REUNION GOLD REPORTS SIGNIFICANT GOLD INTERSECTIONS AT ITS OKO WEST PROJECT, GUYANA, AND PROVIDES A CORPORATE UPDATE
Hole D22-135 intersected 5.19 g/t Au over 52.50 m
Hole D22-124 intersected 4.12 g/t Au over 49.80 m
Hole D22-127 intersected 3.18 g/t Au over 48.50 m
Approval of a Prospecting License to the Oko West Project
Acceleration of Oko West drilling program
Longueuil, Quebec, September 7, 2022 – Reunion Gold Corporation (TSXV: RGD; OTCQB: RGDFF) (the “Company” or “Reunion Gold”) reports significant additional drill results from its ongoing exploration program at Oko West (Figures 1 and Table 1) and is pleased to announce that the Guyana Geology and Mines Commission approved the issuance of a Prospecting License covering the Oko West project area to Reunion Gold Inc., its local subsidiary.
Drilling results continue to show a strong level of gold mineralization continuity at the Oko West´s Kairuni zone in terms of widths, grades and geology, particularly in the exploration block 4 area, where the bulk of the drilling has occurred (Figures 1 and 2, and Table 1). In addition, the start of deeper step-out drilling into blocks 1, 5 and 6 shows that gold mineralization continues with strong grades and widths both to the north and south of block 4. Carlos Bertoni, Interim CEO, commented: “We continue to be very pleased with the results we are receiving from the Kairuni zone, which show excellent continuity of the gold mineralization down to a vertical depth of approximately 250 m, where more detailed drilling has occurred. We are also very excited about the potential for adding gold mineralization both along strike and at depth, particularly in the untested areas of block 4 between the depths of 250 m and 600 m. Hole D-112 demonstrated that the gold mineralization continues to at least that depth with an intercept of 3.68 g/t over 71.15 m, within a broader intercept of 2.68 g/t over 115.45 m.” (see June 13, 2022 press release and long section in Figures 1, 2 and 3). Two recent RC holes confirm the presence of a mineralized shear zone in block 6: RC hole 205 assayed 2.99 g/t over 37.0 meters, and hole 210 assayed 2.76 g/t over 32.0 meters (Figure 1).
Table 1: Composite intercepts highlight table (see Reunion Gold website for complete results).
Reunion Gold´s primary focus is to continue adding shareholder value through drilling the Oko West project as aggressively as possible to grow the Kairuni mineralized zone. Given the great success being achieved by drilling, the Company will accelerate its program with the addition of two higher-capacity diamond drilling rigs in Q4 2022. This will take the total drill rig count to five diamond rigs and one reverse circulation rig. With this additional drilling capacity, the Company is planning to systematically explore the Kairuni zone to 200 m depth with drill holes spaced at 40 m intervals (4,600 m), from 200 m to 350 m depth at 80 m intervals (7,600 m), and from 450 m to 600 m depth with drill holes spaced at 160 m intervals (15,500 m). This program includes 85 diamond drill holes totalling more than 28,000 meters of core and is expected to be completed by early 2023. The Company anticipates similar drilling rates to occur throughout 2023, and sufficient funding should be in place to achieve this goal.
Given the continuing success of drilling at Oko West and the high potential to expand the mineralized envelope at the Kairuni zone both at depth and along strike, the Company has decided that it would be premature to release a maiden resource in Q3 2022 as initially planned. The accelerated drill and work programs will provide the data for estimating a maiden resource in Q1 2023. The Company’s objective is to estimate substantial mineral resources in the indicated and inferred categories.
Other exploration targets – drilling the Takutu zone
In addition to drilling at the Kairuni zone, the Company has started exploring the Takutu zone, a high potential exploration target representing the southern 3.5 km extension of the same shear coincident with the granitoid/greenstone contact hosting the Kairuni gold mineralization (Figure 1). The Takutu zone is possibly the source area of alluvial gold historically mined in several creeks downstream of the Takutu zone and coincides with gold soil geochemical anomalies. Reunion Gold is planning an initial 6,000 m drill program at Takutu using the reverse circulation (RC) rig to scout-drill along the mapped shear zones. This program will be followed by diamond drilling of any new gold mineralization discovered.
Prospecting License: Reunion Gold is also pleased to announce the Guyana Geology and Mines Commission has approved the issuance of a Prospecting License (“PL”), an important step in advancing the Oko West Project. The PL awarded in the name of the Company’s local subsidiary Reunion Gold Inc. covers an area of 10,883 acres (4,400 hectares) and replaces the eleven separate medium-scale mining permits previously held in the name of Guyanese entrepreneurs through option agreements. The PL has a three-year term with two renewal rights for one year each.
