Microsoft Word - RNI 14-10-14 RNI Commencement of T10 Drilling and Capital Raise (Final for release)


ASX Announcement 14 October 2014

RNI COMMENCES DRILLING OF PRIORITY T10 CONDUCTOR TARGET AFTER COMPLETING $4M CAPITAL RAISING

RNI has raised $4M to advance its pipeline of priority drilling targets across the

Company's 1,866km2 holding in Western Australia's Bryah Basin

Drilling has commenced at the T10 conductor target at the Cashmans Project

Fixed loop electromagnetic (FLEM) surveys have been completed over the Morck's Well and Doolgunna Projects to better define additional conductor targets for drilling

High powered down hole electromagnetic (DHEM) survey also completed at the

Forrest copper-gold discovery, with results awaited Figure 1: RNI's dominant Bryah Basin tenure and location of priority targets

RNI NL ABN 77 085 806 284

34 Bagot Road Subiaco Western Australia 6008 PO Box 298 West Perth WA 6872 T +61 8 9489 9200 F +61 8 9489 9201

E general@rninl.com.au W rninl.com.au

RNI COMMENCES DRILLING OF PRIORITY T10 CONDUCTOR TARGET AFTER COMPLETING $4M CAPITAL RAISING 14 October 2014

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RNI NL (ASX: RNI) is pleased to announce the Company has raised $4 million, less costs, via a placement to advance its pipeline of priority drilling targets across the Company's dominant 1,866km2 holding in Western Australia's Bryah Basin.
The placement, which remains subject to the clearance of funds, involved the issue to sophisticated investors of 40 million ordinary fully-paid shares at an issue price of $0.10 per share, with an attaching one for two unlisted $0.15 option, exercisable one year from the date of issue, raising a total of
$4 million, less costs. The placement was managed by Blue Ocean Equities.
The placement will enable RNI to step up its exploration and drilling programs along the
~120 strike km of volcanic hosted massive sulphide (VHMS) target horizons within the Company's extensive Bryah Basin tenement package, including the T10 and Beatty Park Prospects within the Cashmans Project, three well-defined conductors identified at the Morck's Well Project which directly adjoins Sandfire Resources' Doolgunna Project and RNI's Doolgunna Project, located within 3km of Sandfire's DeGrussa copper-gold mine (See ASX announcement 25 September 2014)(Figure 1). The
funds raised will also enable RNI to make scheduled debt repayments under the Company's facility with Taurus Resources No.2 Fund (See ASX announcement 5 August 2014).

T10 Prospect

The priority T10 conductor target is part of the Cheroona JV (RNI earning 70 per cent from Northern Star Resources Limited - ASX: NST) which forms part of the Cashmans Project (Figures 1, 2, 3 and 4) and is a high-grade copper-gold gossan which returned assay results from rock chip samples including
17.4% copper, 8.84g/t gold and 2g/t silver (See ASX announcement 28 May 2014). T10 is located
~1.5km south of the Orient prospect, where strong zones of VHMS mineralisation have previously been reported from a combination of surface sampling and drilling.
RC drilling has commenced at T10 following the completion of a heritage survey. The current scout program directly targets the EM anomaly from depths of ~120m to 250m. One drill hole will also test beneath outcrop of the high-grade copper-gold gossan. Additional drilling and targeting will be contingent on results, including DHEM surveying.

Figure 2: Planned drilling at the T10 EM target. Oblique view from the north-west.

RNI NL ABN 77 085 806 284

RNI COMMENCES DRILLING OF PRIORITY T10 CONDUCTOR TARGET AFTER COMPLETING $4M CAPITAL RAISING 14 October 2014

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Figure 3: Plan view of the T10 target drilling and EM conductor plate modelling

Figure 4: Location of the T10 target within the Cheroona JV, Cashmans Project

RNI NL ABN 77 085 806 284

RNI COMMENCES DRILLING OF PRIORITY T10 CONDUCTOR TARGET AFTER COMPLETING $4M CAPITAL RAISING 14 October 2014

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Morck's Well Project

The Morck's Well Project (RNI 80%; Fe Ltd 20% (ASX: FEL)) is located approximately 25km to the south west of Sandfire's DeGrussa copper-gold mine and immediately adjoins Sandfire's project area. RNI recently announced the identification of three high-priority targets defined from VTEM survey data that would be the focus of ground based FLEM surveys.
Following the finalisation of heritage surveys field work has commenced with geophysical crews currently collecting survey data. Target 3 has been completed with the interpretation of the data by the Company's geophysical consultant underway. The remaining surveys at Targets 1 and 2 are expected to be completed within the next week.
The data will be modelled and then become the basis for drill hole planning.

Doolgunna Project

RNI's 100% owned Doolgunna Project is located in a highly prospective area 3km immediately south of Sandfire's DeGrussa copper-gold mine. A FLEM survey is being completed over an area that was identified by highly anomalous copper-gold geochemistry and high-grade gold intersections in previous drilling. Earlier programs of moving loop electromagnetic (MLEM) surveys also defined a poorly defined conductive feature in this position.
The survey data when complete will be modelled, integrated with all other available datasets and then form the basis for drill planning.

Forrest Prospect

RNI's has recently completed a major drilling program at the Forrest copper-gold discovery (RNI 80%; Fe Ltd 20% (ASX: FEL)) where a significant zone of structurally remobilised oxide, transitional and primary copper-gold mineralisation has been defined (FGDD001 - 9.1m @ 5.27% Cu) (Refer ASX announcement 26 May 2014). The mineralisation remains open down-plunge of its currently defined position.
To define specific drilling targets away from the identified mineralised position a high powered DHEM survey was designed and recently completed. The data is currently being assessed by the Company's geophysical consultant and the next phase of drilling will be based on the results.
For further information, contact:

PETER LANGWORTHY GENERAL MANAGER - EXPLORATION

Tel: +61-8 9489 9200

RNI NL ABN 77 085 806 284

RNI COMMENCES DRILLING OF PRIORITY T10 CONDUCTOR TARGET AFTER COMPLETING $4M CAPITAL RAISING 14 October 2014

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Competent Person's Statement

Information in this announcement that relates to exploration results is based on and fairly represents information and supporting documentation prepared and compiled by Peter Langworthy BSc (Hons.), who is a Member of the Australasian Institute of Mining and Metallurgy. The information in this announcement that relates to previously released exploration data was disclosed under JORC Code 2012 for the Forrest Prospect (refer ASX announcements dated 26 May 2014; 27 June 2014; 7 July 2014; 23 July 2014; 1 September 2014, 22 September

2014). The information in this announcement that relates to previously released exploration data was disclosed under JORC Code 2012 for geophysical and exploration targets for the Cashmans Project and Morck's Well

Project (refer ASX announcements dated 28 May 2014; 13 June 2014; 29 July 2014; 8 August 2014 and 25

September 2014).

Mr Langworthy is a consultant to RNI NL and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves. Mr Langworthy consents to the inclusion in the announcement of the matters based on this information in the form and context in which it appears.

Forward-Looking Statements

This announcement is for information purposes only. Neither this document nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction.

This announcement may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction. This document does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this representation are not intended to represent recommendations of particular investments to particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. No responsibility for any errors or omissions from this document arising out of negligence or otherwise is accepted.

This announcement does include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of RNI. Actual values, results, outcomes or events may be materially different to those expressed or implied in this announcement. Given these uncertainties, recipients are cautioned not to place reliance on forward-looking statements. Any forward-looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and ASX Listing RNI does not undertake any obligation to update or revise any information or any of the forward-looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward-looking statement is based.

RNI NL ABN 77 085 806 284

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