RNC Minerals recovers more high-grade gold from Beta Hunt mine in Western Australia

RNC Minerals (TSE:RNX) (OTCMKTS:RNKLF) announced Tuesday that it has recovered more high-grade gold from the same area where the company made a bonanza discovery in 2018.

The Toronto-based miner retrieved around 1,750 ounces of coarse gold just 160 metres south and 25 metres below the Father’s Day vein discovery last year, which saw the company pull out two nuggets containing 4,000 ounces of gold as part of a discovery totalling 9,250 ounces.

Beta Hunt, in Western Australia, is the company’s flagship gold asset.

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CEO Paul Huet told shareholders that the company had expected to find around 20 ounces of gold, but instead recovered 1,750.

“This further highlights the potential of the Beta Hunt Mine, demonstrating the significant upside impact these high-grade discoveries can have on operational cash flow generation,” Huet said in a statement.

RNC will look to quickly monetize this gold to capitalize on current A$2,250/oz Australian gold prices, the company told investors.

The new ounces are not included in the updated Beta Hunt mineral resource estimate, which contains 944,000 ounces at 2.9 grams per ton in the measured and indicated category and 406,000 ounces at 3.1 grams per ton in the indicated category.

“Significant bonus”

The new ounces should be considered a “significant bonus” to mine production, according to RNC.

“While these high-grade discoveries are welcome contributors to our bottom line, we remain squarely focused on our newly outlined cost cutting strategy at both the operational and corporate levels,” Huet told shareholders.

The company said it will look to monetize the high-grade discoveries more efficiently now that it has closed on the acquisition of the Higginsville gold mine and mill, also in Western Australia.

RNC has a 100% interest in Higginsville, which is comprised of a low-cost 1.4 million tons per annum gold mill and a portfolio of gold projects.

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Story by ProactiveInvestors