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

Rio Novo Gold Inc.

November 16, 2010 07:30 ET

Rio Novo Gold Intersects 3.88 g/t Au Over 28.0m Infill at Paiol and 2.56 g/t Au Over 17.1m Infill at Arroz Target, Almas Gold Project

Drilling Program and Heli-VTEM Geophysics Initiated in Guaranta

TORONTO, ONTARIO--(Marketwire - Nov. 16, 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. The Company is also pleased to announce that drilling has started on its 100%-owned Guarantã Gold Project, located in the State of Mato Grosso, along with a Heli-VTEM geophysics program over its 1,080Km2 portfolio of continuous properties in the Guaranta gold district.

To date 277 diamond drill holes have been completed totalling 36,978 metres. At the Paiol target, 145 holes totalling 20,836 metres have been completed, comprising 13,943 metres of infill drilling, 5,550 metres of extension drilling and 1,342 metres of metallurgical drill holes. At the Arroz target, located approximately 15 km north of Paiol, 115 holes, totaling 14,202 metres have been completed; split between 3,864 metres of infill drilling, 10,036 metres in extensions to the original discovery and 302 metres in metallurgical drill holes. Scout drilling has been initiated on the targets in between Arroz and Paiol and to date 15 diamond scouts drill holes have been completed, totalling 1,940 metres. In total, approximately 38,000 metres are planned to be completed by end of November 2010.

New assayed results from Paiol infill program include 45 infill holes, including 8 metallurgical holes, totalling 5,789 metres. From the Arroz target, 18 new assayed infill holes have been received, including 3 metallurgical holes, totalling 1,447 metres.

Highlights Include:

  • Significant intercepts from the Paiol infill drilling program include:
    • FPD-0004 – 20.95m @ 1.37 g/t Au (from 114.20m to 135.15m); including 3.00m @ 4.74 g/t Au
    • FPD-0005 – 32.00m @ 2.06 g/t Au (from 111m to 143m); including 3.00m @ 12.13 g/t Au
    • FPD-0028 – 41.75m @ 1.20 g/t Au (from 107.25m to 149m); including 3.45m @ 4.10 g/t Au
    • FPD-0029 – 13.60m @ 2.35 g/t Au (from 184.40m to 198m); including 2.90m @ 4.37 g/t Au
    • FPD-0037 – 15.00m @ 1.07 g/t Au (from 77m to 92m); including 2.00m @ 4.26 g/t Au
    • FPD-0050 – 11.00m @ 1.44 g/t Au (from 41m to 52m); including 2.45m @ 3.23 g/t Au
    • FPD-0051 – 22.75m @ 2.04 g/t Au (from 147.60m to 170.35m); including 4.00m @ 5.85 g/t Au
    • FPD-0053 – 23.10m @ 1.05 g/t Au (from 165m to 188.10m); including 2.75m @ 2.33 g/t Au
    • FPD-0054 – 19.00m @ 1.19 g/t Au (from 175m to 194m); including 3.65m @ 2.54 g/t Au
    • FPM-0001 – 31.00m @ 1.06 g/t Au (from 112m to 143m); including 4.00m @ 2.81 g/t Au
    • FPM-0002 – 66.05m @ 1.26 g/t (from 116m to 182.05 m); including 8.15m @ 4.13 g/t Au
    • FPM-0003 – 19.00m @ 2.80 g/t (from 116m to 135m); including 6.45m @ 6.00 g/t Au
    • FPM-0003 – 19.00m @ 2.80 g/t (from 116m to 135m); including 6.45m @ 6.00 g/t Au
    • FPM-0004 – 19.90m @ 1.16 g/t (from 111m to 130.90m); including 2.50m @ 3.48 g/t Au
    • FPM-0005 – 15.00m @ 2.23 g/t (from 118m to 133m); including 1.00m @ 19.90 g/t Au
    • FPM-0006 – 28.00m @ 3.88 g/t (from 113m to 141m); including 9.55m @ 6.92 g/t Au
    • FPM-0007 – 47.00m @ 1.52 g/t (from 127m to 174m); including 6.00m @ 4.37 g/t Au

Significant intercepts from the Arroz infill drilling programs include:

