Reunion Gold Corporation
Trenching Program at Matthews Ridge reveals continuous manganese mineralization
over 2.5 kilometres
Longueuil, Quebec - March 1, 2011. Reunion Gold Corporation (TSXV: RGD) ( Reunion or the Company ) today announced that a
recently completed trenching program has defined continuous thick, high grade
manganese mineralization over 2.5km of strike at its 100%-owned Matthews Ridge
project in Guyana. Given the strong results of the program, Reunion is
planning a 24,000m, 220-hole drill program to define a NI 43-101 compliant
mineral resource by the end of 2011. In addition, Reunion plans to expand
its trenching program to test an additional 9km of strike of previously
identified manganese mineralization with the objective of defining additional
drill targets.
Highlights
Highlights of the recent trenching program include the
following:
Trench ID
|
Width
|
Manganese
|
Trench: interval
|
M
|
% Mn
|
|
|
|
2D: 11m to 43m
|
32
|
16.33
|
4C: 31m to 51m
|
20
|
15.08
|
4D: 0m to 33m
|
33
|
15.00
|
5C: 0m to 24m
|
24
|
17.84
|
5G: 0m to 27m
|
27
|
9.13
|
7D: 0m to 29m
|
29
|
10.51
|
8F: 14m to 78m
|
64
|
20.50
|
10: 35m to 61m
|
26
|
16.09
|
10B: 9m to 35m
|
26
|
14.81
|
10C: 8m to 32m
|
24
|
11.92
|
11A: 11 to 37
|
26
|
11.71
|
12C: 32m to 85m
|
53
|
12.95
|
13: 35m to 63m
|
28
|
13.50
|
14A: 25m to 59m
|
35
|
10.44
|
14B: 8m to 28m
|
20
|
16.72
|
See attached Table 1 for complete results.
The
results from our recent trenching program at Matthews Ridge are very
encouraging, said
James Crombie, Reunion s President & CEO. Not only did we confirm the historic
mineralized zone, but we encountered some much higher than expected manganese
grades, significantly extended the strike length of the manganese
mineralization and enhanced the continuity of the mineralization, he said.
In addition, we see excellent
potential to continue to extend the strike extent of the mineralization and
have an ambitious drilling and further trenching program planned for 2011 to
define an initial mineral resource and test this additional strike extent.
Trenching Program
Results have so far been received from 19 out of 22
trenches completed to date over Hills 5EExt, 5E, 5C, 5W and 6 (see map
below). These trenches were completed as part of a first phase
exploration program centred within and around a former
manganese mine at Matthews Ridge in Guyana.
The first phase trenching program was designed to
evaluate the previous mined areas with a view to establishing the existence of
the mineralisation along strike, while attempting to establish the controls on
its localisation. Trenches are constructed at nominal right angles to the
controlling structures to an average depth of 2.5m. Careful attention is paid
to lithology and structure when sampling.
Mineralization
The higher grade manganese oxides, which were
previously mined, occurred as superficial, enriched cappings
formed as a result of weathering in the tropical climate.
As expected, there is a strong topographic control as
deposits are resistant to weathering and form ridges up to 100m high. The depth
of weathering at Matthews Ridge varies from 45m to 120m below surface.
Transported screes of eroded manganese mineralization
flank the hills.
Matthews Ridge Project
Reunion, through its wholly owned subsidiary, obtained
four prospecting licenses to conduct exploration and development for manganese
in the North West District of Guyana, South America, over an area of 45,729
acres within and around the former manganese mines at Matthews Ridge and Pipiani, which closed in 1968. The former Matthews Ridge
mine site is located 260 km NW of the capital city of Georgetown. The former Pipiani mine is some 40 km south of Matthews Ridge and
north of the Barama River.
Historical information
The information contained here is
based on historical records and data extracted from reports issued by the
Guyana Geology and Mines Commission in 1985 Matthews Ridge Manganese Project,
GGMC/DPRK report, 1985. The Company has not completed the work necessary to
classify the historical estimate mentioned below as current mineral resources
or mineral reserves. The Company is not treating the historical estimate as
current mineral resources or reserves as defined in NI43-101; the estimates are
provided for information only and should not be relied upon.
