RNI NL : Quarterly Activities Report

Microsoft Word - RNI- Quarterly Activities Report (Final) 110116.docx

ASX Announcement 11 January 2016

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 31 DECEMBER 2015

ASX CODE: RNI

HIGHLIGHTS

• Systematic 24,000m drilling and exploration program commenced on key Bryah Basin copper-gold targets following sale of gold assets, repayment of Taurus debt and completion of entitlements issue

  
  

• Initial drilling phase successfully defines stratigraphic and alteration characteristics typical of volcanic hosted massive sulphide (VHMS) deposits similar to DeGrussa

  
  

• First assay results expected in January 2016

  
  

• Assay results and geological analysis will define priority areas to be tested with targeted drilling programs and geophysical surveys, commencing late in the March 2016 Quarter

  
  

• Aircore drilling to continue in January 2016 with planned 205-hole program at the Forrest and Morck's Well projects

RNI NL (ASX: RNI) emerged as a dedicated and well-funded copper-gold explorer with a highly-prospective 1,258km2 holding in Western Australia's Bryah Basin in the December 2015 Quarter.

RNI was able to focus on its Bryah Basin exploration portfolio following the sale of its gold assets and the completion of an entitlements issue, which enabled the Company to repay its corporate debt and fund its drilling and exploration programs.

RNI's Bryah Basin exploration portfolio is divided into five well-defined project areas - Doolgunna, Morck's Well, Forrest, Cashmans and Horseshoe Well. All are considered highly prospective for volcanic hosted massive sulphide (VHMS) copper-gold discoveries.

EXPLORATION

In November 2015, RNI commenced a 24,000 metre drilling and exploration program following a systematic review and ranking of priority VHMS targets across the Company's five project areas.

As announced to the ASX on 23 December 2015, RNI completed the first phase of this drilling and exploration program, which involved reverse circulation (RC) and aircore drilling at the Cuba, Jerry's, Marty's Patch and Maguire targets at Doolgunna (Figures 1 and 2), and at the Citra, EM2 and Limestone targets at Morck's Well (Figure 1).

The drilling at Cuba, Jerry's and Citra intersected significant target horizons with exhalative units, alteration, mafic volcanics and interspersed sedimentary packages, which are all consistent with VHMS deposits both globally and within the Bryah Basin, particularly the DeGrussa deposit.

RNI NL ABN 77 085 806 284

34 Bagot Road Subiaco Western Australia 6008 PO Box 298 West Perth WA 6872 T [phone] F [phone] E [e-mail] W rninl.com.au

RNI's Doolgunna Project is located approximately 2.5km from DeGrussa (Sandfire Resources) and within 5km along strike from the high-grade Monty copper-gold discovery (Sandfire/Talisman) (Figure 2). The northern boundary of Morck's Well is contiguous with Sandfire's Doolgunna property, which hosts DeGrussa.

Initial assay results from this first drilling phase are anticipated in mid-January 2016. Follow-up down-hole electromagnetic (DHEM) surveys are planned for the Marty's Patch and EM2 prospects (Figure 1) in January 2016.

The assay results, along with the geological analysis and DHEM survey data, will be used to plan targeted follow- up drilling programs scheduled to commence in the March 2016 quarter.

RNI commenced its 24,000m drilling and exploration program in November 2015

In addition, the next phase of aircore drilling will commence in January 2016 with a total of 205 holes planned at targets within the Forrest and Morck's Well projects. These holes will be drilled at Tempest EM1, Tempest EM2, the Forrest-Wodger trend and Big Red (Figure 1).

This aircore drilling program is designed to penetrate the transported cover and provide a platform for follow-up drilling and exploration.

Figure 1: RNI's Bryah Basin copper-gold portfolio showing locations of priority prospects being targeted in the current drilling and exploration program at the Doolgunna, Morck's Well and Forrest Projects

The completed first phase of RC and aircore drilling (as detailed in the ASX announcement of 23 December 2015) is summarised below.

DOOLGUNNA PROJECT

Cuba Prospect

The aircore drilling program at Cuba was designed to define the horizon that hosts an off-hole conductor identified in DDH1-9 (see ASX announcement of 6 October 2015). The program involved the drilling of 128 holes for a total of 7,563m.

Drill logs indicate the drilling encountered dominantly clastic sediments (turbidites and shales), which are common VHMS hosts, with several horizons showing evidence of exhalative units and alteration, specifically jasperoid cherts, magnesian talc, chlorite, albite and hematite alteration. This is very similar stratigraphy and alteration to the DeGrussa copper-gold deposit, located approximately 3.5km north-west of Cuba (Figures 1 and 2).

The geology encountered in this program is very encouraging and demonstrates a compelling reason to follow up the success of the aircore program with further drilling and geophysical work. Detailed analysis of the drill logs and pending assay results will be used to design the next stage of exploration and drilling at Cuba.

Jerry's Prospect

The aircore program at Jerry's has been completed with the drilling of 58 holes for 2,188m. A number of mafic and sediment horizons were encountered, which are indicative of the targeted host horizons and included evidence of exhalative (VHMS forming) units and alteration, specifically jasperoid cherts and chlorite, albite and hematite alteration.

This is considered very promising as it continues to demonstrate that the Central Corridor of the Doolgunna Project (Figure 2) has similar stratigraphy and alteration to the DeGrussa deposit and has potential to host VHMS-style mineralisation.

This aircore program has also demonstrated that the potential VHMS horizons extend beyond the cleared access area and that further work is warranted to define the extent of the target horizons. The logging and pending assay results will be analysed in January 2016 and used to design the next stage of exploration and drilling, which will occur after the necessary clearing permits are obtained for an extended area of exploration.

Marty's Patch Prospect

Figure 2: RNI's Doolgunna Project and proximity to DeGrussa and Monty

A single 250m RC hole was drilled at Marty's Patch to test for the source of a significant geochemical anomaly. The hole initially intersected dominantly shales with quartz veining and some jasperoid cherts before going into a turbidite sequence of alternating shales and coarse clastic units. Below the coarse clastic units the hole intersected a thick coarse green sandstone unit and then more shales. The geology logged included some alteration and jasperoid cherts suggesting potential exposure to hydrothermal fluids. The hole was set up for a DHEM survey in early 2016 and this data combined with assay results will assist in prioritising the prospectivity of the area and whether follow up test work is required.