REUNION GOLD ANNOUNCES AN INITIAL PIT-CONSTRAINED MINERAL RESOURCE ESTIMATE OF 2.475 M OZ Au IN INDICATED RESOURCES AND 1.762 M OZ Au IN INFERRED RESOURCES AT ITS OKO WEST PROJECT IN GUYANA
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The initial pit-constrained Mineral Resource Estimate (“MRE”) consists of 2.475 Moz. Au in Indicated Mineral Resources grading 1.84 g/t Au, and 1.762 Moz. Au in Inferred Mineral Resources grading 2.02 g/t Au.
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Gold mineralization at the Kairuni zone remains open at depth, with high grade zones already demonstrated beneath the open pit constrained MRE in Block 4.
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The MRE confirms a distinct high-grade gold mineralized domain within Block 4, parallel to the Footwall Granitoid, which remains open at depth. This zone has been defined using 75 drill hole intercepts within Block 4. These intercepts averaged a grade of 7.38 g/t Au with an average estimated true thickness of 5.6 m.
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An infill and expansion drilling program continues on the Kairuni zone, with the intention of:
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Expanding the high-grade domain in Block 4 to dept
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Expanding the volume of resources in Blocks 5, 6 and 7, and
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Infill drilling of inferred resources to a drill spacing suitable for conversion to an indicated classification.
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In addition to the ongoing drilling at the Kairuni zone, the Company believes there is further potential to discover additional zones of gold mineralization outside of the Kairuni zone – an exploration program including 15,000 m of combined RC and diamond drilling is initially planned to target these areas.
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This initial MRE will form the basis of a PEA study, expected by Q4 2023.
Longueuil, Quebec, June 13, 2023 – Reunion Gold Corporation (TSXV: RGD; OTCQX: RGDFF) (the “Company”) is pleased to announce an initial Mineral Resource Estimate (“MRE”) at the Kairuni zone on its Oko West Project in Guyana, with an effective date of June 1, 2023. The pit constrained MRE is comprised of 2.475 million ounces of gold in Indicated Mineral Resources contained within 41.789 million tonnes grading 1.84 g/t, and 1.762 million ounces of gold in Inferred Mineral Resources contained within 27.129 million tonnes grading 2.02 g/t Au. Table 1 shows a breakdown of the MRE by tonnage, grade and total ounces (oz) of gold (Au), categorized by resource classification category. Figure 2 shows a perspective view of the MRE in relation to drilling completed and used in the resource estimation.
Table 1 – Oko West Mineral Resource Estimate by classification
Please refer to Notes under Table 2 in this press release for MRE disclosure details.
Rick Howes, President & CEO of Reunion Gold, commented, “Today’s maiden resource confirms Oko West as a quality multi-million ounce gold discovery with potential for further growth. Thanks to our exploration team’s hard work, in just 22 months of drilling, we have outlined a sizeable resource containing 60-to-100-meter thick saprolite cover, good grade continuity over a 70 meters average thickness to a depth of over 600 meters and with grades well above industry average. Further work is planned to both grow and infill this maiden MRE, which remains open to further expansion, particularly at depth. In addition, we continue to explore several other promising targets on our prospecting license including the Bryan, Takutu and Carol zones. In parallel with the exploration programs, we intend to rapidly advance this exciting new discovery and plan to release a preliminary economic assessment (“PEA”) in the fourth quarter. We are pleased with this early success and we believe we have one of the best advanced exploration stage gold projects due to its size, grade, straightforward metallurgy, further potential and favourable jurisdiction.”
David Fennell, Executive Chairman added “On behalf of the Board, I would like to congratulate and thank the tremendous effort by the entire exploration team involved in the discovery of the Oko West gold deposit. I would particularly like to thank our former interim CEO, Carlos Bertoni, and credit his leadership of the team responsible for this discovery as the project advanced from initial drill testing through to the completion of resource definition drilling that resulted in a maiden Mineral Resource Estimate after only 22 months of drilling. A greenfield discovery by a junior company is one of the most difficult challenges in the resource industry so this represents a tremendous accomplishment.”
Key points from the MRE
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The majority of near-surface mineral resources, locally to depth of up to 300 m, are in the indicated category due to the Company’s early focus on infill drilling to ensure grade continuity (see Figure 4).
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This initial MRE is defined over a strike length of 1,900 meters (m) where drill spacing has been sufficient to classify resources as either inferred or indicated, with a maximum constraining pit depth of 610 m.
