RNC expands Beta Hunt with resource update
Infill and exploration drilling in the Western Flanks Zone of the Beta Hunt gold mine in Western Australia has boosted measured and indicated resources five-fold and inferred resources three-fold, RNC Minerals (TSX:RNX) reports.
The updated resource for the Western Flanks Zone incorporated 16,876 metres of new infill and exploration drilling in 144 holes since the previous resource estimate in December 2017, and comes from just over 1 km of strike length on a single shear complex in Western Flanks.
Measured and indicated resources for the Western Flanks Zone now stand at 7.45 million tonnes grading 3 grams gold per tonne for 710,000 contained oz. gold, a 390% increase, and inferred resources tally 2.48 million tonnes averaging 3.1 grams gold for 250,000 contained oz. gold. The resource uses a cut-off grade of 1.6 grams gold.
The definition drill program extended the resource by 400 metres to the north and 50 metres down dip, intersecting greater thicknesses of mineralization in many areas, the company says. Mineralization has now been defined across a 1.2 km strike length and to a depth of 150 to 250 metres below the basalt contact.
"The really exciting part of the Western Flanks resource update is that the large increase to a nearly 1 million oz. measured and indicated resource was from just a small portion of the Western Flanks shear zone - only about 1 km of strike length is included in the resource," says Mark Selby, RNC Minerals' president and CEO. "Western Flanks is wide open at depth and to the north - we are only 150 to 250 metres down in what we believe could extend a multiple of that distance."
The increase in the resource was also achieved at a discovery cost of less than $5 per ounce.
Beta Hunt mine foreman-Warren Edwards shows a gold specimen. Credit: RNC Minerals.
"While the Western Flanks resource was an incredible low-cost resource addition, it is just the beginning of what we think we have at Beta Hunt," Selby continues. "And, of course, we always have the potential for more high-grade coarse gold discoveries as we develop the mine plan, especially in the areas where the shear zone interact with the property-wide sediment layer - the same type of structures that hosted the well-known Father's Day Vein discovery and several small discoveries."
The remaining 5,000 metres of the exploration and step-out drill program will start testing the other three shears that occur over a potential strike length of more than 4 km and where gold mineralization has been outlined by historic drilling. The 5,000 metre program will drill significant step-outs "to start to show the potential of this asset," Selby says.
In addition, RNC Minerals will be updating the resource for it's A zone in August, Selby says, and the company is currently drilling the other two shears, East Alpha and Fletcher.
"The resource potential at Beta Hunt is massive," he says. "The historic nickel drilling which was targeting nickel lenses sitting on top of our gold shears outlines the top 5-10 metres of what we believe are four shears across an overall strike length of 4 km that is open in all directions."
The Western Flanks structure remains open to the north and at depth, with good grade and thicknesses of mineralization at the margins of the resource. The deepest and northernmost hole in the current drill campaign returned 6.3 grams gold over 13.9 metres in drill hole 083.
RNC Minerals is trading at 60 ? per share in a 52-week range of 7 ? to $1.18. The company has 552 million common shares for a $331-million market capitalization.