Reunion Gold announces a Mineral Resource Estimate for the Nivr?(C) deposit, Dorlin Gold project, French Guiana

2019-03-14 / @nasdaq

LONGUEUIL, Quebec, March 14, 2019 (GLOBE NEWSWIRE) -- Reunion Gold Corporation (TSX-V: RGD) (the “Company”) is pleased to announce a mineral resource estimate for the Nivré deposit at the Dorlin Gold Project located in French Guiana in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”).

G Mining Services Inc. (“G Mining”), an independent Canadian mining consulting firm, estimated 18.9 million tonnes grading an average of 1.09 g/t gold containing 665,000 ounces of gold in the Indicated Resource category and 26.0 million tonnes grading an average of 1.06 g/t gold containing 883,000 ounces of gold in the Inferred Resource category. A total of 42% of the contained gold is hosted in the laterite/colluvium and in the saprolite weathering domains. The mineralization is open at depth and along strike, and there remains significant potential to expand the resource.

Commenting on these results, Réjean Gourde, President and CEO of Reunion Gold stated: “The new resource estimate for the Nivré deposit at the Dorlin Gold Project provides a solid foundation for future work on the project. The main objectives of this work will be to increase the soft rock resource and improve the overall grade of the deposit. We also intend to focus on expanding the resource by further exploring and drill testing 11 other targets that have been identified on the Dorlin Project.”

Table 1 – Open‐pit constrained Total Mineral Resources for the Nivré deposit

Weathering	Lower Cut-off (g/t Au)	Mineral Resource Estimate March 2, 2019
		Indicated Resources			Inferred Resources
		Tonnage (Mt)	Grade (g/t Au)	Ounces (000s)	Tonnage (Mt)	Grade (g/t Au)	Ounces (000s)
Laterite/Colluvium	0.40	3.0	1.02	99	5.6	0.99	179
Saprolite	0.40	3.2	0.89	91	9.7	0.91	282
Transition	0.53	3.3	1.17	124	33.8	1.10	134
Fresh	0.63	9.4	1.16	351	6.9	1.30	288
Total and average		18.9	1.09	665	26.0	1.06	883

Notes on the Mineral Resource Estimate:

Mineral Resources are reported using a gold price of US$ 1,250/ounce.
The metallurgical testing was set as 93% for all types of weathering based on historical metallurgy testing.
US$/€ exchange rate was set at 0.86.
Cut-off grade of 0.40 g/t gold was used for colluvium/laterite and for saprolite, 0.53 g/t gold was used for transition and 0.63 g/t gold for fresh rock.
Only Indicated and Inferred blocks were considered during the optimization.
Mining dilution was included (5% in saprolite, 10% in fresh rock) when producing the whittle shells but the Mineral Resources are reported undiluted.
A royalty was estimated at 2.27%.
Resource classification was determined from estimation pass and distance from the 50 m x 50 m drilling pattern at Nivré East: Indicated Resources – Blocks estimated in pass 1 or 2 within the vicinity of the 50 m x 50 m drilling pattern at Nivré East. Inferred Resources – Blocks estimated in pass 1 or 2 outside of the 50 m x 50 m drilling pattern, and all blocks estimated in pass 3.
Rock bulk densities were assigned by weathering type (colluvium/laterite, saprolite, transition, fresh rock), and values were derived from the average of drill core measurements.
Classification of Mineral Resources conforms to CIM definitions.
The qualified person for the estimate is Mr. Réjean Sirois, P. Eng, Vice President Geology and Resources for G Mining Services Inc. The estimate has an effective date of March 2, 2019.
Mineral Resources do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
The quantity and grade of reported Inferred Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as Indicated or Measured Mineral Resources.

A detailed breakdown of the Mineral Resources by zones of the Nivré deposit is available on the Company’s website. The contained ounces of the current Mineral Resource are similar to the previously announced 1998 historical estimate of the former project operators (779,000 oz gold at 1.1 g/t in indicated resource category and 792,700 oz gold at 1.1 g/t in inferred resource category).

Resource Expansion Potential

The potential to expand the mineral resources is considered very high within the 84 km² Dorlin Project.

