Reunion Gold Provides Update on Gold Projects in Guyana

Reunion Gold Corporation (TSXV: RGD) provided an update on the Waiamu and Arawini gold projects in Guyana.

As quoted in the press release:

Waiamu gold project Further to its February 21, 2018 announcement, a definitive agreement with respect to the Waiamu project has now been executed. The agreement provides to the company the right to conduct exploration activities and the right and option to acquire a 100 percent interest in the Waiamu project (the “option”). The option is for an initial period of five years with a possible extension of up to two additional years (the “option period”). An initial payment of US$200,000 (less an advance payment of US$65,000) will be paid to the owners of the mineral titles within the next ten business days. Annual payments of US$200,000 will be payable thereafter during the option period.

The company can exercise the option at any time during the option period provided that the company has spent at least US$5,000,000 in exploration and development expenditures and that total cumulative option payments of at least US$1,000,000 has been made. The company can terminate the Waiamu agreement at any time upon delivery to the owners of a 30-day prior written notice. If the company exercises the option, the owners will be entitled to receive an additional consideration equal to US$5.00 per ounce of gold to be produced from the Waiamu project, payable in accordance with an agreed advance payment schedule starting upon exercise of the option. The Waiamu project covers approximately 35,000 acres in the Cuyuni River valley in northwest Guyana. The project is underlain by a NE trending clastic sedimentary sequence, which includes interspersed mafic volcanics and pyroclastic units typical of the Guiana Shield greenstone belts of Proterozoic age.

The sedimentary sequence has been deformed and metamorphosed. In the Waiamu area, this sequence hosts numerous artisanal gold workings, with gold-bearing quartz veins often forming dense “swarms” with significant volumes. The current owners are carrying out artisanal gold mining in the weathered cap of two prospects using contractors.

The company has begun executing a comprehensive exploration program including line cutting, prospecting, geological mapping and regolith auger-sampling. Since the execution of the letter agreement, 112 kilometers of line cutting has been completed, along with 1,900 regolith samples (out of a planned 5,000 samples) plus 344 tailings, grab and chip samples sent for assaying. Results will be announced when completely available.

Historical regional airborne magnetic surveys have been compiled, reprocessed and interpreted, showing the presence of several NW-SE trending structural corridors transecting the project area, one of which, to the west, appears to be the southeast continuation of the Aurora Mine structure. Another parallel structure to the east passes adjacent to a large artisanal gold producing pit, which also coincides with a magnetic anomaly of unknown source.

The 400 meter by 50 meter regolith sampling program has defined at least seven areas with anomalous gold values, independent from known artisanal prospects. The sampling of tailings and pit walls in such historical and current artisanal prospects has given encouraging multi-gram gold values.

Arawini gold project The company is also pleased to report that, further to its February 21, 2018 announcement, a definitive agreement with respect to the Arawini project has been executed.

The company is entitled to conduct exploration activities and has been granted the right and option to acquire a 100 percent interest in the Arawini project during a period of five years, with possible extension. The company paid US$100,000 to the owner of the Arawini mineral titles, following the execution of the definitive agreement, and will be required to make annual payments of US$150,000 during the option period.

The company can terminate the Arawini agreement at any time upon delivery to the owner of a 30-day prior written notice. Should the company exercise the option, the owner will retain a 0.1 percent net smelter royalty on all gold produced from the Arawini project. The Arawini project covers approximately 22,000 acres of mineral rights in northwest Guyana. The project area is underlain by a sequence of volcanic and sedimentary rocks flanking a granitic batholith known to host several gold prospects that have been the object of artisanal mining of both alluvial and primary mineralization. Previous geochemical exploration outlined several soil and stream sediment anomalies that need to be followed-up.

The company is planning to commence a reconnaissance program for the project area later this year.

Click here to read the full Reunion Gold Corporation (TSXV: RGD) press release.