RNC Minerals Provides Update on Resource Extension and Infill Drilling at Beta Hunt, Reports High Grade Gold Intersections including First Coarse Gold at Western Flanks

RNC Minerals Provides Update on Resource Extension and Infill Drilling at Beta Hunt, Reports High Grade Gold Intersections including First Coarse Gold at Western Flanks

Canada NewsWire

  • First drilling at Western Flanks to test sediment layer further illustrates potential of sediment to generate high grade coarse gold – intersected 1,017 g/t over 2.00 metres (true width) including 7,621 g/t over 0.27 metres (true width) in hole WFN-029

  • A Zone drilling targeting sediment layer and shear near Father’s Day Vein intersected 119.37 g/t over 6.4 metres (true width) including 1,406 g/t over 0.50 metres (true width) in hole AZ15-013 located just 7 metres below Father’s Day Vein
  • Resource extension and infill drilling at A Zone and Western Flanks has yielded encouraging results.

TORONTOJan. 22, 2019 /CNW/ – RNC Minerals (TSX: RNX) (RNC) is pleased to announce drilling results received to-date from its 100% owned Beta Hunt Mine. The new underground drill results comprise 46 holes totaling 5,766 metres of drilling that was initiated during the fourth quarter of 2018. Drilling was carried out in both the A Zone and Western Flanks areas of the mine, with initial holes focused on more clearly defining the sediment layer in close proximity to the Father’s Day Vein discovery and, for the first time, testing the sediment layer in Western Flanks. A further 37 holes totaling 4,198 metres have been drilled for which results are pending.

Figure 1 – Composite photo of core from WFN-029 showing high grade coarse gold adjacent to sediment and a close-up of the coarse gold intersection. (CNW Group/RNC Minerals)

Mark Selby, President and CEO of RNC, commented “After the historic Father’s Day Vein discovery, we have taken steps to test the theory that the newly identified property-wide sedimentary layer carries the potential for further high grade discoveries in the four main shear zones at Beta Hunt. This potential has been highlighted by one of our first set of holes at Western Flanks targeting the sediment layer in one small section of the shear that yielded a 7,621 g/t intersection of coarse gold – which to our knowledge is the highest grade drill intersection by any reporting company since 2017 and is located within 45 metres of our existing development.  The second high-grade intersection located in the A Zone shear just 7 metres below the Father’s Day Vein highlights the potential for further high grade coarse gold from this shear.  RNC is in an enviable position with the recently completed financing, and a 40,000 metre drill program underway to unlock the significant exploration potential at Beta Hunt. A more comprehensive drilling update will be provided in February.”

Drilling in Western Flanks Targeting Sediment Layer, Resource Extension and Infill Drilling
32 holes totaling 3,748 metres have been completed to assist in defining the resource and mapping the sediment layer within the Western Flanks shear zone, which hosts the potential for high grade coarse gold.  Assay results have been received for 19 holes totaling 2,350 metres. WFN-029 yielded a drill intersection containing high grade coarse gold which assayed 7,621 g/t over 0.27 metres (true width) located within 45 metres of existing development. This result, which is the first high grade coarse gold found at the intersection of the sediment layer within the Western Flanks shear, is consistent with RNC’s interpretation that the newly discovered sedimentary layer carries the potential for multiple new high grade discoveries.

Key intersections include (all estimated true widths):

  • WFN-017 – 3.98 g/t over 14.24 metres,  
  • WFN-023 – 4.36 g/t over 10.57 metres, including 7.53 g/t over 5.00 metres and 4.69 g/t over 7.36 metres
  • WFN-029 – 1,017.3 g/t over 2.00 metres including 7,621 g/t over 0.27 metres and 6.09 g/t over 8.65 metres
  • WFN-036 – 6.86 g/t over 7.28 metres and 4.34 g/t over 9.86 metres

The 7,621 g/t drill intersection in WFN-029 is, to the Company’s knowledge, the highest grade drill intersection by any reporting company since 2017 – only Kirkland Lake’s Fosterville mine and Pretium Resources Brucejack mine have yielded higher grade intersections over the past 4 years (see Table 1).

