RNC Gold Inc.

May 31, 2005 10:04 ET

RNC Buys Zopilote Gold Project in Honduras

TORONTO, ONTARIO--(CCNMatthews - May 31, 2005) -

Not for release in the United States

RNC Gold Inc. (TSX:RNC) today announced that it signed an agreement with Standard Mining Corporation on May 30, 2005 to acquire a 100% interest in the Zopilote Gold Project in Honduras in exchange for 325,000 common shares of RNC. The project consists of two exploration concessions - Zopilote and Carmolote.

"Zopilote is an excellent exploration opportunity that is located near the San Andres gold mine for which we hold an option to acquire a 100% interest," said Thomas W. Lough, President and Chief Financial Officer, RNC Gold Inc. "RNC management's experience in Honduras has been positive and we believe it to be a country where we can expand our interests. Through the acquisition of Zopilote and the potential exercise of the San Andres option, RNC will have a strong Honduran property portfolio to complement its producing Nicaraguan gold mines and gold development project in Panama."

Several companies have explored and studied the property to date with 135 holes, totaling more than 16,695 metres, of both reverse circulation and core drilling having been completed. This drilling, however, has been limited to depths of approximately 90 metres. Mineralization in all four zones (Main, Central, Mudgett and Lechuza) remains open at depth.

RNC expects to mobilize a drill rig to begin preliminary exploration at Zopilote during the second half of 2005. Initial drilling is likely to focus on attempting to identify a larger target at depth.

About RNC Gold

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 around 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, the Cerro Quema development project in Panama and the Picachos exploration property in Mexico as well as the option to acquire 25% of the San Andres mine in Honduras. Subsequent to the Zopilote acquisition, the Company will have 40,568,451 common shares outstanding and on a fully diluted basis there are 63,847,736 securities outstanding.

Certain statements included herein, include those that express management's expectations or estimates of future performance, constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic, regulatory, competitive and geological uncertainties and contingencies. Such forward-looking statements involve known and unknown risks, uncertainties and other risk factors that may cause the actual financial results, performance, or achievements of RNC Gold to be materially different from estimated future results, performance, or achievements expressed or implied by those forward looking statements. These are discussed in greater detail in RNC Gold's Annual Information Form and other reports filed with Canadian provincial securities commissions at http://www.sedar.com. RNC Gold expressly disclaims any intention or obligation to update or revise any forward- looking statement whether as a result of new information, events or otherwise.

Contact Information

  • RNC Gold Inc.
    Randy Martin
    Chairman & CEO
    (416) 365-9777
    RNC Gold Inc.
    T.W. Lough
    President & CFO
    (416) 365-9777
    The Equicom Group
    Martti Kangas
    (416) 815-0700 ext.243