Reunion Gold completes first phase resource validation at the Dorlin Gold Project, French Guiana
TSX VENTURE: RGD
LONGUEUIL, Quebec, June 12, 2018 (GLOBE NEWSWIRE) -- Reunion Gold Corporation (TSX-V:RGD) (“Reunion Gold” or “Company”) is pleased to announce that it has successfully completed the first phase of a data validation program at the Nivré deposit, part of the Dorlin Gold Project in French Guiana. The objective of the validation program is to classify the historical estimate of resources at Dorlin as current resources in accordance with Canadian National Instrument 43-101 (“NI 43-101”) before the end of 2018.
The first phase consisted on the validation of historical drill results by re-assaying 854 samples of core from 124 drill holes bored at the Nivré deposit in the 1990s. This re-sampling produced good correlation with the historical values and the Company plans to advance this program by drilling six validation core holes that together with the validation of historical samples, will allow using the historical data to complete a current resource estimate. These holes will be followed by 62 additional holes along the Nivré deposit and its northern and southern edges, for a total drilling program of 9,000 meters. Reunion Gold also plans to cover several mineralized targets extending 4 km north of the Nivré deposit with induced polarization geophysical surveys to generate new drilling targets.
Previous Exploration Work
The BRGM (French government geological survey) began geological studies of the region in 1947 and between 1975 and 1989 launched a systematic exploration program of the Dorlin district for both gold and base metals, part of which was done under a joint venture with BHP-Utah. In 1993, Guyanor Ressources S.A. (now Euro Ressources), a then subsidiary of Golden Star Resources Ltd., acquired the Dorlin mineral rights, brought Cambior Inc. (now IAMGOLD Corporation) as a joint-venture partner and both companies conducted a thorough follow-up exploration program to define gold resources. This program included airborne geophysics, deep regolith auger sampling, trenching, geological mapping, petrography, and 18,500 meters of drilling in 141 holes. By the end of 1998, when exploration work stopped due to the low gold price, the southern third of the Dorlin Project area had received a cumulative of 25,366 meters of core drilling in 183 holes, 2,404 meters of trenching and 16,391 meters of deep regolith auger sampling. Most of the drilling was focused on the Nivré target area. The regolith auger sampling done by the BRGM demonstrates that gold anomalies extend for over 9 km to the north of the Nivré target, with little follow-up work in the Project area.
In 1998, Guyanor Ressources and Cambior completed in situ resource estimates for the Nivré target using a US$ 400/ounce gold price, and grade estimate by ordinary kriging within optimal Whittle pits. Using these parameters, Guyanor Ressources* estimated resources, then characterized as being in the measured and indicated categories, of 21.9 million tonnes of mineralized rock grading 1.1 g/t containing 779,000 ounces of gold and of 22.0 million tonnes of mineralized rock grading 1.1 g/t containing 792,700 ounces of gold in the inferred category. While Reunion Gold considers this historical estimate to be relevant to investors as it indicates the presence of gold mineralization, the resources reported herein were calculated prior to the adoption of NI 43-101 and are provided as historical data only. A qualified person has not completed the work necessary to classify the historical estimate as current mineral resources or mineral reserves. Reunion is not treating the historical estimate as current mineral resources or mineral reserves (* Source: “Compilation Report, Dorlin Gold Project”, French Guiana, Guyanor Resources S.A., June 1998).
Nivré Deposit Historical Data Validation
In 2017, the Company began work to validate the historical estimate of the Nivré deposit with the intention of completing a current mineral resource estimate in accordance with NI 43-101 before the end of 2018.
The first phase of the validation work consisted of re-sampling 854 mineralized core intervals from 124 historical drill holes, which corresponds to about 10% of core available, accompanied by the re-logging of these holes. Quarter-core samples were shipped to the MS Analytical and Filab Amsud laboratories in Guyana and Suriname, respectively, for fire assay and ICP analysis, observing full QA/QC and chain of custody protocols. The laboratory results were further checked by the submission of coarse and pulp duplicates.
This sample validation exercise demonstrates that:
- There is very good overall correlation between the two groups of historical and current samples with no bias observed;
- There is a significant nugget effect, particularly affecting samples assaying more than 10 g/t Au.
The scatterplot attached shows the correlation between historical results and re-assays of equivalent quarter core for samples with values below 10 g/t Au. To see the scatterplot, follow this link: Click Here.
Reunion Gold has engaged Mr. Réjean Sirois, Ing., Vice President Geology & Resources for G Mining Services, to be the independent Qualified Person (QP) for the resource estimate and Mr. Sirois has reviewed the validation results to date. Reunion Gold and Mr. Sirois consider the results obtained from this first phase of validation as being acceptable and the Company plans to advance to a second phase of validation by drilling six representative validation core holes selected by the independent QP. Reunion Gold has started mobilization of the equipment and drilling is expected to commence by early July. Results should be available by the end of August.
Nivré Drilling Program
Following completion of the validation program, Reunion Gold plans to conduct a comprehensive drilling program of 62 holes totaling approximately 8,200 meters distributed over the Nivré deposit and its northern and southern edges. Results of this drilling program will be included in the resource estimate for the Nivré deposit planned to be completed by the end of 2018.
Reunion Gold is also planning to explore the northern extension of the Nivré deposit by doing induced polarization (IP) surveys of the d’Artagnan, Roche d’Olon and 7 Kilos targets, which were the focus of extensive artisanal gold production in the past. (See map link: Click Here. This artisanal work revolved around several outcrops of strongly mineralized volcanic rocks with quartz-tourmaline-pyrite alteration, very similar to those intersected by drilling at the Nivré deposit and are expected to generate striking IP anomalies. This area extends for about four kilometers north of the Nivré deposit. Reunion Gold geologists recently took 91 “grab” samples from these outcrops and obtained 17 samples with gold assays ranging from one to 38 g/t. Grab samples are selective in nature and collected to determine the presence or absence of mineralization.
The Dorlin Project
The Dorlin Project consists of an Exploitation Permit with an area of 84 km² in French Guiana, 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 Gold has an option to acquire 75% of the Dorlin Project from Auplata SA by completing a feasibility study on the project and spending a minimum of US$3 million over a period of three years (see press release of February 7, 2017).
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.
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", "budget", "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 a historical estimate of resources, the timing and results of validation and exploration programs, completion of a resource estimate, potential mineralization, 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 Company will receive required permit to conduct exploration activities; 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, having the funds required to conduct the planned exploration activities and to meet the conditions under the option agreement, renewal application process, regulatory approvals or permitting delays. There is no assurance that the validation program will confirm the historical estimate; therefore, the historical estimate should not be relied upon. 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.
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 and Arawini gold projects in Guyana. The Company’s shares are listed on the TSX Venture Exchange under the symbol ‘RGD’.
REUNION GOLD CORPORATION
Réjean Gourde, President & CEO
David Charles CFA, Investor Relations
Telephone: +1 450.677.2585