Table 1 List of Reported High Grade Drill Intersections (2015 to date)
Fosterville and Beta Hunt intervals are true width

Property

Current Owner

Interval (m)

Grade Au (g/t)

Date

Brucejack

Pretium Resources Incorporated

0.50

37,117

12-May-16

Fosterville

Kirkland Lake Gold Ltd.

0.24

21,490

17-Jan-17

Brucejack

Pretium Resources Incorporated

0.50

20,287

12-Jan-16

Brucejack

Pretium Resources Incorporated

0.50

11,650

5-Apr-16

Brucejack

Pretium Resources Incorporated

0.50

10,700

12-Jan-16

Brucejack

Pretium Resources Incorporated

0.50

9,200

31-May-16

Fosterville

Kirkland Lake Gold Ltd.

0.90

9,115

7-Nov-17

Brucejack

Pretium Resources Incorporated

0.50

8,600

8-Oct-15

Beta Hunt

RNC Minerals

0.27

7,621

22-Jan-19

Brucejack

Pretium Resources Incorporated

0.50

6,980

8-Mar-16

1.

Source: S&P Global Market Intelligence.  This information is provided for comparative purposes and is not indicative of the mineralization on RNC’s properties.

Drilling in A Zone Targeting Sediment Layer in Close Proximity to Father’s Day Vein, Resource Extension and Infill Drilling
51 holes totaling 6,216 metres were completed along the A Zone shear in multiple directions from the Father’s Day Vein and at the northern limit of the A Zone resource (see Figure 3).  Results have been received for 27 holes totaling 3,416 metres.  The holes allow the intersection of the sediment and A Zone shear to be more clearly mapped, and infill and extend the A Zone resource. Hole AZ15-013 returned 1,406 g/t over 0.50 metres true width located just 7 metres below the Father’s Day Vein (see Figure 4).

Key intersections include (all true widths):

  • AZ13-145 – 4.53 g/t over 4.66 metres
  • AZ15-006 – 3.73 g/t over 11.77 metres, including 5.59 g/t over 4.79 metres,
  • AZ15-007 – 3.90 g/t over 9.50 metres, including 12.52 g/t over 0.99 metres and 16.33 g/t over 0.86 metres,
  • AZ15-013 – 119.37 g/t over 6.4 metres including 1,406 g/t over 0.50 metres
  • AZ15-019 – 3.74 g/t over 3.44 metres,
  • AZ15-020 – 4.02 g/t over 5.58 metres,
  • AZ15-022 – 3.61 g/t over 11.52 metres, including 4.63 g/t over 6.74 metres and 3.77 g/t over 2.36 metres,
  • AZ15-025 – 3.60 g/t over 7.49 metres

Next Steps

A more comprehensive drilling release will be provided in February. Future drilling in the 40,000 metre program will increasingly focus on infilling and extending resources in A Zone and Western Flanks.

Table 2 Selected drill results.
Please refer to the following link for the full summary table of selected drill results from A Zone and Western Flanks: Beta Hunt Table 2.

Table 3 Location and status of holes drilled in current campaign beginning October 10, 2018.
Please refer to the following link for the full summary table of the hole location and status from A Zone and Western Flanks: Beta Hunt Table 3.

Compliance Statement (JORC 2012 and NI 43-101)

The disclosure of scientific and technical information contained in this news release has been approved by Alger St-Jean, Vice-President, Exploration of RNC, a Qualified Person under NI 43-101.

The technical information in this news release relating to results at the Beta Hunt Mine is based on information reviewed by John Vinar, who is a Member of the Australian Institute of Mining and Metallurgy. Mr. Vinar is a full time employee of Salt Lake Mining Pty Ltd, a 100% owned subsidiary of RNC,  and has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.

