Nov 4 2016
Reunion Gold Corporation ("Reunion") is pleased to announce that it has entered into a non-binding letter of intent (the "LOI") dated October 28, 2016 with Union Minière de Saül ("UMS"), an arm's length private company. The LOI outlines the general terms and conditions pursuant to which UMS would grant to Reunion an option to acquire an 80% interest in the Haute Mana gold project in French Guiana, South America. Reunion would be entitled to exercise the option by completing a preliminary economic assessment on the project within a period of five years.
The LOI is to be superseded by a formal option agreement. The transaction will be subject to requisite regulatory approvals including the approval of the TSX Venture Exchange and other conditions. Reunion will be conducting due diligence and evaluating different financing options.
Haute Mana Gold Project
The Haute Mana gold project consists of eight mining concessions covering an area of 121.5 km² in the central-south part of French Guiana, some 170 km SW from the capital city of Cayenne, being accessible by a forest trail and aircraft. Geologically, the region is underlain by a Proterozoic greenstone belt composed of volcano-sedimentary sequences intruded by granitoids and cut by the prominent Sophie-Saul shear zone striking NW-SE and extending for more than 30 km. This is one of the most prolific gold producing area of French Guiana, from at least six "camps" along this shear zone, mostly from artisanal work both in alluvial and primary sources. The region was extensively mapped and explored by the Bureau de Recherches Géologiques et Minières (BRGM) in the eighties, including 4,500 m of auger and 772 m of diamond drilling. Ressources Franc-Or did further exploration work in the nineties, including 79 line kilometres of soil sampling and 1,224 m of diamond drilling. The concession area has seen little other systematic exploration and is considered to have excellent potential for 'shear-type" gold mineralization.
Carlos Bertoni, P. Geo., a consultant to Reunion and a qualified person pursuant to National Instrument 43-101, has reviewed and approved the scientific and technical data contained in this press release.
Source: http://www.reuniongold.com/