RNC Minerals Sharpens Focus on High Grade Gold Potential of the Beta Hunt Mine

Initial mapping of sediment layer with high grade coarse gold potential
 in larger Western Flanks shear zone

Historic drilling highlights high grade potential south of Alpha Island Fault

TORONTO, Nov. 28, 2018 - RNC Minerals (TSX: RNX) (RNC) is pleased to announce that it has taken a number of steps to focus its efforts on unlocking the high grade gold potential of the Beta Hunt Mine.

Mark Selby, President and CEO of RNC, commented "We are now positioned to unlock Beta Hunt's tremendous potential, through drilling and development focused on high grade coarse gold areas in both of the newly discovered sediment layers that host our Father's Day Vein discovery, and the high grade coarse gold found adjacent to the Mine's nickel deposits. RNC's technical services team has recently completed its initial interpretation of the sediment layer in the much larger Western Flanks shear (relative to the A Zone where the Father's Day vein was discovered) providing a second, larger target area to potentially find more high grade coarse gold in close proximity to our existing infrastructure. I look forward to continuing to mine more high grade gold through 2019 and completing the exploration and development work to provide the foundation for a larger, more robust and profitable mining operation."

Beta Hunt High Grade Potential

RNC has initiated a 40,000 metre drill program focused on expanding the known coarse gold areas while expanding and increasing confidence in the bulk tonnage shear hosted resource. Three drills are now currently operating. The first phase of the drilling campaign is expected to be completed by April 2019 with a resource update anticipated for the second quarter of 2019.  

Underground development will also be completed to provide access to the newly discovered sediment layers, support current and future exploration programs, and facilitate production of coarse gold using smaller scale mining methods. Small scale production from the A Zone – 14 & 15 Level and the Father's Day Vein structure will continue through 2019.  Beta Hunt's gold resource potential is underpinned by multiple gold shears with gold intersections across a 4 km strike length which remains open in multiple directions adjacent to the existing 5 km ramp network.

In order to focus on high grade coarse gold production and deliver the first phase of the exploration plan, we have temporarily ramped down our bulk production mining to allow us to adequately drill off the main shear zone resources and complete an updated resource estimate.

A Zone (Father's Day Vein/Sediment Layer)

The first drill is targeting the expansion and drill definition of the sediment layer in the shear zone associated with the 'Father Days Discovery" in the A Zone area of the Beta Hunt Mine where the majority of the coarse gold production has occurred in 2018. Drilling will step out along strike and both above and below dip of the known discovery area following the pyritic sediment horizon in the Lunnon Basalt, which has currently been identified over a strike length of 540 metres and remains open in all directions.

Western Flanks- High Grade Zone (Sediment Layer)

The geology team has recently undertaken a review of the drilling completed in 2017 and identified a sediment layer intersected in close proximity to the much larger Western Flanks shear (see figure 2). A total of four holes from 2017 drilling have intersected the sediment layer. The current interpretation indicates a strike length of 230 metres that remains open in all directions.

An indication of the potential for higher grades at depth in Western Flanks was highlighted by one of the deeper holes drilled to date - previously reported WF18-028 in Western Flanks which intersected  a grade of 7.09 g/t Au over 21 metres (including 31.6 g/t Au over 0.3 metres and 56.1 g/t Au over 0.5 metres). The newly interpreted sediment is approximately 60m north of this drill hole.

The second drill has been located at the northern end of the Western Flanks shear targeting definition drilling of the main shear and the recently identified sediment layer.

The third drill will be used for two purposes: tight infill drilling in the sediment zones and resource infill drilling of the main shear zones. 

South Side of Alpha Island Fault – High Grade Potential

The first phase of exploration, focused initially on the north side of the Alpha Island Fault, represents only a portion of the high grade potential of the Beta Hunt Mine (Figure 4).

Exploration drilling planned for later in 2019 will target the southern side of the Alpha Island Fault where the majority of the previous nickel mining was undertaken. This includes areas where RNC has already mined high grade coarse gold in five different locations (see Figure 3). As well, the south side of the Alpha Island Fault contains a large number of intersections from historic drilling over a 45-year period throughout the mine (largely targeting nickel and not gold) that intersected high grade gold. The Beta Hunt property contains 18 intersections with gold grades of over 300 g/t and a total of 46 intersections with gold grades of over 100 g/t (see Figure 4) further highlighting Beta Hunt's high grade potential.

The scale in this oblique view varies.  The distance from the north end to the south end of the workings is approximately 4km. See figure 4 plan view for true scale.  Photos of coarse gold specimens are not to scale and are shown for illustrative purposes only.

See Tables 1 and 2 for full list of historic drilling intercepts of 100+ g/t

Table 1: Historical Drilling – Selected High Grade Gold Drill Intercepts

Table 2: Historical Drilling - High Grade Gold Drill Intercepts (Additional Information)

Compliance Statement (NI 43-101)

The disclosure of scientific and technical information contained in this news release has been approved by Alger St-Jean, Vice-President, Exploration of RNC, a Qualified Person under NI 43-101.

About RNC Minerals

RNC has a 100% interest in the producing Beta Hunt gold mine located in Western Australia where a significant high grade gold discovery - "Father's Day Vein" - was recently made. RNC has initiated a 40,000 metre drill program on near mine exploration targets focused on the Father's Day Vein area, results of which will be incorporated into an updated NI 43-101 compliant Mineral Resource Estimate targeted for Q2 2019. Beta Hunt gold resource potential is underpinned by multiple gold shears with gold intersections across a 4km strike length which remain open in multiple directions adjacent to an existing 5km ramp network. RNC also has a 28% interest in a nickel joint venture that owns the Dumont Nickel-Cobalt Project located in the Abitibi region of Quebec which contains the second largest nickel reserve and eighth largest cobalt reserve in the world. RNC owns a 35% interest in Orford Mining Corp., a mineral explorer focused on highly prospective and underexplored areas of Northern Quebec and the U.S. Carolina Gold Belt. RNC has a strong management team and Board with over 100 years of mining experience. RNC's common shares trade on the TSX under the symbol RNX. RNC shares also trade on the OTCQX market under the symbol RNKLF.

Cautionary Statement Concerning Forward-Looking Statements

This news release contains "forward-looking information" including without limitation statements relating to the liquidity and capital resources of RNC, production guidance and the potential of the Beta Hunt and Reed mines as well as the and the potential of the Dumont development project and Orford Mining's Qiqavik, West Raglan, Jones-Keystone Loflin and Landrum-Faulkner exploration properties.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of RNC to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could affect the outcome include, among others: future prices and the supply of metals; the results of drilling; inability to raise the money necessary to incur the expenditures required to retain and advance the properties; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; results of exploration programs; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, projected cash operating costs, failure to obtain regulatory or shareholder approvals. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to RNC's filings with Canadian securities regulators, including the most recent Annual Information Form, available on SEDAR at www.sedar.com.

Although RNC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and RNC disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

SOURCE RNC Minerals