Mr. Rob Buchanan reports
Royal Nickel PROVIDES FATHER'S DAY VEIN HIGH GRADE GOLD DISCOVERY UPDATE
After expected recovery of a high-grade specimen slab from the top of Royal Nickel Corp.'s current Father's Day vein stope later this week, mining operations are scheduled to resume in the area of the initial Father's Day vein discovery.
Royal Nickel expects a minimum of 30,000 to 35,000 ounces of gold to be recovered from the initial development area. To date, approximately 27,000 ounces of high-grade coarse gold has been recovered from a 60-cubic-metre cut (167 tonnes) on 15 level at the Beta Hunt mine, grading over 161 ounces per tonne or 5,000 grams per tonne. Royal Nickel continues to review historical drilling and mapping to understand the extent of the structures that could contain high-grade coarse gold.
"With resumption of mining in the initial Father's Day vein development area later this week, we will add additional production to bring expected total gold production from this area to 30,000 to 35,000 ounces. The cash flow from the initial ounces processed to date has allowed Royal Nickel to repay all of its debt facilities and, once the remaining gold shipments have been processed, will put the company into a substantial net cash position. The technical team continues to advance its work, having now extended the known sediment structures by a total of 540 metres from the Father's Day vein structure to the 1,250 level of the mine. The operational teams have begun jumbo development towards this targeted area. The team has also begun to analyze sediment opportunities in our Western Flanks shear zone. Their work has identified a number of additional targets, which we look forward to exploring in the coming weeks. Royal Nickel expects to provide final production results for the third quarter in mid-October," said Mark Selby, president and chief executive officer of Royal Nickel.
Father's Day vein
The Father's Day vein structure remains open both up dip and down dip and along strike to the north. High-grade coarse gold remains highly visible in each of those faces. Production from this drift is now expected to be a minimum of 30,000 to 35,000 ounces gold worth $46-million to $54-million at current gold prices.
Work continues on reviewing historical drilling and mapping to determine the extent of the sediment structures that have the potential to host high-grade coarse gold structures which are similar to the Father's Day vein discovery. Sediments have been found in several diamond drill holes (previously drilled in 2017), extending evidence of the sediment layer 340 metres north of the 14 level exploration drive (see Royal Nickel news release dated Sept. 24, 2018), for a total of 540 metres. The Beta Hunt technical team is developing an interpretation of the sediment structure in A zone and has begun a similar approach on a second shear zone, Western Flanks, in order to better target exploration activities to discover additional high-grade coarse gold. While the sediment structures are expected to be relatively continuous, high-grade coarse gold is expected to occur intermittently across the structure. The geological feature referred to in Beta Hunt mine terminology as "sediment structure" is a metamorphosed pyritic sediment horizon interpreted to have been deposited during the break in volcanic deposition between the upper and lower members of the Lunnon basalt.
A collection of specimen stones from the initial Father's Day vein discovery will be displayed at the Precious Metals Investment Symposium in Perth, Australia, on Oct. 3 and Oct. 4.
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.
Royal Nickel is a multiasset mineral resource company with a portfolio of nickel, cobalt and gold production and exploration properties. Royal Nickel 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). Royal Nickel 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.
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