Press release from Business Wire
Renaissance Gold Announces New Exploration Earn-in Agreement with Sumitomo Corporation at the Fourth of July Silver-Gold Project, Pershing County, Nevada
Thursday, June 05, 2014
Renaissance Gold Announces New Exploration Earn-in Agreement with Sumitomo Corporation at the Fourth of July Silver-Gold Project, Pershing County, Nevada07:00 EDT Thursday, June 05, 2014
WHITE ROCK, British Columbia (Business Wire) -- Renaissance Gold Inc. (TSX: REN) (“RenGold”) is pleased to announce that it has executed a new exploration earn-in agreement with Summit Mining Exploration II, Inc., (“Summit”) a US subsidiary of Sumitomo Corporation on the Fourth of July Project, Pershing County, Nevada.
The Fourth of July Project contains numerous historic silver and gold prospects including the Arizona Mine that was one of the largest silver mines in the State of Nevada between 1860 and 1880. Based on geological mapping and sampling conducted by RenGold the mineral system is believed to be "Orogenic" in genesis similar to the evolving Spring Valley Project (> 4 Moz. gold, owned by Barrick and Midway) about 6 miles (10 km) on strike to the south and to the Rochester deposit owned by Coeur about 10 miles (16 km) south.
The Arizona Mine occurs in a structural graben on the eastern flank of the Humboldt Mountain Range where historic prospecting and mining focused on underground flat veins or "reefs". Mining of these veins occurred in the Triassic age Prida limestone which overlies the Koipato sequence of rhyolitic flows and tuffs intruded by porphyritic units of similar composition. Historic mining and exploration appear to have focused on the Prida carbonates and apparently did not test the underlying unconformity with the Triassic age Koipato volcanics or the volcanics themselves. The underlying Koipato volcanics appear to be host for mineralization at Spring Valley and Rochester. Although the Arizona Mine was last worked in the 1940's, modern sampling within the mine and nearby has returned assays up to 95.72 ppm gold, 6,006 ppm silver, 6,400 ppm copper, 9,500 ppm lead, and 9,100 ppm zinc from rock chips. In addition, there is only limited prospecting and mining of the graben bounding faults which have returned over 1,000 ppm silver in assays from recent rock chip samples. Commencing immediately, surface mapping and sampling will be carried out to better define drill targets for an initial phase of drilling envisaged before the end of the year.
The agreement includes an initial payment to RenGold of US$50,000 with subsequent anniversary payments of US$50,000 up to a total of US$215,000, the last payment being US$15,000 to recover costs expended by RenGold. Minimum work commitments are US$500,000 per year through the eighth year. If Summit has not completed Bankable Feasibility (BFS) at that time they may extend the option up through the thirteenth anniversary by paying RenGold US$100,000 per year and maintaining a minimum US$500,000 per year work commitment. Upon completing BFS, Summit will have vested a 70% undivided interest in the project.
Richard Bedell, President and CEO of RenGold comments: “We are very happy to be doing another agreement with Summit Mining and exploring with them further for a world class deposit in Nevada. There are multiple old mines at the Fourth of July project with extensive workings. Given the development of the Spring Valley Project along strike to the south and the ongoing mining at Rochester, Fourth of July looks like a significant exploration opportunity. Most of the world's gold production comes from Orogenic type mineral systems and exploration in Nevada for these systems has been limited."
All 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.
About Renaissance Gold Inc.
Renaissance Gold Inc. is a gold/silver exploration company that has a large portfolio of exploration projects in Nevada, and Utah. 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 or 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.
Richard L. Bedell, 775-337-1545
Eric Struhsacker, 775-337-1545