RCG Appoints Greg Gibson (CEO, Sprott Mining) As Director, Bringing Additional Technical Underground Mining Exertise To RCG
Mr. Gibson will chair RCG’s technical committee
US$1,850,000 in advance funding from Corcoran spinoff transaction received to date of the US$2,000,000 total
Preparation for gold production continues on track at Dufferin mine and mill; test milling of low grade materials yielded 87% recovery of gold in gravity concentrates; high grade materials yielded 96% recovery
Vancouver, BC – May 25, 2017 – Resource Capital Gold Corp., TSXV:RCG (“RCG” or the “Company”), is pleased to announce that the Board of Directors has appointed Mr. Greg Gibson, currently the President and CEO of Sprott Mining Company, to its Board of Directors. Mr. Gibson will replace Dr. Michael G. Nelson, who will join the Company’s Advisory Board. The Company would like to thank Dr. Nelson for his service on the Board of Directors and looks forward to his continued assistance in an advisory capacity.
In addition to serving as a member of the Board of Directors, Mr. Gibson will also chair the Company’s Technical Committee and will assist the Company in its imminent start up operations at the Dufferin Mine and in the activities of ramping up the operations to full capacity. Mr. Gibson is President and CEO of Sprott Mining and Jerritt Canyon Gold LLC. He has more than 30 years’ experience in the mining industry as a miner, mine manager, director, CEO and President. Greg’s experience has focused on gold and copper mines primarily in Canada, US, and Australia. He successfully led Trelawney Mining and Exploration as President, CEO and director from an early explorer to the $608 million sale to IAMGOLD in 2012. Greg is Chairman and Interim CEO of Metanor Resources Inc. A director of Ascot Resources, Sprott Mining Inc., and Jerritt Canyon Canada.
“We are very pleased to welcome Greg Gibson to our Board of Directors, who will bring us tremendous mine development experience to add to our existing staff experience,” said George S. Young, CEO of RCG. “While the final preparations at Dufferin for the commencement of operations have been substantially completed, Greg will be instrumental in the smooth ramp up from the initial operating level toward full production rates at the mine and the mill. Once we have completed that ramp up, we will be in an excellent position to immediately commence development at the Forest Hill and Tangier properties with the experience gained at Dufferin. Preliminary Economic Assessments on those projects are already underway.”
RCG is also pleased to announce that it has received a total to date of US$1,850,000 in advance funding toward the total cash amount of US$2,000,000 for the sale of the Corcoran project.
With the receipt of these funds and the recent receipt of the mining lease for the Dufferin project from the Nova Scotia Department of Natural Resources, preparations for commencement of full operations at its Dufferin Gold Mine and Mill (“Dufferin Project”) continue on track.1
Test milling operations of both low grade and high grade materials have been successfully carried out at Dufferin. Gold recoveries from the low grade materials of 87% were generated following initial testing and adjustments in the mill circuits. Recoveries of 96% of contained gold were generated from test milling of the high grade materials. Final adjustments are being made to the mill, in particular to the gravity table and in the processes for cleaning of the gravity concentrations prior to the pouring of gold bars for sale.
About Resource Capital Gold and the Dufferin Project
Resource Capital Gold Corp. is developing the high-grade Dufferin Gold Mine and mill in Nova Scotia, with initial gold production from test milling achieved in March 2017. The Dufferin project covers 1,684 hectares in 104 mineral claims which contain more than 14 east-west trending “saddle reef" quartz vein gold-bearing structures, each with free-milling gold. The stacked gold reefs are open at depth and extend along trend for over 4.7 kilometers.
The Company is also advancing the Tangier and Forest Hill gold projects and is preparing preliminary economic assessments (“PEA’s”) on both.
About the Forest Hill property
Forest Hill is an advanced gold project with a drilled gold resource. Gold was discovered in 1893, followed by production, which up to 1916 produced 26,792 ounces at an overall recovered grade of 16.6 g/t Au. In the 1980s, a 230-m shaft was sunk and approximately 94,000 tonnes of ore mined. A total of 10 km of underground workings exist on the project, along with 249 surface drill holes totaling 34,413 m and 127 underground drill holes totaling 7,267 m. The project comprises 1,840 hectares in 115 exploration claims.
