Promising...... Range River Gold Ltd (Company or RNG) has received the results of assays on the first parcel of ore crushed at Barrick (Granny Smith) Pty Ltd’s Granny Smith (Barrick) operations commencing on 24 February 2010. The assays received are from the Company’s sample of the crushed ore and were assayed in a commercial laboratory. The results from Barrick’s sample are awaited. The final reconciliation will be based upon a comparison of the two sets of assays. The Company delivered 4,019 tonnes of ore at an average grade of 4.9 g/t Au. Grade control estimates indicated an initial grade of 3-3.5 g/t Au. The positive reconciliation could be due to a number of effects. A review of the grade control processes and procedures with a view to improving the accuracy of the grade control process is underway. The grade of ore mined is lower than the average resource grade for the deposit due to a minor depletion effect near surface and is consistent with the trend to increased grade at depth. Further, the Company has been advised that the preliminary recovery testwork being undertaken by Barrick is consistent with forecast. The forecast recoveries on the Craic ore were in the range of 90-93%. Final payment is based upon the weight of ore crushed, adjusted for moisture, multiplied by the head grade and the recovery to obtain the estimated weight of recovered gold. The Company is paid for 100% of the weight of recovered gold less a treatment charge per tonne of ore processed. It is expected that the final reconciliation and hence payment for the first batch will be completed by the end of March. Following completion of the grade control program on the current bench, ore mining is scheduled to recommence in the coming week. Deliveries will be timed to meet the next planned crushing window in early April.
RNG Price at posting:
2.9¢ Sentiment: Hold Disclosure: Held
