VANCOUVER, BC / ACCESSWIRE / January 17, 2019 / Renaissance Gold Inc. (TSX-V: REN) ("RenGold" or the "Company") is pleased to announce that it has signed definitive earn-in agreements with Hochschild Mining (US) Inc. ("Hochschild"), a wholly-owned subsidiary of Hochschild Mining plc (LSE:HOC) on its Mars and Ferguson Mountain Projects. Upon signing the definitive agreements, Hochschild paid the Company US$50,000.
Robert Felder, President and CEO states, "We are very pleased to have an experienced gold producer and explorer like Hochschild as our partner on these two projects in Nevada. They recognize the excellent discovery potential on these projects and we very much look forward to working with them going forward. RenGold continues to maintain a very active exploration program throughout Nevada, and with the addition of these two agreements, the Company currently has six active exploration agreements in Nevada funded by five different partners."
Mars Project: Hochschild has the option to earn up to a 51% interest in the Mars Project by spending US$5,000,000 over a five-year period, and making payments to the Company totaling US$300,000. In addition, Hochschild must spend US$300,000 (committed expenditure) within 18 months of signing the definitive agreement. Upon vesting, Hochschild has a one-time option to elect to earn an additional 19% interest in the Mars Project by spending an additional US$5,000,000 by the ninth anniversary of the definitive agreement.
The Mars Project, Lincoln County, Nevada hosts a Carlin-type target in lower Paleozoic sedimentary rocks, characterized by anomalous gold in soils, and extensive jasperoid alteration with rock chip assays up to 3.7 g/t Au. The gold system is exposed over a 4.5 km strike length and occurs peripheral to a Mesozoic intrusive center. Historic work included three shallow drill programs which encountered multiple low-grade gold intercepts, but tested the system to a depth of only 250 feet. The RenGold technical team re-mapped the geology and alteration and conducted a detailed gravity survey, which facilitated the development of several new structural and stratigraphic targets on the project.
The Company recently entered into a lease-option agreement with a third party to acquire eleven additional unpatented mining claims covering a historic mercury occurrence adjacent to and just south of the Mars claim block. This mercury occurrence represents a higher level exposure of hydrothermal alteration and potentially represents a cap over a gold system at depth. This target has similarities to the ground staked by RenGold in 2015 on its Silicon Project now under option to Anglo Gold Ashanti NA in the Bare Mountains District in Nye County, Nevada where Anglo (see NR dated October 17, 2018), Corvus Gold (TSX:KOR) and Coeur Mining (NYSE:CDE) are actively drilling.
The third party lease agreement has a term of 10 years, includes annual lease payments which apply to a buyout of the property for US$300,000. Upon buyout, the underlying Lessor's interest converts to a 1.5% NSR, of which 1% is purchasable for US$1,000,000.
Ferguson Mountain: Hochschild has the option to earn up to a 51% interest in the Ferguson Mountain Project by spending US$3,000,000 over a five-year period, and making payments to the Company totaling US$300,000. In addition, Hochschild must spend US$200,000 (committed expenditure) within 18 months of signing the definitive agreement. Upon vesting, Hochschild has a one-time option to elect to earn an additional 19% interest in the Ferguson Mountain Project by spending an additional US$3,000,000 by the ninth anniversary of the definitive agreement.
The Ferguson Mountain Project, Elko County, Nevada hosts a Carlin-type target in Devonian and younger carbonate host rocks. The RenGold technical team completed geologic mapping and soil and rock chip sampling over the project area, which detected geochemical leakage up structure from target horizons at depth. The targets are defined by the intersection of mapped high-angle mineralized structures and several low-angle stratigraphic and structural horizons, including the top of the Devonian unconformity and other horizons where structural and/or chemical ground preparation is likely to be well developed.
Exploration Update
Spruce East: Kinross has notified the Company of its termination of the Agreement (See NR dated May 15, 2017). The Company is assessing the remaining potential and marketability of the project.
Related Company News
Magna Terra Minerals (TSX.V:MTT) has announced the commencement and completion of drilling on their Piedra Negra Project in the Santa Cruz Province, Argentina (See MTT news release dated December 5, 2018), and the closing of the first tranche of a private placement (See MTT news release dated December 31, 2018). They also announced that drilling has commenced at the Luna Roja Project (see MTT news release dated January 14, 2019). RenGold holds a NSR royalty interest of not less than 1% nor greater than 3% on MTT's Gertrudis, El Meridiano, Covadonga and La Rosita projects as well as the Piedra Negra and Luna Roja (formerly named El Monte) Projects.
About Hochschild Mining plc
Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (LSE:HOC) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over fifty years' experience in the mining of precious metal epithermal vein deposits and currently operates four underground epithermal vein mines, three located in southern Peru and one in southern Argentina. Hochschild also has numerous long-term projects throughout the Americas.
About Renaissance Gold Inc.
Renaissance Gold Inc. is a western US focused prospect generator utilizing a joint venture business model. RenGold applies the extensive exploration experience and high-end technical skills of its founders and team members to search for and acquire high quality precious metal exploration projects that are then offered for joint venture to industry partners who provide exploration funding. RenGold maintains a large portfolio of gold and silver exploration properties and has entered into over 65 exploration agreements including those as its predecessor, AuEx Ventures Inc., and those from Kinetic Gold. RenGold's objective is to place its projects into exploration agreements, testing as many drill targets as possible and providing maximum exposure to success through discovery.
Qualified Person
All technical data disclosed in this press release has been verified by RenGold's Qualified Person, Robert Felder, M.Sc. and Certified Professional Geologist as recognized by the American Institute of Professional Geologists (AIPG).
By: Robert Felder, President & CEO
For further information, contact:
Robert Felder 775-337-1545 or bfelder@rengold.com
Ronald Parratt 775-337-1545 or rparratt@rengold.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain statements that may be deemed "forward-looking" statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Renaissance Gold Inc. believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Renaissance Gold Inc's management on the date the statements are made. Except as required by law, Renaissance Gold Inc. undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
SOURCE: Renaissance Gold Inc.
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