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.
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.
|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).
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.