Rio Novo Gold Intersects 3.88 g/t Au Over 28.0m Infill at Paiol

PRESS RELEASE
RN : TSX
November 16, 2010
09/10
Rio Novo Gold Intersects 3.88 g/t Au Over 28.0m Infill at Paiol and
2.56 g/t Au Over 17.1m Infill at Arroz Target, Almas Gold Project
Drilling Program and Heli-VTEM Geophysics Initiated in Guarantã
Toronto, Ontario, November 16, 2010 – Rio Novo Gold Inc. (TSX:RN) (TSX:RN.WT) (“Rio Novo” or
the “Company”) is pleased to report additional drill results from its ongoing drilling program at its
100%-owned Almas Gold Project, located in the State of Tocantins, Brazil. The Company is also
pleased to announce 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
Rio Novo Gold Inc. • Suite 1410, 155 University Avenue Toronto, Ontario, Canada M5H 3B7

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.
Paiol Area
A summary of the new results received is given in the table below.
Drill Hole
Type
FPD-0004
FPD-0004
FPD-0005
FPD-0028
FPD-0029
FPD-0029
FPD-0032
From (metres)
To (metres)
Interval (metres)
grams Au/tonne
Infill
103.45
111.00
7.55
2.86
Includes
106.00
108.00
2.00
6.17
Infill
114.20
135.15
20.95
1.37
Includes
121.00
124.00
3.00
4.74
Infill
111.00
143.00
32.00
2.06
Includes
132.00
135.00
3.00
12.13
Infill
107.25
149.00
41.75
1.20
Includes
123.55
127.00
3.45
4.10
Infill
184.40
198.00
13.60
2.35
Includes
187.00
189.90
2.90
4.37
Infill
202.00
224.00
22.00
0.91
Includes
214.90
215.60
0.70
8.89
Infill
128.00
145.00
17.00
1.45
Includes
141.00
145.00
4.00
2.88
Rio Novo Gold Inc. • Suite 1410, 155 University Avenue Toronto, Ontario, Canada M5H 3B7
Drill Hole
Type
FPD-0033
FPD-0036
FPD-0037
FPD-0040
From (metres)
To (metres)
Interval (metres)
grams Au/tonne
Infill
80.00
88.00
8.00
0.83
Infill
49.00
69.75
20.75
0.66
Includes
66.45
68.65
2.20
1.95
Infill
77.00
92.00
15.00
1.07
Includes
89.00
91.00
2.00
4.26
Infill
11.40
16.60
5.20
1.38
Includes
13.50
14.40
0.90
3.03
FPD-0041
Infill
9.00
12.00
3.00
5.05
FPD-0041
Infill
30.00
38.00
8.00
1.10
Includes
35.00
36.00
1.00
3.48
Infill
31.00
35.25
4.25
0.85
FPD-0043
FPD-0044
FPD-0045
Includes
33.00
34.00
1.00
1.73
Infill
41.10
49.50
8.40
0.83
Includes
43.00
44.00
1.00
1.79
Infill
29.00
40.00
11.00
0.52
Includes
37.00
38.00
1.00
2.24
FPD-0047
Infill
64.15
69.00
4.85
1.97
FPD-0049
Infill
44.90
53.00
8.10
1.15
Includes
52.00
53.00
1.00
4.55
FPD-0050
FPD-0051
FPD-0051
FPD-0053
FPD-0054
Infill
41.00
52.00
11.00
1.44
Includes
48.55
51.00
2.45
3.23
Infill
147.60
170.35
22.75
2.04
Includes
162.00
166.00
4.00
5.85
Infill
188.00
196.00
8.00
1.09
Includes
192.00
194.00
2.00
2.86
Infill
165.00
188.10
23.10
1.05
Includes
182.25
185.00
2.75
2.33
Infill
175.00
194.00
19.00
1.19
Includes
187.35
191.00
3.65
2.54
FPD-0071
Infill
106.00
109.40
3.40
5.84
FPD-0077
Infill
164.80
168.60
3.80
4.08
FPD-0083
Infill
40.00
68.00
28.00
0.68
Includes
51.00
53.00
2.00
2.80
FPD-0084
Infill
6.00
17.95
11.95
0.51
FPD-0085
Infill
69.00
79.00
10.00
0.95
FPD-0086
Infill
29.00
37.00
8.00
0.57
FPD-0090
Infill
125.00
126.00
1.00
8.25
FPD-0091
Infill
145.00
153.00
8.00
0.75
Rio Novo Gold Inc. • Suite 1410, 155 University Avenue Toronto, Ontario, Canada M5H 3B7
Drill Hole
Type
From (metres)
To (metres)
Interval (metres)
grams Au/tonne
FPM-0001
Infill-Metal
112.00
143.00
31.00
1.06
Includes
122.00
126.00
4.00
2.81
FPM-0002
Infill-Metal
116.00
182.05
66.05
1.26
Includes
140.00
148.15
8.15
4.13
FPM-0003
Infill-Metal
116.00
135.00
19.00
2.80
Includes
123.55
130.00
6.45
6.00
FPM-0004
Infill-Metal
111.00
130.90
19.90
1.16
Includes
128.40
130.90
2.50
3.48
FPM-0005
Infill-Metal
118.00
133.00
15.00
2.23
Includes
129.00
130.00
1.00
19.90
FPM-0006
Infill-Metal
113.00
141.00
28.00
3.88
Includes
124.00
133.55
9.55
6.92
FPM-0007
Infill-Metal
127.00
174.00
47.00
1.52
Includes
142.00
148.00
6.00
4.37
Infill-Metal
105.00
121.00
16.00
0.81
FPM-0008
To view a map of the Paiol Target Areas and selected cross sections, please visit the following link:
http://media3.marketwire.com/docs/LINK_1_PAIOL_Drill_Location_and_Sections_Nov_16_2010.pdf
Arroz Area
A summary of the new results received is given in the table below.
