Clarification: Historical Mineral Resource Estimate at Reefton
VANCOUVER, July 17, 2024 - Rua Gold Inc. (CSE: RUA) (OTC: NZAUF) (WKN: A4010V) ("RUA GOLD" or the "Company") provides a clarification in relation to its news release of July 15, 2024 ("RUA GOLD to acquire Siren Gold's Reefton assets and become the dominant Reefton Goldfield explorer").
Previously, the Company disclosed that "the tenements owned by [Reefton Resources Pty Limited] hosts a total JORC-compliant inferred mineral resource estimate (at a 1.5 g/t Au cut-off grade) containing 444koz Au @ 3.81g/t Au and 8.7kt Sb @ 1.5% Sb". The Company wishes to clarify that the tenements presently owned by Reefton Resources Pty Limited ("Reefton Resources") do not contain a current mineral resource estimate. The Company intended to disclose the aforementioned "inferred mineral resource estimate" as a "historical estimate" within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). As a result, the Company also wishes to provide additional information and cautionary language required by NI 43-101.
The Company would like to clarify its statement regarding the tenements owned by Reefton Resources as follows:
The tenements owned by Reefton Resources host the following historical estimates:
Alexander River Gold Project (Exploration Permit 60446)
- The Alexander River MRE is reported at 1.07 Mt and 4.95 g/t for 170 koz. The mineral resource is reported at a 1.5 g/t cut-off for all areas of the resource. The resources are estimated as at the end of January 2023.1 2
Big River Gold Project (Exploration Permit 60448)
- The Big River MRE is reported at 0.834 Mt at 3.94 g/t for 105.5 koz of gold at a 1.5g/t cut-off. The resources are estimated as of the end of April 2023.3
Supreme Gold Project (Exploration Permit 60747)
- The Supreme Inferred MRE is reported at 1.15 Mt at 2.78 g/t for 103.4 koz. resources are based on a 1.5 g/t Au cut-off grade. The resources are estimated as of the end of May 2023.4
Auld Creek Project (Exploration Permit 60648)
- The Auld Creek MRE is reported at 0.58 Mt at 3.5g/t Au and 1.5% Sb for for 66 koz of gold and 8.7t of antimony. This equates to a gold equivalent (AuEq) of 7.1g/t and 132koz based on a gold equivalent formula of AuEq = Au g/t + 2.36 x Sb% using a gold price of US$1,750/oz and an antimony price of US$13,000 per tonne. The mineral resource is reported at a 1.5 g/t AuEq cut-off. The Mineral Resources are estimated as of the end of August 2023.5
The foregoing historical estimates were classified as "inferred", in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves, 2012 edition (the "JORC Code"), which does not have the same meaning as the one ascribed to "inferred mineral source" by the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") in the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council on May 19, 2014, as amended as JORC and CIM use different definitions of the "inferred" classification based on the certain matters including the level of confidence of quantity and grade.
The Company believes verification of the historical estimates is required to upgrade the historical estimates to current mineral resources. The Company expects such verification will require, among other things: (i) additional diamond drilling and core density sampling; (ii) further detailed modelling on ore controls and deposit structural setting; (iii) continued metallurgical studies for gold recovery factors; and (iv) underground mining scoping and optimization studies to determine the optimal cut-off grade and appropriate mining methods. The Company believes that the historical estimate is relevant in assisting the Company in its targeted drill program but is unable to comment on the reliability of historical resources as insufficient work has been done to make this determination. A qualified person has not done sufficient work to classify the historical estimates referenced herein as current mineral resources or mineral reserves and the Company is not treating the historical estimate as current mineral resources or mineral reserves.
About RUA GOLD
RUA GOLD (CSE: RUA, OTC: NZAUF, WKN: A4010V) is a new entrant to the mining industry, specializing in gold exploration and discovery in New Zealand. With permits that have a rich history dating back to the gold rush in the late 1800's, RUA GOLD combines traditional prospecting practices with modern technologies to uncover and capitalize on valuable gold deposits.
