RNC Minerals Corp (TSE:RNX) gave investors an early holiday gift on Monday in the form of a maiden gold mineral reserve at its Beta Hunt mine.
The statement outlines a total gold reserve of 3.4 million tons at a grade of 2.8 grams per ton (g/t) gold for 310,000 ounces.
Beta Hunt, located in Western Australia, is Toronto-based RNC’s flagship operation.
READ: RNC Minerals amends HGO claims royalty to unlock significant production potential and lower costs
The mineral reserve will form the basis for Beta Hunt’s mine plan, according to RNC. The mine schedules baseload feed to RNC’s 100%-owned Higginsville treatment plant.
Coupled with the Higginsville mine, the 1.4 million tons per annum plant is operating at full capacity, according to RNC.
"We are very pleased with the results of the Maiden 2P Gold Reserve at Beta Hunt, which now provides a fundamentally strong basis for a robust production profile moving forward,” said RNC’s CEO Paul Andre Huet.
“Additionally, we believe there is incremental upside to be unlocked via both the drill bit and our on-going cost reduction program at site which remains a key focus for the company moving forward."
The reserve remains open for potential additions along strike and at depth from both the previously existing mineral resource at Beta Hunt, as well as from exploration targets yet to be drilled, RNC said.
The targets will be tested along with other high-priority targets at the company’s nearby Higginsville mine.
Beta Hunt’s mineral resource was announced in August this year and outlines a total measured and indicated resource of 10.1 million tons at 2.9 g/t for 944,000 ounces.
Huet told shareholders that the mineral resource supporting the new reserve does not account for the blockbuster gold finds at Beta Hunt that RNC previously uncovered. “As we have previously stated, these occurrences, when encountered, may provide a boost to production but do not form the basis of our economic mine plan driven by the average grade of the deposit,” Huet told shareholders.
RNC recently amended its Higginsvilled Gold Operation claims royalty to unlock significant production potential such as areas around Beta Hunt.
Contact Angela at [email protected]
Follow her on Twitter @AHarmantas