Drill Hole
Type
From (metres)
To (metres)
Interval (metres)
grams Au/tonne
FAD-0070
Infill
11.20
14.15
2.95
0.92
FAD-0071
Infill
53.00
54.50
1.50
12.99
FAD-0073
Infill
31.00
33.00
2.00
1.77
FAD-0074
Infill
17.00
25.00
8.00
0.79
FAD-0076
Infill
18.00
21.80
3.80
1.57
Includes
20.00
21.00
1.00
3.12
FAD-0078
Infill
17.00
24.00
7.00
3.73
Includes
20.00
23.00
3.00
7.23
FAD-0079
Infill
40.00
45.00
5.00
5.22
FAD-0081
Infill
48.00
56.00
8.00
2.76
Includes
51.00
55.20
4.20
3.43
Infill
24.55
30.75
6.20
2.57
Includes
25.40
28.45
3.05
3.75
Infill
30.45
43.90
13.45
2.38
Includes
36.45
41.80
5.35
4.50
Infill
26.40
43.50
17.10
2.56
Includes
35.65
38.50
2.85
5.49
Infill
57.35
69.15
11.80
2.12
FAD-0083
FAD-0086
FAD-0088
FAD-0096
Rio Novo Gold Inc. • Suite 1410, 155 University Avenue Toronto, Ontario, Canada M5H 3B7
Drill Hole
FAD-0097
FAM-0001
FAM-0002
FAM-0003
Type
From (metres)
To (metres)
Interval (metres)
grams Au/tonne
Includes
62.45
64.35
1.90
3.43
Infill
160.95
174.00
13.05
1.58
Includes
171.00
173.00
2.00
3.23
Infill-Metal
61.65
74.00
12.35
1.37
Includes
71.00
73.20
2.20
5.67
Infill-Metal
116.00
123.65
7.65
3.91
Includes
116.00
118.00
2.00
8.03
Infill-Metal
44.50
52.00
7.50
3.46
Includes
47.00
52.00
5.00
4.42
To view a map of the Arroz Target Areas and selected cross sections, please visit the following link:
http://media3.marketwire.com/docs/LINK_2_ARROZ_Drill_Location_and_Sections_Nov_16_2010.pdf
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/metachert (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.
Rio Novo Gold Inc. • Suite 1410, 155 University Avenue Toronto, Ontario, Canada M5H 3B7
To view a map of the MC showing rock ship samples over IP-Resistivity please visit the following link:
http://media3.marketwire.com/docs/LINK_3_Morro_do_carneiro_map_LITHOLOGY_A3.pdf
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.
To view map of the Vieira, Fofoca and Ijui targets with IP-Resistivity and Chargeability please visit the
following link:
http://media3.marketwire.com/docs/LINK_4_Vieira_Fofoca_MAP_IP_RES_CHARG.pdf
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 GISdatabase 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. SGSGeosol warrants the “chain of custody” of the samples in accordance with the standards required by
Canadian NI 43-101.
Rio Novo Gold Inc. • Suite 1410, 155 University Avenue Toronto, Ontario, Canada M5H 3B7
Qualified Person
Mr Ronald Simpson, P.Geo, who is a Qualified Person as set out in Canadian National Instrument 43101, has reviewed and verified the technical content of the information contained in this release.
About Rio Novo
Rio Novo is currently focused on the acquisition, exploration and development of gold mineral
resource properties in Brazil. The Company’s goal is to become a producer of gold in the short term
by bringing into production its two Brazilian properties, the Almas Gold Project, located in the State of
Tocantins State, and the Guarantã Gold Project, located in the State of Mato Grosso. Both projects
enjoy established infrastructure in mining friendly jurisdictions. In addition to exploring and developing
the Almas and the Guarantã Gold Projects, the Company intends to identify, explore and develop or
acquire additional precious metals properties in Brazil and other established mineral jurisdictions in
South America.
For further information on Rio Novo please contact:
David Beatty
Chief Executive Officer
+1 (416) 368-8288
[email protected]
Alex Penha
General Manager, Corporate Development
+1 (416) 368-1573
[email protected]
This press release contains forward-looking statements. All statements, other than of historical fact, that address activities,
events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without
limitation, statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential
mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are often identifiable by
the use of words such as “anticipate”, “believe”, “plan”, may”, “could”, “would”, “might” or “will”, “estimates”, “expect”, “intend”,
“budget”, “scheduled”, “forecasts” and similar expressions or variations (including negative variations) of such words and
phrases. Forward-looking statements are subject to a number of risks and uncertainties, many of differ materially from those
discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current
expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that
future exploration results will not be consistent with the Company's expectations, the price of gold and other risks identified in
the Company’s most recent annual information form filed with the Canadian securities regulatory authorities on SEDAR.com.
Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.
Rio Novo Gold Inc. • Suite 1410, 155 University Avenue Toronto, Ontario, Canada M5H 3B7