LONGUEUIL, CANADA–(Marketwire – Oct. 31, 2012) – Reunion Gold Corporation (TSX VENTURE:RGD) (“Reunion or the “Company”) is pleased to provide an update on its exploration activities at the Matthews Ridge manganese project in Guyana, South America.
LONGUEUIL, CANADA–(Marketwire – Oct. 31, 2012) – Reunion Gold Corporation (TSX VENTURE:RGD) (“Reunion or the “Company”) is pleased to provide an update on its exploration activities at the Matthews Ridge manganese project in Guyana, South America.
As previously announced, the Company has concluded its planned drilling program of bedrock mineralization, completing a total of 47,570 meters of diamond drilling in 735 holes and 17,361 meters of reverse circulation drilling in 283 holes. The average length of all holes drilled is approximately 60 meters. Reunion has to date received complete assay results from 844 drill holes, of which 685 were previously released. New results from 149 diamond drill holes and 10 reverse circulation drill holes done in 2012 are reported in this press release. Reunion expects to announce the balance of the assay results by mid-November 2012.
Reunion has also completed a drilling program to sample the mineralized tailings of the previous operation with 108 holes done with a manual Banka rig. The sampling program of the manganiferous detrital material continues and is expected to be completed in November. One hundred and ninety pits have been dug among the various target hills, giving an average detrital thickness of approximately 1.5 m.
An independent “Qualified Person” (as defined under Canadian National Instrument 43-101 (“NI 43-101”)) is currently doing the geological modeling of manganese mineralization for target Hills 1 to 9, with the objective of completing an initial resource estimate compliant with NI 43-101 by December 2012.
Drilling results continue to indicate an excellent correlation with trench intersections, confirming that mineralization persists regularly throughout the saprolite zone and continues as proto-ore in the fresh rock. Maps showing the nine target hills and location of mineralized zones in relation to the drill holes are provided in Appendixes 2 and 4. Drilling has been done to the saprolite-fresh rock interface. The Company intends to define resources in the saprolitic, detrital and tailings materials, which are amenable to simple earth-moving extraction.
Discovery of eastern extension
Mapping of the rocks to the east of target Hill 1, at the extreme east of the footprint area, discovered that the sedimentary sequence continues hosting manganese mineralization for another five kilometers, thus extending the total project footprint length to 20 km (see Appendix 3). Abundant sub-outcrop marks a nearly continuous mineralized zone at least 50 m wide from which 47 “grab” samples give an average grade of 27% Mn. Reunion did two mechanized trenches to expose the mineralized sequence. One trench intersected five manganese-bearing units over a width of 56 m and channel sampling yielded one interval assaying 7% Mn over 15 m. This new target is called ‘Arakaka Junction’ and Reunion plans to systematically explore it by trenching and drilling. This target will not be included in the forthcoming resource estimate.
Project description
The Matthews Ridge Project consists of four Prospecting Licenses covering an area of 185 km2 located in northwest Guyana, in and around the former Matthews Ridge mine. The Company also holds two Permissions for Geological and Geophysical Surveys (“PGGS”) for manganese over an area of 14,970 km2 surrounding the four Prospecting Licences. Manganese ore was mined from 1960 to 1968 by Union Carbide and exported via railroad and a fluvial port. Mining was done on five of a series of nine hills extending for 15 km and striking northeastern-southwestern (see Appendix 2).
Manganese mineralization is hosted by the Barama Group sedimentary sequence of Proterozoic age and consists of typical saprolitic and detrital deposits formed as a result of supergene enrichment of manganese-rich sediments under a tropical climate. The saprolitic deposits are formed by manganese oxide and hydroxide minerals occurring along the crest of hills and are related to the weathered lateritic profile, reaching 100 m below surface. The detrital deposits are formed by manganese nodules derived from the erosion of lateritic duricrust material and form “blankets” overlying the target hills.
Quality assurance and quality controlAbout the Company
Reunion Gold Corporation is a mineral exploration company focused on the acquisition, exploration and development of mineral properties in the Guyana Shield of South America. The Company through its 100% indirectly owned subsidiary Reunion Manganese Inc., has assembled a large, strategic land position to conduct exploration and development activities for manganese in the North West District of Guyana. The Company also has the right to acquire a 100% interest in a gold exploration project located in the Lely Mountain area in Eastern Suriname.
Manganese is the fourth largest metal consumed in the world, behind iron, aluminum and copper. It is a key component in steel and iron production with no viable substitute.
Additional information about the Company is available on SEDAR at www.sedar.com and at www.reuniongold.com.
Forward Looking Statements
This press release contains forward-looking information. Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Forward looking information in this news release includes statements regarding the results of the exploration activities and interpretation of such results, the nature, potential size and continuity of the mineralization system, the timing and completion of future work programs, mineral resource estimate and geological modelling. Forward-looking information involves known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Appendixes 1 to 4 are available at the following address:
http://file.marketwire.com/release/rgd_1031.pdf
FOR FURTHER INFORMATION PLEASE CONTACT: Reunion Gold Corporation James Crombie, President and Chief Executive Officer +1 450.677.2585 +1 450.677.2601 (FAX) info@reuniongold.com www.reuniongold.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Source: Reunion Gold Corporation
