Reunion Gold Corporation
TSX VENTURE : RGD

Reunion Gold Corporation

September 30, 2011 13:25 ET

Reunion Gold Trenching Program Extends Matthews Ridge Manganese Mineralisation Over 12 Kilometres of Strike and Initial Drill Results Indicate Vertical Continuity

LONGUEUIL, QUEBEC--(Marketwire - Sept. 30, 2011) - Reunion Gold Corporation (TSX VENTURE:RGD) ("Reunion" or the "Company") is pleased to announce further exploration results from its Matthews Ridge manganese project in the North West of Guyana, South America.

Highlights

  • Evidence of manganese mineralisation in over 12 kilometres of strike from trenching program; manganese mineralisation identified in Hills 2 to 9

  • Large widths of high grade mineralisation encountered in the 3km-long Hill 1 (eastern end of the strike zone)

  • Significant quantities of high grade detrital manganese identified on Hill 1

  • Initial drill results indicate vertical continuity of the mineralisation on all hills where drilling has taken place

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 Matthews Ridge project consists of a long series of hills (Hills 1 to 9 – see map below) 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.

Exploration Update

Exploration activities conducted by the Company since November 2010 consist of 103 trenches totalling 11,609m, and 130 diamond drill holes totalling 9,960m. 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. Sampling is done horizontally near the floor of the trench at a high angle to the generally steeply dipping manganese mineralization.

A map is available at the following address: http://media3.marketwire.com/docs/Reunion_Map_0930.pdf

Trenching results

Assay results for trenches 36 to 73 and faces 3 and 4 have been received. Highlights of these results are presented in Table 1 below. High grade manganese and extensive widths of the near surface mineralization have been encountered on Hill 9C and Hill 7:

  • Trench 36: 11 m at 27.86%Mn; 57m at 22.04% Mn; 38m at 18.6% Mn

  • Trench 37: 81m at 20.09%Mn; 47m at 17.56%Mn; 46m at 12.26%Mn

  • Trench 38: 80m at 26.52%Mn

  • Trench 56: 40m at 15.82%Mn

  • Trench 57: 60m at 13.63%Mn

Table 1

Highlights of New Trench Results

Trench Id From
(m)
To
(m)
Interval
(m)
Mn
%
Hill no.
36 24 36 12 27.40 Hill 9C
36 59 67 8 8.99 Hill 9C
36 98 109 11 8.27 Hill 9C
36 116 154 38 18.60 Hill 9C
36 184 196 12 10.26 Hill 9C
36 201 258 57 22.04 Hill 9C
37 32 78 46 12.26 Hill 9C
37 85 166 81 20.09 Hill 9C
37 206 253 47 17.56 Hill 9C
38 0 80 80 26.52 Hill 9C
39 5 14 9 5.52 Hill 9C
39 78 87 9 7.86 Hill 9C
40 18 35 17 12.04 Hill 9E
40 45 74 29 10.50 Hill 9E
41 36 53 17 22.17 Hill 9E
41 86 106 20 12.50 Hill 9E
42 18 26 8 13.53 Hill 9C
42 57 77 20 17.54 Hill 9C
42 91 110 19 13.88 Hill 9C
42 113 126 13 14.93 Hill 9C
43 27 37 10 6.54 Hill 9E
43 59 75 16 16.06 Hill 9E
43 99 109 10 14.00 Hill 9E
44 19 29 10 10.34 Hill 9E
45 8 21 13 13.58 Hill 9E
46 32 45 13 9.27 Hill 9E
48 18 47 29 20.75 Hill 8
50 48 64 16 17.92 Hill 8
51 28 41 13 11.71 Hill 8
56 4 14 10 14.92 Hill 7
56 67 107 40 15.82 Hill 7
57 53 62 9 16.79 Hill 7
57 78 138 60 13.63 Hill 7
58A 18 44 26 19.46 Hill 7
58B 62 73 11 13.76 Hill 7
58B 78 94 16 10.51 Hill 7
60 9 19 10 18.95 Hill 9N
61 0 25 25 24.03 Hill 9N
62 0 26 26 25.71 Hill 9N
63 24 53 29 8.41 Hill 9N
64 19 36 17 15.95 Hill 9N
64 38 71 33 11.69 Hill 9N
66 0 12 12 11.55 Hill 5E Ext
67 0 16 16 19.37 Hill 5E Ext
69 13 23 10 9.37 Hill 2
69 36 58 22 14.31 Hill 2
69 61 76 15 7.65 Hill 2
73 140 148 8 18.33 Hill 3
Face 3 5 16 11 8.73 Hill 5 E Ext
Face 4 156 165 9 11.11 Hill 5 E Ext
Face 4 181 190 9 6.5 Hill 5 E Ext
Face 4 206 215 9 11.11 Hill 5 E Ext
Face 4 12 26 14 12.27 Hill 5 E Ext