Drill core sampling was conducted by Beta Hunt personnel. Samples are shipped to SGS Mineral Services of Kalgoorlie for preparation and assaying by 50 gram fire assay analytical method. First sample of each sample submission incorporates a barren rock sample as a flush to clean the lab crusher and pulveriser and as a check for contamination. Analytical accuracy and precision are monitored by the analysis of insertion of additional blank material and certified standards. The lab is also required to undertake a minimum of 1 in 20 wet screens on pulverised samples to ensure a minimum 90% passing at -75µm.

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 is currently completing a 40,000 metre drill program on near mine exploration targets focused on the Father’s Day Vein area, results of which will be incorporated into an updated NI 43-101 compliant Mineral Resource Estimate and mine plan targeted for Q2 2019. Beta Hunt gold resource potential is underpinned by multiple gold shears with gold intersections across a 4km strike length which remain open in multiple directions adjacent to an existing 5km ramp network. 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. RNC has a strong management team and Board with over 100 years of mining experience. 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 and Reed mines as well as the and the potential of the Dumont development project and Orford Mining’s Qiqavik, and West Raglan, exploration properties.

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; results of exploration programs; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, projected cash operating 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, including the most recent Annual Information Form, 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.

Figure 2 – Western Flanks North Long Section looking East showing current drilling pierce points and selected intersections of the Western Flanks shear (CNW Group/RNC Minerals)

Figure 3 – A Zone Long Section looking West showing current drilling pierce points and selected intersections of the A Zone shear (CNW Group/RNC Minerals)

Figure 4 – Cross section looking North showing location of coarse gold intersection in hole AZ15-013 relative to Father's Day Vein (CNW Group/RNC Minerals)

Figure 5 - Cross section looking North showing location of coarse gold intersection in hole WFN-029 at Western Flanks (CNW Group/RNC Minerals)

RNC Minerals (CNW Group/RNC Minerals)

SOURCE RNC Minerals

Eskay Creek 21A Zone Phase I Drilling – Current Highlights

  • 4.93 g/t Au, 134.59 g/t Ag, (6.73 g/t AuEq) over 33.57 m (SK-18-033)
  • 7.11 g/t Au, 54.21 g/t Ag, (7.83 g/t AuEq) over 28.88 m (SK-18-034)
  • 22.36 g/t Au, 646.92 g/t Ag, (30.99 g/t AuEq) over 14.72 m (SK-18-036)
  • 6.68 g/t Au, 14.56 g/t Ag, (6.88 g/t AuEq) over 5.50 m (SK-18-037)
  • 12.73 g/t Au, 1.71 g/t Ag, (12.76 g/t AuEq) over 4.50 m (SK-18-040)

Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 75]. Reported core lengths represent 70-100% of true widths and are supported by well-defined mineralization geometries derived from historical drilling. Grade capping of individual assays has not been applied to the Au and Ag assays informing the length weighted AuEq composites. Processing recoveries have not been applied to the AuEq calculation and are disclosed at 100%. Samples below detection limit were nulled to a value of zero.

21A Zone Phase I Drilling – Discussion

The 2018 drilling program was designed to infill and upgrade the inferred resources in the 21A Zone by increasing drill density to 20 metre intercept spacing. This will allow for future economic analyses as well as the collection of fresh material for an upcoming metallurgical characterization and testing program. Reported core lengths represent 70-100% of true widths and are supported by well-defined mineralization geometries derived from historical drilling. The majority of intercepts are less than 125 metres from surface and the shallow extent of mineralization in the 21A Zone is potentially amenable to open-pit mining methods.

The 21A Zone represents a significant portion of the 2018 pit constrained resource hosted at Eskay Creek containing an Indicated Resource of 207,000 oz AuEq grading 5.9 g/t AuEq (1.09 Mt grading 4.9 g/t Au, 72 g/t Ag) and an Inferred Resource of 418,000 oz AuEq grading 4.6 g/t AuEq (2.81 Mt grading 3.8 g/t Au, 63 g/t Ag) (for full resource details including the additional underground resource, refer to Skeena news release dated September 17, 2018).