The Nivré deposit is open at depth and in all directions. Zones between the Nivré East/South and West Zones pits (see Figure 2) are yet to be drilled.
There is a large potential for increasing colluvium/laterite resources by deeper augering with limited dedicated diamond drilling.
For the Nivré deposit itself, the current paucity of geotechnical information led G Mining to use conservative estimates for pit slopes (32° in colluvium/laterite and saprolite; 40° in transition; 45° in fresh rock). Despite this, the strip ratio is only 1.63 at Nivré. A sensitivity analysis by G Mining shows that a 2-degree increase in the pit slope from 45° to 47° for the fresh rock would increase the resources by giving access to high-grade gold mineralization below the current pit design. The Company expects that once all geotechnical work is completed, pit slopes will be steeper and zones of high-grade gold mineralization located immediately below the Nivré East zone current pit limits (see Figure 4), will be incorporated into the resource.
A sensitivity analysis to the gold price indicates a significant increase in contained ounces in the Nivré deposit with increasing gold prices.
91% of exploration drilling located on the Dorlin project is focused at the Nivré deposit area, and most of the gold-in-soil anomalies remain untested (see Figure 1). A total of 11 other targets require further exploration work and drill testing.
Following the 2018 exploration program, the Company now has a greater understanding of the controls of the mineralization and of the best exploration approach. The Company has confirmed the efficiency of the induced polarization geophysical method (IP) to detect the gold-bearing silica-tourmaline-pyrite facies at the Nivré deposit (see Press Release dated December 6, 2018).
The Company intends to run additional IP surveys for a total of 60 kilometer-lines to test all remaining gold-in-soil targets in Q2 2019, followed by a drill program of 4,000 meters to test these targets in Q3 and Q4 2019.

Figure 1: Soil anomalies of the Dorlin Project area plotted over regional geology.

Resource Estimate Methodology

G Mining used the drill hole database which had been validated by an independent arm-length consultant that includes 26,378 assays from all available historical drilling by BHP/BRGM and Guyanor Resources totaling 24,626 meters, and 58 diamond drill holes in HQ and NQ diameter completed by the Company in 2018 totaling 6,584 meters. The 2018 drilling program was designed to validate historical resources on the Nivré deposit and begin expanding mineralization.

G Mining constructed a block model using a geological model built in Leapfrog GEO^TM that was based on geological sections and drill hole intervals provided by the Company. The geological model contains both lithological and weathering interpretations further refined by G Mining.

Capping of the raw assay data was undertaken by lithology domain, and capping levels varied from 2 g/t to 25 g/t gold. G Mining capped 69 assays in total, which resulted in a reduction of the global mean from 0.49 g/t to 0.45 g/t, and reduction in metal content of 8.4%. The block model was estimated using ordinary Kriging with 1.5-meter composited capped gold grades using a 4-pass interpolation strategy. Resource classification was undertaken by a combination of estimation pass and distance to diamond drill holes with further restraining distance for high-grades to avoid their over-extrapolation in later estimation passes. Density was assigned by weathering type (colluvium/laterite, saprolite, transition, and fresh rock), and values were derived from the average of drill core measurements. Metallurgical recovery was set at 93% based on metallurgical tests carried out in 1998 by Guyanor and Cambior.

All data (auger, trenches and diamond drilling) tagged as laterite or colluvium were used to estimate the colluvium/laterite domain, however only diamond drill holes were used to estimate the saprolite, transition and fresh rock due to possible down‐hole smearing of the auger drill holes.

The resource categories for the Nivré deposit are shown in Figure 2. A cross section through Nivré East zone is shown in Figure 3 and a longitudinal section shown in Figure 4.

Figure 2: Resource classification for colluvium/laterite domain and all other domains.

Figure 3: Cross section 412226 at Nivré East zone. Looking North.

Figure 4: Longitudinal section 412226 at Nivré East zone. Looking West.

Pit Optimizations

G Mining conducted pit optimizations including mining dilution (5% saprolite, 10% fresh rock) to identify the pit shell with the most optimal NPV using blocks classified as Indicated and Inferred. The outline of the Whittle shell for Indicated and Inferred Resources showing the drill holes and topography can be seen in Figure 5.

Figure 5: Plan view of the Whittle shell at US$ 1,250/ounce gold price and the topography.

Optimization parameters are shown in Table 2. Whittle pits were drawn for Indicated and Inferred Resources escalating gold prices by US$ 25, from US$ 800 to US$ 1,500 per ounce of gold. For the reporting of the resource, pit 39 using a price of US$ 1,250 per ounce of gold was selected. The strip ratio of the resource is 1.63.

Table 2: Optimization Parameters for Mining Scenarios

Dorlin Pit Optimization Parameters		Saprolite + colluvium/laterite		Transition		Rock
Nominal milling rate	t/day	12,000		12,000		12,000
Gold price	US$/oz	1,250		1,250		1,250
Metallurgical recovery at cut-off grade	%	93.00	%	93.00	%	93.00	%
Total mineralization based cost (process, administration, closure, tailings, sustaining)	US$/t milled	14		17.5		21
Marginal cut‐off grade	g Au/t	0.4		0.53		0.63
Mining rate	kt/year	15,000		15,000		15,000
Total mining reference cost	US$/t mined	2.75		3.05		3.35
Overall slope angle	degrees	32		40		45

Drilling results

Complete results of the last 25 drill holes totaling 2,504.5 meters of the expansion drilling program that are included in the resource estimate are posted on the Company’s website with a location map and an estimation of true thicknesses of the mineralized composites.

