Reunion Gold Corporation
TSX VENTURE : RGD

Reunion Gold Corporation

March 01, 2011 09:15 ET

Reunion Gold Corporation Trenching Program at Matthews Ridge Reveals Continuous Manganese Mineralization Over 2.5 Kilometres

LONGUEUIL, QUEBEC--(Marketwire - March 1, 2011) - Reunion Gold Corporation (TSX VENTURE:RGD) ("Reunion" or the "Company") today announced that a recently completed trenching program has defined continuous thick, high grade manganese mineralization over 2.5km of strike at its 100%-owned Matthews Ridge project in Guyana. Given the strong results of the program, Reunion is planning a 24,000m, 220-hole drill program to define a NI 43-101 compliant mineral resource by the end of 2011. In addition, Reunion plans to expand its trenching program to test an additional 9km of strike of previously identified manganese mineralization with the objective of defining additional drill targets.

Highlights

Highlights of the recent trenching program include the following:

Trench ID Width Manganese
Trench: interval M % Mn
     
2D: 11m to 43m 32 16.33
4C: 31m to 51m 20 15.08
4D: 0m to 33m 33 15.00
5C: 0m to 24m 24 17.84
5G: 0m to 27m 27 9.13
7D: 0m to 29m 29 10.51
8F: 14m to 78m 64 20.50
10: 35m to 61m 26 16.09
10B: 9m to 35m 26 14.81
10C: 8m to 32m 24 11.92
11A: 11 to 37 26 11.71
12C: 32m to 85m 53 12.95
13: 35m to 63m 28 13.50
14A: 25m to 59m 35 10.44
14B: 8m to 28m 20 16.72

See Table 1 available at the following address for complete results: http://media3.marketwire.com/docs/RGD_table1.pdf

"The results from our recent trenching program at Matthews Ridge are very encouraging," said James Crombie, Reunion's President & CEO. "Not only did we confirm the historic mineralized zone, but we encountered some much higher than expected manganese grades, significantly extended the strike length of the manganese mineralization and enhanced the continuity of the mineralization," he said. "In addition, we see excellent potential to continue to extend the strike extent of the mineralization and have an ambitious drilling and further trenching program planned for 2011 to define an initial mineral resource and test this additional strike extent."

Trenching Program

Results have so far been received from 19 out of 22 trenches completed to date over Hills 5EExt, 5E, 5C, 5W and 6 (see map below). These trenches were completed as part of a first phase exploration program centred within and around a former manganese mine at Matthews Ridge in Guyana.

The first phase trenching program was designed to evaluate the previous mined areas with a view to establishing the existence of the mineralisation along strike, while attempting to establish the controls on its localisation. Trenches are constructed at nominal right angles to the controlling structures to an average depth of 2.5m. Careful attention is paid to lithology and structure when sampling.

See map of Matthews Ridge, North West, Guyana - Trench Locations available at the following address: http://media3.marketwire.com/docs/rgd_matthewsridge_1.pdf

Mineralization

The higher grade manganese oxides, which were previously mined, occurred as superficial, enriched cappings formed as a result of weathering in the tropical climate.

As expected, there is a strong topographic control as deposits are resistant to weathering and form ridges up to 100m high. The depth of weathering at Matthews Ridge varies from 45m to 120m below surface. Transported screes of eroded manganese mineralization flank the hills.

Matthews Ridge Project

Reunion, through its wholly owned subsidiary, obtained four prospecting licenses to conduct exploration and development for manganese in the North West District of Guyana, South America, over an area of 45,729 acres within and around the former manganese mines at Matthews Ridge and Pipiani, which closed in 1968. The former Matthews Ridge mine site is located 260 km NW of the capital city of Georgetown. The former Pipiani mine is some 40 km south of Matthews Ridge and north of the Barama River.

Historical information

The information contained here is based on historical records and data extracted from reports issued by the Guyana Geology and Mines Commission in 1985 – Matthews Ridge Manganese Project, GGMC/DPRK report, 1985. The Company has not completed the work necessary to classify the historical estimate mentioned below as current mineral resources or mineral reserves. The Company is not treating the historical estimate as current mineral resources or reserves as defined in NI43-101; the estimates are provided for information only and should not be relied upon.

