Reunion Gold Announces a Significant Resource Estimate for its Matthews Ridge Manganese Project
LONGUEUIL, CANADA -- (Marketwire) -- 02/21/13 -- Reunion Gold Corporation (TSX VENTURE: RGD) ("Reunion or the "Company") is pleased to announce an initial resource estimate for the manganese deposits of its 100%-owned Matthews Ridge Project in northwest Guyana, South America.
Highlights:
-- Total Unconstrained Measured and Indicated Resources of 32.4M tonnes
grading 14% Mn when using an 8% Mn cutoff grade on the footprint of
Matthew's Ridge.
-- Additional 5.3 M tonnes of Unconstrained Inferred Resources grading 15%
Mn at an 8% Mn cutoff grade on the Matthew's Ridge Footprint and from
two other prospects.
-- Total Constrained Measured and Indicated Resources of 29.1M tonnes
grading 14% Mn at a cutoff grade of 6-8% Mn.
-- Robust resource model as demonstrated by a 90% conversion rate of the
measured and indicated resources from Unconstrained to Constrained
Resources.
-- Metallurgical testwork indicates good manganese recovery to concentrates
of marketable quality.
Table 1: Unconstrained Mineral Resource Summary at an 8% Mn cut off grade
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Unconstrained (see notes below Table 8)
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Measured Indicated Total M&I Inferred
'000 t % Mn '000 t % Mn '000 t % Mn '000 t % Mn
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Matthew's
Ridge 16,987 14 15,388 13 32,375 14 3,368 15
Arakaka
prospect - - - - - - 168 13
Pipiani
prospect - - - - - - 1,756 15
Total 16,987 14 15,388 13 32,375 14 5,292 15
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Table 2: Constrained Mineral Resource Summary
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Constrained (see notes below Table 8)(i)
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Measured Indicated Total M&I Inferred
'000 t % Mn '000 t % Mn '000 t % Mn '000 t % Mn
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Matthew's
Ridge 15,655 15 13,508 13 29,163 14 2,786 16
(Hills 1 -
9)
Total 15,655 15 13,508 13 29,163 14 2,786 16
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(i) Cut off varies by hill and material type between 6 and 8% for
constrained resources.
Other Project Highlights:
-- Located in Guyana, a mining friendly jurisdiction;
-- Low level of infrastructure requirements;
-- Simple open pit mining and processing operation;
-- The defined resources are of sufficient scale and quality to form the
foundation of the ongoing pre-feasibility study to define the economics
of project development;
-- Four other prospects in the Matthews Ridge region are being explored for
additional resources;
-- Reunion holds exploration licenses for an area of 185 square kilometers
in northwest Guyana.
Resource Estimate
This first Matthews Ridge mineral resources estimate was prepared by Mr. Rejean Sirois, ing., P. Geo., of G Mining Services Ltd. ("GMining"), a Canadian mining consulting firm, for the four types of mineralized materials forming the deposits (defined in Appendix 1). It encompasses over 65 thousand metres of drilling completed by Reunion between 2011 and 2012. The resources have been categorized as measured, indicated or inferred. They have been estimated on an unconstrained basis, as well as, on a constrained basis in a Whittle shell with the utilisation of metallurgical, economical and geotechnical constraints. The results are tabulated below. See Appendix 1 for additional information on parameters and methodology used for resource estimates. (Appendix 1 is available at the following address: http://media3.marketwire.com/docs/appendix1_0221.pdf)
Table 3: Constrained Resources - Measured, Indicated and Inferred - Matthews Ridge (Hills 1 to 9)
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Resource Lump Fine Total
Classification Tonnage Grade Concentrate Concentrate Concentrate
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('000 t) % Mn ('000 t) %Mn ('000 t) %Mn ('000 t)
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Measured 15,655 15 3,269 38 1,705 36 4,974
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Indicated 13,508 13 1,945 38 1,465 36 3,410
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Total M&I 29,163 14 5,214 38 3,170 36 8,384
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Inferred 2,786 16 608 39 353 37 961
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Table 4: Unconstrained Measured Resources - Matthews Ridge (Hills 1 to 9)
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Lump Fine Total
Cutoff grade Tonnage Grade concentrate concentrate concentrate
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%Mn ('000 t) %Mn ('000 t) %Mn ('000 t) %Mn ('000 t)
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15% 6,968 19 2,071 41 1,119 39 3,189
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10% 13,426 18 3,241 40 1,696 37 4,936
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8% 16,987 14 3,535 39 1,861 37 5,396
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6% 23,760 12 3,546 28 1,861 26 5,407
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Table 5: Unconstrained Indicated Resources - Matthews Ridge (Hills 1 to 9)
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Lump Fine Total
Cutoff grade Tonnage Grade concentrate concentrate concentrate
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%Mn ('000 t) %Mn ('000 t) %Mn ('000 t) %Mn ('000 t)
