RNC Minerals (TSE:RNX) (OTCMKTS:RNKLF) announced Wednesday that the mining company had discovered more high-grade gold from the Father’s Day Vein at its Beta Hunt mine in Western Australia, the site of a bonanza discovery last September.
The new discovery of coarse gold in quartz veins just beneath the Father's Day Vein amounted to 987 ounces of the precious metal that was recovered in 238 kilograms of rock, according to early estimates.
RNC's shares soared on the back on the news, up almost 30% to start Thursday's trading before settling in at C$0.51, an increase of 22.9%, by afternoon.
READ: RNC Minerals CEO says 2019 operations have begun strongly as the company positions itself for production growth
News of the additional find validates RNC’s belief that there would be more gold to uncover at Beta Hunt following the windfall discovery of nearly 9,250 ounces, including two nuggets containing 4,000 ounces of gold.
“We are thrilled to have encountered high grade coarse gold in the area below the Father's Day Vein,” said CEO Mark Selby.
“This most recent discovery provides further support for our geological model that predicts that the areas where the mineralized shear zone and sedimentary sulphides intersect are capable of generating ‘Father's Day Vein’-style coarse gold mineralization, and proves that such areas extend at least 25 metres below the Father's Day Vein discovery.”
The high-grade gold structures were found in the A Zone 16 level Ore Drive at the Beta Hunt Mine in an area where Father's Day Vein style mineralization was thought to occur, RNC said in a statement.
The veins were mined in the 16 level Ore Drive. RNC will continue to advance through this area over the coming weeks.
Toronto-based RNC also is advancing the Dumont nickel project in Quebec through feasibility studies.
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