginsville and a further update of our review of historical drill records. As part of the Companys open pit pipeline development strategy, drilling is now underway at the Jupiter project to be followed by Mitchell, two of the Companys paleochannel deposit targets.
Paul Huet CEO and Executive Chairman RNC said, Following the announcement of the elimination the Morgan Stanley NSR royalties last week (see RNC news release dated May 11, 2020), we are excited to be seeing further strong examples of the potential at Higginsville. Not only are we seeing further potential additions to open pit resources, but our ongoing technical review of the historical database has revealed another excellent high-grade target for us to pursue at the Jupiter project.
At Jupiter, the presence of historical drilling grades in excess of 230 g/t over two metres at relatively shallow depths (approximately 60 metres from the surface) highlights the tremendous upside potential at Higginsville. These results follow on from the historic drill results from the Aquarius deposit (see RNC news release date February 27, 2020) which are also high-grade and close to the surface. With the elimination of the Morgan Stanley NSR royalty, these projects will be free of this long-standing burden, which held back exploration and mining at Higginsville for over a decade.
Over the course of 2020, we will continue to aggressively target these new areas as we also test our existing pits for additional ore body extensions. The commencement of drilling on the paleochannel deposits is exciting and we look forward to continuing to build upon the outstanding results that we have delivered thus far at Higginsville in 2020.
Figure 1: Location of Jupiter, Baloo, Mitchell, Pluto and Pioneer Deposits
https://www.irw-press.at/prcom/images/messages/2020/51936/19052020_EN_RNC HGO Exploration Update_news release.001.png
Pioneer
The Pioneer gold deposit is located 13 km south south-east of the HGO processing plant (Figure 1). RNC commenced drilling at Pioneer late last year with the aim of upgrading and increasing the Historical Mineral Resource. The work involved a two-stage reverse circulation (RC) drill program totaling 86 drill holes for 7,953 metres. Results from the 2019 - 2020 drilling have extended the mineralization along strike to the south and down dip and identified a shallow, south plunging high-grade shoot (Figure 2). Further drilling is planned through the second half of 2020 to test continuity of the mineralization at depth and test the potential for an underground operation by drilling the interpreted high-grade shoot extensions.
Highlights1 of gold results from the drilling are listed below:
- PORR0138: - 6.7 g/t over 9 m from 57 m
- PORR0141: - 2.0 g/t over 15 m from 50 m
- PORR0142: - 5.4 g/t over 17 m from 67 m, including 10.7 g/t over 6 m
- PORR0143: - 5.5 g/t over 7 m from 59 m
- PORR0144: - 3.5 g/t over 9 m from 66 m
- PORR0145: - 4.6 g/t over 8 m from 80 m
- PORR0184: - 8.5 g/t over 5 m from 97 m, including 16.0 g/t over 2 m
- PORR0186: - 3.9 g/t over 18 m from 60 m
- PORR0209: - 2.4 g/t over 12 m from 64 m
1. Drillhole intervals are estimated true widths (Note: true widths approximate downhole widths).
Figure 2 - Pioneer Long Section Looking West
https://www.irw-press.at/prcom/images/messages/2020/51936/19052020_EN_RNC HGO Exploration Update_news release.002.jpeg
Mineralization at Pioneer is interpreted to dip approximately 30° towards the east and is hosted within a mafic package comprised mainly of silicified basalt with narrow, cherty interflow sediments. Mineralization is interpreted as bounded by steeply east dipping, north northeast trending regional shears.
Baloo
Grade control drilling and follow-up RC drilling (6 holes for 262 metres) in the Baloo pit has extended the high-grade mineralization beyond the pit design at the southern end of the pit (Figure 3). Results from the grade control drilling and the deeper follow-up holes will be used to extend the existing pit design. Potential to extend the northern end of the pit at depth is also under review as supported by earlier released drill results (see RNC news release, Jan. 23, 2020). Drill intersection1 gold result highlights from the March RC program are listed below:
