Reunion Gold Corporation

Reunion Gold Corporation

November 14, 2006 14:53 ET

Reunion Gold Corporation Announces its Financial Results for the Second Quarter Ended September 30, 2006

LONGUEIL, QUEBEC--(CCNMatthews - Nov. 14, 2006) - Reunion Gold Corporation(TSX VENTURE:RGD) (the "Company") announces that its Interim Consolidated Financial Statements and Management's Discussion & Analysis for the quarter ended September 30, 2006 have been filed on Sedar ( They are also available through CCNMatthews' website at and on the Company's website (

(All dollar amounts in this press release are expressed in Canadian dollars, unless otherwise indicated).

Second Quarter Financial Highlights

- For the period ended September 30, 2006, the Company incurred a loss from continued operations of $390,500 (which consisted essentially of administration expenses) compared to a loss of $641,600 during the corresponding period in 2005 (which included an unrealized loss on foreign exchange of $261,500).

- Including the impact of the Discontinued Operations, which amounted to a profit of $9,300 during the second quarter, net loss for the quarter amounted to $381,100 or $0.01 per share compared to a net loss of $540,100 or $0.01 per share in 2005.

- Exploration expenditures of $1,103,200 were incurred on the Antino 1 Project during the quarter.

- A total of 1,788,189 warrants (which had been issued as part of the January 2004 private placement) and 155,000 stock options were exercised during the second quarter for total proceeds of $2,390,200.

- In October 2006, the company granted a total of 465,000 stock options to certain of its directors and to certain consultants of the Antino 1 Project.

- Total assets of $11,813,600 at September 30, 2006 included cash and cash equivalents of $6,430,400 and an investment of $3,700,000 in the shares of X-Cal Resources Ltd.

- The Company has 39,880,952 common shares issued and outstanding as at November 14, 2006; it also has 18,463,279 warrants outstanding at an exercise price of $1.25 per share and expiring at various dates up to February 2009 and 3,590,000 outstanding stock options with an exercise price varying between $0.20 and $1.96 and expiring by October 2011.

Update on exploration activities

The exploration program at Antino 1 in Suriname got underway during the quarter with the start of the 3 meter auger soil geochemistry program. Prior to this, work on setting-up camp and cutting grid lines on 100-meter intervals in the Maripasula target area had been completed. The current exploration work consists of geological mapping, auger soil geochemistry, excavator trenching and reverse circulation drilling. To the end of October, work completed consists of 948 3-metre hand auger holes, 20 trenches from which 1,855 meters of channel samples were collected and 80 reverse circulation ("RC") holes for a total of 4,500 meters of drilling. A total of 5,567 samples have been submitted for assay up to the end of October.

Results to date from both the trenching and the RC drilling have been encouraging and several targets will require follow up work. During the next quarter a core drill will be mobilized to Antino 1 and a diamond drilling program will commence to test newly indicated targets. The third-party lab in Suriname has experienced some difficulties in respecting reasonable turnaround time for processing of assays. This issue is currently being addressed.


The Company estimates that an amount of approximately US $1.5 million will be required to complete the first phase of the exploration program at Antino 1, the objective of which is to define the extent and grade of gold mineralization within the Maripasula target area.

The Company will continue to focus its attention on the Antino 1 Project in Suriname and on other projects in the Guiana Shield in South America. The Company is actively looking for new opportunities and anticipates the acquisition of additional projects in the Guiana Shield.

The Company currently has cash of approximately $6.4 million and no debt.

The Company has no cash flow generating operations and its long-term financial success is highly dependent on management's ability to discover economically viable deposits. The Company has sufficient capital resources to continue with its exploration program on the Antino 1 Project. However, the Company may be required to raise capital through the issuance of additional equity in order to finance new acquisitions and exploration programs on newly-acquired exploration properties. Although the Company has been successful in the past in obtaining such financing, there can be no assurance that it will be able to obtain adequate financing in the future or that the terms of such financing will be favorable.

Qualified Person

Mr. Adrian Fleming, Reunion Gold Corporation's qualified person, has reviewed the technical information contained in this press release as required under NI 43-101. Mr. Fleming is the Project Manager for the Antino 1 Project.

Forward Looking Statements

Except for historical information, this press release may contain forward-looking statements. Forward-looking statements are not historical facts, and are subject to a number of known and unknown risks and uncertainties beyond the Company's control; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; the possibility that required permits may not be obtained in a timely manner or at all; changes in planned work resulting from weather, logistical, technical or other factors; potential resources, exploration results, costs and supply of material relevant to the mining industry, and future plans and objectives of the Company. These statements may cause the actual results, levels of activity, performance or achievement of the Company to be materially different from any future results, levels of activity, performance or achievement expressed or implied by these forward looking statements.

Additional information

Additional information about the Company is available through regular filings and press releases on SEDAR and on the Company's website.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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