Steeply dipping stratabound quartz veins on the south limb of the east-west trending Forest Hill anticline contain free-milling gold. Numerous veins have been encountered on the property, and they have been tracked for over 600 m along strike and 250 m down dip with excellent continuity demonstrated by drilling and mine workings.
The project shows very good grades, and bulk sampling during the 1980s returned grades between 9.2 g/t Au and 13.8 g/t Au for diluted ore, with 94.9% overall recovery, of which 74.2% recovery was attained by gravity methods alone. The expansion potential at Forest Hill is very good, with mineralization open at depth along the entire mineralized system.
About the Tangier property
Tangier was the site of the first gold discovery in Nova Scotia in 1860. Total historic gold production up to 1919 is estimated at 29,000 ounces at a recovered grade of 17.5 g/t Au. The property saw several phases of bulk sampling during the 1980s and 1990s, the best of which was 2,578 tonnes with a recovered grade of approximately 16 g/t Au.
A total of 211 surface and underground drill holes have been completed on the property. Past mining activities have developed 3,300 m of underground workings. The mine sits on a project area of 1,904 hectares in 119 exploration claims.
The Tangier gold deposit is situated along the east-west trending Tangier anticline, a structure that has been traced for 7.3 km. Within this anticline, two sections totaling 1.4 km have been explored with drilling and past mining, which demonstrate good continuity of gold-bearing quartz veins to depths of 300 m. Gold-bearing quartz veins have been identified over a total strike length of 3.4 km on the property. This work has identified 70 or more gold-bearing quartz veins, demonstrating an extensive mineralized system.
Mineralization at Tangier consists of coarse flake gold and nuggets in generally stratabound quartz veins up to 1.5 meters thick containing calcite and up to 5% sulfide minerals, including pyrite, pyrrhotite, arsenopyrite, sphalerite, and galena. The characteristics of the mineralization indicate that the deposit is an orogenic gold deposit, similar to the Dufferin Mine and others in Nova Scotia’s Meguma Terrane.
The scientific and technical data contained in this news release was reviewed and approved by Michael P. Gross, M.Sc., P.Geo., who is a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects.
On behalf of the Board of Directors of Resource Capital Gold Corp.
George S. Young
For further Information please contact:
George S. Young at (604) 642 6114
Resource Capital Gold Corp.
Vancouver Park Place
666 Burrard Street, Suite 500
Vancouver V6C 3P6
P +1 604 642 6114
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This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words “believes,” “may,” “plans,” “will,” “anticipates,” “intends,” “could”, “estimates”, “expects”, “forecasts”, “projects” and similar expressions, and the negative of such expressions. Forward-looking information in this news release include statements about the Company’s plans to conclude the sale of the Corcoran project including the share dividend (there is no assurance that AUSAG will successfully complete an initial public offering in Australia or list on the ASX or become a reporting issuer in Canada and dual list on a Canada stock exchange), and the Company’s plans for Dufferin. and the respective timing for completion of any activities to further such plans, the results of the PEA and the ability of the Company to achieve those results, including capital and operating costs, mine life, anticipated internal rate of return and net present value, payback period, ramp-up periods, production costs, production parameters, recovery rates, assumptions on which the PEA is based including metal prices and exchange rates, and the Company’s prospects for growth and the ability to attain such growth.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including, without limitation, risks as a result of the Company having a limited operating history, uncertainty as to the ability to achieve the results described in the PEA as the PEA is preliminary in nature and may have a wide variance from actual results, risks from making a production decision without any feasibility study completed on the Company’s properties, uncertainty regarding the inclusion of inferred mineral resources in the mineral resource estimate which are too speculative geologically to be classified as mineral reserves, uncertainty regarding the ability to convert any part of the mineral resource into mineral reserves, uncertainty involving resource estimates and the ability to extract those resources economically, or at all, uncertainty involving drilling programs and the Company’s ability to expand and upgrade existing resource estimates, any applicable regulatory processes and actions, risks applicable to mining operations generally, and risk as a result of the Company being subject to certain covenants with respect to its activities by creditors, as well as other risks.
Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances at the date such statements are made. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.
All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
1 The Company is not basing its production decision on a feasibility study of mineral reserves demonstrating economic and technical viability; as a result there is increased uncertainty and economic and technical risks of failure associated with its production decision.