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RNC Minerals' Higginsville exploration identifies new structure; gets go-ahead for second stage Baloo mining

The area lies north of the previously mined high grade 1 million ounce Trident gold deposit

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The firm's Higginsville property extends over a large 1,800 sqare km area and includes a mill, pictured

RNC Minerals Corp (TSE:RNX), the west Australia-focused gold miner, revealed that a gravity survey had uncovered a new, potentially exciting structure extending over 5 km at its Higginsville operations. 

The area, which lies north of the previously mined high-grade 1 million ounce (Moz) Trident gold deposit, may contain mineralization at depth, and will be the focus of new drilling, as part of its 2020 program.

The structure runs sub-parallel to the major regional Zuleika, Speedway and Boulder Lefroy shears, which control the bulk of the gold mineralization between the Golden Mile (60 Mozs) and Norseman (6 Mozs) mining centres.

READ: RNC Minerals guides for 2020 group output of between 90,000 and 95,000 ounces of gold

The firm's Higginsville property extends over a large 1,800 sq km area.

"Although early stage, our interpretation of the potential size of this new structure is an exciting development for our HGO-focused exploration activities," the firm said.

"With the Morgan Stanley Royalty recently renegotiated in December 2019, it now makes sense to explore these and many other areas across the Higginsville tenement package which holds strong potential for new discoveries."

Also in today's statement, RNC said approval for Stage 2 of the Baloo open pit, also at Higginsville, had been received, with mining expected to start in the middle of this year and carry on until January 2021.

The first stage was originally forecast to be completed at the end of January, however recent grade control and extensional drilling has extended Baloo Stage 1 until June this year, the firm said.

Baloo Stage 2 will begin upon completion of Stage 1, notwithstanding the potential for further additions to the Stage 1 mine plan, it added.

As part of the HGO open pit "production pipeline", it is expected that both stages of Baloo will be mined in conjunction with a series of additional open pits beginning with Fairplay North and Pioneer (mining at the former has already begun), noted the company.

Additional resource definition and grade control drilling are underway in a number of other areas to define the pipeline of open pits, it added.

RNC is focused on growing gold production and reducing costs at its integrated Beta Hunt gold mine and Higginsville Gold Operations (HGO) in Western Australia.

Shares in Canada advanced 12.2% to C$0.46 each.

Contact the author at [email protected]

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