Rio Novo Gold Begins Drilling Program at Guarantã Gold Project

Rio Novo Gold Inc. (TSX:RN)(TSX:RN.WT) has reported additional drill results from its ongoing drilling program at its 100%-owned Almas Gold Project, located in the State of Tocantins, Brazil.

The Company has announced that drilling has started on its 100%-owned Guarantã Gold Project, located in the State of Mato Grosso, along with a Heli-VTEM geophysics program over its 1,080Km2 portfolio of continuous properties in the Guaranta gold district.

To date 277 diamond drill holes have been completed totalling 36,978 metres. At the Paiol target, 145 holes totalling 20,836 metres have been completed, comprising 13,943 metres of infill drilling, 5,550 metres of extension drilling and 1,342 metres of metallurgical drill holes. At the Arroz target, located approximately 15 km north of Paiol, 115 holes, totaling 14,202 metres have been completed; split between 3,864 metres of infill drilling, 10,036 metres in extensions to the original discovery and 302 metres in metallurgical drill holes. Scout drilling has been initiated on the targets in between Arroz and Paiol and to date 15 diamond scouts drill holes have been completed, totalling 1,940 metres. In total, approximately 38,000 metres are planned to be completed by end of November 2010.

New assayed results from Paiol infill program include 45 infill holes, including 8 metallurgical holes, totalling 5,789 metres. From the Arroz target, 18 new assayed infill holes have been received, including 3 metallurgical holes, totalling 1,447 metres.

Highlights Include:

• Significant intercepts from the Paiol infill drilling program include:

• • FPD-0004 – 20.95m @ 1.37 g/t Au (from 114.20m to 135.15m); including 3.00m @ 4.74 g/t Au
  • FPD-0005 – 32.00m @ 2.06 g/t Au (from 111m to 143m); including 3.00m @ 12.13 g/t Au
  • FPD-0028 – 41.75m @ 1.20 g/t Au (from 107.25m to 149m); including 3.45m @ 4.10 g/t Au
  • FPD-0029 – 13.60m @ 2.35 g/t Au (from 184.40m to 198m); including 2.90m @ 4.37 g/t Au
  • FPD-0037 – 15.00m @ 1.07 g/t Au (from 77m to 92m); including 2.00m @ 4.26 g/t Au
  • FPD-0050 – 11.00m @ 1.44 g/t Au (from 41m to 52m); including 2.45m @ 3.23 g/t Au
  • FPD-0051 – 22.75m @ 2.04 g/t Au (from 147.60m to 170.35m); including 4.00m @ 5.85 g/t Au
  • FPD-0053 – 23.10m @ 1.05 g/t Au (from 165m to 188.10m); including 2.75m @ 2.33 g/t Au
  • FPD-0054 – 19.00m @ 1.19 g/t Au (from 175m to 194m); including 3.65m @ 2.54 g/t Au
  • FPM-0001 – 31.00m @ 1.06 g/t Au (from 112m to 143m); including 4.00m @ 2.81 g/t Au
  • FPM-0002 – 66.05m @ 1.26 g/t (from 116m to 182.05 m); including 8.15m @ 4.13 g/t Au
  • FPM-0003 – 19.00m @ 2.80 g/t (from 116m to 135m); including 6.45m @ 6.00 g/t Au
  • FPM-0003 – 19.00m @ 2.80 g/t (from 116m to 135m); including 6.45m @ 6.00 g/t Au
  • FPM-0004 – 19.90m @ 1.16 g/t (from 111m to 130.90m); including 2.50m @ 3.48 g/t Au
  • FPM-0005 – 15.00m @ 2.23 g/t (from 118m to 133m); including 1.00m @ 19.90 g/t Au
  • FPM-0006 – 28.00m @ 3.88 g/t (from 113m to 141m); including 9.55m @ 6.92 g/t Au
  • FPM-0007 – 47.00m @ 1.52 g/t (from 127m to 174m); including 6.00m @ 4.37 g/t Au

Significant intercepts from the Arroz infill drilling programs include:

• • FAD-0078 – 7.00m @ 3.73 g/t Au (from 17m to 24m); including 3.00m @ 7.23 g/t Au
  • FAD-0079 – 5.00m @ 5.22 g/t Au (from 40m to 45m)
  • FAD-0081 – 8.00m @ 2.76 g/t Au (from 48m to 56m); including 4.20m @ 3.43 g/t Au
  • FAD-0083 – 6.20m @ 2.57 g/t Au (from 24.55m to 30.75m); including 3.05m @ 3.75 g/t Au
  • FAD-0086 – 13.45m @ 2.38 g/t Au (from 30.45m to 43.90m); including 5.35m @ 4.89 g/t Au
  • FAD-0088 – 17.10m @ 2.56 g/t Au (from 26.40m to 43.50m); including 2.85m @ 5.49 g/t Au
  • FAD-0096 – 11.80m @ 2.12 g/t Au (from 57.35m to 69.15m); including 1.90m @ 3.43 g/t Au
  • FAD-0097 – 13.05m @ 1.58 g/t Au (from 160.95m to 174m); including 2.00m @ 3.23 g/t Au
  • FAM-0001 – 12.35m @ 1.37 g/t Au (from 61.65m to 74m); including 2.20m @ 5.67 g/t Au
  • FAM-0002 – 7.65m @ 3.91 g/t Au (from 116m to 123.65m); including 2.00m @ 8.03 g/t Au
  • FAM-0003 – 7.50m @ 3.46 g/t Au (from 44.50m to 52m); including 5.00m @ 4.42 g/t Au

The results received from the infill program at Paiol continue to confirm continuity of mineralization in areas with current indicated and inferred resources, which should contribute significantly to the conversion of the inferred into measured and indicated resources ahead of the feasibility study stage. At Arroz, the infill drilling continued to reinforce the potential to add this deposit to existing resource base of the Almas Gold Project.

