2013-09-18 00:05:42 -
White Rock, British Columbia CANADA, September 17, 2013 /FSC/ - Renaissance Gold Inc. (REN - TSX), ("RenGold") reports financial results for the year ended June 30, 2013. Details of the Company's financial results are described in the annual audited consolidated financial statements (the "Financial Report') and corresponding management discussion and analysis for the same period. These and further details on each of RenGold's projects and activities can be found on the Company's website at www.rengold.com and on the Company's profile on www.sedar.com. All amounts presented are in Canadian dollars unless otherwise stated.
Selected financial data
The following selected financial data is derived from the Financial Report as prepared in accordance with International Financial Reporting Standards.
The consolidated net loss for
the year ended June 30, 2013, was $3,961,005 (2012- $3,951,607).
Working capital at June 30, 2013 was $4,303,153 of which $4,201,910 is cash. There are no long-term liabilities.
Total assets at June 30, 2013 are $5,570,112 of which $4,495,344 are current assets and $1,074,768 are exploration and evaluation assets, equipment and reclamation bonds.
RenGold is an exploration stage business engaged in the acquisition and exploration of mineral properties located in the USA, Argentina, Chile, and Spain. RenGold's business model is to identify and secure mineral resource properties for which it seeks suitable joint venture partners. Once partners are found, an exploration and option to earn-in agreement is entered into on the property so that the earn-in partner will conduct and fund exploration on that property to earn an interest.
The Company's exploration expenditures are largely determined by the strength of the resource markets and by the status of the Company's projects in relation to those markets and its ability to compete for funding partners and investor support of its projects. The Company anticipates there will be less capital available for exploration joint ventures in the immediate future.
RenGold currently has five properties under exploration earn-in agreements:
Project Funding partner
Gold Star Lynx Resources (US) Inc., a US subsidiary
of Cassini Resources Ltd. (ASX:CZI)
Spruce Mountain Summit Mining Exploration, Inc., a US
subsidiary of Sumitomo Corporation
Trinity Silver Liberty Silver Corp. (TSX: LSL)
Meridiano and Covadonga Atala Resource Corporation
RenGold's current portfolio of precious metal exploration targets is
located in Nevada/Utah, Argentina, and Spain. Certain of these projects are in earn-in agreements with different industry partners providing funding for exploration activities. The details of the Company's expenditures on these activities, both before and after recoveries from funding partners, are detailed in Note 7 of the Financial Report.
The highlights of activity by RenGold and its funding partners on its exploration properties during the year ended June 30, 2013 and to September 17, 2013 follow in alphabetical order.
Nevada projects with funding partners:
Lynx drilled two reverse circulation holes totaling 152 meters (500 feet) on one leasehold controlled patented claim where minimal permitting was allowed. Assays have two reportable intercepts: 3 meters (10 feet) of 0.75 g/t (0.022 opt) Au and 7.6 meters (25 feet) of 34.6 g/t (1.11 opt) Ag. Lynx has been reviewing these results and is considering additional drill targets.
A robust intercept in RSM-22 of 189.5 feet of 0.06% Mo offsets and validates historical drill results in the Sprucemont area and presents several possibilities for additional drill targets. In addition, the 2012 drilling intersected intervals of Carlin-style alteration and chemistry in carbonate host rocks located northwest of Sprucemont.
RenGold completed thirteen drill holes totaling 15,057 feet (4,589 meters) of drilling at Spruce Mountain in late 2012. The drilling program included 3,105 feet (946 meters) of mud rotary, 5,087 feet (1,551 meters) of core, and 6,865 feet (2,092 meters) of reverse circulation drilling. Drilling tested multiple targets including 8 holes in 3 zones along a 4.5 mile fault-controlled intrusive corridor striking northeastward from the town site of Sprucemont at the range front. An additional 5 holes were drilled in an area of peripheral Ag-Pb-Zn and Carlin-style Au mineralization northwest of the intrusive corridor. These holes tested extensions of targets detected with an 11 hole reverse circulation drilling program in 2011. The drilling intercepted multiple intrusions associated with base and precious metal mineralization under alluvial cover expanding the known extent of the intrusive systems along the range front.
On August 7, 2013, the Company announced the approval of a third round drill budget pursuant to the third year of an exploration earn-in agreement with Summit Mining Exploration, Inc. ("Summit a US subsidiary of Sumitomo Corporation. The US$525,000 budget will include 6,900 feet (2,104 meters) of reverse circulation drilling, following up critical targets defined by earlier drilling in 2011 and 2012 that include gold, silver and base metal mineralization. Further north of this area of gold mineralization is a CSAMT conductor identified by RenGold that could represent an alteration halo that is much larger than any of the other known areas of mineralization on the property. A portion of this proposed drilling will include testing this and other larger step out targets for potential mineralization. Drilling will commence mid September 2013 and is estimated to last up to two months.