As a PL titleholder, the Company is applying for an Environmental Authorization with the Guyana Environmental Protection Agency, reflecting its planned exploration work.
The Company also plans to conclude an Investment Agreement with the Government of Guyana as soon as possible, allowing the duty-free importation of capital items required for the Project advancement.
Management: Reunion Gold announced several very positive developments over the summer, including 1) Successfully raising $36.8 million in July (press release July 8, 2022), which brought the cash balance to ~ $52 million as of the end of July 2022, and 2) Announcing the strengthening of the board and management team with the appointments of Fred Stanford to the board and Justin van der Toorn as VP Exploration (press release August 18, 2022). The financing and additions of Fred and Justin are consistent with the Company’s desire to aggressively advance the Oko West project, add additional exploration projects in the Guiana Shield and continue improving its strategic positioning.
Sale of Matthews Ridge project: In February 2017, the Company sold its Matthews Ridge manganese project to Bosai Minerals Group Co., Ltd (“Bosai”). The Company received US$5 million at closing. An additional US$5 million was payable at the rate of US$2.00 per tonne of manganese concentrate or ore shipped from Matthews Ridge once the mine entered production. The Company and Bosai have recently agreed to settle the additional consideration for one lump-sum payment of US$2.35 million, which the Company has now received.
Sample collection, assaying and data management
The Company calculates drill results composites with a minimum length of 2 meters, a cut-off grade of 0.3 g/t, and up to nine meters maximum length of internal waste. Gold grades are uncapped. Mineralized intersection lengths are not necessarily true widths. Complete drilling results and drill hole data are being posted on the Company’s website. Diamond drill (DD) samples consist of half of either HQ or NQ core taken continuously at regular intervals averaging 1.4 m, bagged, and labelled at the site core shed. Reverse circulation (RC) drill samples are obtained from a rotary splitter attached to a Metzke cyclone, weighed, bagged, and tagged at the drill site. All samples are shipped to the Actlabs certified laboratory in Georgetown, Guyana, respecting best-practice chain of custody practices. At the laboratory, samples are dried, crushed up to 80% passing 2 mm, riffle split (250 g), and pulverized to 95% passing 105 μm, and includes the use of coarse blanks between and following suspected high-grade intervals. 50 g of pulverized material is fire assayed by atomic absorption. Initial assays with results above 3,000 ppb gold are re-assayed with a gravimetric finish. Samples with visible gold are assayed with a metallic screen method using 1 kg of pulp. Certified reference materials and blanks are inserted at 5% of samples shipped to the laboratories. RC field duplicates and DD umpire pulp duplicates are also generated at 5% of samples. Pulp umpire duplicates are analyzed at the MSALabs certified laboratory in Georgetown. Assay data is subject to QA/QC using acQuire software and management by an independent consultant.
The technical information in this press release has been reviewed and approved by Carlos H. Bertoni, P.Geo., the Company’s Interim CEO. Mr. Bertoni is a qualified person under Canadian National Instrument 43-101.
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", "anticipates", "believes", "intends", "estimates", "potential", "possible" and similar expressions, or statements that events, conditions or results "will", "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 plans to complete drilling and other exploration programs, potential mineralization, exploration and drill results, and statements regarding beliefs, plans, expectations or intentions of the Company. Mineral exploration is highly speculative, characterized by several significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate. Refer to the Company’s most recent annual management’s discussion and analysis for a description of such risks.
Forward-looking statements in this press release are made as of the date herein. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements in this press release are reasonable, undue reliance should not be placed on such 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) 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 2021 the Company made an exciting new gold discovery at its Oko West project in Guyana, where to date it has outlined continuous gold mineralization at the Kairuni zone over 2,500 meters of strike and to a depth of 575 meters. The deposit appears to be open-pit amenable with a strong grade profile and favourable initial metallurgy. In addition to Kairuni there are several additional priority exploration targets on the Oko West project area. The Company’s common shares are listed on the TSX Venture Exchange under the symbol ‘RGD’ and trade on the OTCQB under the symbol ‘RGDFF’. The Company currently has 986.5 million issued and outstanding common shares.
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
Carlos H. Bertoni, Interim CEO, or
Doug Flegg, Business Development Advisor
Telephone: +1 450.677.2585
Figure 1: Map of schematic geology, exploration blocks, drilling program, and some drill holes highlighted in this press release.
Figure 2: Longitudinal section of the Kairuni zone, representing mineralization as grade x thickness and showing current and planned drill holes.
Figure 3: Geological cross-section looking north along 701800N showing mineralized interval for hole D-135. The assay composite for drill hole D-112 was previously released (June 13, 2022).
Figure 4: Geological cross-section looking north along 701850N showing mineralized intervals for DD holes 127, 132, 160 and 162.