    • FAD-0078 – 7.00m @ 3.73 g/t Au (from 17m to 24m); including 3.00m @ 7.23 g/t Au
    • FAD-0079 – 5.00m @ 5.22 g/t Au (from 40m to 45m)
    • FAD-0081 – 8.00m @ 2.76 g/t Au (from 48m to 56m); including 4.20m @ 3.43 g/t Au
    • FAD-0083 – 6.20m @ 2.57 g/t Au (from 24.55m to 30.75m); including 3.05m @ 3.75 g/t Au
    • FAD-0086 – 13.45m @ 2.38 g/t Au (from 30.45m to 43.90m); including 5.35m @ 4.89 g/t Au
    • FAD-0088 – 17.10m @ 2.56 g/t Au (from 26.40m to 43.50m); including 2.85m @ 5.49 g/t Au
    • FAD-0096 – 11.80m @ 2.12 g/t Au (from 57.35m to 69.15m); including 1.90m @ 3.43 g/t Au
    • FAD-0097 – 13.05m @ 1.58 g/t Au (from 160.95m to 174m); including 2.00m @ 3.23 g/t Au
    • FAM-0001 – 12.35m @ 1.37 g/t Au (from 61.65m to 74m); including 2.20m @ 5.67 g/t Au
    • FAM-0002 – 7.65m @ 3.91 g/t Au (from 116m to 123.65m); including 2.00m @ 8.03 g/t Au
    • FAM-0003 – 7.50m @ 3.46 g/t Au (from 44.50m to 52m); including 5.00m @ 4.42 g/t Au

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, the infill drilling continued to reinforce the potential to add this deposit to existing resource base of the Almas Gold Project.

Paiol Area

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

Drill Hole Type From (metres) To (metres) Interval (metres) grams Au/tonne
FPD-0004 Infill 103.45 111.00 7.55 2.86
  Includes 106.00 108.00 2.00 6.17
FPD-0004 Infill 114.20 135.15 20.95 1.37
  Includes 121.00 124.00 3.00 4.74
FPD-0005 Infill 111.00 143.00 32.00 2.06
  Includes 132.00 135.00 3.00 12.13
FPD-0028 Infill 107.25 149.00 41.75 1.20
  Includes 123.55 127.00 3.45 4.10
FPD-0029 Infill 184.40 198.00 13.60 2.35
  Includes 187.00 189.90 2.90 4.37
FPD-0029 Infill 202.00 224.00 22.00 0.91
  Includes 214.90 215.60 0.70 8.89
FPD-0032 Infill 128.00 145.00 17.00 1.45
  Includes 141.00 145.00 4.00 2.88
FPD-0033 Infill 80.00 88.00 8.00 0.83
FPD-0036 Infill 49.00 69.75 20.75 0.66
  Includes 66.45 68.65 2.20 1.95
FPD-0037 Infill 77.00 92.00 15.00 1.07
  Includes 89.00 91.00 2.00 4.26
FPD-0040 Infill 11.40 16.60 5.20 1.38
  Includes 13.50 14.40 0.90 3.03
FPD-0041 Infill 9.00 12.00 3.00 5.05
FPD-0041 Infill 30.00 38.00 8.00 1.10
  Includes 35.00 36.00 1.00 3.48
FPD-0043 Infill 31.00 35.25 4.25 0.85
  Includes 33.00 34.00 1.00 1.73
FPD-0044 Infill 41.10 49.50 8.40 0.83
  Includes 43.00 44.00 1.00 1.79
FPD-0045 Infill 29.00 40.00 11.00 0.52
  Includes 37.00 38.00 1.00 2.24
FPD-0047 Infill 64.15 69.00 4.85 1.97
FPD-0049 Infill 44.90 53.00 8.10 1.15
  Includes 52.00 53.00 1.00 4.55
FPD-0050 Infill 41.00 52.00 11.00 1.44
  Includes 48.55 51.00 2.45 3.23
FPD-0051 Infill 147.60 170.35 22.75 2.04
  Includes 162.00 166.00 4.00 5.85
FPD-0051 Infill 188.00 196.00 8.00 1.09
  Includes 192.00 194.00 2.00 2.86
FPD-0053 Infill 165.00 188.10 23.10 1.05
  Includes 182.25 185.00 2.75 2.33
FPD-0054 Infill 175.00 194.00 19.00 1.19
  Includes 187.35 191.00 3.65 2.54
FPD-0071 Infill 106.00 109.40 3.40 5.84
FPD-0077 Infill 164.80 168.60 3.80 4.08
FPD-0083 Infill 40.00 68.00 28.00 0.68
  Includes 51.00 53.00 2.00 2.80
FPD-0084 Infill 6.00 17.95 11.95 0.51
FPD-0085 Infill 69.00 79.00 10.00 0.95
FPD-0086 Infill 29.00 37.00 8.00 0.57
FPD-0090 Infill 125.00 126.00 1.00 8.25
FPD-0091 Infill 145.00 153.00 8.00 0.75
           