On July 11, 2012, RenGold announced the results of Liberty's phase one drilling on the Trinity Silver project located northwest of Lovelock, Nevada. Eighteen vertical reverse circulation drill holes were completed 6,881 meters (22,575 feet) to depths of up to 457 meters (1,500 feet). All holes had reportable intercepts with a minimum criteria of 10 feet of 0.5 opt Ag. This drilling program included the initial holes designed to upgrade and expand the NI 43-101 compliant resource in the immediate pit area estimated in the technical report date February 15, 2011. The program also included significant step-out tests that indicate the potential for expansion of the economic mineralization, particularly to the south and west where the main mineralization located to date is plunging to the SW.
On October 15, 2012, Liberty completed the purchase of the Hi Ho properties located adjacent to the Trinity Silver property. The Hi Ho properties were purchased in the name of RenGold and form part of the greater Trinity Silver property that Liberty is earning an interest in from RenGold. Liberty paid the owner US$250,000 in cash and issued 2,583,333 common shares at a value of US$1,860,000. These payments will be applied against the expenditure commitment Liberty is required to make under their earn-in agreement bringing their contribution in excess of 85% of the required US$5,000,000 required expenditures.
The Hi Ho properties are an important addition to the future development plans at Trinity. Historic data, combined with current modeling indicates that the Trinity deposit extends into the Hi Ho properties, significantly increasing the current resource potential and the projected economics for bringing Trinity Silver project back into production.
Argentina projects with funding partners:
On October 15, 2012, RenGold signed exploration earn-in agreements with Atala Resource Corporation, a Canadian corporation; on each of the Covadonga and Meridiano projects in Argentina. The two agreements supersede a letter of intent signed March 16, 2012. Atala will have the right to earn a 70% interest in the property by funding a bankable feasibility study within seven years with minimum expenditure levels required each year. That right may be extended for another five years by paying RenGold $100,000 a year and spending a minimum of $1,000,000 in additional work per year. In addition Atala paid RenGold $12,500 on signing the letter of intent and Atala paid RenGold US$12,500 on signing the two definitive agreements. Providing one or both agreements are in effect, Atala will make payments to RenGold of $50,000 on the first anniversary, $75,000 on the second anniversary and $250,000 on the sixth anniversary of the agreements. Atala will be responsible for payment of the underlying lease to Davicino during the term of the agreements.
The Cerro Covadonga project is located approximately 33 Km north of Cerro Vanguardia in the Deseado Massif of Santa Cruz Province. The project is centered around an area of NNW-striking, sub-vertical, low sulfidation, epithermal veins and structural zones with multi-gram gold grades on the surface and a high level geochemical signature.
The Meridiano project is located approximately 40 Km NNW of Cerro Vanguardia in the Deseado Massif of Santa Cruz Province. The project contains numerous gold bearing structures hosted in a pyroclastic vent breccia. Geochemistry reveals the epithermal system to be largely of a high level. Reverse circulation and diamond drilling along with IP and ground magnetic surveys point to a diatreme model with sub surface targets near the diatreme contacts.
Nevada properties being prepared for joint venture
During the year ended June 30, 2013, and up to September 17, 2013, RenGold conducted reconnaissance exploration programs to prepare these projects for joint venture.
The Arabia project is located in an orogenic silver, lead, antimony and gold district near Lovelock in Pershing County, Nevada. RenGold consolidated both unpatented and patented mining claims to further expand the project. Pursuant to trenching results on the patents owned by RenGold, five shallow holes totaling 463.3 meters (1,520 feet) were drilled on a small portion of the property.
Reportable intercepts were encountered in four of the five drill holes. This drill data provided a geologic fence across a structural zone that was terminated at depth by a granodiorite sill, but mineralization was intersected beneath this unit providing further upside for the zone. This new drilling combined with results from prior drilling by New Sleeper Gold on another patented claim, under control by RenGold and located 760 meters (2500 feet) to the east, provides a framework for continued exploration.
Several parties are actively reviewing the Arabia property for a potential venture agreement.
On August 14, 2013, the Company announced trench sampling and drilling results that confirm the presence of a shallow zone of gold-silver mineralization. The Sinter property lies in the northern part of the Velvet District near other shallow epithermal gold prospects at RenGold's Bunce property and at the historic Velvet Mine, a gold-silver producer in the early 1900's. RenGold consolidated the Sinter property by leasing a mile-square private section from Newmont USA Limited, a wholly owned subsidiary of Newmont Mining Corporation in 2010. This section adjoins 33 claims controlled by lease and staking, all of which combined comprise a total area of approximately 1190 acres (480 hectares).
Initial rock chip grab samples of two old dozer cuts yielded several analyses exceeding 3 grams/tonne gold from a zone of chalcedony and quartz-adularia stockworks and narrow veins that cut a bimodal sequence of Miocene volcanic flows, tuffs, volcaniclastic sediments, and debris flows. Fresh exposures created by the construction of two trenches, an access road, and two drill pads in and near the old dozer cuts reveal the steeply-dipping zone intermittently over a strikelength of 100 meters on a north-northeast bearing.
