Rio Novo Gold Inc.
TSX : RN
TSX : RN.WT

Rio Novo Gold Inc.

September 20, 2010 07:00 ET

Rio Novo Gold Intersects 2.73 g/t Au Over 10.0m Extension and 3.42 g/t Au Over 9.3m Infill at Arroz Target, Almas Gold Project

TORONTO, ONTARIO--(Marketwire - Sept. 20, 2010) - Rio Novo Gold Inc. (TSX:RN)(TSX:RN.WT) ("Rio Novo" or the "Company") is pleased to report additional drill results from its ongoing drilling program at its 100%-owned Almas Gold Project, located in the State of Tocantins, Brazil.

To date 207 diamond drill holes have been completed totalling 27,269 metres. At the Paiol target, 107 holes totalling 15,085 metres have been completed, comprising 9,256 metres of infill drilling, 4,487 metres of extension drilling and 1,342 metres of metallurgical drill holes. At the Arroz target, located approximately 15 km north of Paiol, 100 holes, totaling 12,184 metres have been completed; split between 3,864 metres of infill drilling, 8,018 metres in extensions to the original discovery and 302 metres in metallurgical drill holes. In total, approximately 35,000 metres are planned to be completed by November 2010.

New results from the Paiol target program include 13 infill holes totalling 1,475 metres. In addition, the company has received results of 89 auger holes representing 487 metres drilled on a 25 metre grid at the old Paiol heap leach pad left by Vale.

At the Arroz target, results from an additional 5 infill holes, totalling 850 metres, and 17 extension holes, or 2,345 metres, have been received.

Highlights Include:

  • Significant intercepts from the Paiol infill drilling program include:
    • FPD-0022 – 14.00m @ 1.17 g/t Au (from 63m to 77m); including 3.00m @ 2.80 g/t Au
    • FPD-0026 – 6.65m @ 1.75 g/t Au (from 100.35m to 107m); including 1.65m @ 3.86 g/t Au
    • FPD-0026 – 31.00m @ 1.27 g/t Au (from 120m to 151m); including 4.35m @ 3.65 g/t Au
    • FPD-0035 – 12.35m @ 0.77 g/t Au (from 80m to 92.35m); including 2.35m @ 1.84 g/t Au
    • FPD-0042 – 13.30m @ 1.26 g/t (from 37.00m to 50.30m)
  • Significant intercepts from the Arroz infill and extension drilling programs include:
    • FAD-0016 – 7.25m @ 3.34 g/t Au (from 156.75m to 164.0m); including 1.10m @ 6.66 g/t Au
    • FAD-0017 – 8.00m @ 2.04 g/t Au (from 129m to 137m); including 1.50m @ 6.71 g/t
    • FAD-0018 – 9.30m @ 3.42 g/t Au (from 143.70m to 153m); including 3.25m @ 6.25 g/t Au
    • FAD-0019 – 9.00m @ 2.08 g/t Au (from 150m to 159m); including 2.00m @ 5.40 g/t
    • FAD-0020 – 10.00m @ 2.70 g/t Au (from 161m to 171m); including 1.90m @ 5.92 g/t
    • FAD-0024 (Extension) – 10.0m @ 2.73 g/t Au (from 64m to 74m); including 2.00m @ 6.98 g/t
    • FAD-0044 (Extension) – 8.0m @ 0.77 g/t Au (from 77m to 85m); including 1.00m @ 2.20 g/t
    • FAD-0046 (Extension) – 1.95m @ 7.68 g/t Au (from 52m to 53.95m)

The results received from the infill program at Paiol continue to confirm continuity of mineralization in areas with current indicated and inferred resources, which should contribute significantly to the conversion of the inferred into measured and indicated resources ahead of the feasibility study stage. At Arroz, while the infill drilling continued to reinforce the potential to add this deposit to existing resource base of the Almas Gold Project, the results of the extension program to date offer further encouragement. Results from DDH FAD-0024 (10.0m @ 2.73 g/t Au) strongly suggest another mineralized zone is open to the North West of the existing drill grid along the strike of the IP anomaly. The results of the auger drilling program at the Paiol Leach Pad have also been consistent with expectations, further adding to the project resource inventory. This finely crushed stockpile is expected to be recoverable from its existing location at low cost and to be treatable without the need for crushing.

Paiol Area

A summary of the results received to date is given in the table below.

Drill Hole Type From (metres) To (metres) Interval (metres) grams Au/tonne
FPD-0018 Infill 1.00 9.00 8.00 0.63
FPD-0021 Infill 28.00 29.00 1.00 2.40
FPD-0022 Infill 63.00 77.00 14.00 1.17
  Includes 65.00 68.00 3.00 2.80
FPD-0025 Infill 47.00 49.50 2.50 2.03
FPD-0026 Infill 100.35 107.00 6.65 1.75
  Includes 100.35 102.00 1.65 3.86
FPD-0026 Infill 120.00 151.00 31.00 1.27
  Includes 140.00 144.35 4.35 3.65
FPD-0034 Infill 116.00 128.00 12.00 0.93
FPD-0035 Infill 80.00 92.35 12.35 0.77
  Includes 90.00 92.35 2.35 1.84
FPD-0042 Infill 37.00 50.30 13.30 1.26

To view a map of the Paiol Target Areas and current rigs location and selected cross sections, please visit the following link: http://media3.marketwire.com/docs/rn_0920_paiol_drilling.pdf

Arroz Area

A summary of the results received to date is given in the table below.