- BLOR0044: -5.5 g/t over 3.0 m from 21 m
- BLOR0048: -7.3 g/t over 2.0 m from 16 m
1. Drillhole intervals are estimated true widths.
The deeper sections of the Baloo historical resource are planned to be tested with infill diamond drilling later in 2020. A review of previous exploration work completed by S2 Resources (S2) shows that mineralization extends over 300 m below surface with a number of significant intersections just below the current pit design highlighting the potential to extend the mine life of this deposit with an underground operation (Figure 3). Highlights of gold results from the S2 drill intersections1 (S2 Resources Ltd., ASX news releases, February 10, 2016, December 8, 2016 and February 13, 2017) are listed below:
- SPC0258: -5.1 g/t over 8.0 m from 106 m
- SPD0100: -8.4 g/t over 7.6 m from 125.2 m
- SPD0101: 5.0 g/t over 9.8m from 111.5 m
1. Drillhole intervals are estimated true widths (Note: true widths approximate downhole widths).
Figure 3 - Baloo Long Section Looking East Highlighting Potential to Extend Pit to South
https://www.irw-press.at/prcom/images/messages/2020/51936/19052020_EN_RNC HGO Exploration Update_news release.003.jpeg
Note: Historical drill intersections shown (see S2 Resources Ltd.,ASX news releases, February 10, 2016, December 8, 2016 and February 13, 2017).
Mineralization at Baloo is located on the Buldania Fault, a north north-west striking fault dipping shallowly approximately 30° to the east. Alteration comprises biotite +/pyritearsenopyrite with multiple generations of veining present within the Fault zone. Gold mineralization is associated with quartzarsenopyritepyrite veining.
Paleochannel Project
The paleochannel deposits at Higginsville are an integral part of the expected HGO mine plan. RNC is focused on three primary Paleochannel deposits: Mitchell, Jupiter and Pluto. Jupiter and Pluto belong to the Challenger paleochannel system which lies 3 kms east of the Mitchell paleochannel (Figure 1).
Historical mine production totaled 2.1 Mt @ 3.4 g/t (232,000 contained gold ounces). The existing Historical Indicated Mineral Resource of 1.5 Mt @ 2.2 g/t for 102,000 contained gold ounces and a Historical Inferred Mineral Resource of 0.3 Mt @ 2.1 g/t for 14,000 contained gold ounces (see technical report dated February 6, 2020 under Royal Nickel Corporations profile at sedar.com) was part of the acquisition of Higginsville . A qualified person has not done sufficient work on behalf of RNC to classify the historical estimates as current mineral resources or mineral reserves and RNC is not treating the historical estimates as current mineral resources or mineral reserves.
The remaining paleochannel historical resources were assessed and prioritized for follow-up drilling. This work resulted in all three areas (Mitchell, Jupiter and Pluto) being targeted for infill and extensional drilling, with the objective of upgrading and adding to the historical mineral resources. Drilling will also test the continuity of primary mineralization previously intersected at the Jupiter prospect, with the objective of producing a Mineral Resource estimate for this mineralization.
Drilling of an expected total of 4,060 m is planned in two stages. Stage one will comprise 33 drill holes for 2,140 m, targeting both the Jupiter primary and overlying paleochannel mineralization and infill the Mitchell 3 and 4 Historical Mineral Resources. Stage two will comprise 32 drill holes for 1,920 m, targeting an upgrade and extension of the Pluto Historical Mineral Resource.
RNCs initial focus will be to improve confidence in the historical high-grade intersections with the objective of defining a Mineral Resource for mine evaluation. This will be driven in tandem with results from the paleochannel which overlies the primary mineralization. Highlights of historical drill intersection1 gold results from the primary mineralization are listed below (see Alacer Gold Corp. news release, March 26, 2013):
- JUPR037:-234.0 g/t over 2 m downhole from 90 m
- JUPR025:-39.2 g/t over 2 m downhole from 64 m
- JUPR031: -4.2 g/t over 17 m downhole from 54 m
- JUPR030: -4.7 g/t over 7m downhole from 70 m
1. Estimated true widths are 60%-70% of downhole widths.
Figure 4: Jupiter Long Section looking West
https://www.irw-press.at/prcom/images/messages/2020/51936/19052020_EN_RNC HGO Exploration Update_news release.004.jpeg
Note: Longsection is based on Alacers news release dated March 26, 2013
Paleochannel Deposits at Higginsville
Paleochannel gold deposits comprise both ancient placer gold, normally near the base of the channel-fill sequences, and chemically precipitated secondary gold within the channel-fill materials and underlying saprolite. These gold concentrations commonly overlie, or are adjacent to, primary mineralized zones within Archaean bedrock. At Jupiter, the primary mineralization, discovered by Alacer in 2012, begins approximately 50 metres below surface and is associated with a north-south steeply dipping shear structure hosted within Paringa basalt (Figure 4). Mineralization is associated with tensional quartz-(chlorite-carbonate) veining and sulphides (pyrite) with visible gold occurring in some intersections. The structure is variably mineralized for over 1 km of strike.