Qualified Persons

Réjean Sirois, P. Eng, Vice President of Geology and Resources for G Mining is the qualified person, as defined in NI 43-101, responsible for the mineral resource estimates for the Nivré deposit at the Dorlin Gold Project as reported herein. Mr. Sirois has read and approved the scientific and technical portions of the resource section of this news release. G Mining is completing a NI 43-101 technical report for the mineral resource estimate, to be filed on SEDAR within 45 days of this press release.

Dr. Dominique Fournier, EurGeol., the exploration manager for Reunion Gold in French Guiana and a qualified person pursuant to NI 43-101, is responsible for the work being done at the Dorlin Project. Carlos Bertoni, P. Geo., a consultant to Reunion Gold and a qualified person pursuant to NI 43-101, has reviewed and approved the scientific and technical data contained in this press release. Carlos Bertoni also managed the historical exploration work done by Guyanor Ressources in the 1990s.

The Dorlin Gold Project

The Dorlin Project covers an area of 84 km² in French Guiana, located approximately 180 km southwest of Cayenne, accessible by bush track, small boat and aircraft. The Dorlin mining district has been one of the major artisanal gold producing areas in French Guiana since 1901, when alluvial gold was discovered along the Petit Inini River and the area became famous for producing large gold nuggets. The Project area is underlain by a sequence of Proterozoic intermediate to felsic volcanic rocks belonging to the Paramaca Group that have been extensively deformed/altered and cut by felsic granitoids. Gold mineralization is mainly associated to silica-tourmaline-sulphide alteration zones that are roughly north-south striking over 7 km, steeply dipping and tabular shaped. These alteration zones are contained in schistose rocks related to strong shearing.

Reunion has an option to acquire 75% of the Dorlin Project from Auplata SA by completing a feasibility study and spending a minimum of US$ 3 million over a period of three years and can acquire an additional interest of 5% for a consideration to be based on the NPV in the feasibility study. The Exploitation Permit covering the Dorlin Project held by Auplata SA is subject to renewal by the French mining administration.

Cautionary Statement

This press release contains certain forward-looking information as defined in applicable Canadian securities laws. All statements, other than statements of historical fact, are forward-looking information. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Specifically, this press release includes forward-looking information regarding the estimate of mineral resources which may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues, the timing and results of exploration programs, the potential mineralization, potential expansion of the resources, and future plans and objectives of the Company. The assumptions made by the Company in preparing the forward-looking information contained in this news release, which may prove to be incorrect, include, but are not limited to: the expectations and beliefs of management; that the Dorlin exploitation permit will be renewed; that the Company can access financing to fund its exploration activities; and that the Company will be able to meet the conditions to exercise the option to acquire a 75% interest in the Dorlin Project. Forward-looking statements involve known and unknown risks, uncertainties and other factors including risks associated with the conduct of exploration activities, gold price volatility, renewal application process, regulatory approvals or permitting delays. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever by upgraded to a higher category. This cautionary statement qualifies all forward-looking statements herein. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law.

Cautionary Note to United States Investors - The information contained herein has been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of United States securities laws. In particular, the term "resource" does not equate to the term "reserve". The Securities Exchange Commission's (the "SEC") disclosure standards normally do not permit the inclusion of information concerning "indicated mineral resources" or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that do not constitute "reserves" by SEC standards, unless such information is required to be disclosed by the law of the Company's jurisdiction of incorporation or of a jurisdiction in which its securities are traded.

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.

About Reunion Gold

Reunion Gold Corporation is a Canadian exploration company focused on acquiring, exploring and developing gold projects in the Guiana Shield, South America. The Company has entered into agreements to acquire an interest in the Dorlin, Boulanger and Haute Mana gold projects in French Guiana and in the Waiamu, Aremu, Arawini and Oko gold projects in Guyana. The Company’s shares are listed on the TSX Venture Exchange under the symbol ‘RGD’.

Additional information about the Company is available on SEDAR (www.sedar.com) and on the Company’s website (www.reuniongold.com). For further information, please contact:

REUNION GOLD CORPORATION
Rejean Gourde, President & CEO
David Charles CFA, Investor Relations
Telephone: +1 450.677.2585
Email: info@reuniongold.com