Rio Novo Gold Inc.

Rio Novo Gold Inc.

October 04, 2011 11:34 ET

Rio Novo Gold Intersects 2.25g/t Au Over 29.6m at Vira-Saia Target, Almas Gold Project

Initial 300m Vira Saia Zone Extended to 600m By Drilling in NW Extension

TORONTO, ONTARIO--(Marketwire - Oct. 4, 2011) - Rio Novo Gold Inc. (TSX:RN)(TSX:RN.WT) ("Rio Novo" or the "Company") is pleased to report assay results from its ongoing diamond core drilling program at its 100% owned Almas Gold Project, located in the State of Tocantins, Brazil.

Rio Novo has received results from an additional 17 scout holes drilled in the Vira-Saia target at Almas. To date,9,926 metres in 77 holes have been drilled at this target, which was optioned by Rio Novo in April 2011 and it is located approximately 5km from the planned milling facilities at Paiol.

Significant intercepts include:

FVSD-0030 – 32.8m @ 2.05 g/t Au (from 38.4m to 68.0m); including 1.15m @ 43.20 g/t Au
FVSD-0034 – 3.0m @ 6.51 g/t Au (from 100.0m to 103.00m);
FVSD-0036 – 13.0m @ 1.36 g/t Au (from 44.0m to 57.0m)
FVSD-0036 – 8.0m @ 1.15 g/t Au (from 66.0m to 74.0m)
FVSD-0042 – 27.0m @ 1.48 g/t Au (from 44.0m to 71.0m); including 1.0m @ 10.74 g/t Au
FVSD-0043 – 6.25m @ 1.45 g/t Au (from 79.0m to 85.25m)
FVSD-0044 – 15.5m @ 2.37 g/t Au (from 137.65m to 153.15m); including 2.0m @ 10.15 g/t Au

Vira-Saia Main Zone and NW Extension

On the Main NW-trending Vira Saia zone, Rio Novo has now completed drill fences spaced 50m apart with 3 to 5 holes nominally spaced 50m down-dip. This gives a 50x50m grid over 300m of strike length. Drilling has tested the mineralized zone down-dip to depths of 80 – 120m.

Gold mineralization occurs within a NW fault zone in sheared granodiorite. The zone dips at an angle of 75 to 90 degrees towards the SW and ranges from 10 to 30m wide with gold contained in quartz-sericite-carbonate alteration zone.

Highlights of this round of drilling include FVSD-0030 which intercepted 29.6m grading 2.25 g/t Au, FVSD-0044 with a higher grade of 2.37 g/t Au over 15.5m, FVSD-0042 with 27.0m running 1.48 g/t Au, and FVSD-0036 with 13.0m at 1.36 g/t Au.

Scout drilling continues to follow the main structure to the NW on 100m step-outs as shown by holes FVSD-0043 with 6.25m averaging 1.45 g/t Au, FVSD-0033 with 20.0m running 0.56 g/t Au and FSVD-0041 with 17.2m grading 0.65 g/t Au. Initial results have extended the mineralization some 300m NW of previous drilling, defining a total strike length of at least 600m for the Main Vira Saia zone. This zone remains open to the NW where anomalous gold-in-soils are the target of current drilling.

Currently, four drills are operating at Vira Saia. Three are drilling on a 100m x 50m grid NW of current drilling and one is employed scout drilling the soils anomalies which extend over 1000m to the NW. Trenches are being opened over the soils anomalies ahead of the drilling to obtain a better understanding of the geology and to assist in the location of drill holes. In addition, Rio Novo is continuing scout drilling on a separate target 1 km to the south of the main zone where earlier drilling intersected 10.0m of 2.21 g/t Au (FVSD-0003).

On the results, Brian Arkell, SVP Exploration, said: "the Vira Saia discovery continues to grow with recent results demonstrating continuity at depth and effectively doubling the strike length. We continue to see potential to expand to the NW as well as down dip creating the opportunity to add to the resource base at Almas ahead of the feasibility study".

Initial metallurgical samples have been collected and dispatched to SGS Geosol's metallurgical laboratory in Belo Horizonte. Visual logging and multi-element assays of the core indicate the Vira Saia deposit is metallurgically similar to Paiol and Cata Funda.

Vira-Saia East Zone

Three additional holes have been received from the East Zone, highlighted by FVSD-0034, which intercepted 3m of 6.51 g/t Au, and it is located on the same trend about 60m NW from previously reported FVSD-0032 with 14.0m averaging 1.53 g/t Au.

A summary of the results received from the Vira-Saia target is provided in the table below.