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15% 3,832 18 751 40 605 38 1,356
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10% 11,221 14 1,799 39 1,337 36 3,136
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8% 15,388 13 2,174 38 1,570 36 3,744
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6% 20,175 11 2,422 37 1,721 34 4,143
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Table 6: Unconstrained Inferred Resources - Matthews Ridge (Hills 1 to 9)
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Lump Fine Total
Cutoff grade Tonnage Grade concentrate concentrate concentrate
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%Mn ('000 t) %Mn ('000 t) %Mn ('000 t) %Mn ('000 t)
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15% 1,591 19 432 42 252 39 684
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10% 2,851 16 632 40 366 38 998
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8% 3,368 15 675 40 388 37 1,062
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6% 4,445 13 698 33 402 31 1,100
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Table 7: Unconstrained Inferred Resource - Arakaka prospect
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Tonnage
(detrital Lump Fine Total
Cutoff grade material) Grade Concentrate Concentrate Concentrate
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%Mn ('000 t) %Mn ('000 t) %Mn ('000 t) %Mn ('000 t)
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15% 52 19 13 40 5 37 18
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10% 124 15 24 38 9 35 33
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8% 168 13 28 37 10 35 37
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6% 213 12 30 36 9 35 39
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Table 8: Unconstrained Inferred Resource - Pipiani prospect
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Tonnage
(detrital Lump Fine Total
Cutoff grade material) Grade Concentrate Concentrate Concentrate
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%Mn ('000 t) %Mn ('000 t) %Mn ('000 t) %Mn ('000 t)
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15% 712 19 180 40 78 37 257
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10% 1,525 16 310 38 123 36 433
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8% 1,756 15 334 38 127 35 461
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6% 1,914 14 344 37 127 35 471
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Notes:
1. The effective date of the mineral resource estimate is February 20,
2013.
2. Unconstrained resources mean total in-situ resources.
3. Constrained resources mean resources contained within a Whittle shell
when applying industry standard parameters for costs, geotechnical
constraints, metallurgical recoveries and indicative value of the final
product. The cut-off grade varies by hill and material type and is
generally between 6% and 8%.
4. Lump Product is defined as material from +6mm to -25mm in size while
Fine Product is +0.85mm to 6mm in size.
5. Mineral resources, which are not mineral reserves, do not have
demonstrated economic viability. The estimate of mineral resources may
be affected by marketing, fiscal, permitting, legal, or other relevant
issues.
6. Totals and average grades are subject to rounding to the appropriate
precision.
David Fennell, Executive Chairman of Reunion, said: "This is a tremendous accomplishment for Reunion's team. Since obtaining the prospecting licenses for Matthews Ridge in late 2010, our team has embarked on an extensive drilling campaign to establish an initial resource estimate and move Matthews Ridge towards development. We believe that the Matthews Ridge project has the potential to become a leading producer of manganese in the Americas. While this resource is very substantial, many undrilled targets remain available for additional resource growth."
General Project Description
The Matthews Ridge Project consists of four Prospecting Licenses covering an area of 185 km2 located in northwest Guyana, in and around the former Matthews Ridge mine (See maps - Figure 1 and 2 are available at the following address: http://media3.marketwire.com/docs/figures1_20221.pdf). Manganese ore was mined from 1960 to 1968 by a subsidiary of Union Carbide and exported via railroad and a fluvial port.
Manganese deposits have been explored in three prospects: 1) Matthews Ridge, corresponding to a series of nine hills extending for 15 km, of which five were previously mined; 2) Arakaka, which is the eastern extension of Hill 1, and 3) Pipiani, which is located 65 km to the southeast of Matthews Ridge.
Manganese mineralization is hosted by the Barama Group sedimentary rocks of Proterozoic age and consists of deposits formed as a result of supergene enrichment of manganese-rich sediments under a tropical climate.
Metallurgical Testing
As part of the metallurgical testing of mineralized materials, representative samples of each material type were processed by scrubbing, wet screening and jigging with an Alljig™ lab-scale jig operated by FILAB Guyana Laboratories under the supervision of GMining. Core samples were split with one portion of the sample being placed into a composite sample of similar material and processed by jigging while the remaining portion was sent to SGS Lakefield in Canada for metallurgical characterization through heavy liquid separation (HLS). GMining supervised all work performed by SGS. HLS results were correlated to the composite jigging results.