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The Company continues to investigate the potential to define underground resources at a higher-grade cutoff beneath the initial MRE. Mineralization continues beneath the MRE as illustrated by high-grade intercepts in holes D-200 and D-203 (see Figure 4).
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Resources are comprised of up to eight (8) stacked mineralized zones, distinguished through various logged attributes including shear and brecciation intensity, alteration style, and vein density. The main zone, running parallel to the footwall granitoid and with a core of 20 m to 45 m thick, hosts a high-grade domain within Block 4 which was modeled within the MRE using 75 drill intercepts averaging 7.38 g/t Au over an average estimated true thickness interval of 5.6 m.
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An increase in estimated gold grade with depth is noted within the block model, as demonstrated by the average grade of blocks as shown in Figure 1.
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The MRE contains 461,000 oz of gold in Indicated Resources with an average grade of 1.67 g/t Au comprised of oxide and transition material below surface (see Table 2).
Figure 1 – Graph showing Indicated (left) and Inferred (right) MRE blocks per 50 m level benches.
Table 2 – Oko West MRE summary by weathering profile
Notes:
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The mineral resources described above have been prepared in accordance with the CIM Standards (Canadian Institute of Mining, Metallurgy and Petroleum, 2014) and follow Best Practices outlined by the CIM (2019).
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The Qualified Person (QP) for this Mineral Resource Estimate (MRE) is Christian Beaulieu, P.Geo., consultant for G Mining Services Inc.
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The effective date of the Mineral Resource Estimate is June 1, 2023.
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The lower cut-offs used to report open pit Mineral Resources is 0.30 g/t Au in saprolite and alluvium/colluvium, 0.33 g/t Au in transition, and 0.38 g/t Au in fresh rock.
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The Oko West Deposit has been classified as Indicated and Inferred Mineral Resources according to drill spacing. No Measured Mineral Resource has been estimated.
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The density has been applied based on measurements taken on drill core and assigned in the block model by weathering type and lithology.
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A minimum thickness of 3 meters and minimum grade of 0.30 g/t Au was used when interpreting the mineralized zones.
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This MRE is based on a subblock model with a main block size of 5 m x 5 m x 5 m, with subblocks of 2.5 m x 2.5 m x 2.5 m, and has been reported inside an optimized pit shell. Gold grades in fresh rock, transition and saprolite were interpolated with 2 m composites using Ordinary Kriging. Capping was applied on six domains, ranging from 5 g/t Au to 40 g/t.
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Open pit optimization parameters and cut-off grades assumptions are as follows:
i. Gold price of US$1,800/oz,
ii. Total ore-based costs of US$14.67/t for saprolite and alluvium/colluvium, US$15.75/t for transition and US$17.94/t for fresh rock,
iii. Inter-ramp angles of 30° in saprolite and alluvium/colluvium, 40° in transition and 50° in fresh rock.
iv. Royalty rate of 8% payable to the Government of Guyana.
10. Tonnage has been expressed in the metric system, and gold metal content has been expressed in troy ounces.
The tonnages have been rounded to the nearest 1,000 tons, and the metal content has been rounded to the nearest 1,000 ounces. Totals may not add up due to rounding errors.
11. These mineral resources are not mineral reserves as they have not demonstrated economic viability. The quantity and grade of reported inferred mineral resources in this news release are uncertain in nature and there has been insufficient exploration to define these resources as indicated or measured; however, it is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration.
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A total of 504 drill holes totalling 92,015 m were included in the calculation of this MRE, comprised of 72,604 m in 267 diamond drill holes and 19,411 m in 237 RC drill holes. A total of 68 trenches totalling 7,007 m were also included in the calculation.
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The strong continuity and consistency of the resource is illustrated in Table 3, showing the MRE with different cut-off grades which illustrates the low level of sensitivity of the resource ounces contained in the MRE to changes in cut-off grade.
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As stated in the MRE summary notes under Table 2, the key economic parameters used to determine the MRE include a gold price of $US 1,800 per ounce and a varying cut-off grade depending on weathering profile (0.30 g/t Au for saprolite and alluvium/colluvium, 0.33 g/t Au for transition, and 0.38 g/t Au for fresh rock).
