Reunion Gold Corporation
TSX VENTURE : RGD

Reunion Gold Corporation

May 16, 2012 09:39 ET

Reunion Gold Provides Further Drilling Results on its Matthews Ridge Manganese Project

LONGUEUIL, CANADA--(Marketwire - May 16, 2012) - Reunion Gold Corporation (TSX VENTURE:RGD) ("Reunion or the "Company") is pleased to provide an update on its exploration activities at the Matthews Ridge manganese project in Guyana, South America.

The Company has completed a total of 38,302 meters of diamond drilling in 581 holes and 17,361 meters of reverse circulation drilling in 283 shallow holes. There are currently four diamond drill rigs working at the project.

Reunion has to date received complete assay results from 243 drill holes, of which 126 were previously released. Results from 88 diamond drill holes and 29 reverse circulation drill holes completed in 2011 and 2012 are reported in this press release. Highlights of the most significant assay results are presented in Table 1. Refer to Appendix 1 for complete new results.

TABLE 1
Total Intersection Mn
Hole Target hill length (m) From (m) To (m) length (m) (%)
Diamond drill holes
11MR0060A H5C 60.50 18.50 45.50 27.00 14.46
11MR0069 H5C 102.00 0.00 19.50 19.50 17.57
60.50 80.00 19.50 15.05
11MR0093 H5C 46.50 0.00 10.89 10.89 27.60
11MR0097 H5W 71.50 32.00 38.00 6.00 15.51
11MR0107A H5W 46.50 0.00 19.00 19.00 22.15
11MR0108A H5W 64.50 0.00 11.00 11.00 17.10
11MR0111A H5W 57.00 12.00 34.50 22.50 24.14
27.00 39.00 12.00 12.73
11MR0140 H6 41.00 0.00 17.00 17.00 13.65
11MR0142 H6 59.00 0.00 16.10 16.10 12.37
29.90 38.88 8.98 13.64
11MR0163 H6 58.50 0.00 25.50 25.50 14.60
11MR0174 H6 49.50 5.00 38.00 33.00 12.10
11MR0178 H6 79.00 0.00 6.86 6.86 21.59
11MR0181A H5W 49.00 9.50 36.00 26.50 12.99
11MR0182 H5W 59.00 18.50 46.00 27.50 15.90
11MR0185 H5W 65.00 0.00 22.00 22.00 23.79
11MR0187 H8 63.00 8.00 14.00 6.00 14.91
11MR0198 H8 60.50 1.00 14.00 13.00 13.09
11MR0208 H9W 59.00 0.00 27.50 27.50 16.21
11MR0209 H8 24.00 0.00 7.10 7.10 20.63
11MR0221 H8 51.00 0.00 5.00 5.00 18.23
9.50 27.50 18.00 14.64
11MR0223 H8 68.00 41.00 62.00 21.00 12.99
11MR0226 H9W 69.50 0.00 5.00 5.00 15.53
11MR0239 H3 96.50 1.30 8.00 6.70 12.62
11MR1062 H9N 52.10 16.35 24.10 7.75 19.08
11MR1079 H9C 61.10 0.00 18.00 18.00 19.42
20.70 29.20 8.50 19.39
11MR1081 H9C 75.00 25.60 41.70 16.10 21.70
11MR1082 H9C 63.70 0.00 11.10 11.10 21.39
11MR1085 H9C 81.50 0.00 31.00 31.00 12.43
11MR1109 H9C 80.90 0.00 17.50 17.50 28.49
11MR1131 H9E 72.20 0.00 10.40 10.40 12.43
Reverse circulation drill holes
12MR3081 H7 52.00 0.00 41.00 41.00 20.41
12MR3084 H7 33.00 2.00 10.00 8.00 29.07
12MR3088 H7 38.00 4.00 9.00 5.00 12.83
12MR3120 H3 60.00 4.00 11.00 7.00 16.11
12MR3121 H3 61.00 4.00 24.00 20.00 17.28
12MR3125 H2 75.00 0.00 21.00 21.00 17.52
Notes: Minimum intersection length: 5 meters; minimum average grade: 12% Mn; maximum interval dilution: 2 meters

The drilling program on all targets between Hills 1 and 9 is expected to be completed towards the end of June 2012. The Company will have closed the drill hole-spacing between Hill 5 to Hill 9 to nearly 50 m by 25 m centers, while drill hole spacing for Hills 1 to 4 will be about 50 m by 50 m, thus providing sufficient information on the mineralized bodies for the completion of geological modelling and resource estimation in the second half of 2012. Maps showing the various target hills and location of the drill holes are provided in Appendix 2.

Drilling results to date continue to indicate an excellent correlation with trench intersections, confirming that the mantle mineralization persists regularly in the saprolite zone and continues as proto-ore in the fresh rock.

The trenching and drilling programs are designed both to evaluate the previously mined areas and to define the extent and characteristics of known but unexplored mineralized zones. While trenches allow surface sampling and provide good structural information, the drilling program aims at demonstrating the continuity of manganiferrous bodies at depth and their geometry. Drilling is being done to the saprolite-fresh rock interface. The Company intends to define mineable resources only in the saprolitic and residual materials, which is amenable to simple earth-moving extraction.

Quality assurance and quality control

Diamond drilling was done using HQ-diameter casing and triple-tube technology to maximize recovery. Half of the core was used for sampling at regular 1.5 m intervals. Reverse circulation (RC) drilling was done with 6" casing, sampling at every meter and splitting the rock chips once in the field and processing an entire half sample. Standard reference materials, blanks and duplicate samples have been used to control laboratory accuracy and precision. Core sample preparation was done by Activation Laboratories Ltd. (Actlabs) and ACME Laboratories (ACME) at their facilities in Georgetown, comprised of crushing to minus 2 mm and pulverization passing 200 mesh, followed by XRF assays for manganese and other relevant oxides at their laboratories in Canada. Sample preparation and XRF assay of RC samples were done by FILAB Laboratories on site using the same methodology described above.

Carlos H. Bertoni, P.Geo., a qualified person as defined under the terms of NI 43-101, has verified the data and approved the technical information contained in this press release.

Project description

The Matthews Ridge Project consists of four prospecting licenses covering an area of 185 km2 located in northwest Guyana, in and around the former Matthews Ridge and Pipiani mines. The Company also holds two Permissions for Geological and Geophysical Survey for manganese over an area of 19,770 km2 surrounding the four prospecting licences. Manganese ore was mined from 1960 to 1968 by Union Carbide and exported via railroad and a fluvial port. Mining was done on five of a series of nine hills extending for 15 km and striking northeastern-southwestern (see Appendix 2). The manganese- bearing sequence is known to have an overall strike extent of 40 km and remains largely unexplored.

Manganese mineralization is hosted by the Barama sedimentary sequence of Proterozoic age and consists of typical mantle and residual deposits formed as a result of oxidation and supergene enrichment under an equatorial climate. The mantle deposits are formed by manganese oxide and hydroxide minerals occurring along the crest of hills and are related to the weathered profile, reaching 120 m below surface.

About the Company

Reunion Gold Corporation is a mineral exploration company focused on the acquisition, exploration and development of mineral properties in the Guyana Shield of South America. The Company through its 100% indirectly owned subsidiary Reunion Manganese Inc., has assembled a large, strategic land position to conduct exploration and development activities for manganese in the North West District of Guyana. The Company also has the right to acquire a 100% interest in a gold exploration project located in the Lely Mountain area in Eastern Suriname.

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 is in short supply.

Additional information about the Company is available on SEDAR at www.sedar.com and at www.reuniongold.com.

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 future work programs, mineral resource estimate and geological modelling.. 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.

Appendix are available at the following link: http://media3.marketwire.com/docs/append_RGD.pdf.

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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