Reunion Gold Corporation
TSX VENTURE : RGD

Reunion Gold Corporation

September 09, 2010 08:30 ET

Reunion Manganese Obtains Prospecting Licences for Manganese Over the Historic Matthews Ridge and Pipiani Deposits in Guyana; Appointment of COO

LONGUEUIL, QUEBEC--(Marketwire - Sept. 9, 2010) - Reunion Gold Corporation (TSX VENTURE:RGD) ("Reunion" or the "Company") is pleased to announce that its wholly owned subsidiary, Reunion Manganese Inc. ("RMI"), has been awarded by the Government of Guyana four (4) prospecting licenses (PLs) to conduct exploration and development activities for manganese in the North West District of Guyana, South America.

The PLs cover an area of 45,729 acres and are centered in and around the abandoned manganese mine at Matthews Ridge and Pipiani which was operated by a subsidiary of Union Carbide Corporation from 1962 to 1968. The closure of the mine in 1968 was mainly due to the large fall in the price of manganese. In excess of 1.66 million tonnes of manganese concentrate were shipped from the mine site during that period.

The PLs were granted on September 6, 2010 for an initial period of three years and may be renewed for two additional periods of one year each. RMI may apply for a mining license covering areas defined by the exploration effort during the exploration period after the submission of a positive feasibility study and an environmental impact statement and mine development plan.

Historical Information

The information contained herein is based on data extracted from a report issued by the Guyana Geology and Mines Commission in 1985 – Matthew's 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 mineral reserves as defined in NI 43-101 and the historical estimate should not be relied upon.

During the 1962-1968 mining operations at Matthews Ridge, in excess of 1.66 million tonnes of manganese concentrate were shipped from the mine out of a resource of 2.6 million tonnes of manganese concentrate at the start of the operations in 1962. The resources were based on numerous pits, trenches and adits together with 110 diamond drill holes aggregating to 5800 meters in 5 of the 9 hills, which were mined. By the termination of mining activities in 1968, the known resources base was reported to be approximately 1 million tonnes of recoverable concentrate at 37% Mn. This was further increased to 3.6 million tonnes of 33.4% Mn recoverable concentrate, based on exploration conducted by the Guyana Geology and Mines Commission ("GGMC"), and the Democratic People's Republic of Korea ("DPRK") in 1985, who drilled 5 additional holes totaling 326 meters. The GGMC/DPRK exploration effort uncovered additional manganese occurrences, on trend, which have not yet been evaluated.

At Pipiani, which is south of Matthews Ridge and north of the Barama River, the historically calculated resources of available concentrates, based on the mining and beneficiation methods used at Matthews Ridge, were 642,000 tonnes of 42% Mn on the basis of 35 drill holes, numerous pits and trenches. No reporting of the lower-grade, bedded material was included in the resources, and many areas were still to be evaluated.

Total historical in situ resources at Matthews Ridge (including the satellite Pipiani and North areas) were estimated to be 3.6 million tonnes of 33.4% Mn recoverable concentrate.

Manganese minerals occur as superficial, enriched, residual cappings on gondite plus braunite protore. The primary manganese zone is reportedly 150 to 175 cm thick and approximately 30 km long in a general NE-SW direction. The manganese beds dip 50° to 80° north.

Planned Exploration Program

The Company is currently planning an initial exploration program which should consist of pitting, trenching and drilling on the Matthews Ridge old mine area with the objectives of delineating a resource compliant with Canadian National Instrument 43-101, Standards of Disclosure for Mineral Projects. Geochemistry and geophysics, in particular a ground IP geophysical survey will be carried out. Exploration outside the mine area will follow.

Reunion believes that there is potential for substantial manganese resources in and around the Mathews Ridge deposits. This, allied with modern processing technology increases the chance of developing an economic manganese mining and processing operation in North West Guyana.

Reunion intends to aggressively advance the exploration and development efforts in the coming months with a view to defining resources and identifying a development plan for the deposits.

The Company recently completed a private placement financing and raised $5.25 million (April, 2010). The Company is well-funded to initiate the work program. An additional $10.5 million could become available if warrants that were issued in the financing are exercised.

Qualified Person

D. Bruce McLeod is the Qualified Person under NI 43-101 who has reviewed the technical disclosure contained in this press release. Mr. McLeod is a director of the Company.

Appointment of COO

The Company is pleased to announce the appointment of Mr. Joachim Bayah as Chief Operating Officer for the manganese projects in Guyana. Mr. Bayah is a mining engineer who has over 25 years of experience in the mining industry working in exploration and mining projects management. Mr. Bayah has hands-on mining operations experience in mining, metallurgy and process engineering as well as the conduct of environmental and social impact studies and their implementation. Mr. Bayah is a graduate of Camborne School of Mines and Queen's University. He has worked on mining projects in Canada, several countries in Africa and the Guiana Shield of South America and also brings experience from project positions promoting mining projects in Guyana, and as a consultant to the World Bank/IFC Group dealing with technology, environment and stakeholder issues. Mr. Bayah is currently setting up the company's operating team in Guyana. The appointment of Mr. Bayah is subject to acceptance of the TSX Venture Exchange.

The Company has also retained G. Mining Services to provide technical services and advice during the entire exploration and development process. The principals of G. Mining have extensive exploration, development and operating experience in the Guiana Shield.

Mr. David Fennell, Chairman of the Company said: "We are extremely excited about this opportunity. The Mathews Ridge property and surrounding area has significant potential. The infrastructure and the proximity of the project to transportation is a considerable advantage for the projects' development and operation. We have been able to assemble a highly experienced team of professionals familiar with both manganese exploration and development, and development of mining projects in the Guiana Shield. The fact that there was an operation there in the past should reduce the exploration and development risk associated with projects of this type".

About Manganese

Manganese is the fourth largest metal consumed in the world, behind iron, aluminum and copper. Manganese is a key component in steel and iron production and is in short supply.

Forward Looking Information

The information in this press release has been prepared as at September 9, 2010. Certain statements contained in this press release constitute forward looking information under the provisions of Canadian provincial securities laws. Words such as "anticipate", "expect", "believe", "estimate," forecast, "planned", "will", "should", "could", "likely" and similar expressions are intended to identify forward-looking information.

Such statements include without limitation: the Company's exploration and development plans for the PLs; the Company's goal to delineate a NI 43-101 compliant resource; the possibility of renewing the PLs and the possibility of obtaining mining licenses in future; the potential for developing an economic manganese operation on the PLs; the exercise of the warrants; and other statements and information regarding anticipated results regarding the Company's operations and exploration. Such statements reflect the Company's views as at the date of this press release and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements. Actual results may be materially different from those current anticipated. Many factors, known and unknown, could cause the actual results to be materially different from those expressed or implied by such forward looking statements. Such risks include, but are not limited to: the volatility of commodity prices, including that of manganese; the uncertainty of exploration results, capital expenditure requirements and other costs; currency fluctuations; the availability of financing for additional capital requirements; cost of exploration and development programs; mining risks; risks associated with foreign operations; governmental and environmental regulation; and risks associated with global economic growth and demand for manganese. The Company does not intend, and does not assume any obligation, to update these forward-looking statements and information, except as required by law. Accordingly, readers are advised not to place undue reliance on forward-looking statements.

Reunion Gold Corporation is an exploration company focused on acquiring and exploring projects in the Guiana Shield in South America. Additional information about the Company is available through regular filings and press releases on SEDAR and on the Company's website at www.reuniongold.com.

"Neither 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 release."

Contact Information