"Golden Rose" gold slab recovered as mining
resumes in Father's Day Vein
Final estimates of gold content for large
specimen stones confirm among largest gold specimens ever
found
TORONTO, Oct. 24, 2018 /CNW/ - RNC Minerals Corporation
("RNC") (TSX: RNX) is pleased to announce record quarterly gold
production of 31,360 mined gold ounces in third quarter of 2018, a
199% increase versus third quarter of 2017 production and a 135%
increase versus second quarter of 2018. Gold production for the
first nine months of 2018 totaled 58,460 ounces compared to 24,305
for the comparable prior year period. The large increase in high
grade specimen and coarse gold production led to a 198% improvement
in the mined grade for the quarter to 6.67 g/t, as compared to 2.24
g/t in third quarter of 2017 and a 112% increase as compared to
second quarter of 2018.
Mark Selby, President and CEO of
RNC, commented, "Clearly, the highlight of the third quarter was
the significant high grade gold discovery at the Beta Hunt Mine. As
a result of the Father's Day Vein discovery, the company will be in
a substantial net cash position to fully fund our upcoming
activities. With the arrival of the first drill at site during the
past week, exploration activities will begin to ramp up as part of
an aggressive exploration campaign. The technical team is
continuing to advance their work on understanding the sediment
structures in the mine which have the potential for additional high
grade coarse gold."
Mr. Selby continued "We are also pleased to announce the final
gold content estimates for the large specimen stones, which would
rank them among the largest ever found. The "King Henry" specimen
stone, at 1,402 ounces, would rank amongst the largest gold
specimens in existence. With multiple large scale and spectacular
specimens coming from a single area, we believe the Father's Day
Vein may rank among the richest and most prolific gold veins ever
found."
A total of 199 kt of material was processed at an average grade
of 5.26 g/t, for a total of 33,725 ounces of gold, a 185%
improvement from prior quarter milled production and 158% higher
than the third quarter of 2017. Milling grades were 62% higher in
the third quarter of 2018 compared to the prior quarter, and 136%
higher than the third quarter of 2017, mainly as a result of higher
grade mined material and specimen grade material processed in
September.
Table 1: Beta Hunt Mine Q3 2018 Production Results
Beta Hunt Gold
and Nickel
Operation1
|
Q3
2018
|
Q3 2017
|
Q2 2018
|
YTD
2018
|
YTD
2017
|
2017 Q3 to
2018 Q3 %
Change
|
2018 Q2 to
2018 Q3 %
Change
|
Gold tonnes mined
(000s)
|
146
|
146
|
132
|
447
|
371
|
-
|
+11
|
Gold mined grade
(g/t)3,4
|
6.67
|
2.24
|
3.14
|
4.07
|
2.04
|
+198
|
+112
|
Gold mined
(ounces)2,3,4
|
31,360
|
10,489
|
13,320
|
58,460
|
24,305
|
+199
|
+135
|
Gold tonnes milled
(000s)
|
199
|
182
|
112
|
422
|
350
|
+9
|
+78
|
Gold mill grade
(g/t)
|
5.26
|
2.23
|
3.29
|
3.98
|
2.06
|
+136
|
+60
|
Gold Recovery
(%)
|
95
|
90
|
92
|
94
|
91
|
+6
|
+3
|
Gold milled
(ounces)5
|
33,725
|
13,047
|
11,844
|
53,941
|
23,180
|
+158
|
+185
|
Gold sales
(ounces)1
|
23,805
|
8,659
|
11,508
|
43,291
|
25,200
|
+175
|
+107
|
Note that production
numbers are preliminary estimates - final grades and ounces can
only be determined once mined material has been processed. As of
the end of Q3 2018, 70.5 kt of gold mineralization remained in
inventory and had not yet been processed.
|
1.
|
Note: numbers may not
add due to rounding.
|
2.
|
The difference in
gold sales ounces and gold mined ounces is due to timing
differences in receipt of gold sales depending on completion date
of tolling campaigns.
|
3.
|
Final grades are
determined once mined material has been processed.
|
4.
|
As of September 30,
2018, 70.5 kt of gold mineralization remained on the ROM pad for
tolling in the subsequent quarter, as compared to 126.5 kt of gold
mineralization as of June 30, 2018.
|
5.
|
Includes 6,206 ounces
of coarse gold and 2,390 ounces of specimen gold
|
Father's Day Vein Update
Additional firings were completed at the Father's Day Vein over
the past weekend, resulting in the recovery of the "Golden Rose"
slab (see Figure 1). On-site personnel were not able to weigh the
slab as its weight exceeded the maximum weight of the site scales.
A weight and estimate of gold content will be provided by a third
party laboratory.
RNC now expects 27-30,000 ounces of gold from the immediate
Father's Day Vein area and substantially more than 35,000 ounces
from the 540 metres of A Zone sediment structures identified to
date.
With the expectation that ongoing high-grade coarse gold will be
produced by the mine on a regular basis, the Beta Hunt Mine has
taken measures to improve the ability to estimate coarse gold and
realize cash flow more efficiently.
Final gold content of various specimens has now been measured by
third party laboratories (based on the specific gravity of each
specimen relative to the specific gravity of gold and the other
minerals in the specimen).
Table 2: Selected Gold Specimens – Estimated Gold
Content
Specimen
|
Gross Weight
(kg)
|
Estimated
Gold Content (oz)
|
Gold Grade
(g/t, %)
|
King Henry
|
94.21
|
1,402
|
462,870 g/t,
46%
|
Warren
|
63.38
|
893
|
438,236 g/t,
44%
|
Sylvie
|
3.86
|
88
|
709,095 g/t,
71%
|
Steve
|
3.87
|
74
|
594,740 g/t,
60%
|
Technical Disclosure
The disclosure of scientific and technical information contained
in this news release has been approved by Kevin Small, Chief Operating Officer, Salt Lake
Mining and Vice President, Project Development of RNC.
About RNC Minerals
RNC has a 100% interest in the
producing Beta Hunt gold mine located in Western Australia where a significant high
grade gold discovery - "Father's Day Vein" - 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 Mine.
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 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 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