TSX-listed RNC Minerals on Monday announced that it had doubled the strike length of the high-grade coarse gold structure of the Fathers Day vein, in the Beta Hunt mine, to about 10 m and added that it would provide an update on the estimated ounces from this new Australian gold discovery later in the week.
Airleg development towards the initial discovery area intersected the structure last Friday and the break through into the original discovery area is expected on Monday, the company stated.
A 43 kg specimen stone containing an estimated 1 100 oz of gold and a second 7 kg specimen containing 190 oz was recovered from this most recent development.
Last week, the company reported that it had produced 9 250 oz of high-grade gold from a 44 m3 cut, equalling more than 70 oz/t or 2 200 g/t.
RNC said that it would provide an updated estimate of ounces later in the week.
"The Fathers Day vein delivers additional gold and cash flow from this further extension with additional potential up-dip still to be developed. I am looking forward to the production estimates incorporating these additional ounces expected later this week. The Beta Hunt team has done a great job moving the operation forward over the last 12 months and I congratulate every person working at Beta Hunt for the incredible Fathers Day vein discovery last week. RNC is currently developing plans to unlock the high-grade gold potential of the mine which remains largely unexplored," RNC CEO Mark Selby said.
This discovery was made on Fathers Day in Australia, hence the name of the high-grade vein, news of which has resulted in a spike in the company’s shares on the Toronto bourse. The stock soared 166% from September 10 to September 14, from C$0.09 a share to C$0.24 a share.
The new high-grade discovery also led to RNC withdrawing an agreement to sell Beta Hunt.
The company is the first owner of the mine to focus on drilling deeper in the Lunnon Basalt in its search for gold, and therefore the first owner to discover and mine gold from newly discovered coarse gold located entirely within the Lunnon Basalt. Previous bonanza grade specimen stone occurrences at Beta Hunt were associated with the nickel-sulphide bearing contact between the Lunnon Basalt and the overlying Kambalda Komatiite where nickel mining has been focused on by RNC and previous operators.