Maiden guidance for RNC

RNC Minerals has announced guidance for the first time for its Beta Hunt and Higginsville gold operations in Western Australia’s Goldfields.
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Mining at the Baloo stage one pit

Staff reporter

The two mines are expected to deliver 42,000-49,000 ounces of gold at all-in sustaining costs of US$1150-1250 an ounce in the current half.

It comes after the first full quarter of Higginsville ownership delivered combined production of 24,216oz.

New chairman and CEO Paul Andre Huet said the release of guidance would keep shareholders informed and allow the market to measure the company's performance.

"As we have previously communicated, our focus moving forward remains on delivering on our production guidance, while continuing to reduce costs through all levels of our business," he said.

"We look forward to continuing the momentum into the fourth quarter and building on what has already been a great start.

"At Baloo, we are encouraged by ongoing exploration results to the north and additional results to the east of the current pit, both of which have the potential to extend the current open pit."

Grade control drilling at the Baloo pit identified additional mineralised material that is expected to extend stage one mining into the first quarter of 2020.

Drilling north of a major fault previously thought to truncate the main Baloo mineralisation has returned strong results, including 8.7 grams per tonne over 3m from 63m.

The company is reviewing the Higginsville tenements, as well as historical Beta Hunt results.

A maiden reserve for Beta Hunt is due this quarter.

"This will be a meaningful step forward for the company and will position us to deliver our 2020 production and cost guidance to the market early next year, as is industry standard," Huet said.

RNC shares were unchanged at C34c in Toronto overnight, only 1c above the 2019 low. The company is considering an ASX listing next year.