RNC Minerals (TSX: RNX) (“RNC”) announces its review of activities and financial results for the quarter ended March 31, 2017. All amounts are expressed in Canadian dollars, unless otherwise noted, and are based on the unaudited financial statements for the quarter ended March 31, 2017.
Mark Selby, President and CEO, commented:
“During the first quarter, we announced three significant transactions: offtake and option agreements with Westgold to acquire its SKO mining and milling operations with significant synergies to our Beta Hunt Mine; the formation of a first-of-its-kind 50/50 nickel joint venture with Waterton containing the Dumont project and US$35 million in cash; and the planned spinout of our TNN exploration assets.
At Beta Hunt, we are now beginning to see the results of the investments made in mine development over the past year with increasing mine production from new stopes in both the A Zone and Western Flanks. Mining rates in May have averaged 1,590 tonnes per day of gold material, up 38% from Q1 levels. These mining rates represent 70% of our mid-year target to achieve an annualized rate of 60,000 ounces of gold and are on-track to achieve commercial production during the second quarter.”
The first quarter of 2017 continued to be a period of transition for the Beta Hunt Mine as it ramped up gold production and prepared for commencement of commercial production expected during the second quarter of 2017. Until commercial production is declared, Beta Hunt gold cost of sales, net of gold revenue, are capitalized to property, plant and equipment.