Wood Hills South
In April 2013, the Company announced drill results from a 2013 drill program that was operated and funded by NuLegacy Gold Corporation ("NuLegacy Five reverse circulation angle holes were drilled totaling 1,225.3 meters (4,020 feet). The holes were designed to test three gravity lows including one near WHS11-007. The holes intersected considerable thicknesses of anomalous gold and trace elements. All five holes encountered intensely fractured and brecciated carbonate in the areas of the gravity lows, confirming the geophysical interpretation.
Also in April 2013, NuLegacy terminated the earn-in agreement in order to conserve its cash and focus its activities elsewhere. Rengold has been approached by other parties interested in a possible venture agreement on the property. Drilling and surface data continue to support the potential presence of Carlin Type gold deposits, as southwestward extensions of the Pequop Gold District.
Work has continued on data compilation and target definition at the Company's projects being prepared for joint venture. Big Gossan, Bunce, Everson, Fireball Ridge, Fourth of July, Golden Shears, JPW, King Solomon, Leonid, Reef, and Rose Mine are currently available for joint venture.
Utah projects being prepared for joint venture:
Newmont Mining Corporation completed reverse circulation drilling of 2,751 meters (9,025 feet) on targets designed to test surface anomalies. However, in April 2013 Newmont elected to terminate its earn-in agreement. RenGold is currently looking for a replacement funding partner.
Spain property being prepared for joint venture:
The Baza Project comprises a 12,000 hectare (29,652 acre) land package in the Almeria Province of Southern Spain on the southern slopes of the Sierra de los Filabres.
Argentina property being prepared for joint venture:
The El Monte project is located in Santa Cruz Province, Argentina and was being funded by Agnico-Eagle until they terminated effective July 23, 2013. RenGold has been focused on one area called Luna Roja and completed 7 trenches (almost 4,000 meters) cutting the western margin of a rhyolite dome with strongly mineralized breccias and veins associated with a fault. Trench results included 55 meters of 0.41 g/t Au and 13 g/t Ag, and 35 meters of 0.091 g/t Au and 7.5 g/t Ag. A 715-sample soil survey has defined two NNW-striking, subparallel gold and arsenic anomalies marked by soil gold concentrations >4 ppb and up to 100 ppb. This soil survey helps extend and broaden the mineralization defined in trenches. A 20-line-km Induced Polarization survey generated extensive IP and resistivity anomalies of much stronger magnitude than at Marianna Resources' Las Calandrias prospect along strike to the SE with a growing resource that was targeted with IP.
The Gertrudis Project, located in the northern portion of Santa Cruz province, contains multiple veins in structural corridors within an andesitic dike complex. The prospect was initially identified using Thematic Mapper satellite imagery that was processed by RenGold. Detailed surface sampling and geologic mapping have been conducted to define drill targets that are planned to be tested once appropriate permits have been granted. The Gertrudis project was being funded by Agnico-Eagle but was terminated effective July 23, 2013.
Work on the El Monte and Gertrudis Projects has been temporarily suspended in the hope that the political and logistical climate will improve.
Generative exploration is the core of RenGold's business. Property submittal evaluations and generative programs in Nevada, Utah and Chile are ongoing. RenGold's technical team employs leading edge exploration techniques and technology for ore deposit vectoring including: proprietary remote sensing, spatial probability modeling and multivariate statistical analysis. Data is combined with field geology and alteration mineralogy for the purpose of target selection, property acquisition and joint venture development.
Work on orogenic gold systems continued in western Nevada as well as exploration for Carlin Type systems in eastern Nevada. In addition, programs were designed for exploration during the winter in the southern Great Basin.
In Chile, the Company organized Renaissance Gold Chile SpA as a wholly owned subsidiary and exploration programs were executed and data compiled. Although interesting areas were found, RenGold has made the decision not to continue work in Chile in order to conserve cash.
All technical data, as disclosed in this press release, has been verified by the Company's qualified persons ("QPs") Ronald L. Parratt, M.Sc., and Certified Professional Geologist, Richard L. Bedell, M.Sc., and Certified Professional Geologist and Eric M. Struhsacker, M.Sc., and Certified Professional Geologist.
Renaissance Gold Inc.
Renaissance Gold Inc. is a gold/silver exploration company that has a large portfolio of exploration projects in Nevada, Utah, Argentina, Chile and Spain. Many of the projects are in exploration earn-in agreements with industry partners who provide exploration funding. RenGold applies the extensive exploration experience and high-end technical skills of its founders and team members to search for and acquire new precious metal exploration projects that are then offered for joint venture.
Renaissance Gold Inc.
By: Richard L. Bedell, President and CEO
For further information, contact:
Richard L. Bedell, 775-337-1545 or email@example.com
Eric Struhsacker, 775-337-1545 or firstname.lastname@example.org
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.
To view the press release as a PDF file, please click on the following link:
Source: Renaissance Gold Inc. (TSX: REN) www.rengold.com
Maximum News Dissemination by FSCwire. www.fscwire.com