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Reunion Gold poised to accelerate drilling at Oko West project given recent success

Last updated: 10:05 07 Sep 2022 EDT, First published: 09:56 07 Sep 2022 EDT

Reunion Gold Corporation -
Reunion said it would add two higher-capacity diamond drilling rigs in the fourth quarter of 2022, taking the total rig count to five diamond rigs and one reverse circulation (RC) rig

Reunion Gold Corporation (TSX-V:RGD, OTCQB:RGDFF) told investors that it would accelerate drilling at its Oko West project in Guyana later this year given the success of recent work.

Latest drill assays continue to show a strong level of gold mineralization continuity at the Oko Wests Kairuni zone in terms of widths, grades and geology, the company said in a statement.

"We continue to be very pleased with the results we are receiving from the Kairuni zone, which show excellent continuity of the gold mineralization down to a vertical depth of approximately 250 metres (m), where more detailed drilling has occurred," said Carlos Bertoni, the interim CEO, in a statement.

"We are also very excited about the potential for adding gold mineralization both along strike and at depth, particularly in the untested areas of block 4 between the depths of 250m and 600m."

READ: Reunion Gold appoints Fred Stanford to its board and Justin van der Toorn as exploration VP

Latest highlight results included 5.19 grams per ton (g/t) gold over 52.50m, from just 4.5m depth in one hole, and 4.12 g/t of the yellow metal over 49.8m starting from 221.7m depth in another.

Reunion said it would add two higher-capacity diamond drilling rigs in the fourth quarter of 2022, taking the total rig count to five diamond rigs and one reverse circulation (RC) rig.

"With this additional drilling capacity, the company is planning to systematically explore the Kairuni zone to 200m depth with drill holes spaced at 40m intervals (4,600m), from 200m to 350m depth at 80m intervals (7,600m), and from 450m to 600m depth with drill holes spaced at 160m intervals (15,500m). This program includes 85 diamond drill holes totaling more than 28,000 meters of core and is expected to be completed by early 2023," it said.

The firm added that it now believed it would be "premature" to release a maiden resource in 3Q 2022 as initially planned and is now earmarking the first quarter of 2023.

"The company's objective is to estimate substantial mineral resources in the indicated and inferred categories," it added.

In addition to drilling at the Kairuni zone, Reunion revealed it has started exploring the Takutu zone - a high potential exploration target representing the southern 3.5 km extension of the same geology hosting the Kairuni gold mineralization.

Planned is an initial 6,000m drill program at Takutu using the reverse circulation (RC) rig to scout-drill along the mapped shear zones to be followed by diamond drilling of any new gold mineralization discovered.

In a corporate update in the statement, Reunion also noted that the Guyana Geology and Mines Commission has approved a prospecting license for the Oko West project and that it and Bosai Minerals have recently agreed to settle an additional consideration for one lump-sum payment of US$2.35 million (now received) as part of the sale, in 2017, of the  Matthews Ridge manganese asset.

Over the summer, the firm also raised C$36.8 million, which brought its cash  balance to around C$52 million as at the end of July 2022 and it had strengthened its board and management team, it said.

Reunion Gold Corp is a leading gold explorer in the Guiana Shield, South America. In 2021, it says it made an exciting new gold discovery at its Oko West project in Guyana, where to date it has outlined continuous gold mineralization at the Kairuni zone over 2,500m of strike and to a depth of 575m.

Contact the author at giles@proactiveinvestors.com

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