Rio Novo Gold Inc.

Rio Novo Gold Inc.

September 06, 2011 06:44 ET

Rio Novo Gold Intersects 2.51g/t Au Over 16.9m at Morro do Carneiro and 1.53g/t Au Over 14.0m at Vira-Saia Targets, Almas Gold Project

Positive Soil Sampling Shows Anomaly Continuing About 1000m Beyond the Current Drilling at Vira-Saia

TORONTO, ONTARIO--(Marketwire - Sept. 6, 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 13 scout holes drilled in the Vira-Saia target at Almas. To date, 6,747 metres in 53 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. In addition, Rio Novo has received results from a further 6 holes drilled in the Morro do Carneiro target, bringing the total to 2,682m in 23 holes, to date.

Significant intercepts include:

  • FVSD-0032 – 14.0m @ 1.53 g/t Au (from 45.95m to 59.95m).
  • FVSD-0027 – 5.7m @ 2.20 g/t Au (from 114.0m to 119.7m);
  • FVSD-0021 – 31.5m @ 0.95 g/t Au (from 71.5.0m to 103.0m)
  • FVSD-0017 – 6.7m @ 0.91 g/t Au (from 108.0m to 114.7m)
  • FVSD-0019 – 9.6m @ 0.90 g/t Au (from 84.4m to 98.0m)
  • FCD-0018 – 16.9m @ 2.51 g/t Au (from 92.1m to 109m); including 0.85m @ 33.37 g/t Au

Vira-Saia Main Zone

The first pass of deeper drilling on the Main Zone of the NW trending Vira Saia structure has been completed. Drilling fences were completed on 50m centres along strike, with drill holes designed to hit the mineralized zone at nominally 35m to 65m down dip. Assays are pending on a number of holes but early results confirm the zone is continuous to at least 100m depth along a strike length of 250m.

Highlights of this round of drilling include FVSD-0021 which intercepted 9.0m of 0.91 g/t Au followed by a second zone of 31.5m at 0.95 g/t Au for a total of 40.5m of above cut-off grade mineralization. Additional highlights include FVSD-0027 with higher grade of 2.2 g/t Au over 5.7m, FVSD-0017 with 6.7m at 0.91 g/t Au, and FVSD-0019 with 9.6m at 0.90 g/t Au. The main zone continues to the NW where a series of scout holes have been completed on 100m step-outs with assay results pending.

Soil sampling has been completed along trend NW of current drilling with results showing a strong Au anomaly continuing about 1000m beyond the current drilling. The soils sampling also identified other anomalies to the north where the new results are pending, which could indicate new trends. Of particular interest is a large NW-trending soils anomaly to the north of, and parallel to, the main mineralized body of Vira Saia (please see soil sampling map by clicking in the following link:

Currently, three drills are operating in the Vira Saia area with plans to add a fourth rig in the upcoming weeks. Drilling will focus on developing a 100m x 50m grid NW of current drilling as well as scout drilling to test the soils anomaly to the NW. Trenches are being opened over the soils anomalies to get a better understanding of the anomalies and to assist in the location of drill holes.

The Vira Saia target differs from the Paiol and Cata Funda Zones in that it is hosted in granite rather than metavolcanic rocks (greenstone). Rio Novo plans to select samples from the main zone for mineralogical investigation and metallurgical testing. A testwork program will commence at SGS Geosol in the near future. The aim will to investigate the amenability of the Vira Saia mineralization to the conventional CIL process, which will be utilized for the Paiol and Cata Funda ores.

Vira-Saia East Zone

The first pass drilling in the East Zone adjacent to the main mineralized body of Vira Saia has also been completed. Drill hole FVSD-0032 intersected 14.0m averaging 1.53 g/t Au while FVSD-0018 returned 8.2m averaging 0.47 g/t Au. These holes offset previously reported intervals of 7.0m at 0.72 g/t Au (FVSD-0007) and 10.2m at 0.45 g/t Au (FVSD-0011). Remaining holes in the East Zone have intersected narrow veins (1m to 3m) of lower grade gold mineralization. Rio Novo plans to continue mapping and perform structural studies to better understand the gold distribution in this area while focusing near-term drilling on the main Vira Saia zone.

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

Hole # From
(g/t Au)
FVSD-0017 77.85 79.00 1.15 0.53 Main
108.00 114.70 6.70 0.91 Main
FVSD-0018 24.60 34.00 9.40 0.48 East
FVSD-0019 0.00 1.45 1.45 0.54 Main
88.45 98.00 9.55 0.90 Main
103.00 107.00 4.00 0.75 Main
111.00 118.00 7.00 0.71 Main
FVSD-0021 50.50 59.50 9.00 0.91 Main
71.50 103.00 31.50 0.95 Main
FVSD-0023 80.60 82.00 1.40 0.46 Main
FVSD-0025 44.00 45.85 1.85 0.82 Main
55.00 56.00 1.00 2.20 Main
FVSD-0027 114.00 119.65 5.65 2.20 Main
FVSD-0032 45.95 59.95 14.00 1.53 East

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

Morro do Carneiro Target

Drilling continued to intercept significant gold mineralization in the south part of Morro do Carneiro with FCD-0018 returning 16.9m averaging 2.51 g/t Au. Previously reported intercepts in this area included 11.0m at 2.64 g/t Au (FCD-0010) and 11.8m at 1.45 g/t Au (FCD-0017).

A series of scout holes to the north (FCD-0019, 20, 21, and 22) have intersected gold over widths of 1m to 4m. This first pass of scout drilling indicates the system continues to the NW.

Rio Novo continues to work on mapping, trenching, and channel sampling on this target, which covers an area of at least 600m by 250m, prior to commencing the second phase of drilling.

A summary of the results received from the Morro de Carneiro target is provided in the table below.

Hole # From (m) To
(g/t Au)
FCD-0018 47.65 52.95 5.30 0.45 South
92.10 109.00 16.90 2.51 South
Including 101.90 102.75 0.85 35.37 South
FCD-0019 93.80 95.20 1.40 2.64 Scout - North
FCD-0020 3.00 5.00 2.00 0.74 Scout - North
34.00 35.00 1.00 0.47 Scout - North
45.00 46.00 1.00 0.95 Scout - North
50.55 51.80 1.25 0.35 Scout - North
98.00 99.00 1.00 0.53 Scout - North
FCD-0021 54.00 55.00 1.00 0.40 Scout - North
FCD-0022 68.05 72.15 4.10 0.50 Scout - North
FCD-0023 68.80 70.05 1.25 1.64 Scout - North
83.25 84.40 1.15 1.39 Scout - North

To view the location map and selected cross sections from the Morro do Carneiro target, please visit the following link:

CEO David Beatty says: "Our clear aim is to re-commence DFS engineering work late this quarter by progressing the drilling off of the Northwest Extension of the Vira Saia deposit at an accelerated pace along the known 1000m geochemical anomaly. We are pleased with the widths, grade and consistency of these results and the possibility of parallel zones."

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, P.Geo, 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$52 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 NI 43-101 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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