More strong results out of Beta Hunt program

THE latest results from drilling at Beta Hunt in Western Australia continue to highlight the "tremendous" exploration potential of the rich Father's Day Vein gold strike, RNC Minerals said overnight.
More strong results out of Beta Hunt program More strong results out of Beta Hunt program More strong results out of Beta Hunt program More strong results out of Beta Hunt program More strong results out of Beta Hunt program

RNC says Beta Hunt, in Australia, continues to deliver strong mineralised intercepts in the ongoing 40,000m drill campaign

Staff reporter

The Toronto-headquartered company says it has completed 16,669m in 168 holes of its ongoing 40,000m drilling campaign, which is feeding into an updated resource estimate and mine plan targeted for publication in the June quarter.

The company has received assays for 29 holes, which includes results from the Western Flanks area that showed broad zones of mineralisation and significant gold intersections outside and to the north of the existing resource.

Highlight assays included 4.17 grams per tonne gold over 19.14m (including 8.92gpt over 3.58m) and 4.63gpt over 7.61m.

At the A zone, 115 holes for 10,800m has been completed. The work has infilled around the 'Father's Day Vein' and the northern limit and southern limits of the A Zone. Results included 7.84gpt over 5.63m, including 66.9gpt over 0.38m.

"The 2210gpt intersection within 8m of our previously announced record intersection in Western Flanks is further confirmation of the potential of the intersection between the mineralised shears and the property-wide Lunnon sediment layer for further high-grade coarse gold discoveries," CEO Mark Selby said.

Drilling in the A Zone continued to extend the resource, with multiple intersections exceeding 4gpt, including two intersections in excess of 6gpt and 5.5m at the margins of the existing resource, he said.

"At Western Flanks, multiple wide intersections highlight the scale potential of this shear while containing significant 4-6gpt intervals. We will continue to provide regular updates as this 40,000m exploration program advances," he added.

RNC also reported record production results from the Beta Hunt mine for 2018. The company produced 73,801oz at an average grade of 4.48gpt, double the volume and grade compared with 2017.

For the December-quarter, mined gold ounces totalled 15,341, an increase of 21% year-on-year. The company sold 19,512oz in the three months, up from 12,896oz in 2017.

"Record 2018 gold production reflects the tremendous impact from the Father's Day Vein discovery and high-grade coarse gold production. Production in the fourth quarter was in line with our expectations with the previously announced suspension of bulk mining production at Beta Hunt, as we continue to focus on the exploration programme," Selby said.

He said the company would provide 2019 guidance when the resource update was completed and a decision to fully restart bulk production was made.

In a separate statement Monday, RNC revealed several board changes.

Paul Andre Huet, who joined the board in November last year, becomes executive chairman and will take an active role in delivering on strategy. Huet was president, CEO and director of Klondex Mines from 2012 to 2018 until it was acquired by Hecla Mining.

Scott Hand, the former executive chairman, will become lead director. Warwick Morley-Jepson, who has been an observer to the board, will now join the board to become chairman of the technical committee.

RNC traded 10% or C7c lower in Toronto on Monday at 65c, capitalising it at $303.03 million.