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 Exploration & Growth, Salt Lake Mining Pty Ltd, a 100% owned subsidiary of RNC, a Qualified Person for the purposes of NI 43-101.
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 40gram (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.
The historical data referenced in this release has been reviewed under the supervision of 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, and is supported by relevant monthly exploration reports and historic mineral resource reports which detail the QA/QC procedures used on drill samples and provide analysis of the results of all associated QA/QC samples including blanks, standards (CRM samples), check assays and duplicates. All drilling from 2004 to present followed industry standard practices, with pre-2004 historic drilling not detailed but assumed to be similar to current practices (sources for such historical drill results are identified where applicable above). A qualified person has not done sufficient work to classify the historical estimates as current mineral resources and RNC is not treating the historical estimates as current mineral resources.
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.
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 Higginsville Mining Operations
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 Corporations 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.
For more information, please contact:
Rob Buchanan -----
Director, Investor Relations---
T: (416) 363-0649-----
www.rncminerals.com
In Europe:
Swiss Resource Capital AG
Jochen Staiger
info@resource-capital.ch
www.resource-capital.ch
Table 1: RNC Drillholes - Pioneer (December 2019 - February 29, 2020)
ProspectHole Sub FromTo DownholeEstimateAu
In Intervad True (g/t
terval l Width )3.
(m) (m
(m) )2.
(m)
Pioneer PORR0127 55.058.03.0 3.0 0.39
One
Pioneer PORR0128 24.027.03.0 3.0 1.39
One
Pioneer PORR0129 - - - - NSA
One
Pioneer PORR0130 49.059.010.0 10.0 2.52
One
Pioneer PORR0131 19.024.05.0 5.0 2.03
One
Pioneer PORR0132 - - - - NSA
One
Pioneer PORR0133 - - - - NSA
One
Pioneer PORR0134 57.059.02.0 2.0 1.84
One
Pioneer PORR0135 57.059.02.0 2.0 1.45
One
Pioneer PORR0136 65.072.07.0 7.0 2.84
One
Pioneer PORR0137 - - - - NSA
One
Pioneer PORR0138 57.066.09.0 9.0 6.68
One
Pioneer PORR0139 61.062.01.0 1.0 0.13
One
Pioneer PORR0140 72.081.09.0 9.0 1.0
One
Pioneer PORR0141 50.065.015.0 15.0 2.04
One
Pioneer PORR0142 67.084.017.0 17.0 5.36
One
includi76.082.06.0 10.0 10.68
ng
Pioneer PORR0143 59.066.07.0 7.0 5.54
One
Pioneer PORR0144 66.075.09.0 9.0 3.45
One
Pioneer PORR0145 80.088.08.0 8.0 4.55
One
Pioneer PORR0146 65.073.08.0 8.0 1.84
One
Pioneer PORR0147 113.118.5.0 5.0 3.94
One 0 0
Pioneer PORR0148 91.099.08.0 8.0 1.73
One
Pioneer PORR0149 - - - - NSA
One
Pioneer PORR0150 66.067.01.0 1.0 1.46
One
Pioneer PORR0151 - - - - NSA
One
Pioneer PORR0152 - - - - NSA
One
Pioneer PORR0153 11.015.04.0 4.0 3.62
One
Pioneer PORR0154 - - - - NSA
One
Pioneer PORR0155 - - - - NSA
One
