LONGUEUIL, CANADA--(Marketwired - June 21, 2013) - Reunion Gold Corporation (News - Market indicators)(FRANKFURT:RG7) (the "Company") announces that it has filed its audited consolidated financial statements and management's discussion and analysis for the year ended March 31, 2013 on SEDAR (www.sedar.com) and wishes to provide an update on its Matthews Ridge manganese project located in Guyana.
Resource estimate
During the year, the Company completed its exploration program on the footprint of its Matthews Ridge Project, which consists of a 15-km long series of nine hills, and explored a number of other targets in the area. In February 2013, the Company announced an initial resource estimate for its Matthews Ridge Project.
Pre-feasibility study
The Company also carried out essential work towards the completion of a pre-feasibility study ("PFS") for its Matthews Ridge Project, including metallurgical testing on all types of mineralized materials located on the main project footprint. The Company engaged G Mining Services Ltd., a Canadian independent engineering firm with extensive experience in Guyana, to act as the lead consultant responsible for the overall delivery of the PFS. Golder Associates Ltd. has been retained to provide support related to the geotechnical and geochemical work, WorleyParsons for the evaluation of various options relating to concentrate transportation infrastructures, Met-Chem Canada Inc. to develop a process flow sheet and SGS Canada Inc. for metallurgical analysis.
G Mining has developed a mine plan and established the processing schedule. Site investigations related to geotechnical and geochemical work are complete. Infrastructure and other studies have significantly advanced during the last quarter. Notably, the pit-to-port transportation option using a dedicated haul road from Matthews Ridge to Port Kaituma, and contract barging of concentrates to an existing transshipment facility in Trinidad and Tobago seem to represent, at this time, the most viable options. Basic engineering is also complete and work is currently focused on completing capital and operating cost estimates.
Under the supervision of G Mining, the FILAB Guyana laboratory performed the geo-metallurgical characterization of the various types of Matthews Ridge manganese mineralization, refining the positive results reported in August 2012. While the process flow sheet has been finalized, the capital cost estimate is outstanding. Pyro metallurgical test work has been commissioned with an established laboratory in Europe to assess the behaviour of Matthews Ridge concentrates in alloy production and results are expected shortly.
Environmental studies of the entire site, a socio-economic survey of the community of Matthews Ridge and a biodiversity environmental baseline study were completed during the year. A gap analysis of all the ESIA work commissioned by the Company to outline missing elements for permitting was also prepared. The Matthews Ridge product specification is complete and a marketing report by CRU is being used as a basis to establish FOB pricing for the product. Discussions are ongoing with potential clients.
Plans for 2013-2014
The Company anticipates announcing the results of the Matthews Ridge Project PFS within the next few weeks. Subsequently and subject to available financing, the Company intends to complete a resource definition program on the Pipiani and Arakaka prospects, upgrade the inferred resources identified on the footprint at Matthews Ridge and carry out work with the aim of completing a full feasibility study.
At June 20, 2013, the Company had a negative working capital of approximately $2.9 million, including cash of approximately $0.3 million. The Company is evaluating different financing options to continue the exploration and development of its projects, which may include the issuance of securities, convertible loan, partnership or joint venture arrangements. There can be no assurance that additional funds will be available or available on terms acceptable to the Company. The continuation of the Company's activities is dependent on its ability to obtain necessary financing.
Frankfurt Listing
The Company also announces that its common shares have started trading on the Frankfurt Stock Exchange under the symbol "RG7". The security identification number is A0J27J. The listing on the Frankfurt Stock Exchange provides Reunion's new and existing European shareholders with easier access to trading in the Company's common shares, and shall assist in increasing the profile of the Company in Europe.
Forward looking statements
This press release contains statements that are 'forward-looking information' under Canadian securities laws. Forward looking information refers to statements about possible events, conditions or results of operations that are based on assumptions about future economic conditions and courses of action.
Forward looking information in this news release includes statements about Reunion's need for additional capital and its ability to acquire it; the timing and conclusions of the pre-feasibility study on the Matthews Ridge Project; the ultimate results from outstanding metallurgical testwork; the Company's need to obtain additional permits, and the timing for that; planned exploration efforts at Pipiani and Arakaka and the potential for upgrading the inferred resources at Matthews Ridge; Reunion's plans to complete a full feasibility study and develop the project into a mine; and Reunion's ability to become a producer of manganese and to secure a clientele for the manganese products.
Forward-looking information involves making assumptions and is subject to known and unknown risks and uncertainties that may result in actual events differing materially from those anticipated in the forward-looking information. Material risks that could cause actual results to vary materially from the forward looking information in this press release include: the risk that the Company will not be able to raise the additional capital necessary to continue its planned activities or that it will be delayed in obtaining required funds; the risk that outstanding metallurgical testwork will return results that are not those expected, causing delays and the need to conduct additional testing; the risk that required permitting will not be received as expected or at all; the risk that additional exploration will not be successful in expanding or upgrading or both the current resources; and the risk that unforeseen global market changes or others will make it not possible for Reunion to produce an economic product from Matthew Ridge. The Company has made assumptions regarding the occurrence of future events that its officers and directors, in their collective experience, believe are reasonable and which are based upon their understanding of current conditions and expected future developments and other factors that they consider relevant. However, despite all this, there may be unforeseen occurrences that cause future events to turn out differently from what is expected at present, and the Company can give no assurance that the forward looking information will prove to be correct. Therefore, readers should not place undue reliance on the forward looking information.
The statements containing forward-looking information in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, unless required to do so by applicable securities laws.
About Reunion Gold
Reunion Gold Corporation, through its 100% 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. Manganese is the fourth largest metal consumed in the world, behind iron, aluminium and copper. It is a key component in steel and iron production with no viable substitute. The Company also has the right to acquire a 100% interest in a gold exploration project located in Suriname.
Additional information about the Company is available on SEDAR (www.sedar.com) and on the Company's website (www.reuniongold.com).
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.