About Eskay Creek

In December 2017, Skeena secured an option to acquire 100% interest in the Eskay Creek property. Discovered in the Golden Triangle in 1988, the former Eskay Creek mine produced approximately 3.3 million ounces of gold and 160 million ounces of silver at average grades of 45 g/t gold and 2,224 g/t silver. Eskay Creek was once the world’s highest-grade gold mine and fifth-largest silver mine by volume.

A precious and base metal-rich volcanogenic massive sulphide (VMS) deposit, Eskay-style mineralization has been the focus of considerable exploration activity in the Golden Triangle dating back to 1932. Exploration programs in 1988 led to the discovery of the 21A and 21B zones, followed by underground development of the 21B zone starting in 1990 with the official opening of the Eskay Creek mine in 1994. Over the 14-year life of the mine, approximately 2.2 million tonnes of ore were mined with cut-off grades ranging from 12 to 15 g/t AuEq for mill ore and 30 g/t AuEq for direct shipping smelter ore.

Eskay is endowed with excellent infrastructure including all-weather road access and proximity to the new 287-kV Northwest Transmission Line. The Property consists of 8 mineral leases, 2 surface leases and several unpatented mining claims totaling 6,151 hectares.

About Skeena

Skeena Resources Limited is a junior Canadian mining exploration company focused on developing prospective precious and base metal properties in the Golden Triangle of northwest British Columbia, Canada. The Company’s primary activities are the exploration and development of the past-producing Snip mine and the recently optioned Eskay Creek mine, both acquired from Barrick. In addition, the Company has completed a Preliminary Economic Assessment on the GJ copper-gold porphyry project.

On behalf of the Board of Directors of Skeena Resources Limited,

Walter Coles Jr.
President & CEO

Qualified Persons

Exploration activities at the Eskay Creek Project are administered on site by the Company’s Exploration Managers, Colin Russell, P.Geo. and Adrian Newton, P.Geo. In accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, Paul Geddes, P.Geo. Vice President Exploration and Resource Development, is the Qualified Person for the Company and has prepared, validated and approved the technical and scientific content of this news release. The Company strictly adheres to CIM Best Practices Guidelines in conducting, documenting, and reporting its exploration activities on its exploration projects.

Quality Assurance – Quality Control

Once received from the drill and processed, all drill core samples are sawn in half, labelled and bagged. The remaining drill core is subsequently securely stored on site. Numbered security tags are applied to lab shipments for chain of custody requirements. The Company inserts quality control (QC) samples at regular intervals in the sample stream, Including blanks and reference materials with all sample shipments to monitor laboratory performance. The QAQC program was designed and approved by Lynda Bloom, P.Geo. of Analytical Solutions Ltd., and is overseen by the Company’s Qualified Person, Paul Geddes, P.Geo, Vice President Exploration and Resource Development.

Drill core samples are submitted to ALS Geochemistry’s analytical facility in North Vancouver, British Columbia for preparation and analysis. The ALS facility is accredited to the ISO/IEC 17025 standard for gold assays and all analytical methods include quality control materials at set frequencies with established data acceptance criteria. The entire sample is crushed and 1kg is pulverized. Analysis for gold is by 50g fire assay fusion with atomic absorption (AAS) finish with a lower limit of 0.01 ppm and upper limit of 100 ppm. Samples with gold assays greater than 100ppm are re-analyzed using a 50g fire assay fusion with gravimetric finish. Analysis for silver is by 50g fire assay fusion with gravimetric finish with a lower limit of 5ppm and upper limit of 10,000ppm. Samples with silver assays greater than 10,000ppm are re-analyzed using a gravimetric silver concentrate method. A selected number of samples are also analyzed using a 48 multi-elemental geochemical package by a 4-acid digestion, followed by Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP-AES) and Inductively Coupled Plasma Mass Spectroscopy (ICP-MS) and also for mercury using an aqua regia digest with Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP-AES) finish. Samples with sulfur reporting greater than 10% from the multi-element analysis are re-analyzed for total sulfur by Leco furnace and infrared spectroscopy.