Pioneer PORR0156 66.072.06.0 6.0 3.84
One
Pioneer PORR0157 24.025.01.0 1.0 0.17
One
Pioneer PORR0158 32.046.014.0 14.0 1.41
One
Pioneer PORR0159 - - - - NSA
One
Pioneer PORR0160 23.026.03.0 3.0 1.63
One
Pioneer PORR0161 33.036.03.0 3.0 1.34
One
Pioneer PORR0162 61.062.01.0 2.0 0.31
One
Pioneer PORR0163 - - - - NSA
One
Pioneer PORR0164 45.052.07.0 7.0 0.53
One
Pioneer PORR0165 - - - - NSA
One
Pioneer PORR0166 100.101.1.0 1.0 0.1
One 0 0
Pioneer PORR0167 81.083.02.0 2.0 0.1
One
Pioneer PORR0168 104.108.4.0 4.0 3.36
One 0 0
Pioneer PORR0169 27.032.05.0 5.0 4.09
One
includi27.028.01.0 1.0 10.5
ng
Pioneer PORR0170 93.094.01.0 1.0 1.82
One
Pioneer PORR0171 28.029.01.0 1.0 0.19
One
Pioneer PORR0172 42.043.01.0 1.0 0.99
One
Pioneer PORR0173 62.064.02.0 2.0 1.71
One
Pioneer PORR0174 27.030.03.0 3.0 2.98
One
Pioneer PORR0175 126.127.1.0 1.0 0.59
One 0 0
Pioneer PORR0176 100.102.2.0 2.0 0.93
One 0 0
Pioneer PORR0177 72.076.04.0 4.0 0.53
One
Pioneer PORR0178 88.092.04.0 4.0 2.54
One
Pioneer PORR0179 115.119.4.0 4.0 4.78
One 0 0
Pioneer PORR0180 35.036.01.0 1.0 0.94
One
Pioneer PORR0181 45.053.08.0 8.0 1.24
One
Pioneer PORR0182 87.0104.17.0 17.0 1.01
One 0
Pioneer PORR0183 110.113.3.0 3.0 3.05
One 0 0
Pioneer PORR0184 97.0102.5.0 5.0 8.53
One 0
includi98.0100.2.0 2.0 15.95
ng 0
Pioneer PORR0185 66.074.08.0 8.0 1.61
One
Pioneer PORR0186 27.028.01.0 1.0 1.0
One
Pioneer PORR0186 60.078.018.0 18.0 3.92
One
Pioneer PORR0187 52.056.04.0 4.0 3.74
One
Pioneer PORR0188 97.098.01.0 1.0 2.15
One
Pioneer PORR0189 65.072.07.0 7.0 1.37
One
Pioneer PORR0190 56.058.02.0 2.0 0.86
One
Pioneer PORR0191 60.067.07.0 7.0 2.31
One
Pioneer PORR0192 80.088.08.0 8.0 1.91
One
Pioneer PORR0193 - - - - NSA
One 1.
Pioneer PORR0194 - - - - NSA
One 1.
Pioneer PORR0195 - - - - NSA
One 1.
Pioneer PORR0196 - - - - NSA
One 1.
Pioneer PORR0197 - - - - NSA
One 1.
Pioneer PORR0198 - - - - NSA
One 1.
Pioneer PORR0199 34.036.02.0 2.0 1.83
One
Pioneer PORR0200 71.074.03.0 3.0 1.17
One
Pioneer PORR0201 - - - - NSA
One 1.
Pioneer PORR0202 - - - - NSA
One 1.
Pioneer PORR0203 - - - - NSA
One 1.
Pioneer PORR0204 - - - - NSA
One 1.
Pioneer PORR0205 - - - - NSA
One 1.
Pioneer PORR0206 54.055.01.0 1.0 0.76
One
Pioneer PORR0207 31.035.04.0 4.0 0.27
One
Pioneer PORR0208 107.108.1.0 1.0 1.04
One 0 0
Pioneer PORR0209 64.076.012.0 12.0 2.37
One
Pioneer PORR0210 56.059.03.0 3.0 2.59
One
Pioneer PORR0211 80.092.012.0 12.0 1.26
One
Reported gold grades > 0.1g/t Au over 1m; NSA - no significant results (<0.1g/t Au)
1. Waste dump sterilisation holes
2. True widths approximate downhole widths
3. Uncut gold assays
Table 2: RNC Drillholes - Baloo (March 2020)
ProspectHole sub FromTo DownholEstimatedAu
in e True (g/t
terval Interv Width )1.
al (m)
(m) (m)
(m)
Baloo BLOR0044 21.027.06.0 3.0 5.47
Baloo includi22.024.02.0 2.0 11.7
ng
Table 4: S2 Resources Ltd - Selected Historical Results from Baloo deposit, 2015/16/17 Drilling
ProspectHole sub From To DownholEstimatedAu
in e True (g/t
terval Interv Width )2.
(m) al (m)
(m) (m)
1.
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