Table 3 – Cut-off grade sensitivity
*Cutoff grades used in this table: 0.30 g/t Au in colluvium/alluvium and saprolite, 0.33 g/t Au in transition and 0.38 g/t Au in fresh rock
**The tonnages and grade at differing cut-offs shown above are for comparison only, and do not constitute an official Mineral Resource.
Expansion and definition drill program at the Kairuni Zone
The Company is continuing drilling on the Kairuni zone with two main objectives: the first is to continue to expand the size of the MRE at the Kairuni zone and the second is to reduce the drill spacing in the inferred portions of the resource, with the view of upgrading those areas to an indicated classification. The resource expansion program at the Kairuni zone will be focused on two main areas: 1) Drilling in Blocks 5 and 6, which remain open and limited by the extent of drilling to date (Figures 2 and 3), and 2) Expansion of the deposit to depth beneath Block 4, focusing on the high-grade domain identified within the MRE which remains open at depth (Figure 5 and Figure 2). This zone has been defined using 75 drill hole intercepts within Block 4 with intercepts averaging a grade of 7.38 g/t Au and an average estimated true thickness of 5.6 m. Several of these holes are located below the outline of the resource pit depth of approximately 600 meters below surface as illustrated in Figure 5 and Figure 2, including hole D-245 which intersected 7.0 m @ 6.02 g/t Au and hole D-244 which intersected 23.2 m @ 5.36 g/t Au (see June 1, 2023 press release). Holes D-200 and D-203 drilled to a down-dip depth of over 1,000 m beneath Block 4 indicate the continuation of gold mineralization at depth, related to the favorable stratigraphy and the shear zone (see January 31, 2023 press release).
Potential to add additional ounces at Oko West outside of the MRE area
The Company intends to continue with an extensive exploration program including 15,000 m of combined diamond and RC drilling with the aim of discovering additional areas of gold mineralization elsewhere on the Oko West Project. Within the western Bryan zone (see Figure 3), which lies upstream of areas of significant historical alluvial mining, the Company has already completed an initial scout geochemical program which has indicated several promising areas requiring follow-up drilling. Follow-up RC drilling is currently underway at the Bryan zone. To assist with the continued drill program, the Company has contracted an additional diamond drill rig, bringing the total rigs that Reunion Gold will have on site to six diamond drill rigs, one RC rig and one scout RC.
Working towards delivery of a PEA by year end
In addition to its exploration program, the Company continues to move its development program on the Kairuni zone forward with the assistance of G Mining Services Inc. (“G Mining”). The Company is currently carrying out a PEA-level metallurgical study to define the preliminary processing flowsheet and indicative metallurgical performance and recovery of the Oko West mineralization. Given the significant depth of the resource and the discovery of a high-grade domain that is open at depth, both open pit and underground methods of extraction will be studied as part of the PEA. The Company will also be conducting the second phase of the environmental baseline study in 2023 in preparation for submission of an Environmental Impact Assessment anticipated in 2024.
Oko West Project
The Oko West Project comprises one Prospecting License issued to Reunion Gold Inc., the Company’s 100%-owned Guyanese subsidiary, on September 23, 2022. The Prospecting Licence has a surface area of approximately 10,890 acres (4,407 hectares). The Oko West Project straddles the Cuyuni-Mazaruni Mining Districts in north-central Guyana, South America, and is located approximately 100 km west-southwest of Georgetown, the capital city of Guyana.
Gold mineralization at Oko West lies along a north-south striking contact between Barama Group greenstone belt rocks to the west and a granitoid pluton to the east and can be classified as a shear-hosted, orogenic gold mineralization style, similar to many of the other gold deposits found in the Guiana Shield. The Company began exploring the Oko West Project in 2019 in recognition of the numerous historic alluvial workings that lead up to the now-recognized structural contact, with early airborne geophysics, stream and soil geochemical sampling, that led to successful trench intercepts announced in late 2020. This was followed by drill testing and the announcement of a greenfield discovery in early 2021, with the subsequent commencement of resource definition drilling over the main zone of mineralization, resulting in the MRE announced today.
Data validation
The drilling database used to estimate the Mineral Resources reported in this press release was reviewed by G Mining. A site visit was conducted by Christian Beaulieu, P. Geo, to inspect mineralized intervals, alteration assemblages and QA/QC protocols and to conduct field checks of trenches and to validate drill collars. Database verifications consisted of drill logs (including lithology, alteration, weathering), assay certificates, sample intervals, drill hole collars, downhole survey information and QA/QC results validations.
