Rio Novo Gold Inc.

Rio Novo Gold Inc.

April 07, 2010 08:48 ET

Rio Novo Gold to Mobilize 7 Diamond Drilling Rigs and Commence Geophysical Program at Almas and Guaranta Gold Projects in Brazil

TORONTO, ONTARIO--(Marketwire - April 7, 2010) -


Rio Novo Gold Inc. (TSX:RN)(TSX:RN.WT) ("Rio Novo" or the "Company") is pleased to announce the launch of its 2010 drilling program at the Company's two wholly owned projects in Brazil, the Almas and the Guarantã Gold Projects. Over the next six weeks the Company will mobilize a total of seven diamond drilling rigs to undertake a 40,000 metres drilling program, which is expected to be completed in the fourth quarter of 2010.

At the Almas Gold Project, located in an 18 km of greenstone belt in south eastern Tocantins State, five drill rigs will start to work this month at the two most advanced targets in the project, the Arroz target, located at the north end of the belt, and the Paiol Pit North Extension, located 15 km to the south.

At the Arroz target, three drill rigs will be used in an infill drilling program to upgrade the geological potential identified in the 2008 exploration program to the indicated category. Later the drills will step out along strike to the north west to follow up the favourable drill results previously obtained by Vale. A total of 7,100 metres of drilling is being planned to the Arroz target, which also includes the Refresco target.

At Paiol, where Vale operated an open-pit mine and heap leach operations from 1996 to 2001, two drill rigs will be mobilized for 20,000 metres of infill and step-out drilling at the north extension of the pit to follow up on the favourable results obtained in 2008. In total, 29,000 metres will be drilled at Almas in 2010, which also includes 1,900 metres of drilling of samples for metallurgical and geotechnical tests, with the ultimate objective of increasing measured and indicated resources recoverable by open pit to advance the project to the feasibility stage.

In May 2010 the company will sample the old heap leach pad left by Vale using auger drilling in order to retrieve samples for metallurgical testing and investigate the potential gold content of this "stockpile".

At the Guarantã Gold Project, which includes about 45 km2 of exploration rights in a porphyry gold district in north eastern Mato Grosso State, two drill rigs will be mobilized by May 2010 at the X1 Deposit to undertake 7,000 metres of drilling, including infill drilling at the east side of the deposit and step-out drilling to test known geochemical anomalies and any anomalies identified by the recently initiated ground geophysics program. An additional 4,000 metres of drilling is also planned at the Guarantã Ridge target, where mineralization has been identified over distance of about 6.0 km, and at the Serrinha target, with about 1.2 km strike, bringing the total 2010 drilling program at the Guarantã Project to 11,000 metres. 

Ground geophysical programs have been contracted and commenced at both Almas and Guarantã on several targets, with first results from the Arroz target at Almas currently being processed.

Rio Novo's Chief Executive Officer David Beatty said, "We are delighted that rig availability in Brazil is good and we can immediately get our exploration programs started as planned. In addition, we will be developing more targets in both projects with generative work and reinterpretation of existing geological data. This represents a solid start to our exploration effort."

About Rio Novo

Rio Novo is currently focused on the acquisition, exploration and development of gold mineral resource properties in Brazil. The Company's goal is to become a producer of gold in the short term by bringing into production its two Brazilian properties, the Almas Gold Project, located in Tocantins State, and the Guarantã Gold Project, located in Mato Grosso State. Both projects enjoy established infrastructure in mining friendly jurisdictions. In addition to exploring and developing the Almas and the Guarantã Gold Projects, the Company intends to identify, explore and develop or acquire additional precious metals properties in Brazil and other established mineral jurisdictions in South America.

This press release contains "forward-looking information" (also referred to as "forward-looking statements") which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects, the future price of gold or other metal prices, the estimation of mineral resources, the realization of mineral resource estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration and/or exploitation, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of regulatory matters, and that reflects management's expectations regarding the Company's future growth, results of operations, performance and business prospects and opportunities. Often, but not necessarily always, the use of words such as "anticipate", "believe", "plan", "estimates", "expect", "intend", "budget", "scheduled", "forecasts" and similar expressions have been used to identify these forward-looking statements or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect management's current beliefs and are based on information currently available to management. Except for statements of historical fact relating to the Company, information contained herein constitutes forward-looking statements, including any information as to the Company's strategy, plans or financial or operating performance. Forward-looking statements involve significant risks, uncertainties and assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include risks related to failure to define mineral resources, to convert estimated mineral resources to reserves, the grade and recovery of ore which is mined varying from estimates, future prices of gold and other commodities, capital and operating costs varying significantly from estimates, political risks arising from operating in Brazil, uncertainties relating to the availability and costs and availability of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, uninsured risks and other risks involved in the mineral exploration and development industry. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure prospective purchasers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. . For additional information with respect to risks, uncertainties and assumptions, please also refer to the "Risk Factors" section of our most recent prospectus filed with the Canadian securities regulatory authorities on

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