Based on the metallurgical testwork and characterization by material type, a relationship was established between the feed grade of the material and its potential upgradability. This was done by associating the feed grade of the material, the concentrate recovery and the concentrate grade while applying minimum concentrate grade requirements set at 36% and 34% Mn, respectively, for the Lump and Fine products.
GMining concluded that the Matthew's Ridge ore is upgradable to a marketable concentrate. (see Reunion's August 27, 2012 news release). Two distinct types of marketable concentrate can be produced. A higher valued Lump Concentrate (-25 mm + 6 mm) and a lower valued Fine Concentrate (-6 mm + 0.85 mm). The Lump product represents approximately 62% of the total concentrate while the Fine product represents 38% of the total when constrained within a Whittle shell.
The metallurgical testwork also tracked the level of impurities in the feed and in the different concentrates. It is noted that the level of silica and alumina decrease by half while the concentration of iron doubles as a result of jigging. The level of phosphorous remains relatively unchanged, at very low levels. All average impurity levels are within current industry benchmark values for similar concentrates destined to silica-manganese furnaces.
Table 9: Average Resource Impurity Concentrations by Product Size.
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Range (%)
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Impurity Lump Fine
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SiO2 19-23 23-25
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Al2O3 8-9 9-11
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Fe 4.5-6(i) 4.5-6(i)
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P 0.05-0.06 0.05-0.06
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LOI 12-13 12-14
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(i) Higher grade Fe contents (up to 11%) are observed in detrital material
concentrates
Grade and Tonnage Reporting
The Matthews Ridge mineral resource was estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
The resource model has been categorized as Measured, Indicated and Inferred Resources using the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines (November 2010).
Plans for 2013
The defined resources reported here provide a platform for Reunion to advance the Matthews Ridge Manganese Project through feasibility. Subject to available financing, the Company's plan for 2013 would be to complete an aggressive resource definition program on the Pipiani and Arakaka prospects, upgrade the inferred resources of the Matthew's Ridge trend and complete a pre-feasibility study.
Qualified Persons
The exploration data used to generate the resource estimates contained in this press release was approved by Carlos H. Bertoni, P. Geo., a consultant to the Company. Mr. Bertoni is an independent 'qualified person' within the meaning of that term under Canadian National Instrument 43-101 ("NI 43-101").
The Matthews Ridge resource estimates reported in this news release were undertaken by Mr. Rejean Sirois, ing., P. Geo., of GMining. Mr. Sirois is an independent 'qualified person' within the meaning of that term under NI 43-101. Mr. Sirois has reviewed and approved the contents of this press release insofar as the Matthews Ridge mineral resource estimate is concerned.
Mr. Ahmed Bouajila, ing., of GMining has supervised the metallurgical testing described in this news release. Mr. Bouajila is an independent 'qualified person' within the meaning of that term under NI 43-101. Mr. Bouajila has reviewed and approved the contents of this press release insofar as the Matthews Ridge metallurgical testwork is concerned.
All other technical information contained in this press release was prepared and approved by Mathieu Gignac ing., of GMining. Mr Gignac is an independent 'qualified person' within the meaning of that term under NI 43-101.
A technical report for the mineral resource estimate in compliance with NI 43-101 will be filed on SEDAR within 45 days of this press release.
About the Company
Reunion Gold Corporation is a mineral exploration company focused on the acquisition, exploration and development of mineral properties in the Guyana Shield of South America. The Company through its 100% indirectly owned subsidiary Reunion Manganese Inc., has assembled a large, strategic land position to conduct exploration and development activities for manganese in the North West District of Guyana. The Company also has the right to acquire a 100% interest in a gold exploration project located in the Lely Mountain area in Eastern Suriname.
Manganese is the fourth largest metal consumed in the world, behind iron, aluminum and copper. It is a key component in steel and iron production with no viable substitute.
Additional information about the Company is available on SEDAR at www.sedar.com and at www.reuniongold.com.
Forward Looking Statements
This press release contains forward-looking information. Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Forward looking information in this news release includes statements with respect to: the mineral resource estimates and potential expansion and upgrade to a higher level of confidence; the results of metallurgical testwork; the potential to develop the project into a mine and becoming a leading producer of manganese; and statements about the Company's plan and objectives for 2013. Forward-looking information involves known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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.
Contacts:
Reunion Gold Corporation
James Crombie, President and Chief Executive Officer
+1 450.677.2585
+1 450.677.2601 (FAX)
info@reuniongold.com
www.reuniongold.com