RNC Gold Inc.
TSX : RNC

June 15, 2005 09:03 ET

RNC Announces Further Confirmation of Bonanza Bulk Mineable Target

TORONTO, ONTARIO--(CCNMatthews - June 15, 2005) -

Not for release in the United States.

RNC Gold Inc. (TSX:RNC) today announced results from an additional 1,500 geochemical analyses from the second phase of its trench sampling on the bulk tonnage gold target at the Company's Bonanza property in northeastern Nicaragua.

"This Phase 2 work helps to validate our theory that the gold mineralization within the target area is widely disseminated," said Thomas W. Lough, President & CFO, RNC Gold Inc. "In addition to further trenching, a Phase 1 reverse circulation drill program totaling 7,000-10,000 meters was initiated in early May 2005."

The drilling program is designed to delineate a resource that could be mined by open pit methods and heap leached on surface pads. To date, approximately 25 drill holes have been completed. Preliminary metallurgical leach testing is being conducted at RNC's La Libertad mine. The Company expects to begin releasing results from the drilling and leach tests in July 2005.

The principal findings of the Phase 2 trenching exploration program are:

- The latest in-fill trenching better defines the potential open pit target that now covers an area totaling approximately 300,000 square meters. The zone of surface disseminated gold mineralization in saprolite (weathered - oxidized bedrock) defines a 1 kilometer long by 150 meter wide zone merging with a southeast trending zone 600 meters long by 200 meters wide. The shape of the anomaly reflects the trend of the known underlying epithermal vein systems of the Panama Group of veins (where the northeast trending Neblina, Foundling NE, Cruzada and Neptune mineralized structures are intersected by the southeast trending Tesoro structure);

- Two of the trenches have extended the zone by 60 meters to the southwest where it remains open and 100 meters to the northeast where the zone tapers off into narrower northeast and southeast trends;

- The main northeast trend is slightly offset to the northwest of the projected surface trace of the Neblina structure and occurs on the hanging wall side of the steep northwest dipping structure, a typical feature of epithermal vein systems;

The program has revealed other areas of surface gold dissemination to the south and southeast of the current area. The areas are underlain by epithermal veins known from historical drilling and/or underground mining and warrant further investigation.

The table below illustrates the more significant gold values in saprolite from the latest 1,500 gold geochemical analyses.



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Trench ID From (m) To (m) Int (m) Gold g/t Map Int.
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L18+00E(north) 3.0 122.0 118.9 0.99 1(i)
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L18+00E(south) 6.1 234.8 228.7 1.17 2(i)
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L18+00E(south) 237.8 277.4 39.6 0.84 3
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L18+00E(south) 323.2 365.9 42.7 0.71 4
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L22+00E(south) 0.0 70.1 70.1 1.22 5
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L32+00E(south) 0.0 24.4 24.4 0.95 17
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L32+00E(south) 176.8 192.1 15.2 0.74 18
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L32+00E(south) 207.3 228.7 21.3 0.77 19
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L32+00E(south) 265.2 283.5 18.3 0.86 20
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L36+00E(south) 67.1 201.2 134.1 0.75 25
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L38+00E(south) 396.3 408.5 12.2 0.83 27
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L38+00E(south) 445.1 469.5 24.4 0.62 28
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L38+00E(south) 481.7 507.6 25.9 0.78 29
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L38+00E(south) 527.4 539.6 12.2 0.91 30
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L40+3150S(west) 22.9 27.4 4.6 3.07 35
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L42+00E(south) 12.2 115.9 103.7 0.75 36
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L42+00E(south) 332.3 372.0 39.6 1.58 37
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L42+00E(south) 387.2 411.6 24.4 0.89 38
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L42+00E(south) 475.6 533.5 57.9 0.78 39
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L42+00E(south) 634.1 686.0 51.8 0.65 40
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L42+00E(south) 704.3 725.6 21.3 0.80 41
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L49+00E(south) 94.5 176.8 82.3 0.92 45
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L49+00E(south) 213.4 240.9 27.4 0.67 46
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L49+00E(south) 490.9 500.0 9.1 2.05 47
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L49+00E(south) 655.5 664.6 9.1 1.41 48
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(weighted averages using a lower 0.6 g/t gold cutoff grade and high
values cut at 4.0 g/t gold.)


The weighted averages calculated using the entire 5,493 geochemical analyses now available are illustrated on the attached map.

www2.ccnmatthews.com/database/fax/2000/rnc0615.pdf

(i) The gold results reported for the northwest end of trench L18E (intervals 1 & 2 in the above table and on the accompanying map) occur in material mechanically transported down-slope from the main vein and do not represent true mineralized saprolite. As such they do not form part of the mineralized zone. This area will be investigated further to determine the extent of this material that prevented the sampling of residual saprolite.

Sampling, analytical and reporting procedures

Weighted averages were calculated from the total 5,493 samples available using a cutoff gold grade of 0.6 g/t gold. Excessive spreading of the assay intervals was restricted by using minimum edge values equal to the lower cutoff gold grade and by cutting high values at 4.0 g/t gold.

Continuous 1.5 - 3.0 meter chip samples were collected in saprolite along trenches hand dug to a depth of 3 meters below the top soil. In some cases colluvium, (broken up bedrock fragments in soil), brown soil and/or fresh bedrock where saprolite was not available, was taken. For each sample three (3) to five (5) kilograms of material was bagged, and shipped in barrels to the CAS Laboratory in Tegucigalpa, Honduras, for preparation where the samples were dried and pulverized to a minus 150 mesh to produce a 300 gram pulp sample. The samples were then shipped to Acme Laboratories in Vancouver, B.C., Canada, for analysis by ICP-MS (induced coupled plasma) using splits of 0.5 grams leached in hot (95 degrees C) Agua Regia. Gold analyses were prepared using a larger 15 gram split size for a more representative sample. Samples duplicates are analyzed at regular intervals.

The qualified person on the project is Denis Francoeur, M.Sc, P.Geo., a practicing member (#0781) of the Association of Professional Geoscientists of Ontario.

About RNC Gold Inc.

RNC Gold Inc. is a gold mining company focused on projects in the Caribbean basin. From its current production base of 100,000 ounces of gold, RNC is positioned for growth through operational efficiencies, exploration potential on property surrounding its present mines, through construction of new mines and the acquisition of new projects. The Company's main assets include the La Libertad and Bonanza mines in Nicaragua, and the Cerro Quema project under construction in Panama as well as the option to acquire 25% of the San Andres mine in Honduras.

Contact Information

  • RNC Gold Inc.
    J. R. Martin
    Chairman and CEO
    416-365-9777
    or
    RNC Gold Inc.
    T.W. Lough
    President and CFO
    416-365-9777
    or
    The Equicom Group
    Martti Kangas
    416-815-0700