Clarification: Historical Mineral Resource Estimate at Reefton
LEGAL_44333177.3
July 17, 2024
Clarification: Historical Mineral Resource Estimate at Reefton
Rua Gold Inc. (CSE: RUA, OTC: NZAUF, WKN: A4010V) (“ RUA GOLD" or the " Company") provides a
clarification in relation to its news release of July 15, 2024 (“RUA GOLD to acquire Siren Gold's Reefton
assets and become the dominant Reefton Goldfield explorer”).
Previously, the Company disclosed that “the tenements owned by [Reefton Resources Pty Limited]
hosts a total JORC-compliant inferred mineral reso urce estimate (at a 1.5 g/t Au cut-off grade)
containing 444koz Au @ 3.81g/t Au and 8.7kt Sb @ 1.5% Sb”. The Company wishes to clarify that the
tenements presently owned by Reefton Resources Pt y Limited (“Reefton Resources”) do not contain
a current mineral resource estimate. The Company intended to disclose the aforementioned “inferred
mineral resource estimate” as a “h istorical estimate” within the meaning of National Instrument 43-
101 Standards of Disclosure for Mineral Projects (“NI 43-101”). As a result, the Company also wishes
to provide additional information and cautionary language required by NI 43-101.
The Company would like to clarify its statement regarding the tenements owned by Reefton Resources
as follows:
The tenements owned by Reefton Resources host the following historical estimates:
Alexander River Gold Project (Exploration Permit 60446)
The Alexander River MRE is reported at 1.07 Mt and 4.95 g/t for 170 koz. The mineral resource
is reported at a 1.5 g/t cut-off for all areas of the resource. The resources are estimated as at
the end of January 2023.12
Big River Gold Project (Exploration Permit 60448)
The Big River MRE is reported at 0.834 Mt at 3.94 g/t for 105.5 koz of gold at a 1.5g/t cut-off.
The resources are estimated as of the end of April 2023.3
1 Source: “Alexander River Mineral Resource Estimate Report” da ted April 2023 and prepared by Christopher Grove, B App
Sci, MAusIMM, principal geologist, and Matt Binks, senior geologist, of Measured Group Pty Ltd. Assumptions from source:
The resource has been estimated based on an assumption of mechanised underground mining for the Alexander River
deposit (long hole stoping or sub-level open stoping). No mining dimensions or dilution were considered. No metallurgical
recovery factors were applied to the Mineral Resources Estimate.
2 Additional assumptions, parameters, and methods used to prepare the historical estimate, as identified by Mr. Simon
Henderson: Geological wireframing in Leapfrog Geo; hard boundary compositing using Leapfrog – Edge Module (Leapfrog
Edge); Variography and Ordinary Kriging using Leapfrog Edge; Block Model Estimation using Leapfrog Edge. The historical
mineral resources are reported according to the terminology, definitions and guidelines given in the JORC Code (as defined
herein).
3 Source: “Mineral Resource Estimate Report – Big River Gold Project” dated June 2023 and authored by Mark McCulloch,
BSc, MAusIMM, a consultant to Siren Gold Limited. Assumptions: The resource has been estimated based on an
assumption of mechanised underground mining for the Big River deposit (long hole stoping or sub-level open stoping). No
mining dimensions or dilution were considered. No metallurgical recovery factors were applied to the Mineral Resources
Estimate. See also note 2.
LEGAL_44333177.3
Supreme Gold Project (Exploration Permit 60747)
The Supreme Inferred MRE is reported at 1.15 Mt at 2.78 g/t for 103.4 koz. resources are
based on a 1.5 g/t Au cut-off grade. The resources are estimated as of the end of May 2023.4
Auld Creek Project (Exploration Permit 60648)
The Auld Creek MRE is reported at 0.58 Mt at 3.5g/t Au and 1.5% Sb for for 66 koz of gold and
8.7t of antimony. This equates to a gold equivalent (AuEq) of 7.1g/t and 132koz based on a
gold equivalent formula of AuEq = Au g/t + 2.36 x Sb% using a gold price of US$1,750/oz and
an antimony price of US$13,000 per tonne. The mineral resource is reported at a 1.5 g/t AuEq
cut-off. The Mineral Resources are estimated as of the end of August 2023.5
The foregoing historical estimates we re classified as “inferred”, in accordance with the Australasian
Code for Reporting of Exploration Results, Minera l Resources, and Ore Reserves, 2012 edition (the
“JORC Code”), which does not have the same meaning as the one ascribed to “inferred mineral source”
by the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) in the CIM Definition Standards
on Mineral Resources and Mineral Reserves adopted by the CIM Council on May 19, 2014, as amended
as JORC and CIM use different definitions of the “inferred” classification based on the certain matters
including the level of confidence of quantity and grade.
