The Forest Hill gold property in Nova Scotia,
Canada, hosts a mineral resource of 173,800 ounces gold indicated
(225,000 tonnes grading 24.02 g/t Au) and 152,900 ounces gold
inferred (383,000 tonnes grading 12.42 g/t Au), using a 3.5 g/t Au
cutoff grade, with no grade capping. The project is sufficiently
advanced that RCG plans to issue a report on the mineral resource and
begin economic studies on a fast track toward production.
Historic gold production followed discovery of
gold at Forest Hill in 1893, and up to 1916 produced 26,792 ounces at
an overall recovered grade of 16.6 g/t Au. In the 1980s, a 230-m
shaft was sunk and approximately 94,000 tonnes of ore mined. A total
of 10 km of underground workings exist on the project, along with 82
drill holes totaling 12,272 m drilled between 2003 and 2005. The
project comprises 3,398 hectares in 210 exploration claims.
Steeply dipping stratabound quartz veins on the
south limb of the east-west trending Forest Hill anticline contain
free-milling gold accompanied by arsenopyrite, pyrite, pyrrhotite and
minor galena and chalcopyrite. Numerous veins have been encountered
on the property, and they have been tracked for over 600 m along
strike and 250 m down dip with excellent continuity demonstrated by
drilling and mine workings.
The project shows very good grades suitable for
underground mining. The overall grade of the current resource is 16.7
g/t Au, and drill intercepts are up to 315 g/t Au. Bulk sampling
during the 1980s returned grades between 9.2 g/t Au and 13.8 g/t Au
for diluted ore, with 94.9% overall recovery, of which 74.2% recovery
was attained by gravity methods alone. The expansion potential at
Forest Hill is very good, with mineralization open to the east, west,
and at depth.
The scientific and technical information in this disclosure was reviewed and approved by David S. Smith, MS, MBA, CPG, who is a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects.