Reunion Gold Corporation
TSX VENTURE : RGD

Reunion Gold Corporation

June 01, 2011 08:50 ET

Reunion Gold Trenching Program Extends Matthews Ridge Manganese Mineralisation Over 7 Kilometres of Strike

LONGUEUIL, QUEBEC--(Marketwire - June 1, 2011) - Reunion Gold Corporation (TSX VENTURE:RGD) ("Reunion" or the "Company") is pleased to announce further trenching results from its Matthews Ridge manganese project in the North West District of Guyana, South America.

Highlights include:

  • Evidence of manganese mineralisation in over 7 kilometers of strike;

  • Large widths of high grade mineralisation encountered in Hill 9West (western end of the strike zone);

  • Manganese mineralisation identified in Hills 5, 6, 7, 8 and 9 at Matthews Ridge;

  • Drilling is underway to confirm vertical extent of manganese mineralisation encountered to date;

  • Metallurgical testing is underway to identify process parameters

Project Description

The Matthews Ridge manganese project is located at the site of the abandoned Matthews Ridge Manganese Mine in the Northwest of Guyana, some 260 km from the capital, Georgetown.

The former Matthews Ridge mine area consists of a 12-kilometer long series of hills (Hills 1 to 12 – see attached map) contained within the Matthews Ridge formation which hosts the manganese mineralisation, and is known to extend for 40 kilometers of strike. Previous operations were confined to Hills 5 to 9 with little or no work on the other hills.

Work completed to date

Exploration

Exploration activities conducted by Reunion Manganese Inc., an indirect wholly owned subsidiary of Reunion, since November 2010 consist of 59 trenches totalling 4,700m, and 35 drill holes totalling 2,800m. In addition, a total of 42 auger holes have been completed to test the tailings from the previous operation.

Trenching

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.

A map is available at this address : http://media3.marketwire.com/docs/Reunion_gold_Map.jpg

Trench results

Assay results for trenches 1 to 19 were announced in a press release dated March 1, 2011 and are included in the table of results in Appendix 1 (http://media3.marketwire.com/docs/reunion_gold_appendix_1.pdf).

As of May 25, 2011, assay results for trenches 18 and 20 to 35 have been received. Highlights of these results are presented below:

Trench_IDFromTo% MnInterval
18637812.8715
2201914.1219
26416512.4824
2701613.0816
29213611.2815
30338620.0653
31358920.4453
3259716.5092
3301217.4912
33183317.2915
33506819.6918
33718322.8312
350913.069

Complete results are reported in Appendix 1 (http://media3.marketwire.com/docs/reunion_gold_appendix_1.pdf).

The assay results received from Hill 9 now give evidence of continuous manganese mineralization over 7 kilometres of strike at Matthews Ridge stretching from Hill 5 to Hill 9. Massive manganese and banded manganese have been encountered in Hills 7, 8, 9Centre and 9East but no assays have been received for these hills to date.

Of particular note is the higher grade nature and extensive widths of the near surface mineralization encountered in 9West (Hill 9), contained in trenches 30-33. Commenting on the results of the trenching program to date, Mr. James Crombie, President and CEO of Reunion Gold, said "we are extremely pleased with the trench results we have obtained so far, which have confirmed our belief that the Matthews Ridge mineralization extends over a considerable strike length." Further trenching on Hills 1-4 and 10-12 should add to this. The drill program that is now underway will hopefully give us the third dimension, and allow us to calculate resources later in the year."

Drilling

A drill program to evaluate the vertical extent of the manganese mineralization encountered to date began in April 2011. A total of 2,800m in 35 drill holes has been completed in Hills 5West (15 holes) and 9 West (20 holes). No assays have been received from the drilling to date.

Old Tailings

A 1.1 km2 area of the tailings from the former operations were tested with a 42-hole auger drilling program. An average grade of 21.1% Mn was identified over an average thickness of 2.8m.

Metallurgical testing

A program of metallurgical testing of the Matthews Ridge manganese ores has been initiated at the laboratories of Bateman Engineering in South Africa. The objective of this program is to test the amenability of the Matthews Ridge ores to upgrading by modern gravity separation methods (jigs, HMS/DMS techniques). This testing will provide data for process design, process optimisation and product identification.

Quality Assurance and Quality Control

Trench sampling is carried out as channels in the wall above the trench floor on 1m intervals. Samples are identified using pre-labeled triplicate laboratory tags. The samples are weighed prior to final bagging. Field duplicate samples are taken every 50th along with Standard Reference materials inserted every 20th and blanks every 40th samples and geological and structural mapping is 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.

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.

Qualified Person

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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