The Company is committed to responsible and sustainable exploration, which is evident in its professional planning and execution. The Company aims to minimize its environmental impact and to execute on its projects with key stakeholders in mind. RUA GOLD has a highly skilled team of New Zealand professionals who possess extensive knowledge and experience in geology, geochemistry, and geophysical exploration technology.
For further information, please refer to the Company's disclosure record on SEDAR+ at www.sedarplus.ca.
Technical Information
Simon Henderson CP, AUSIMM, a qualified person under National Instrument 43-101 Standards of Disclosure for Mineral Projects, has reviewed and approved the technical disclosure contained herein.
Website: www.RUAGOLD.com
This news release includes certain statements that may be deemed "forward-looking statements". All statements in this new release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur and specifically include statements regarding: the Company's strategies, expectations, planned operations or future actions; and the work required to verify the historical mineral estimates as current mineral resources or mineral reserves. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements.
Investors are cautioned that any such forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. A variety of inherent risks, uncertainties and factors, many of which are beyond the Company's control, affect the operations, performance and results of the Company and its business, and could cause actual events or results to differ materially from estimated or anticipated events or results expressed or implied by forward looking statements. Some of these risks, uncertainties and factors include: general business, economic, competitive, political and social uncertainties; risks related to the effects of the Russia-Ukraine war; risks related to climate change; operational risks in exploration, delays or changes in plans with respect to exploration projects or capital expenditures; the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; changes in labour costs and other costs and expenses or equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, including but not limited to environmental hazards, flooding or unfavourable operating conditions and losses, insurrection or war, delays in obtaining governmental approvals or financing, and commodity prices. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements and reference should also be made to the Company's annual information form dated April 19, 2024, filed under its SEDAR+ profile at www.sedarplus.ca for a description of additional risk factors.
Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
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| 1 Source: "Alexander River Mineral Resource Estimate Report" dated April 2023 and prepared by Christopher Grove, B App Sci, MAusIMM, principal geologist, and Matt Binks, senior geologist, of Measured Group Pty Ltd. Assumptions from source: The resource has been estimated based on an assumption of mechanised underground mining for the Alexander River deposit (long hole stoping or sub-level open stoping). No mining dimensions or dilution were considered. No metallurgical recovery factors were applied to the Mineral Resources Estimate. | |
| 2 Additional assumptions, parameters, and methods used to prepare the historical estimate, as identified by Mr. Simon Henderson: Geological wireframing in Leapfrog Geo; hard boundary compositing using Leapfrog - Edge Module (Leapfrog Edge); Variography and Ordinary Kriging using Leapfrog Edge; Block Model Estimation using Leapfrog Edge. The historical mineral resources are reported according to the terminology, definitions and guidelines given in the JORC Code (as defined herein). | |
| 3 Source: "Mineral Resource Estimate Report - Big River Gold Project" dated June 2023 and authored by Mark McCulloch, BSc, MAusIMM, a consultant to Siren Gold Limited. Assumptions: The resource has been estimated based on an assumption of mechanised underground mining for the Big River deposit (long hole stoping or sub-level open stoping). No mining dimensions or dilution were considered. No metallurgical recovery factors were applied to the Mineral Resources Estimate. See also note 2. | |
| 4 Source: "Mineral Resource Estimate Report - Supreme Gold Project" dated June 2023 and authored by Mark McCulloch, BSc, MAusIMM, a consultant to Siren Gold Limited. Assumptions: The resource has been estimated based on an assumption of mechanised underground mining for the Supreme deposit (long hole stoping or sub-level open stoping). No mining dimensions or dilution were considered. No metallurgical recovery factors were applied to the Mineral Resources Estimate. See also note 2. | |
| 5 Source: "Mineral Resource Estimate Report - Auld Creek Project" dated October 2023 and authored by Mark McCulloch, BSC, MAusIMM, a consultant to Siren Gold Limited. Assumptions: The resource has been estimated based on an assumption of mechanised underground mining for the Fraternal deposit (long hole stoping or sub-level open stoping). No mining dimensions or dilution were considered. No metallurgical recovery factors were applied to the MRE. See also note 2. |
SOURCE RUA GOLD
Contact
RUA GOLD Contact: Robert Eckford, Chief Executive Officer, Email: reckford@RUAGOLD.com