Hole # From
(g/t Au)
FVSD-0030 0.00 2.20 2.20 0.99 Main
32.00 33.05 1.05 0.69 Main
38.40 68.00 29.60 2.25 Main
including 55.00 56.15 1.15 43.20 Main
FVSD-0031 0.00 0.90 0.90 1.45 Main
FVSD-0032 28.00 29.00 1.00 0.34 East
45.95 59.95 14.00 1.53 East
FVSD-0033 20.00 21.00 1.00 0.33 NW Ext
60.00 61.70 1.70 3.90 NW Ext
74.00 94.00 20.00 0.56 NW Ext
99.00 100.05 1.05 0.76 NW Ext
FVSD-0034 14.35 16.35 2.00 0.39 East
82.05 91.15 9.10 0.61 East
100.00 103.00 3.00 6.51 East
108.00 109.00 1.00 0.69 East
FVSD-0035 0.00 0.50 0.50 1.67 East
FVSD-0036 0.00 0.80 0.80 1.61 Main
44.00 57.00 13.00 1.36 Main
66.00 74.00 8.00 1.15 Main
FVSD-0037 0.00 1.00 1.00 1.17 East
FVSD-0038 9.00 10.00 1.00 0.43 NW Ext
12.00 23.00 11.00 0.38 NW Ext
28.00 31.75 3.75 0.63 NW Ext
43.00 45.00 2.00 1.41 NW Ext
59.00 60.00 1.00 0.40 NW Ext
67.00 70.00 3.00 0.36 NW Ext
73.00 74.00 1.00 0.43 NW Ext
76.00 77.00 1.00 3.91 NW Ext
100.00 101.00 1.00 0.76 NW Ext
106.00 109.00 3.00 0.58 NW Ext
FVSD-0039A 0.00 1.15 1.15 1.60 Main
41.00 42.00 1.00 0.54 Main
117.00 131.50 14.50 0.57 Main
136.00 151.95 15.95 0.31 Main
160.00 161.00 1.00 0.79 Main
FVSD-0040 13.00 16.00 3.00 0.79 NW Ext
41.00 42.00 1.00 0.42 NW Ext
49.00 51.00 2.00 0.69 NW Ext
60.00 61.00 1.00 1.38 NW Ext
FVSD-0041 14.00 31.20 17.20 0.65 NW Ext
FVSD-0042 38.00 39.00 1.00 0.35 Main
44.00 71.00 27.00 1.48 Main
including 49.00 50.00 1.00 10.74 Main
FVSD-0043 37.00 38.00 1.00 0.46 NW Ext
44.00 45.00 1.00 0.92 NW Ext
79.00 85.25 6.25 1.45 NW Ext
96.00 97.00 1.00 0.62 NW Ext
99.00 100.25 1.25 0.45 NW Ext
FVSD-0044 0.00 0.90 0.90 0.37 Main
51.00 53.00 2.00 0.61 Main
137.65 153.15 15.50 2.37 Main
including 139.65 141.65 2.00 10.15 Main
FVSD-0045 NSV Main
FVSD-0046 104.50 115.00 10.50 0.90 Main
132.00 134.00 2.00 0.54 Main
143.55 144.05 0.50 0.56 Main
149.00 153.00 4.00 2.02 Main
164.00 165.00 1.00 0.66 Main

To view the location map and selected cross sections from the Vira-Saia target, please visit the following link:

Sample Preparation, Analyses and Security

The assay and sample information, as well as geological descriptions, are taken from drill logs prepared by the project geologists for the drilling program. Drilling data is first validated, and then sent to the GIS-database management department at the Rio de Janeiro office.

The drill core is split on site, and one half of the core is sent to SGS-Geosol's preparation facility in the city of Goiania, in Goiás State. Prepared pulps are analyzed at SGS-Geosol's analytical facilities at Vespasiano, near Belo Horizonte in the state of Minas Gerais. High grade samples (> 10 grams/tonne Au) are routinely analyzed by metallic screen fire assay, and the resulting number is used as the accepted value. SGS-Geosol warrants the "chain of custody" of the samples in accordance with the standards required by Canadian NI 43-101.

Qualified Person

Mr. Brian Arkell, Senior Vice President of Exploration at Rio Novo Gold Inc., is a Qualified Person as set out in the Canadian National Instrument 43-101, and has reviewed and verified the technical content of the information contained in this release.

About Rio Novo

Rio Novo, which has cash reserves of about US$38.5 million, is focused on the acquisition, exploration and development of gold properties in Brazil and Colombia. The Company has Measured & Indicated resources of 961,711 oz and 1,178,016 Inferred oz of gold in Brazil and Colombia.

The Company's goal is to become a producer of gold in the short term by bringing into production its two Brazilian properties, the Almas Gold Project, located in the State of Tocantins, and the Guarantã Gold Project, located in the State of Mato Grosso. Both projects enjoy established infrastructure and main grid hydropower in mining friendly jurisdictions.

In June 2011, the Company completed the 100% acquisition of the Toldafria property in Caldas State, in the central Cordillera. The Toldafria property has an Inferred resource of 952,000 oz gold at a grade of 2.38 g/t as set out in a NI43-101 compliant resource estimate. At Toldafria, the Company plans to execute a systematic fall program of trenching, mapping, additional underground channel sampling, and once permitted, drilling to determine the extent of the Toldafria deposit.

This press release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are often identifiable by the use of words such as "anticipate", "believe", "plan", may", "could", "would", "might" or "will", "estimates", "expect", "intend", "budget", "scheduled", "forecasts" and similar expressions or variations (including negative variations) of such words and phrases. Forward-looking statements are subject to a number of risks and uncertainties, many of differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, the price of gold and other risks identified in the Company's most recent annual information form filed with the Canadian securities regulatory authorities on Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.

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