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RNC Minerals' latest drilling at Beta Hunt augurs well for growing the resource

Published: 09:40 16 Sep 2019 EDT

Royal Nickel Corp -
A drill highlight at Western Flanks was 2 grams per ton (g/t) over 21.2 m, including 2.6g/t g/t over 8.4 m

Exploration drilling at RNC Minerals' (TSE:RNX) Beta Hunt gold mine in Australia augurs well for growing the resource there, the Toronto-based company said Monday.

In all, six holes have been completed for 2,190 metres (m) and the drilling targeted three shear zones – Fletcher (one hole), Western Flanks north (four holes) and East Alpha (one hole).

READ: RNC Minerals boosts August production figures from Beta Hunt

Significantly, mineralization at Western Flanks was extended a further 200 m north of previous drilling, with broad zones of mineralization discovered, which were not included in the recently announced resource.

One highlight at Western Flanks was an intersection of 2 grams per ton (g/t) over 21.2 m, including 2.6g/t g/t over 8.4 m, and 41.4 g/t over 1.64 m.

"The extension of the Western Flanks mineralization is very positive for RNC, as it is consistent with our view regarding the potential for continued mineral resource additions at Beta Hunt," said Paul Andre Huet, President and CEO of RNC.

He added: "The potential for the Fletcher zone to be added as Beta Hunt's third major mineralized zone is progressing well based on our recent drilling, leading us to identify further high priority drilling targets along the shear.

"Our drilling campaign this year resulted in a major increase (+395%) to our Measured and Indicated resource base, now totaling 944 koz.

"These ounces came at an extremely low discovery cost of $7.30 per oz. Overall, I am extremely pleased with the ongoing drilling program, which has intersected mineralized zones beyond our already significantly increased mineral resource base."

At Fletcher, a new hole threw up 5.6 g/t gold over 1.9 m and 1.2 g/t over 17.5 m, which, the firm said, extends the discovery 150 m down dip, while the Fletcher Shear Zone has a potential strike length of 2 km.

Reviewing existing nickel resources

Also in today's statement, RNC said work had started on a review of existing nickel resources and targets to take advantage of the current nickel price, aiming to supplement gold revenue.

Nickel resources at Beta Hunt were previously reported as 379,000 tonnes at 4.2% in the higher confidence measured and Indicated category, while inferred was 216,000 tonnes at 3.4%.

Since the effective date of this estimate in February 2016, RNC has processed 3,354 tonnes of contained nickel from the Beta Hunt mine.

Contact the author at giles@proactiveinvestors.com

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