The historical information indicates that Union
Carbide, through subsidiaries the African Manganese Company Ltd (AMCL)
and Manganese Mines Management Ltd. (MML), operated the Matthews Ridge mine and
shipped concentrates out of Guyana between 1962 and 1968. The records indicate
that during that period, some 1.7 million tons of manganese concentrate was
recovered and shipped. The concentrates were delivered to Port Kaituma by rail.
The mine had been built based on a historic proven
reserve base of 3.6 million tons of manganese concentrate at the start of
operations in 1962. These reserves had been generated based on numerous pits,
trenches and adits along with 110 diamond drill holes
aggregating 19,040 ft in 5 of the 9 hills that were mined. At the close of
operations, it was estimated that some 1 million tonnes of recoverable
concentrate (at 37% Mn) was left.
The remaining reserves were revised to 3.6 million
tonnes of recoverable concentrate (33.4% Mn) in 1985
based on work conducted by a joint Guyana Geology and Mines Commission/DPRK
team. This work involved detailed topographic surveying and drilling of an
additional 5 holes (1070 ft).
The historic reserves at Pipiani
were estimated at 642,000 tonnes of manganese concentrates (42% Mn). This was reportedly based on 35 drill holes, numerous
pits and trenches.
Exploration program outline for
2011
The objectives of the 2011 program are to define a
NI43-101 compliant mineral resource estimate by mid- 2011. The planned program
includes:
1.
Trenching the former mine pits (#7 to #9) to outline
and confirm continuity of mineralization; and
2.
Executing an aggressive 24,000m drilling program
comprising 220 holes to an average depth of 110m per hole to:
a. Confirm historic mineral resources within the trenched zone, and expand
within, alongside and beneath all existing mined areas;
b. Test strike extensions of the Matthews Ridge system as trenching
continues; and
c. Assess potential for transported, eroded mineralization on hill slopes.
In addition, the Company is planning to undertake the
following work in parallel to the above:
?
Conduct an exploration program to find parallel
mineralized systems, principally in areas to the north, where strong
geochemical evidence indicate a potential repeat of the Matthews Ridge
mineralized system; and
?
Conduct metallurgical testing of all
mineral-types to define potential manganese product and recovery parameters.
Two batches of samples from the trenching program are being delivered to
Bateman Engineering in South Africa to start a program to define the process
parameters for the Matthews Ridge mineralization.
Quality Assurance and Quality
Control
Trench sampling has been carried out as
channels in the wall above the trench floor on 1m intervals. Samples are tagged
using pre-labeled triplicate laboratory tags. The
samples were routinely weighed prior to final bagging. Field duplicate samples
were taken every 20 samples and a geological and structural log completed
for each trench. All data collected in the field was routinely entered
into geology and structural geology sheets for consolidation to the Reunion
Manganese Database for management using MapInfo/Discover programs.
All sample preparation and laboratory analysis for
manganese has been undertaken by Activation Laboratories Ltd. of Canada (Actlabs) by XRF following borate fusion. Samples received
by the laboratory are prepared in Actlabs sample
preparation facility located in Georgetown, Guyana and representative pulps
sent to Canada for final analysis. The preparation involves: crush to passing
2mm, split and pulverize to pass 200 mesh for
analysis.
Actlabs Quality System has full ISO accreditation ISO 9001 and ISO 9002. Following Reunion s quality assurance procedures, a
full suite of field and laboratory duplicates and replicates along with
internationally accredited standards and blanks have been run by the laboratory
for each batch of samples submitted.
Mr. Francois Viens, Eng, a
Qualified Person as defined under the terms of NI 43-101, has verified the data
and reviewed the technical information contained in this press release. Mr. Viens is an independent consultant to the Company.
About Manganese
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, and in short supply.
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 regarding the results of
the exploration activities and interpretation of such results, the nature, potential size and continuity of the
mineralization system, the
timing and completion of a mineral resource estimate and future work programs,
and the manganese potential of the project. 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.
For further information please contact:
REUNION GOLD CORPORATION
James Crombie
President and Chief Executive Officer
Telephone: 450.677.2585
Facsimile: 450.677.2601
Email: info@reuniongold.com
Website: www.reuniongold.com
TSX Venture Exchange: RGD
Reunion Gold Corporation Press release dated March 1, 2011
Table 1: Trenching
Results
The detailed results
of main trench intersects are as follows (4% cut-off grade):