           
Drill Hole Type From (metres) To (metres) Interval (metres) grams Au/tonne
FPM-0001 Infill-Metal 112.00 143.00 31.00 1.06
  Includes 122.00 126.00 4.00 2.81
FPM-0002 Infill-Metal 116.00 182.05 66.05 1.26
  Includes 140.00 148.15 8.15 4.13
FPM-0003 Infill-Metal 116.00 135.00 19.00 2.80
  Includes 123.55 130.00 6.45 6.00
FPM-0004 Infill-Metal 111.00 130.90 19.90 1.16
  Includes 128.40 130.90 2.50 3.48
FPM-0005 Infill-Metal 118.00 133.00 15.00 2.23
  Includes 129.00 130.00 1.00 19.90
FPM-0006 Infill-Metal 113.00 141.00 28.00 3.88
  Includes 124.00 133.55 9.55 6.92
FPM-0007 Infill-Metal 127.00 174.00 47.00 1.52
  Includes 142.00 148.00 6.00 4.37
FPM-0008 Infill-Metal 105.00 121.00 16.00 0.81

To view a map of the Paiol Target Areas and selected cross sections, please visit the following link:

http://media3.marketwire.com/docs/LINK_1_PAIOL_Drill_Location_and_Sections_Nov_16_2010.pdf

Arroz Area

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

Drill Hole Type From (metres) To (metres) Interval (metres) grams Au/tonne
FAD-0070 Infill 11.20 14.15 2.95 0.92
FAD-0071 Infill 53.00 54.50 1.50 12.99
FAD-0073 Infill 31.00 33.00 2.00 1.77
FAD-0074 Infill 17.00 25.00 8.00 0.79
FAD-0076 Infill 18.00 21.80 3.80 1.57
  Includes 20.00 21.00 1.00 3.12
FAD-0078 Infill 17.00 24.00 7.00 3.73
  Includes 20.00 23.00 3.00 7.23
FAD-0079 Infill 40.00 45.00 5.00 5.22
FAD-0081 Infill 48.00 56.00 8.00 2.76
  Includes 51.00 55.20 4.20 3.43
FAD-0083 Infill 24.55 30.75 6.20 2.57
  Includes 25.40 28.45 3.05 3.75
FAD-0086 Infill 30.45 43.90 13.45 2.38
  Includes 36.45 41.80 5.35 4.50
FAD-0088 Infill 26.40 43.50 17.10 2.56
  Includes 35.65 38.50 2.85 5.49
FAD-0096 Infill 57.35 69.15 11.80 2.12
  Includes 62.45 64.35 1.90 3.43
FAD-0097 Infill 160.95 174.00 13.05 1.58
  Includes 171.00 173.00 2.00 3.23
FAM-0001 Infill-Metal 61.65 74.00 12.35 1.37
  Includes 71.00 73.20 2.20 5.67
FAM-0002 Infill-Metal 116.00 123.65 7.65 3.91
  Includes 116.00 118.00 2.00 8.03
FAM-0003 Infill-Metal 44.50 52.00 7.50 3.46
  Includes 47.00 52.00 5.00 4.42

To view a map of the Arroz Target Areas and selected cross sections, please visit the following link:

http://media3.marketwire.com/docs/LINK_2_ARROZ_Drill_Location_and_Sections_Nov_16_2010.pdf

Morro do Carneiro - Arroz Area

The Morro do Carneiro (MC) target is located east of the Cata Funda target in the Arroz garimpo (artisanal mining) area and extends approximately over 1,300 metres length and 250 metres wide in the NW-SE volcano-sedimentary sequence. Following positive results from initial geophysics, mapping and rock chip sample collection, Rio Novo executed 6 scout drilling holes for a total of 797 metres, with samples having been shipped for analysis.

