Press release from Business Wire
Renaissance Gold Expands Exploration Potential of the Reduced Intrusion-type Everson Gold Deposit at the Buffalo Canyon Project, Nye County, Nevada
Tuesday, October 22, 2013
Renaissance Gold Expands Exploration Potential of the Reduced Intrusion-type Everson Gold Deposit at the Buffalo Canyon Project, Nye County, Nevada07:00 EDT Tuesday, October 22, 2013
WHITE ROCK, British Columbia (Business Wire) -- Renaissance Gold Inc. (TSX:REN) (“RenGold”) is pleased to announce the results of recent mapping and rock chip sampling support new targets with the potential to significantly expand the Everson Gold Deposit at the Buffalo Canyon Project, Nye County, Nevada. RenGold acquired the property when it became open to staking in late 2012. Based on 40 reverse circulation drill holes in an area 500 meters by 600 meters (about 1,640 by 1,970 feet), the potential quantity of gold in the Everson target area is about 350,000 ounces. This estimate is based on a range from 25,000,000 to 26,000,000 tons at a grade from 0.012 to 0.013 ounces per ton (0.373 to 0.404 grams per ton). The potential quantity and grade is conceptual in nature, and as there has been insufficient exploration to define a mineral resource it is uncertain if future exploration will result in the target being delineated as a mineral resource.
The Everson Deposit is adjacent to the RenGold Buffalo Canyon Project, which reported gold intersections in 8 of 18 drill holes, including 4.6 m of 1.896 g/t Au (15 feet of 0.055 opt, RenGold press release dated March 26, 2012).
The gold mineralization of the Everson Deposit was discovered by Goldfields Corporation ("Goldfields") in the course of a regional stream sediment survey in 1992. Further surface mapping, rock chip and soil sampling, and drilling by Goldfields, Santa Fe Pacific Mining Inc., and Nevada Pacific Gold Ltd. confirmed the presence of an intrusion-related gold system hosted by Triassic meta-sedimentary and meta-volcanic rocks and a suite of dioritic to felsic intrusions of unknown age. The trace element suite zoned in and around the mineralized system includes elevated bismuth, tellurium, copper, and molybdenum, a suite often found in intrusive-related gold systems. Low primary magnetite and low magnetic susceptibilities suggest that the intrusions are reduced in oxidation state, and thus belong to a class of intrusion known to be associated with productive gold systems located elsewhere in Nevada and along the North American Cordilleran from Mexico to Alaska. A detailed ground magnetic survey spanning the entirety of the Buffalo Canyon area shows that a magnetic high forms a 1.8 km-diameter annulus around the intrusive complex at the Everson Deposit. Surface and drilling data indicate that the magnetic high is generated by a broad zone of pyrrhotite that formed within and outward from the gold-enriched zone. The pyrrhotite zone extends northward about 600 meters (2000 feet) beyond the exposed intrusions, indicating that the majority of the intrusive complex remains unexposed and unexplored at shallow to moderate depths. Recent rock chip sampling by RenGold has provided multigram gold assays over the remainder of the magnetic anomaly untested by drilling. A map showing new rock chip sample locations relative to the magnetic anomaly and historical drilling has been posted with the project summary on the website.
Each of the previous exploration companies drilled holes yielding lengthy intercepts of low grade gold mineralization. Notably, Nevada Pacific Gold reported in a news release dated August 31, 2005, that 8 of 23 drill holes yielded intercepts exceeding 150 meters at grades of about 0.3 grams per tonne (>500 feet of 0.01 opt) and that 7 of these holes were in mineralized rock at their bottom (see Table 1). Drill holes as reported are not necessarily true widths.
Historic reports indicate positive recoveries in cyanide shake leach analyses of 75% for unoxidized material and 80% or better for oxide from drill-hole pulps. Bottle roll cyanide leach analyses of surface rock chip samples have returned recoveries exceeding 90%. These results resemble those of other reduced intrusion systems recoveries such as Fort Knox in Alaska, which is low grade but profitable because of good recoveries.
The historical drill holes are concentrated at the southern end of a soil gold anomaly exceeding 16 ppb that extends northeastward for about 1000 meters (3200 feet) along the range front. The area of concentrated drilling lies with a large coherent zone of soil samples exceeding 64 ppb that appears to be derived from a broad zone of intense stockworks of amphibole+albite veinlets cut by quartz+tourmaline veinlets. Numerous drill holes collared in mineralization and lengthy mineralized road cuts demonstrate that erosion of the mineralized zone at the surface has produced the broad soil anomaly.
Recent confirmation mapping and sampling by RenGold indicates that several steeply-dipping, northwest-striking normal faults cut across the northeast trend of the soil and rock chip anomalies and appear to have faulted the gold system down toward the northeast. This structural setting presents the possibility that the gold-bearing stockwork system exposed in the southern part of the prospect is preserved at depth in a northeastward extension. In addition, the large magnetic anomaly indicates that the causative intrusion for the gold system is not exposed at surface in this area, and that significant zones of gold mineralization, perhaps of higher grade, could lie along the intrusive contact at depth, a setting seen at other productive intrusive-related gold systems in Nevada.
Tim Janke, RenGold's Chief Operating Officer, states: "Our interpretation of the geologic controls has opened the door for dramatic growth of the mineral resource and improvement in grade. This growth coupled with apparently favorable metallurgy bodes well for development of a potentially economic deposit.”
Richard Bedell, President and CEO, comments: “This is a rare opportunity to pick up claims of this quality. The breakthrough came when our Chief Geoscientist, Dr. Mark Coolbaugh, and geologist Dan Pace, assembled the data and clarified the relationship between historic drill intercepts, reduced intrusions, and the much larger magnetic annulus. The realization that this is a reduced intrusion system and that only a small part of the intrusive contact zone has been explored has important implications for the ultimate size potential of the deposit. After verifying the relationship between contact metamorphism-related pyrrhotite and the reduced intrusion, everything fell into place. In essence this is an advanced project with quality mineralization that begins at the surface and is open laterally and at depth.
Mark worked on the Ft. Knox Deposit in Alaska which is another profitable reduced intrusion system. Dan completed a M.Sc. thesis at Bald Mountain, NV, where he developed detailed knowledge of intrusive and structural controls on mineralization. Specifically, exploration at Bald Mountain went from a near surface low grade deposit to a much higher grade deposit at depth within the carapace of the underlying intrusion."
As per the RenGold business model, the Everson Deposit and the remainder of the combined Buffalo Canyon properties are available for joint venture.
The Everson Deposit is named after Curt Everson who directed the exploration of this deposit with Goldfields in the 1980's and again in 2005 while President of Nevada Pacific Gold. Curt died prematurely in 2012 and leaves an outstanding record of exploration success.
All technical data disclosed in this press release, including sampling, analytical and test data, have been reviewed by the Company's qualified person Mr. Eric M. Struhsacker, M.Sc., and Certified Professional Geologist as recognized by the American Institute of Professional Geologists.
Renaissance Gold Inc.
Renaissance Gold Inc. is a gold/silver exploration company that has a large portfolio of exploration projects in Nevada, Utah, Argentina 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 firstname.lastname@example.org
Eric Struhsacker, 775-337-1545 or email@example.com
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.
Renaissance Gold Inc.
Richard L. Bedell, 775-337-1545
Eric Struhsacker, 775-337-1545