Drill Hole Type From (metres) To (metres) Interval (metres) grams Au/tonne
FAD-0016 Infill 156.75 164.00 7.25 3.34
FAD-0017 Infill 129.00 137.00 8.00 2.04
  Includes 130.90 132.40 1.50 6.71
FAD-0018 Infill 143.70 153.00 9.30 3.42
  Includes 147.45 151.30 3.85 6.25
FAD-0019 Infill 4.65 5.30 0.65 15.36
FAD-0019 Infill 150.00 159.00 9.00 2.08
  Includes 154.00 156.00 2.00 5.40
FAD-0020 Infill 161.00 171.00 10.00 2.70
  Includes 167.10 169.00 1.90 5.92
FAD-0022 Extension 0.00 5.35 5.35 0.99
FAD-0022 Extension 73.00 74.00 1.00 6.65
FAD-0024 Extension 64.00 74.00 10.00 2.73
  Includes 70.00 72.00 2.00 6.98
FAD-0025 Extension 47.00 49.00 2.00 1.72
FAD-0026 Extension 120.00 121.55 1.55 1.54
FAD-0027 Extension 100.00 101.00 1.00 13.82
FAD-0028(*) Extension 118.40 119.00 0.60 8.73
FAD-0044 Extension 77.00 85.00 8.00 0.77
FAD-0046 Extension 46.00 47.00 1.00 3.32
FAD-0046 Extension 52.00 53.95 1.95 7.68
FAD-0048 Extension 96.00 97.00 1.00 3.34
(*) Metallic assay

To view a map of the Arroz Target Areas and selected cross sections, please visit the following link: http://media3.marketwire.com/docs/ArrozD.pdf

Paiol Leach Pad Auger Drilling

The table below shows typical results received to date from the auger drilling program at the Paiol leach pad. Assay results have been received for 89 auger holes with a total depth of 487 metres ranging from 0.40m to 15m and grading between 0.25 g/t and 2.83 g/t, with a weighted average grade of 0.89 g/t gold over 5.47m average depth of the auger holes. A reverse circulation (RC) drill rig is being mobilized to site and it is planned to further sample the heap leach pad by RC drilling in order to determine the full extent of the depth of the pad.

Auger Drill Hole From (metres) To (metres) Interval (metres) grams Au/tonne
TRP-0001 0.00 4.00 4.00 0.99
TRP-0004 0.00 9.00 9.00 1.05
TRP-0007 0.00 7.25 7.25 1.38
TRP-0021 0.00 6.00 6.00 1.16
TRP-0028 0.00 5.90 5.90 1.61
TRP-0029 0.00 6.50 6.50 1.3
TRP-0033 0.00 9.00 9.00 0.99
TRP-0035 0.00 9.00 9.00 0.99
TRP-0041 0.00 10.90 10.90 1.02
TRP-0043 0.00 9.00 9.00 1.21
TRP-0046 0.00 6.00 6.00 1.05
TRP-0056 0.00 8.00 8.00 1.04
TRP-0072 0.00 9.00 9.00 1.05
TRP-0074 0.00 5.00 5.00 1.07
TRP-0075 0.00 8.00 8.00 0.99
TRP-0085 0.00 10.00 10.00 0.94
TRP-0089 0.00 12.00 12.00 0.84

To view a map of the Paiol Leach Pad area, sections and complete table with results to date, please visit the following link: http://media3.marketwire.com/docs/rn_0920_paiol_leach_pad.pdf

Sample Preparation, Analyses and Security

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

Drill core is split on site with one half of the core being sent to SGS-Geosol's sample preparation facility in the city of Goiania in Goiás Prepared pulps are analyzed at SGS-Geosol's analytical facilities at Vespasiano near Belo Horizonte, in Minas Gerais State, Brazil. SGS-Geosol warrants the "chain of custody" of the samples in accordance with the standards required by Canadian NI 43-101.

Qualified Person

Mr Ronald Simpson, P.Geo, who is a Qualified Person as set out in Canadian National Instrument 43-101, has reviewed and verified the technical content of the information contained in this release.

About Rio Novo

Rio Novo is currently focused on the acquisition, exploration and development of gold mineral resource properties in Brazil. 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 State, and the Guarantã Gold Project, located in the State of Mato Grosso. Both projects enjoy established infrastructure in mining friendly jurisdictions. In addition to exploring and developing the Almas and the Guarantã Gold Projects, the Company intends to identify, explore and develop or acquire additional precious metals properties in Brazil and other established mineral jurisdictions in South America.

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 SEDAR.com. 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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