Cautionary note regarding forward-looking statements

Certain statements made and information contained herein may constitute “forward looking information” and “forward looking statements” within the meaning of applicable Canadian and United States securities legislation. These statements and information are based on facts currently available to the Company and there is no assurance that actual results will meet management’s expectations. Forward-looking statements and information may be identified by such terms as “anticipates,” “believes,” “targets,” “estimates,” “plans,” “expects,” “may,” “will,” “could” or “would”. Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and reserves, the realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes and other matters. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guarantees of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Table 1: Eskay Creek Project Phase I 21A Zone length weighted drillhole gold and silver composites:

HOLE-IDFROM (M)TO (M)CORE LENGTH (M)AU (G/T)AG (G/T)AUEQ (G/T)
SK-18-03393.43127.0033.574.931356.73
INCLUDING94.5096.001.508.1118110.52
AND97.5099.001.5015.208916.39
AND100.50102.001.507.5729311.48
AND112.42113.000.5814.00239045.87
AND119.00120.501.507.0422310.01
AND120.50121.000.5011.8550018.52
AND121.00122.501.5011.5516713.78
SK-18-033140.00141.501.500.612323.70
SK-18-03486.62115.5028.887.11547.83
INCLUDING91.3192.501.199.3652916.41
AND92.5094.001.505.71<55.71
AND94.0095.501.5010.955911.74
AND95.5096.250.7515.2017417.52
AND96.2597.501.2515.903916.42
AND97.5099.001.5019.8531924.10
AND99.00100.501.5012.552112.83
AND100.50102.001.5018.00818.11
SK-18-034135.50137.001.501.94<51.94
SK-18-034140.00141.501.501.4961.57
SK-18-034167.00168.501.504.5784.68
SK-18-035127.50134.006.500.72251.06
SK-18-03676.7891.5014.7222.3664730.99
INCLUDING79.7080.420.7288.501088.63
AND80.4281.501.0833.2029437.12
AND81.5082.901.4036.2015538.27
AND82.9083.951.0522.301522.50
AND83.9584.991.0441.4042247.03
AND84.9985.660.6783.3012,695252.56
AND85.6686.500.8442.202042.47
SK-18-03774.0079.505.506.68156.88
INCLUDING74.9475.800.8617.603518.07
AND75.8077.181.3810.60910.72
SK-18-03889.5091.001.500.68<50.68
SK-18-03974.2175.501.290.52<50.52
SK-18-04065.2069.704.5012.73212.76
INCLUDING67.4068.501.1032.70732.79

Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 75]. Reported core lengths represent 70-100% of true widths and are supported by well-defined mineralization geometries derived from historical drilling. Length weighted AuEq composites were constrained by geological considerations. Grade capping of individual assays has not been applied to the Au and Ag assays informing the length weighted AuEq composites. Processing recoveries have not been applied to the AuEq calculation and are disclosed at 100%. Samples below detection limit were nulled to a value of zero.

Table 2: Mine grid Phase I drill hole locations andorientations:

HOLE-IDEASTINGNORTHINGELEVATIONLENGTH (M)AZIMUTHDIP
SK-18-0339778.910012.71040.2164.089.2-50.6
SK-18-0349780.010012.41040.2200.089.0-65.6
SK-18-0359781.010012.81040.0200.087.6-84.7
SK-18-0369780.610012.71040.0152.0268.7-45.4
SK-18-0379780.310012.71040.2152.0267.4-71.5
SK-18-0389739.110043.21028.9123.091.0-70.6
SK-18-0399738.910043.21028.7101.087.0-81.9
SK-18-0409739.010043.21028.9102.010.7-89.6

SOURCE: Skeena Resources Limited

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