TORONTO, July 20, 2017 /CNW/ - RNC Minerals Corporation ("RNC") (TSX: RNX) reports that Beta Hunt mined gold production increased by 50% to 8,281 ounces in the second quarter of 2017 (as compared to first quarter).
Mark Selby, President and CEO of RNC, commented, "Performance at Beta Hunt rebounded significantly during the second quarter due to strong improvement in mine development and an ongoing focus on improving grades. Notably, our average production in June was over 3,900 ounces which translates into an annualized rate of 47,000 ounces. We are very pleased with our progress and expect continued increases in production to deliver our previously announced 2017 production guidance."
Mined production for June 2017 at Beta Hunt averaged over 1,800 tonnes per day at an average grade of over 2.3 g/t – both substantial improvements over first quarter levels.
Gold ounces mined during the second quarter increased by 2,746 ounces to 8,281 ounces. 123 kt tonnes were mined at an average grade of 2.09 g/t during the quarter, improvements of 21% and 24%, respectively, compared to the first quarter of 2017.
Gold sales during the quarter were 5,891 ounces, slightly lower than first quarter sales of 6,132 due to timing of completion of in-process tolls during the respective quarters. During the second quarter 98 kt of mined production were milled at an average grade of 2.07 g/t, increases of 42% and 28%, respectively, compared to the first quarter. The final toll during the quarter averaged 2.37 g/t. RNC expects that gold sales will increase dramatically in the third quarter of 2017 as mined material was stockpiled to take advantage of the lower cost tolling arrangement with Westgold which begins in July 2017.
Mined nickel production during the second quarter was 10.1 kt and milled production was 9.6 kt at a mill grade of 2.84%. Nickel in concentrate production was 0.24 kt during the second quarter, a 60% increase compared to the first quarter of 2017.
Beta Hunt Mine Q2 2017 Operating Results
| Beta Hunt Gold and Nickel Operation |
Q1 2017 |
Q2 2017 |
Q1 to Q2 |
June |
| Gold tonnes mined (000s) |
102 |
123 |
+21% |
55 |
| Gold mined grade (g/t)2,3 |
1.69 |
2.09 |
+24% |
2.26 |
| Gold tonnes milled (000s) |
69.2 |
98.1 |
+42% |
27.4 |
| Gold mill grade (g/t) |
1.62 |
2.07 |
+28% |
2.37 |
| Gold mined (ounces)1,2,3 |
5,535 |
8,281 |
+50% |
3,967 |
| Gold sales (ounces)1 |
6,132 |
5,891 |
-4% |
3,101 |
| Nickel tonnes mined (000s) |
6.8 |
10.1 |
+49% |
3.0 |
| Nickel tonnes milled (000s) |
6.8 |
9.6 |
+41% |
2.6 |
| Nickel mill grade, nickel (%) |
2.51 |
2.84 |
+13% |
2.22 |
| Nickel in concentrate tonnes (000s) |
0.15 |
.24 |
+60% |
.05 |
| 1. |
The difference in gold sales ounces and gold mined ounces is due to timing |
| 2. |
Final grades are determined once mined material has been processed |
| 3. |
As of June 30, 2017, 80 kt of gold mineralization from Q2 2017 production remained |
The disclosure of scientific and technical information contained in this news release has been approved by Kevin Small, Director, Mining Operations of RNC, a Qualified Person under NI 43-101.
About Royal Nickel Corporation
RNC is a multi-asset mineral resource company with a portfolio of gold and base metal production and exploration properties. RNC's principal assets are the producing Beta Hunt gold and nickel mine in Western Australia, a 50% interest in a nickel joint venture with Waterton that holds the Dumont Nickel Project in the Abitibi region of Quebec, and a 30% stake in the producing Reed Mine in the Flin Flon-Snow Lake region of Manitoba, Canada. RNC also owns a majority interest in the West Raglan and Qiqavik projects in Northern Quebec. RNC has a strong management team and Board with over 100 years of mining experience at Inco and Falconbridge. RNC's common shares trade on the TSX under the symbol RNX. RNC shares also trade on the OTCQX market under the symbol RNKLF.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains "forward-looking information" including without limitation statements relating to the liquidity and capital resources of RNC, production guidance and the potential of the Beta Hunt and Reed mines.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of RNC to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could affect the outcome include, among others: future prices and the supply of metals; the results of drilling; inability to raise the money necessary to incur the expenditures required to retain and advance the properties; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, projected cash costs, failure to obtain regulatory or shareholder approvals. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to RNC's filings with Canadian securities regulators available on SEDAR at www.sedar.com.
Although RNC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and RNC disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
SOURCE RNC Minerals
Rob Buchanan, Director, Investor Relations, T: (416) 363-0649, www.royalnickel.com
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