The Company has received assay results from trenching on all Hills 5 to 9, and some results for trenches on Hills 2, 3 and 4. Complete assay results are included in the table of results in Appendix 1. Note must be made that Hills 2 to 4 were previously unworked and undisturbed. These trenches give evidence of continuous manganese mineralization over 12 kilometres of strike at Matthews Ridge stretching from Hill 2 to Hill 9. Results from trenching on Hill 1, which is 3 km long, have not been received, but significant intersections of massive and banded manganese mineralisation can be observed in the 10 trenches completed thus far.

In addition to the trenching, the Company has encountered significant quantities of high grade detrital manganese, particularly on the previously unworked Hills 1 to 4. This detrital manganese is a product of weathering of the in situ manganese beds. The weathered material is then transported down the flanks of the hills, and in some cases re-cemented as a blanket covering large portions of the hill tops and flanks. A program to quantify the volume and grade of this material to industry standards is underway.

Drilling Results

A drill program to evaluate the vertical extent of the manganese mineralization began on 29th March 2011. To date, a total of 130 drill holes have been completed in Hills 5C, 5W, 6, 7, 9W and 5E. The Company currently has 6 diamond drill rigs active on the project, while 2 additional rigs are to be commissioned shortly.

Results for 11 holes have been received by the Company and 8 more holes have partial results only. Highlights are presented in Table 2 below.

Table 2

Highlights of Drill hole Intersections 1, 2

Drill Holes From
(m)
To
(m)
Interval
(m)
Mn
%
Hill no.
11MR0002 52.1 62.6 10.5 5.76 5W
11MR0002 64.5 74.6 10.1 6.19 5W
11MR0002 79.1 100.1 21 9.53 5W
11MR0002 115.3 124.3 9 16.16 5W
11MR0003 0 24.34 24.34 9.21 5W
11MR0004 28.5 37.5 9 12.26 5W
11MR0004 58.5 61.5 3 13.31 5W
11MR0004 67.5 100.5 33 15.17 5W
11MR0005 15 19.3 4.3 16.23 5W
11MR0005 24 37 13 22.48 5W
11MR0005 45 81 36 8.13 5W
11MR0013 21 34.5 13.5 11.02 5W
11MR0013 37.5 42 4.5 6.83 5W
11MR0013 46.5 52.5 6 6.61 5W
11MR0013 55.5 63 7.5 5.14 5W
11MR0014 0 12 12 20.38 5W
11MR0014 37.5 61.5 24 14.04 5W
11MR0017 48 66 18 6.68 9W
11MR0018 3 23.05 20.05 13.48 9W
11MR0037 0 8.13 8.13 14.82 9W
11MR0037 12 24 12 7.1 9W
11MR0052 6 19.5 13.5 23.41 5W
11MR0052 22.5 26.52 4.02 11.60 5W
11MR0052 31.5 47.24 15.74 11.69 5W
11MR0052 51 67.08 16.08 11.48 5W
(1) Includes results where recovery exceeded 50% of the entire mineralized interval.
(2) In case of missing core sections, such missing sections were assigned the average grade of the mineralized interval.

The drill holes for which results have been received are located on Hills 5W and 9W. Complete drill results are reported in Appendix 2.

The diamond drilling program at Matthews Ridge has encountered difficult drilling conditions, which has slowed the pace of the drill program. Some early holes had poor core recovery and are excluded from the database. These holes are in the process of being re-drilled. The Company is sourcing an RC rig to improve the pace of drilling.

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 150m high. The depth of weathering at Matthews Ridge varies from 45m to 120m below surface. Transported screes of eroded manganese mineralization are present on the flanks of the hills.

Comment

Commenting on the exploration results to date, James Crombie President and CEO of Reunion Gold said, "We are extremely pleased with the results of the work done at Matthews Ridge so far. The trenching results indicate the continuous manganese mineralisation throughout the whole of the length of the old mine area, some 12 km, while the initial drilling to date indicates vertical continuity in those areas. Additional work is planned in coming months to define the resource, optimise the process design, and start the feasibility."

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 future 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 passing 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 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 the Company

The Company 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 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 and mineral resource estimate, 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.

Appendix 1 and 2 are available at the following address: http://media3.marketwire.com/docs/Reunion_Appendix_0930.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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