Mr. Mark Selby reports
RNC DOUBLES STRIKE LENGTH OF HIGH GRADE COARSE GOLD STRUCTURE FROM NEW DEVELOPMENT IN DISCOVERY AREA - "FATHERS DAY VEIN"
Royal Nickel Corp. has doubled the strike length of a high-grade coarse gold structure, to approximately 10 metres, after restarting development in the new high-grade gold discovery area Father's Day vein at its Beta Hunt mine in Australia (see the company's news release dated Sept. 9, 2018). Airleg development toward the initial discovery area intersected the structure last Friday and the breakthrough into the original discovery area is expected today. A 43-kilogram specimen stone containing an estimated 1,100 ounces of gold and a second seven kg specimen containing 190 ounces were recovered from this most recent development. An updated estimate of ounces from the Father's Day vein is expected to be provided later this week after final outturns from last week's shipments to the Perth Mint have been received and initial estimates from the recovery and shipment of coarse gold and specimen stones from the most recent development are completed. Final numbers from this most recent development should be known within two weeks once all processing by the Perth Mint has been completed.
"The Father's Day vein delivers additional gold and cash flow from this further extension with additional potential updip still to be developed. I am looking forward to the production estimates incorporating these additional ounces expected later this week. The Beta Hunt team has done a great job moving the operation forward over the last 12 months and I congratulate every person working at Beta Hunt for the incredible Father's Day vein discovery last week. RNC is currently developing plans to unlock the high-grade gold potential of the mine which remains largely unexplored," said Mark Selby, president and chief executive officer of Royal Nickel.
Airleg development resumed last week and began driving toward the current face on the left side of the initial discovery area and intersected the structure last Friday (Sept. 14, 2018) effectively doubling the strike length of the high-grade coarse gold structure. The structure remains open updip with a substantial amount of coarse gold remaining in the face.
Father's Day vein discovery (see Royal Nickel news release dated Sept. 9, 2018)
This discovery was made on Father's Day in Australia and has been named the Father's Day vein.
Royal Nickel is the first owner of the Beta Hunt mine to focus on drilling deeper in the Lunnon basalt in its search for gold, and therefore the first owner to discover and mine gold from newly discovered coarse gold located entirely within the Lunnon basalt. Previous bonanza-grade specimen stone occurrences at Beta Hunt were associated with the nickel-sulphide-bearing contact between the Lunnon basalt and the overlying Kambalda komatiite where nickel mining has been focused by Royal Nickel and previous operators.
Based on diamond drilling and underground mapping, there are two or more Lunnon sediment bands which are a zone of narrow (less than 0.3 metre), strongly pyritic black shale horizons positioned approximately 150 m stratigraphically below the Lunnon basalt/Kambalda komatiite nickel contact. This sediment horizon is well documented in published literature and is recognized as a marker unit in differentiating the Upper and Lower Lunnon basalt. The sediment horizon is now also interpreted by geologists at the Beta Hunt mine as a zone of chemical interaction between the gold-bearing fluids and pyritic sulphides, which, under the right conditions, allow large gold crystal growth and extremely high-grade gold deposition. This interpretation is based on geological mapping and interpretation of structures on 14 and 15 levels, where 1,500 ounces of specimen gold were discovered and mined in the second and third quarter. The structure found last week is located in a dilation zone which contains sheared pyritic sediments, porphyry and Lunnon basalt and large amount of coarse gold and specimen stone.
Understanding the depositional model for this new gold mineralization provides potential for future exploration and discovery of high-grade gold material at the sediment marker layer, which runs along all known shear structures located at Beta Hunt mine.
The Lunnon basalt contains a subaqueous sediment horizon which well documented in published literature and is recognized as a marker unit in differentiating the Upper and Lower Lunnon basalt. Whereas the Upper has lower MgO (magnesium oxide) content than the Lower sequence. The sediment horizon is now also interpreted by geologists at the Beta Hunt mine as a zone of chemical interaction between the gold-bearing fluids and pyritic sulphides, which, under the right conditions, allow large gold crystal growth and extremely high-grade gold deposition. Understanding the depositional model for this new gold mineralization provides potential for a completely new level of high-grade gold specimen stone to be discovered.
This interpretation is based on geological mapping and interpretation of structures on 14 and 15 levels, where 1,500 ounces of specimen gold were discovered and mined in the second and third quarter. The structure found in early September is located in a dilation zone which contains sheared pyritic sediments, porphyry and Lunnon basalt, and a large amount of coarse gold and specimen stone. This underlines the potential of future exploration and discovery of coarse gold material grading in several ounces per tonne. The sediment marker layer, which runs along all known shear structures located at Beta Hunt mine, provides significant exploration potential in the near future.
The disclosure of scientific and technical information contained in this news release has been approved by Kevin Small, vice-president, project development, of Royal Nickel, a qualified person under National Instrument 43-101.
About Royal Nickel Corp.
The company is a multiasset mineral resource company with a portfolio of nickel, cobalt and gold production and exploration properties. It has a 28-per-cent interest in a nickel joint venture with Waterton 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 (the largest undeveloped nickel reserve and second-largest undeveloped cobalt reserve in the world). The company has a 100-per-cent interest in the producing Beta Hunt gold and nickel mine located in Western Australia and a 35-per-cent interest in Orford Mining Corp., a mineral explorer focused on highly prospective and underexplored areas of Northern Quebec and the Carolina gold belt in the United States. The company also has a 27-per-cent stake in the producing Reed mine in Manitoba.
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