Reunion Gold announces commencement of drilling program and exploration update at the Waiamu Gold Project in Guyana
TSX VENTURE: RGD
LONGUEUIL, Quebec, Sept. 18, 2018 (GLOBE NEWSWIRE) -- Reunion Gold Corporation (TSX-V: RGD) (the “Company” or “Reunion”) is pleased to report significant progress of exploration work at the Waiamu gold project in Guyana and a 5,000 meters drilling program is scheduled to start next week.
The Waiamu project covers approximately 39,000 acres in the Cuyuni River valley in northwest Guyana. A NE-trending clastic sedimentary sequence with interspersed mafic volcanics units, typical of the Guiana Shield greenstone belts of Proterozoic age, underlies the project area. This sequence has been strongly deformed and little metamorphosed. In the Waiamu area, this sequence hosts numerous artisanal gold workings, exposing gold-bearing quartz veins often forming dense “swarms” with significant volumes (Figure 1).
Reunion has been executing a comprehensive exploration program, including regolith geochemistry, geological mapping, prospecting and trenching and initial results are very encouraging. An initial 5,000 meters core drilling program to test two prospects on the project is starting this week and a helicopter-borne magnetometry-radiometry survey over the entire project is scheduled to start next week.
Regolith geochemistry on 260 km of cut lines and 71 km of ridge and spur traverses generated over 4,800 samples, which are being assayed for gold at the Actlabs laboratory in Georgetown. The 400 m by 50 m grid of regolith sampling defined at least seven anomalies, some independent from known artisanal prospects (Figure 2). These anomalies appear to be related to geological structures hosted preferentially by sediments and discrete felsic intrusive plugs, subparallel to the local NE trend. Extensive artisanal alluvial mining in the area (Figure 2) indicates that there are multiple primary sources of gold.
Most of the historical artisanal mining was focused on two prospects: “C” (for Ceguinho) and “SJ” (for St. John) (Figure 2), both related to regolith anomalies, and which are being mapped and sampled in detail. Prospect C was mined by two pits, the most recent one being over 100 m across, from which hundreds of tonnes of mineralized material were removed and processed in an artisanal plant with a hammer mill and two centrifuge concentrators. Forty-two tailings samples collected downstream from the plant over a period of four months averaged 3.3 g/t gold, indicating good dispersion of gold mineralization in the quartz vein swarms. The Company has completed 17 trenches at the C prospect, with a total length of 1,140 m. Channel samples from these trenches across quartz vein swarms show several multi-gram values over several meters with best values at 86.5 g/t gold, 24.84 g/t gold and 15.82 g/t gold (13% of all samples report gold grades superior to 0.5 g/t gold). Trenching also allowed detailed structural mapping of the vein systems, essential for the orientation of drill holes being planned (Figure 3). The C prospect will be initially tested at depth by four drill holes for a total of about 1,000 m of core. Prospect SJ consists on the excavation by artisanal miners of the entire side of a small hill down to saprock level (Figure 4). The pit exposes both clastic sediments and a fine-grained felsic intrusive, which appears to be preferentially mineralized by gold-bearing quartz veining. Five trenches with 620 m of extent have already been dug, exposing quartz veining at least 200 meters beyond the pit walls and 21% of all samples report grades above 0.5 g/t gold including best values at 17.89 g/t gold, 15.1 g/t gold and 14.16 g/t gold (Figures 5 and 6). The SJ prospect is underlain by a distinct magnetic anomaly, which is interpreted to be related to an intrusion (Figure 7). Reunion has commissioned a detailed helicopter-borne magnetometry/radiometry survey of the entire property to not only delineate the SJ prospect anomaly, but also to map several NW/NE-trending geological structures transecting the project area that appear to have some control of gold mineralization. One of these lineaments appears to be the southeast continuation of the Aurora Mine structure.
Réjean Gourde, the Company’s CEO, stated: “Considering that our first visit to this area happened less than one year ago, we have made very good progress. Our exploration work has demonstrated the presence of well mineralized system that remained formally unexplored until now. We look forward to the results of the drilling program and expect to demonstrate consistent gold mineralization at depth.”
The Company has an option to acquire a 100% interest in the project for an initial period of five years with a possible extension of up to two additional years by spending at least US$5,000,000 in exploration and development expenditures and making total cumulative option payments of at least US$1,000,000.
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 or forward-looking statements as defined in applicable securities laws. Forward-looking statements are not historical facts, and are subject to a number of risks and uncertainties beyond the Company’s control, including statements regarding completion of work program, potential mineralization, exploration results and statements regarding beliefs, plans, expectations or intentions of the Company. Resource exploration and development is highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate. Such risks include but are not limited to: uncertainty of exploration results; misinterpretation of data, logistical problems, volatility of gold price; mining risks, uncertainties related to the Company’s ability to acquire the Waiamu Project; and availability of financing for additional capital requirements, cost of exploration and development programs. 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.
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 Boulanger, Dorlin 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
Figure 1. Mineralized quartz vein “swarms” on pit wall at C prospect.
Figure 2. Map of regolith geochemistry anomalies and interpreted surface geology. Historical alluvial gold workings are shown as orange stripes.
Figure 3. Map of C prospect area showing interpreted surface geology, trench locations and planned drill hole collar locations. Note tailings sampling site.
Figure 4. Photo of SJ prospect pit wall being cleaned for channel sampling.
Figure 5. Map of SJ prospect area showing interpreted surface geology, trench locations and planned drill hole collar locations.
Figure 6. Example of channel sampling results on historical pit face at SJ prospect.
Figure 7. Map of the Waiamu area showing magnetic anomaly coinciding with SJ prospect (reduced to the pole data from the 1972 low-resolution magnetometry survey of Guyana). Orange stripes represent historical alluvial workings.