The historical information indicates that Union Carbide, through subsidiaries – the African Manganese Company Ltd (AMCL) and Manganese Mines Management Ltd. (MML), operated the Matthews Ridge mine and shipped concentrates out of Guyana between 1962 and 1968. The records indicate that during that period, some 1.7 million tons of manganese concentrate was recovered and shipped. The concentrates were delivered to Port Kaituma by rail.

The mine had been built based on a historic proven reserve base of 3.6 million tons of manganese concentrate at the start of operations in 1962. These reserves had been generated based on numerous pits, trenches and adits along with 110 diamond drill holes aggregating 19,040 ft in 5 of the 9 hills that were mined. At the close of operations, it was estimated that some 1 million tonnes of recoverable concentrate (at 37% Mn) was left.

The remaining reserves were revised to 3.6 million tonnes of recoverable concentrate (33.4% Mn) in 1985 based on work conducted by a joint Guyana Geology and Mines Commission/DPRK team. This work involved detailed topographic surveying and drilling of an additional 5 holes (1070 ft).

The historic reserves at Pipiani were estimated at 642,000 tonnes of manganese concentrates (42% Mn). This was reportedly based on 35 drill holes, numerous pits and trenches.

Exploration program outline for 2011

The objectives of the 2011 program are to define a NI43-101 compliant mineral resource estimate by mid- 2011. The planned program includes:

  1. Trenching the former mine pits (#7 to #9) to outline and confirm continuity of mineralization; and
  2. Executing an aggressive 24,000m drilling program comprising 220 holes to an average depth of 110m per hole to:
    1. Confirm historic mineral resources within the trenched zone, and expand within, alongside and beneath all existing mined areas;
    2. Test strike extensions of the Matthews Ridge system as trenching continues; and
    3. Assess potential for transported, eroded mineralization on hill slopes.

In addition, the Company is planning to undertake the following work in parallel to the above:

  • Conduct an exploration program to find parallel mineralized systems, principally in areas to the north, where strong geochemical evidence indicate a potential repeat of the Matthews Ridge mineralized system; and
  • Conduct metallurgical testing of all mineral-types to define potential manganese product and recovery parameters. Two batches of samples from the trenching program are being delivered to Bateman Engineering in South Africa to start a program to define the process parameters for the Matthews Ridge mineralization.

Quality Assurance and Quality Control

Trench sampling has been carried out as channels in the wall above the trench floor on 1m intervals. Samples are tagged using pre-labeled triplicate laboratory tags. The samples were routinely weighed prior to final bagging. Field duplicate samples were taken every 20 samples and a geological and structural log completed for each trench. All data collected in the field was routinely entered into geology and structural geology sheets for consolidation to the Reunion Manganese Database for management using MapInfo/Discover programs.

All sample preparation and laboratory analysis for manganese has been undertaken by Activation Laboratories Ltd. of Canada (Actlabs) by XRF following borate fusion. Samples received by the laboratory are prepared in Actlabs sample preparation facility located in Georgetown, Guyana and representative pulps sent to Canada for final analysis. The preparation involves: crush to passing 2mm, split and pulverize to pass 200 mesh for analysis.

Actlabs' Quality System has full ISO accreditation – ISO 9001 and ISO 9002. Following Reunion's quality assurance procedures, a full suite of field and laboratory duplicates and replicates along with internationally accredited standards and blanks have been run by the laboratory for each batch of samples submitted.

Mr. Francois Viens, Eng, a Qualified Person as defined under the terms of NI 43-101, has verified the data and reviewed the technical information contained in this press release. Mr. Viens is an independent consultant to the Company.

About Manganese

Manganese is the fourth largest metal consumed in the world, behind iron, aluminum and copper. It is a key component in steel and iron production with no viable substitute, and in short supply.

Forward Looking Statements

This press release contains forward-looking information. Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Forward looking information in this news release includes statements regarding the results of the exploration activities and interpretation of such results, the nature, potential size and continuity of the mineralization system, the timing and completion of a mineral resource estimate and future work programs, and the manganese potential of the project. Forward-looking information involves known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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