Reunion Gold Provides an Update on the Waiamu and Arawini Gold Projects in Guyana
TSX VENTURE: RGD
LONGUEUIL, Quebec, May 01, 2018 (GLOBE NEWSWIRE) -- Reunion Gold Corporation (TSX-V:RGD) (the “Company”) is pleased to provide an update on the Waiamu and Arawini Gold Projects in Guyana.
Waiamu Gold Project
Further to its February 21, 2018 announcement, a definitive agreement with respect to the Waiamu project has now been executed. The agreement provides to the Company the right to conduct exploration activities and the right and option to acquire a 100% interest in the Waiamu project (the “Option”). The Option is for an initial period of five years with a possible extension of up to two additional years (the “Option Period”). An initial payment of US$200,000 (less an advance payment of US$65,000) will be paid to the owners of the mineral titles within the next ten business days. Annual payments of US$200,000 will be payable thereafter during the Option Period. The Company can exercise the Option at any time during the Option Period provided that the Company has spent at least US$5,000,000 in exploration and development expenditures and that total cumulative option payments of at least US$1,000,000 has been made. The Company can terminate the Waiamu agreement at any time upon delivery to the owners of a 30-day prior written notice. If the Company exercises the Option, the owners will be entitled to receive an additional consideration equal to US$5.00 per ounce of gold to be produced from the Waiamu Project, payable in accordance with an agreed advance payment schedule starting upon exercise of the Option.
The Waiamu project covers approximately 35,000 acres in the Cuyuni River valley in northwest Guyana. The project 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. The sedimentary sequence has been deformed and metamorphosed. In the Waiamu area, this sequence hosts numerous artisanal gold workings, with gold-bearing quartz veins often forming dense “swarms” with significant volumes. The current owners are carrying out artisanal gold mining in the weathered cap of two prospects using contractors.
The Company has begun executing a comprehensive exploration program including line cutting, prospecting, geological mapping and regolith auger-sampling. Since the execution of the letter agreement, 112 km of line cutting has been completed, along with 1,900 regolith samples (out of a planned 5,000 samples) plus 344 tailings, grab and chip samples sent for assaying. Results will be announced when completely available. Historical regional airborne magnetic surveys have been compiled, reprocessed and interpreted, showing the presence of several NW-SE trending structural corridors transecting the project area, one of which, to the west, appears to be the southeast continuation of the Aurora Mine structure. Another parallel structure to the east passes adjacent to a large artisanal gold producing pit, which also coincides with a magnetic anomaly of unknown source.
The 400 m by 50 m regolith sampling program has defined at least seven areas with anomalous gold values, independent from known artisanal prospects. The sampling of tailings and pit walls in such historical and current artisanal prospects has given encouraging multi-gram gold values. The Company’s exploration team is compiling the results of the ongoing exploration work and identifying targets for a drilling program of at least 5,000 meters, expected to begin in the third quarter of 2018.
Arawini Gold Project
The Company is also pleased to report that, further to its February 21, 2018 announcement, a definitive agreement with respect to the Arawini project has been executed. The Company is entitled to conduct exploration activities and has been granted the right and option to acquire a 100% interest in the Arawini project during a period of five years, with possible extension. The Company paid US$100,000 to the owner of the Arawini mineral titles, following the execution of the definitive agreement, and will be required to make annual payments of US$150,000 during the option period. The Company can terminate the Arawini agreement at any time upon delivery to the owner of a 30-day prior written notice. Should the Company exercise the option, the owner will retain a 0.1% net smelter royalty on all gold produced from the Arawini project.
The Arawini project covers approximately 22,000 acres of mineral rights in northwest Guyana. 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 is planning to commence a reconnaissance program for the project area later this year.
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 press release contains certain forward-looking information as defined in applicable securities laws. Specifically, this press release includes forward-looking information regarding the Company's option to acquire a 100% interest in the Waiamu and Arawini gold projects. There is no assurance that the Company will exercise the options. Forward-looking statements involve known and unknown risks, uncertainties and other factors including risks associated with the conduct of exploration activities and gold price volatility. Results of the exploration activities may not justify the exercise of the option, and the Company may not have sufficient funds to complete the $5,000,000 minimum expenditure requirement and to complete a feasibility study during the Waiamu Option Period. These may cause the Company's results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. 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.
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