The recently discovered Father’s Day vein at RNC Minerals’ Beta Hunt mine, in Australia, has more high-grade gold than previously thought, with estimates now put at 24 000 oz, worth $38-million.
The new estimate is more than double the initial estimate of 9 250 oz and includes additional in-process material from the initial discovery area, specimen stones and coarse gold recovered from the expanded development area and an increase in production over original estimates based on final out-turns received from the Perth Mint.
The company initially expected about $15-million from the Father’s Day vein coarse gold that was sent to the Perth Mint.
RNC expects production from the Father's Day vein to increase as the remaining material from the expanded development area is processed and development continues to be extended.
"The cash flow from this massive increase in gold production from the Father's Day vein at Beta Hunt will fundamentally improve RNC's balance sheet to a substantial net cash position, which will allow RNC to begin to aggressively explore the largely untested high-grade gold potential at Beta Hunt,” said RNC president and CEO Mark Selby.
RNC, which trades on the Toronto exchange, has gained significantly since the announcement of the high-grade discovery earlier this month. The stock has jumped more than 300% since September 7, to a 52-week high of C$0.44 a share on September 18. The company receded somewhat on Wednesday, trading 9.4% lower in the previous day at C$0.38 a share.