Technical Report and Qualified Persons
Details of the MRE will be provided in a technical report with an effective date of June 1, 2023, prepared in accordance with National Instrument 43-101 (“NI 43-101”) standards, which will be filed under the Company’s SEDAR profile within 45 days of this news release.
Christian Beaulieu, P.Geo., consultant for G Mining, is an independent “qualified person” under NI 43-101 and responsible for the MRE. Mr. Beaulieu has reviewed and approved the scientific and technical information related to the MRE contained in this news release.
Justin van der Toorn, CGeol FGS, EurGeol, the Company’s Vice President Exploration and a “qualified person” under NI 43-101, has also reviewed and approved the scientific and technical information contained in this news release.
Live Event on June 14, 2023 @ 10:00 am (EDT)
Please join the Company for a live event on June 14 at 10:00 am (EDT). Rick Howes, President and CEO of the Company and VP Exploration, Justin van der Toorn, will discuss and answer questions on the MRE.
Use this link to register to our live event: https://my.6ix.com/SJI-AHpv
Cautionary Disclaimer Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information within the meaning of Canadian securities laws (collectively, “forward-looking statements”). Statements and information that are not historical facts are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “potential”, “possible” and similar expressions, or statements that events, conditions, or results “will”, “would”, “may”", “could” or “should” occur or be achieved. Forward-looking statements and the assumptions made in respect thereof involve known and unknown risks, uncertainties and other factors beyond the Company's control. Forward-looking statements in this press release include statements regarding the Company’s plans to complete drilling and other exploration programs and studies, exploration and drill results, interpretation of such exploration and drill results, potential mineralization, expectations regarding completion of a preliminary economic assessment, forward looking assumptions used relating to the mineral resources estimates; expectations to expand the resources at depth and elsewhere within the Oko West Project, expected metallurgical recoveries, gold price outlook; and statements regarding the Company’s strategy, plans and goals, and priorities, including timelines and schedules.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: additional financing required in order to continue its operations may not be available when needed or on acceptable terms and conditions acceptable; global outbreaks of infectious diseases; timing and cost of exploration programs and studies, results of exploration including drill results, geopolitical and economic climate, risks related to mineral resource estimates and the resource model, , including that anticipated mineralization below current drilling may not exist; gold and other commodity price volatility; recoveries of gold; risks regarding potential and pending litigation proceedings relating to the Company’s termination of the Strategic Alliance with Barrick Gold Corporation; regulatory risks and liabilities including, regulatory environment and restrictions; metallurgical testing and recoveries; currency fluctuations; speculative nature of gold exploration; dilution; share price volatility and the price of our common shares; competition; loss of key employees; as well as those risk factors outlined in the Company’s public disclosure documents.
The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
Cautionary Note to United States Investors
This press release contains the terms “inferred” and “indicated” mineral resources. Reunion Gold advises U.S. investors that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred resource” will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility studies. US investors are cautioned not to assume that any part or all of the inferred mineral resource exists or is economically or legally mineable. U.S. investors are also cautioned not to assume that all or any part of mineral deposits in the “indicated” resource categories will ever be converted into reserves.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this press release.
About Reunion Gold Corporation
Reunion Gold Corporation is a leading gold explorer in the Guiana Shield, South America. In early 2021, the Company announced an exciting new greenfield gold discovery at its Oko West project in Guyana, where after 22 months of resource definition drilling the Company has announced an initial Mineral Resource Estimate containing 2.475 Moz of gold in Indicated resources and 1.762 Moz of gold in inferred resources. The mineralization in the Kairuni zone appears to be open-pit amenable with a strong grade profile, and the Company is continuing with additional activities relating to the delivery of a PEA by Q4 2023. In addition to Kairuni, there are several additional priority exploration targets on the Oko West project area that the Company is also exploring. The Company's common shares are listed on the TSX Venture Exchange under the symbol 'RGD' and trade on the OTCQX under the symbol 'RGDFF'.
Additional information about the Company is available on SEDAR (www.sedar.com) and the Company's website (www.reuniongold.com).
For further information, please contact:
REUNION GOLD CORPORATION
Rick Howes, President and CEO, or Doug Flegg, Business Development Advisor
E: doug_flegg@reuniongold.com
E: info@reuniongold.com
Telephone: +1 450.677.2585
