RNC Minerals (TSE:RNX) said Thursday that explorations at a series of prospects on its Higginsville operation have returned high-grade results and visible gold.
The Toronto-based company discovered the visible gold in a surface sample taken from the Hidden Secret project on the Western Australian property.
Also, high-grade drill intersections were uncovered at the Corona deposit as part of RNC’s ongoing review of the historic drilling database at Higginsville.
READ: RNC Minerals amends HGO claims royalty to unlock significant production potential and lower costs
Drilling at the Hidden Secret and Mousehollow targets on the Higginsville property returned strong results. At Hidden Secret, the firm intersected 15.1 grams per ton (g/t) gold over 4 metres (m) from 24 m, including 47.8 g/t over 1 m. Intersections at Mousehollow returned results including 26.1 g/t over 3 m from 22 m.
The results indicate that mineralization extends to surface and is open at depth, according to RNC. Further drilling is planned through the second quarter of 2020 to close-off the recently defined extensions to the Hidden Secret-Mouse Hollow mineralization.
Paul Andre Huet, RNC’s CEO, called the early results “very positive” for growing the pipeline at the Higginsville operation.
“As part of RNC's due diligence process during the acquisition of HGO last year, it became apparent that little exploration had been carried out across the property for many years, largely due to the onerous royalty covering a large portion of the tenements,” Huet told shareholders.
The restructured royalty is a flat 2% NSR after payment of an adjusted legacy rate on the first 10,000 gold ounces sold per year.
“The willingness of Morgan Stanley to work with us to reduce the royalty burden has opened up HGO for a renewed exploration program providing us economic incentive to explore and develop these areas to benefit all our stakeholders,” Huet said. “While these early results are encouraging, work has only just begun and we are looking forward to the results of our renewed exploration focus on the recently unlocked 1,800-square kilometre Higginsville land package."
Contact Angela at [email protected]
Follow her on Twitter @AHarmantas