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Reunion Gold Corp
Symbol RGD
Shares Issued 180,317,936
Close 2012-12-12 C$ 0.345
Market Cap C$ 62,209,688
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Reunion drills 27.79 m of 20.30% Mn at Matthews Ridge

2012-12-13 09:58 ET - News Release

Mr. James Crombie reports

REUNION GOLD ANNOUNCES COMPLETION OF ITS 2012 EXPLORATION PROGRAM AT MATTHEWS RIDGE

Reunion Gold Corp. is providing an update on its exploration activities at the Matthews Ridge manganese project in Guyana, South America.

The company has concluded its planned exploration program for 2012, completing a total of 47,570 metres of diamond drilling in 735 holes, 17,361 m of reverse circulation drilling in 283 holes, 217 m of Banka drilling in 119 holes and 365 sampling pits. Reunion has received complete assay results from all drill holes and all results received since the company's Oct. 31, 2012, press release are reported in this press release.

Highlights of the most significant new diamond drill assay results are presented in the table.

                   MATTHEWS RIDGE DRILL RESULTS

                 Total
                length       From         To     Length         Mn
Hole ID             (m)        (m)        (m)        (m)        (%)

12MR1184         67.80       8.55      31.70      23.15      23.02
12MR1244         73.30       0.00      27.79      27.79      20.30
12MR1255         86.20       0.00      32.65      32.65      12.46
12MR1281         40.10       0.00      18.20      18.20      13.80

Minimum intersection length: 14 metres; minimum average grade:
12 per cent manganese; maximum interval dilution: two m.

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. Diamond drilling and RC drilling have 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.

The metallurgical testing of the various ore materials is now complete. The test results will be reported when the final report becomes available.

An independent qualified person (as defined under National Instrument 43-101) is currently doing the geological modelling of manganese mineralization for target hills one to nine, with the objective of completing an initial resource estimate compliant with NI 43-101.

Banka drilling of tailings material

The previous mining of manganese ore at Matthews Ridge in the 1960s has produced a significant volume of tailings material, which did not meet commercial specifications at the time, but that was conveniently deposited next to the processing plant in a shallow valley. The company completed the sampling of this material by doing 119 holes using a manual Banka drill with six-inch casing. This work confirmed that the tailings cover has an average thickness of 0.86 m and the average grade of 208 samples assayed 15.62 per cent manganese.

Pitting of detrital material

The so-called detrital material consists of deposits formed by manganese nodules and fragments derived from the erosion of lateritic duricrust and saprolitic material, forming blankets overlying the target hills. Reunion sampled this material with 365 mechanized and manual pits, and the results are compiled in the table.

                           TAILINGS SAMPLING RESULTS

                                               Average               Average
Hill                 No. of pits             thickness              Mn grade
                                                    (m)                   (%)

H1                            79                 1.046                  11.5
H2                            25                 0.923                 14.79
H3                            26                 0.712                 13.94
H4                            38                 0.775                 17.35
H 5                           50                 1.347                 16.03
H6                            25                 1.526                  11.6
H7                            14                 1.569                 11.05
H8                            10                 1.275                 13.79
H 9                           98                 1.383                 13.35

Exploration of eastern extension

Reunion has started the systematic trenching of its five-kilometre-long eastern extension discovery as reported previously and referred to as Arakaka. This program aims to define the extent and characteristics of manganese mineralization to the east of hill one, with the objectives of including mineralized material from this area in the global footprint resources.

Project description

The Matthews Ridge project consists of four prospecting licences covering an area of 185 square km 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 square km surrounding the four prospecting licences. Manganese ore was mined from 1960 to 1968 by Union Carbide and exported via railway and a fluvial port. Mining was done on five of a series of nine hills extending for 15 km and striking northeastern-southwestern.

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.

Quality assurance and quality control

Diamond drilling was done using HQ-diameter casing and triple-tube core barrel to maximize recovery. Half of the core was used for sampling at regular 1.5 m intervals. Reverse circulation drilling was done with four-inch casing, sampling at every metre, and splitting the rock chips once in the field and processing an entire half sample. Banka drilling of tailings was done with six-inch casing and sampling at every metre. Sampling of detrital material is being done by 30-centimetre-wide vertical channels in pits. Standard reference materials, internal standards, blanks and duplicate samples have been used to control laboratory accuracy and precision. Core sample preparation was done by Activation Laboratories Ltd. and Acme Laboratories at facilities in Georgetown, comprising crushing to minus-two millimetres and pulverization passing 200 mesh, followed by XRF assays for manganese and other relevant oxides at laboratories in Canada. Sample preparation and XRF assay of reverse circulation drill, Banka drill and pit samples were done by FILAB Guyana Laboratories on-site using the same methodology described above. Samples of saprolitic, detrital and tailings material are also being processed by a scrubbing/jigging pilot plant operated by FILAB under the supervision of GMining Services, as part of the metallurgical testing of mineralized materials.

Carlos Bertoni, PGeo, a qualified person as defined under the terms of NI 43-101, has verified the data and approved the technical information contained in this press release.

We seek Safe Harbor.

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