RNC in fresh gold strike

RNC Minerals has recovered an estimated $3.9 million worth of gold within 274 kilograms of rock at its Beta Hunt mine in the Kambalda district of the Goldfields.

RNC said it considered the unexpected discovery as a significant bonus to mine production, and it was not included in the company’s mineral resource estimate.

The find occurred 25 metres below its Father’s Day Vein discovery, which was worth approximately $1.9 million when unearthed in June this year.

In October 2018, RNC found two gold bearing stones weighing a combined 158kg containing 4,060 ounces ounce of gold, worth $6.8 million at the time.

Prior to these large unexpected gold discoveries, RNC was keen to exit Beta Hunt, and was courting potential buyers in early 2018.

RNC chief executive officer Paul Andre Huet said the company would quickly monetise the gold from its recent discovery in order to capitalise on current $2,250/oz Australian gold price.

“Once again we have encountered an area of high-grade coarse gold in the same geological setting as the Father’s Day Vein,” he said.

“This further highlights the potential of the Beta Hunt mine, demonstrating the significant upside impact these high-grade discoveries can have on operational cash flow generation.”

RNC completed the $50 million acquisition of the Higginsville gold porject from Westgold Resources in March, which it acquired to provide low-cost milling for the Beta Hunt mine.