Morro do Carneiro - Arroz Area

The Morro do Carneiro (MC) target is located east of the Cata Funda target in the Arroz garimpo (artisanal mining) area and extends approximately over 1,300 metres length and 250 metres wide in the NW-SE volcano-sedimentary sequence. Following positive results from initial geophysics, mapping and rock chip sample collection, Rio Novo executed 6 scout drilling holes for a total of 797 metres, with samples having been shipped for analysis.

Worked performed by Rio Novo prior to the scout drilling included ground geophysics with polo-dipolo IP-Resistivity, geological mapping and rock geochemistry. It included 49 rock chip samples over MC and surrounding areas, in addition to 31 samples collected from 4 channels (36 metres) opened in old garimpo areas.

The geophysics with IP-Resistivity revealed anomalies with high chargeability coincident with high resistivity. The high resistivity response is consistent with the presence of mylonitic quartzites/meta-chert (high silica) rich in tourmaline and pyrite which form the base of the MC ridge.The high chargeability anomaly may indicate a large body of disseminated sulphides within  tourmaline-bearing quartzites associated with phylittic and carbonate alteration.

Rock chip sample results returned a range of grades above 1.0 g/t with a maximum of 24.01 g/t in oxidized, carbonatized quartzite exhibiting boxwork textures.

MC Summary:

• Target size of 1300m x 250m on a parallel strike to Arroz;
• Proximity to the Cata Funda/Arroz deposit;
• Shear zone with strong deformation associated with an important zone of hydrothermal alteration rich in sulphidation associated with quartz, sericite, carbonate and tourmaline;
• Occurrences of Au observed in a large portion of MC and surroundings, indicated by trenching, rock chip samples and channel samples;
• Good geophysical response with high chargeability and high resistivity, probably due to the presence of disseminated sulphides and to the predominance of metachert/quartzite, respectively
• Occurrence of old garimpos, with mechanized works in the area.

Vieira-Fofoca Trend

A total of 7 scout drilling holes, or 745 metres, has been completed at the Vieira and Fofoca targets to test previously identified geophysical anomalies over an apparent 3.7 km trend. One of the holes (FVD-0003) detected visible gold associated with a strong hydrothermal alteration zone showing sericite, quartz and disseminated sulphide. Additional drilling in the area is planned to start shortly to continue to test identified geophysical anomalies in conjunction with a complementary IP-Geophysics program between Vieira and Fofoca targets to test the continuity of the anomalous trend observed in the previous survey. These programs will be complemented by a soil geochemistry program to locate arsenic and gold anomalies and trenching where possible to expose and map the lithologies below the soil cover.

Paiol Leach Pad Auger Drilling

Auger and RC drilling at Paiol Leach pad has been completed and samples shipped to SGS-Geosol lab in Belo Horizonte. The objective of the RC drilling program was to assess the depth of the leach pile, where the auger had not reached bottom. The depth of programmed holes was from 15 to 20m with approximately 50 m spacing.

Guarantã Gold Project

The drilling program at the Guarantã Gold Project has been initiated with 2 diamond drill rigs currently working on the X1 extension and Guaranta Ridge targets. Two additional rigs will mobilize to site in the next 2 weeks for a total of 4 rigs which are programmed to complete an 11,000 metres program, comprising 5,000 metres of X1 Infill program, 2,000 metres X1 Extension and 2,500 metres in the Guarantã Ridge target and 1,500 metres at the Serrinha target. This initial drill program is currently under review and could be expanded as a result of the positive results obtained during detailed mapping and initial ground IP-Geophysics over the targets.

An airborne geophysics survey by Heli-VTEM (by Geotech Ltda) over the entire Guarantã project area has been initiated and expected to be completed by December 2010.

Sample Preparation, Analyses and Security

The assay and sample information as well as geological descriptions are taken from drill logs as prepared by the project geologists for the drilling program. Drilling data is validated and sent to GIS-database management at Rio de Janeiro office.

Drill core is split on site with one half of the core being sent to SGS-Geosol's sample preparation facility in the city of Goiania in Goiás Prepared pulps are analyzed at SGS-Geosol's analytical facilities at Vespasiano near Belo Horizonte, in Minas Gerais State, Brazil. High grade samples are routinely analyzed by metallic screen fire assay and that number is used as the accepted value. SGS-Geosol warrants the "chain of custody" of the samples in accordance with the standards required by Canadian NI 43-101.

Qualified Person

Mr Ronald Simpson, P.Geo, who is a Qualified Person as set out in Canadian National Instrument 43-101, has reviewed and verified the technical content of the information contained in this release.

Source: Rio Novo Gold Inc.