Worked performed by Rio Novo prior to the scout drilling included ground geophysics with polo-dipolo IP-Resistivity, geological mapping and rock geochemistry. It included 49 rock chip samples over MC and surrounding areas, in addition to 31 samples collected from 4 channels (36 metres) opened in old garimpo areas.

The geophysics with IP-Resistivity revealed anomalies with high chargeability coincident with high resistivity. The high resistivity response is consistent with the presence of mylonitic quartzites/meta-chert (high silica) rich in tourmaline and pyrite which form the base of the MC ridge.The high chargeability anomaly may indicate a large body of disseminated sulphides within  tourmaline-bearing quartzites associated with phylittic and carbonate alteration.

Rock chip sample results returned a range of grades above 1.0 g/t with a maximum of 24.01 g/t in oxidized, carbonatized quartzite exhibiting boxwork textures.

MC Summary:

  • Target size of 1300m x 250m on a parallel strike to Arroz;
  • Proximity to the Cata Funda/Arroz deposit;
  • Shear zone with strong deformation associated with an important zone of hydrothermal alteration rich in sulphidation associated with quartz, sericite, carbonate and tourmaline;
  • Occurrences of Au observed in a large portion of MC and surroundings, indicated by trenching, rock chip samples and channel samples;
  • Good geophysical response with high chargeability and high resistivity, probably due to the presence of disseminated sulphides and to the predominance of metachert/quartzite, respectively
  • Occurrence of old garimpos, with mechanized works in the area.

To view a map of the MC showing rock ship samples over IP-Resistivity please visit the following link:

http://media3.marketwire.com/docs/LINK_3_Morro_do_carneiro_map_LITHOLOGY_A3.pdf

Vieira-Fofoca Trend

A total of 7 scout drilling holes, or 745 metres, has been completed at the Vieira and Fofoca targets to test previously identified geophysical anomalies over an apparent 3.7 km trend. One of the holes (FVD-0003) detected visible gold associated with a strong hydrothermal alteration zone showing sericite, quartz and disseminated sulphide. Additional drilling in the area is planned to start shortly to continue to test identified geophysical anomalies in conjunction with a complementary IP-Geophysics program between Vieira and Fofoca targets to test the continuity of the anomalous trend observed in the previous survey. These programs will be complemented by a soil geochemistry program to locate arsenic and gold anomalies and trenching where possible to expose and map the lithologies below the soil cover.

To view map of the Vieira, Fofoca and Ijui targets with IP-Resistivity and Chargeability please visit the following link:

http://media3.marketwire.com/docs/LINK_4_Vieira_Fofoca_MAP_IP_RES_CHARG.pdf

Paiol Leach Pad Auger Drilling

Auger and RC drilling at Paiol Leach pad has been completed and samples shipped to SGS-Geosol lab in Belo Horizonte. The objective of the RC drilling program was to assess the depth of the leach pile, where the auger had not reached bottom. The depth of programmed holes was from 15 to 20m with approximately 50 m spacing.

Guarantã Gold Project

The drilling program at the Guarantã Gold Project has been initiated with 2 diamond drill rigs currently working on the X1 extension and Guaranta Ridge targets. Two additional rigs will mobilize to site in the next 2 weeks for a total of 4 rigs which are programmed to complete an 11,000 metres program, comprising 5,000 metres of X1 Infill program, 2,000 metres X1 Extension and 2,500 metres in the Guarantã Ridge target and 1,500 metres at the Serrinha target. This initial drill program is currently under review and could be expanded as a result of the positive results obtained during detailed mapping and initial ground IP-Geophysics over the targets.

An airborne geophysics survey by Heli-VTEM (by Geotech Ltda) over the entire Guarantã project area has been initiated and expected to be completed by December 2010. 

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. High grade samples are routinely analyzed by metallic screen fire assay and that 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 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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