Reunion Gold reports on successful geophysical campaign at Dorlin Project and potential expansion of the Nivré gold deposit
TSX VENTURE: RGD
LONGUEUIL, Quebec, Dec. 06, 2018 (GLOBE NEWSWIRE) -- Reunion Gold Corporation (“Reunion” or “Company”) (TSX VENTURE:RGD) is pleased to announce results of an induced polarization (“IP”) geophysical survey at the Dorlin Gold Project located in French Guiana. This survey successfully demonstrates that:
- The Nivré deposit responds well to IP surveys, as would be expected from gold-bearing silica-tourmaline-pyrite rocks, and produces strong chargeability and resistivity anomalies. Gold mineralization recently reported by drilling results (see press release of November 6, 2018) shows direct correlation to these anomalies (see figures 1 and 2).
- The IP anomalies, coincident with the Nivré mineralization, continue for 4 kilometers from the northernmost drill intersection at the Nivré deposit, indicating that gold mineralization may extend for at least that distance to the north. The surface mapping and outcrop sampling program along this trend has identified a series of mineralized outcrops further confirming the effectiveness of the geophysical IP survey in identifying new areas of gold mineralization. The 4-kilometer trend is further delineated by historical gold and boron anomalies and remains open (see figures 3 and 4).
- The IP survey has identified a new and significant IP anomaly, d’Artagnan, which extends for 2,000 meters. Extensive artisanal mining as evidenced by the shafts and adits are found at the south end of this anomaly (see figure 1).
- The IP survey defined a further strong anomaly between the Nivré deposit East and West Zones (“gap”). This new anomaly is 500 meters wide and links the two zones (see figure 1).
The above results strongly indicate that there is significant expansion potential for the Nivré deposit. Chargeability and resistivity anomalies, a characteristic of these deposits, were successfully detected along strike and laterally, generating multiple drilling targets. These anomalies also coincide with several mineralized outcrops, which provide evidence of the mineralization continuity.
Reunion plans to systematically pursue the expansion drilling program for the Nivré deposit in 2019 with more than 10,000 meters of drilling including initially:
- Launching a 3,000-meter drilling program to the north of the Nivré deposit and along the IP anomaly, covering the Roche d´Olon and Seven Kilo target areas.
- Initiating an IP survey covering the area south of the Nivré deposit, expected to demonstrate the southward continuity of gold mineralization. Line cutting is already in progress. When the extension survey is completed an initial diamond drill campaign of 3,000 meters will be undertaken to define this zone.
- Completing 600 meters of drilling in the new zone identified between the Nivré East and West Zones, to demonstrate the continuity of mineralization between the two zones.
- Completing prospecting of the chargeability anomaly area at d’Artagnan followed by an exploration drilling program.
After reviewing the results from the IP survey, Réjean Gourde, Reunion Gold’s CEO, stated: “We are very pleased to see how effective this geophysical tool has worked. The IP survey shows the extent of the anomalies related to the Nivré deposit, while at the same time matching available geochemical and geological evidence of mineralization.”
The induced polarization survey was carried out by a Canadian contractor using state-of-the-art equipment using a gradient-array covering 28 line-kilometers on 200 meters-spaced lines. One orientation line using pole-dipole arrays was also done.
Current expansion drilling program and new resource estimate
Reunion just completed the first phase of an expansion drilling program for the Nivré gold deposit, consisting of 49 holes generating 5,709 meters of core. Results of the first 21 drill holes were released on November 6, 2018 and the balance should be available soon. The Company’s geological team is working with an independent qualified person to complete a model and resource estimate of the Nivré gold deposit in accordance with Canadian National Instrument 43-101 by early 2019.
The Dorlin Project
The Dorlin Project covers an area of 84 km² in French Guiana, located 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 has an option to acquire 75% of the Dorlin Project from Auplata SA by completing a feasibility study and spending a minimum of US$3 million over a period of three years and can acquire an additional interest of 5% for a consideration to be based on the NPV in the feasibility study. The Exploitation Permit covering the Dorlin Project held by Auplata SA is subject to renewal by the French mining administration.
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 the timing and results of exploration programs, completion of a resource estimate, potential expansion of the Nivré deposit, 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 financing will be available if and when needed and on reasonable terms; that the Dorlin exploitation permit will be renewed; that the Company will obtain all necessary permits to conduct the planned exploration programs; and that the Company will be able to meet the conditions to exercise the option to acquire an interest in the Dorlin Project. Forward-looking statements involve known and unknown risks, uncertainties and other factors including risks inherent in the conduct of exploration activities, having the funds required to conduct the planned exploration activities and to meet the conditions under the option agreement, volatility of global financial markets, gold price volatility, renewal application process, regulatory approvals or permitting delays. A renewal application for the Dorlin Exploitation Permit (PEX) was filed with the Ministry of Economy, Finance and Industry on July 6, 2015 and is still pending. There is no assurance that the PEX will be renewed or that drilling program will confirm or extend the Dorlin historical estimate. 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