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RNC’s Beta Hunt ramp-up ahead of schedule

30th May 2016

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Canadian gold producer Royal Nickel Corporation (RNC) is ahead of the May ramp-up schedule for its Beta Hunt mine, hitting about 65% of the year-end mining rate target, which is ahead of the ramp-up schedule that was planned in the Beta Hunt preliminary economic assessment, the company reported on Monday.

This was compared with 58% of the year-end mining rate at Beta Hunt, located in the Kambalda mining district of Australia, as at the end of the first quarter, the TSX-listed miner advised.

"We continue to evaluate the best long-term option to process gold production from Beta Hunt and have been satisfied with the initial results from a new tolling agreement that began last week. With the recently developed bonanza grade Hand of Faith (HOF) zone, targeting of further bonanza-grade zones for mining in 2016, and the strong progress in mine development to date, the mine continues to exceed expectations," stated president and CEO Mark Selby.

Toll milling of gold under a new arrangement began on May 20, by HBJ Minerals, a subsidiary of Metals X. RNC advised that by using the smaller HBJ mill it expected to improve results for the treatment of coarse gold, found in higher proportions in bonanza-grade areas like the HOF, which was expected to make up a meaningful proportion of gold output this year.

As of May 26, the first seven days of the first HBJ toll campaign were completed and 17 700 t of Beta Hunt development material were processed at a head grade of 2 g/t. The mill had an average recovery of 91.4%, in line with expectations. The head grades from the first seven days of tolling reflected the planned head grades from the ongoing mine development production. Over the balance of the toll campaign, higher head grades were expected as material from higher-grade stopes, and high-grade areas like the HOF were processed.  

RNC expected that this toll campaign would continue until June 7, and that a total of about 50 000 t of gold production would be treated.

Meanwhile, Selby stated that he was pleased with the development progress at Beta Hunt as gold output continued to ramp up ahead of schedule. The company had also received “encouraging results” from the first set of infill drill holes as it worked to upgrade the resource.

An underground infill diamond drilling programme for the Western Flanks and A Zone resources started in March, designed to upgrade the resource classification of the block model to improve the existing mine plan. Up to May 25, 13 holes were completed for 2 675.7 m of drilling.

RNC stated that assay results were available for six holes and all supported the current resource model. It also highlighted drill hole WF14-23, which returned an interval of 4 m grading 9 g/t  gold, which indicated a potential increase of the existing block model grade in this area.

Drilling of the A zone is planned to start next month.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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