The Company believes verifi cation of the historical estimates is required to upgrade the historical
estimates to current mine ral resources. The Company expects such verification will require, among
other things: (i) additional diamond drilling and core density sampling; (ii) further detailed modelling
on ore controls and deposit structural setting; (iii) continued metallurgical studies for gold recovery
factors; and (iv) underground mining scoping and optimization studies to determine the optimal cut-
off grade and appropriate mining methods. The Company believes that the historical estimate is
relevant in assisting the Company in its targeted drill program but is unable to comment on the
reliability of historical resources as insufficient work has been done to make this determination. A
qualified person has not done sufficient work to cl assify the historical estimates referenced herein
as current mineral resources or mineral reserves and the Company is not treating the historical
estimate as current mineral resources or mineral reserves.
About RUA GOLD
RUA GOLD (CSE: RUA, OTC: NZAUF, WKN: A4010V) is a new entrant to the mining industry, specializing
in gold exploration and discovery in New Zealand. With permits that have a rich history dating back to
4 Source: “Mineral Resource Estimate Report – Supreme Gold Project” dated June 2023 and authored by Mark
McCulloch, BSc, MAusIMM, a consultant to Siren Gold Limited. Assumptions: The resource has been estimated
based on an assumption of mechanised underground mining for the Supreme deposit (long hole stoping or
sub-level open stoping). No mining dimensions or dilution were considered. No metallurgical recovery factors
were applied to the Mineral Resources Estimate. See also note 2.
5 Source: “Mineral Resource Estimate Report – Auld Creek Project” dated October 2023 and authored by Mark
McCulloch, BSC, MAusIMM, a consultant to Siren Gold Limited. Assumptions: The resource has been estimated
based on an assumption of mechanised underground mining for the Fraternal deposit (long hole stoping or
sub-level open stoping). No mining dimensions or dilution were considered. No metallurgical recovery factors
were applied to the MRE. See also note 2.
LEGAL_44333177.3
the gold rush in the late 1800’s, RUA GOLD combin es traditional prospecting practices with modern
technologies to uncover and capitalize on valuable gold deposits.
The Company is committed to responsible and sust ainable exploration, which is evident in its
professional planning and execution. The Company aims to minimize its environmental impact and to
execute on its projects with key stakeholders in mind. RUA GOLD has a highly skilled team of New
Zealand professionals who possess extensive knowledge and experience in geology, geochemistry,
and geophysical exploration technology.
For further information, please refer to the Company’s disclosure record on SEDAR+ at
www.sedarplus.ca.
Technical Information
Simon Henderson CP, AUSIMM, a qualified person under National Instrument 43-101 Standards of
Disclosure for Mineral Projects, has reviewed and approved the technical disclosure contained
herein.
RUA GOLD Contact
Robert Eckford
Chief Executive Officer
Email: [email protected]
Website: www.RUAGOLD.com
This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this new release, other
than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking
statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identifi ed by the
words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or
conditions “will”, “would”, “may”, “could” or “should” occur and specifically include statements regarding: the Company’s strat egies,
expectations, planned operations or future actions; and the work required to verify the historical mineral estimates as current mineral
resources or mineral reserves. Although the Company believes the expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those
in the forward-looking statements.
Investors are cautioned that any such forward-looking statements are not guarantees of future performance and actual results or
developments may differ materially from those projected in the forward-looking statements. A variety of inherent risks, uncerta inties and
factors, many of which are beyond the Company’s control, affect the operations, performance and results of the Company and its business,
and could cause actual events or results to differ materially from estimated or anticipated events or results expressed or implied by forward
looking statements. Some of these risks, uncertainties and facto rs include: general business, economic, competitive, political and social
uncertainties; risks related to the effects of the Russia-Ukraine war; risks related to climate change; operational risks in ex ploration, delays
or changes in plans with respect to exploration projects or ca pital expenditures; the actual results of current exploration act ivities;
conclusions of economic evaluations; changes in project parameters as plans continue to be refined; changes in labour costs and other costs
and expenses or equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining indu stry,
including but not limited to environmental hazards, flooding or unfavourable operating conditions and losses, insurrection or war, delays in
obtaining governmental approvals or financing, and commodity pric es. This list is not exhaustive of the factors that may affect any of the
Company’s forward-looking statements and reference should also be made to the Company’s annual information form dated April 19, 2024,
filed under its SEDAR+ profile at www.sedarplus.ca for a description of additional risk factors.
Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the stateme nts
are made. Except as required by applicable securities laws, th e Company undertakes no obligation to update these forward-lookin g
statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.