Reunion Gold provides an update on activities in Guyana, South America
TSX VENTURE: RGD
LONGUEUIL, Quebec, Feb. 21, 2018 (GLOBE NEWSWIRE) -- Reunion Gold Corporation (TSX-V:RGD) (the “Company”) is pleased to provide an update on its activities in Guyana.
In December 2017, the Company entered into two letter agreements with arm’s length local miners setting out the main terms and conditions under which the Company is entitled to conduct exploration activities and acquire two gold projects, namely Waiamu and Arawini. Both project areas are in the Cuyuni River valley, to the northwest of the capital city of Georgetown.
Waiamu Gold Project
The Company will pay US$200,000 at signing of the definitive agreement to the owner of the Waiamu mineral titles less an amount of US$65,000 which was paid as a deposit on execution of the letter agreement, followed by annual payments of US$200,000 on each of the first, second, third and fourth anniversary of the execution of the definitive agreement.
The Waiamu project covers approximately 35,000 acres of mineral rights. The project area is underlain by a NE trending clastic sedimentary sequence, which includes interspersed mafic volcanics and pyroclastic units typical of the Guiana Shield greenstone belts of Proterozoic age. In the Waiamu area, this sequence hosts numerous small artisanal gold workings, with gold-bearing quartz veins often forming dense “swarms”. Current owners are carrying out artisanal gold mining in the weathered cap of one prospect. The Company plans a comprehensive exploration program, including an auger-sampling grid of 250 km of lines and access trails covering the entire project area. This work will be accompanied by geological mapping and prospecting.
Arawini Gold Project
The Company will pay US$100,000 at signing of the definitive agreement to the owner of the Arawini mineral titles, followed by annual payments of US$150,000 on each of the first, second, third and fourth anniversary of the execution of the definitive agreement.
The Arawini project covers approximately 22,000 acres of mineral rights. The project area is underlain by a sequence of volcanic and sedimentary rocks flanking a granitic batholith known to host several gold prospects that have been the object of artisanal mining of both alluvial and primary mineralization. Previous geochemical exploration outlined several soil and stream sediment anomalies that need to be followed-up. The Company plans to commence an initial 6-week reconnaissance program for the project area by the end of March 2018, with detailed grid auger sampling tentatively scheduled to begin by the end of June 2018.
The Company will be entitled to acquire the Waiamu and Arawini projects during a period of five years and can terminate the agreements at any time. The Company expects to enter into definitive agreements shortly.
Aremu Gold Project
In December 2017, the Company entered into a definitive agreement with an arm’s length local miner entitling the Company to conduct exploration activities and acquire the Aremu gold project.
The Company paid US$75,000 following closing of the definitive agreement. To maintain its rights to conduct exploration activities and acquire the Aremu project during a period of six years, the Company will have to pay US$75,000 in the first year and US$150,000, US$400,000, US$50,000 and US$100,000 during the second, third, fourth and fifth year, respectively, for total payments of US$775,000. The Company is entitled to terminate the Aremu agreement at any time.
The Aremu project covers 5,164 acres of mineral rights located near Falls Top, also in the Cuyuni Mining District, at the confluence of the Cuyuni and Aremu Rivers. The project area has been exploited by small-scale miners for over 30 years, with most of the work confined to alluvium and quartz stringers in saprolite. The Company’s exploration team has carried out reconnaissance mapping and sampling of several artisanal pits in the area, identifying numerous quartz veins hosting gold mineralization. The Company plans to establish grid lines to conduct soil geochemistry sampling over areas considered to be potential sources of known alluvial gold. Approximately 15 km of access trail and 50 km of lines will be required to grid sample upland areas in the eastern portion of the project area. An auger program at Aremu will begin upon completion of the initial Waiamu project survey.
Carlos H. Bertoni, P. Geo., a consultant to the Company and a qualified person pursuant to National Instrument 43-101, has reviewed and approved the scientific and technical data contained in this press release.
This news release contains certain "forward-looking information" under Canadian securities laws. All statements that address future activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. Specifically, this news release contains forward looking information about the timing and execution of the definitive agreements for the Waiamu and Arawini projects, the timing and completion of exploration activities and the results and interpretation of such results, and the nature of the mineralization system. Forward looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties beyond the Company’s control, including risks related to general business and economic conditions and risks associated with the conduct of exploration activities. There can be no assurance that outcomes anticipated in the forward-looking information will occur, and actual results may differ materially for a variety of reasons. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information, except as may be required by law.
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.
REUNION GOLD CORPORATION
Réjean Gourde, President & CEO
David Charles CFA, Investor Relations
Telephone: +1 450.677.2585