Renaissance Gold Inc. (TSX: REN) (“RenGold”) reports financial
results for the three months ended September 30, 2012. Details of the
Company’s financial results are described in the unaudited condensed
consolidated interim 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 http://www.rengold.com
and on the Company’s profile on http://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 three months ended September 30, 2012,
was $1,444,628 (2011- $658,978).
Working capital at September 30, 2012 was $6,420,573 of which $6,417,177
is cash. There are no long-term liabilities.
Total assets at September 30, 2012, are $8,270,862 of which $7,160,047
are current assets and $1,110,815 are exploration and evaluation assets,
property plant and equipment and reclamation bonds.
Operations
RenGold is an exploration stage business engaged in the acquisition and
exploration of mineral properties located in the USA, Argentina 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.
RenGold currently has 13 properties under exploration earn-in agreements:
|
Project
|
|
Funding partner
|
|
|
Nevada:
|
|
|
|
|
|
|
|
|
|
Big Gossan
|
|
Summit Mining Exploration, Inc. a US subsidiary of Sumitomo
Corporation
|
|
|
|
|
|
|
|
Leonid and Gold Star
|
|
Lynx Resources (US) Inc., a US subsidiary of Cassini Resources Ltd.
(ASX:CZI)
|
|
|
|
|
|
|
|
Reef
|
|
Golden Dory Resources Corp. (TSXV: GDR)
|
|
|
|
|
|
|
|
Rose Mine
|
|
Rose Gold LLC, a subsidiary of Navaho Gold Pty Ltd. (ASX:NVG)
|
|
|
|
|
|
|
|
Spruce Mountain
|
|
Summit Mining Exploration, Inc., a US subsidiary of Sumitomo
Corporation
|
|
|
|
|
|
|
|
Trinity Silver
|
|
Liberty Silver Corp. (TSX: LSL)
|
|
|
|
|
|
|
|
Wood Hills South
|
|
NuLegacy Gold Corporation (TSXV:NUG)
|
|
|
|
|
|
|
|
Utah:
|
|
|
|
|
|
|
|
|
|
Wildcat
|
|
Newmont Mining Corporation. (TSX: NMC)
|
|
|
|
|
|
|
|
Argentina:
|
|
|
|
|
|
|
|
|
|
El Monte
|
|
Agnico-Eagle Mines Limited (TSX:AEM)
|
|
|
|
|
|
|
|
Gertrudis
|
|
Agnico-Eagle Mines Limited (TSX:AEM)
|
|
|
|
|
|
|
|
Meridiano
|
|
Atala Resource Corporation
|
|
|
|
|
|
|
|
Covadonga
|
|
Atala Resource Corporation
|
|
|
|
|
|
|
The highlights of activity by RenGold and its funding partners on its
exploration properties during the three months ended September 30, 2012
and to November 12, 2012 (collectively “Q1”), follow in alphabetical
order.
Nevada projects with funding partners:
|
Big Gossan
|
|
Q1 included detailed mapping and sampling between a deep skarn and
possible porphyry style mineralization with significant copper and
some gold.
|
|
|
|
|
|
|
|
|
|
|
|
Gold Star
|
|
Lynx completed a ground magnetic survey and detailed mapping and
sampling. Lynx took advantage of a nearby available drill rig and
they drilled two reverse circulation holes totaling 152 meters (500
feet) on one patent where minimal permitting was allowed. Assays are
pending.
|
|
|
|
|
|
|
|
|
|
|
|
Leonid
|
|
A detailed gravity survey over the entire project area is complete.
Lynx also did detailed soil traverses over faults of significance
defined by gravity and rock chip sampling and are using these data
to define drill targets.
|
|
|
|
|
|
|
|
|
|
|
|
Pasco Canyon
|
|
Two diamond core drill holes were completed for a total of 814
meters (2,671 feet). Both holes had anomalous chemistry just below
1,000 feet but the results were insufficient to maintain interest.
Both Lynx and Renaissance have dropped the property.
|
|
|
|
|
|
|
|
|
|
|
|
Spruce Mountain
|
|
A widely spaced drill program covering many targets was undertaken
in Q1. Three types of drilling were employed on a variety of
geologic targets including skarn, hornfels, gossan, veins,
jasperoid, stockworks and porphyry, including the metals Pb, Zn,
Cu, Mo, Ag and Au. Mud rotary drilling included 947 meters (3,105
feet), reverse circulation 2,093 meters (6,865 feet) and core
1,551 meters (5,087 feet), for a total of 4,591 meters (15,057
feet) of drilling in Q1. Results are pending.
|
|
|
|
|
|
|
|
|
|
|
|
Trinity Silver
|
|
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 August 8, 2012, Liberty announced that it has purchased the Hi Ho
properties comprising approximately 100 acres located adjacent to
the Trinity Silver property. The Hi Ho properties were purchased in
the name of RenGold and will form part of the greater Trinity Silver
property that Liberty is earning an interest in from RenGold. 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SRK Consulting in Reno, Nevada have been contracted to complete an
updated NI43-101 resource estimate which should be available in
December 2012. In addition, studies to include metallurgy and
evaluating the leach pad, dumps and basic mine planning for the
oxide deposit are ongoing.
|
|
|
|
|
|
|
|
|
|
|
Utah projects with funding partners:
|
Wildcat
|
|
Newmont Mining has completed reverse circulation drilling 2,751
meters (9,025 feet) on targets including high grade (up to 3 opt Au)
in jasperoids. Assays are pending.
|
|
Argentina projects with funding partners:
|
Atala
|
|
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 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 $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
Davincino during the term of the agreements.
|
|
|
|
|
|
|
|
El Monte
|
|
The El Monte project is located in Santa Cruz Province, Argentina
and is being funded by Agnico-Eagle. 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. Data are being evaluated for drilling in early 2013.
|
|
|
|
|
|
|
Properties being prepared for joint venture
During Q1, RenGold conducted reconnaissance exploration programs to
prepare these projects for joint venture.
|
Arabia
|
|
The Arabia project is an orogenic silver, lead, antimony and gold
District located in Pershing County, Nevada that RenGold
consolidated. Data compilation and additional detailed geologic
mapping and directed structural mapping have defined multiple
targets. Recent trenching (470 meters) on 3 patents located
mineralized material that was similar in character to drill results
previously reported 700 meters further southeast by New Sleeper Gold
in 2005. That patent is now controlled by RenGold as well as all
other patents (15 in total) including intervening claims on BLM
ground. Based off trench results 5 RC holes were drilled in
September for a total of 463 meters (1520 feet). Assays are pending.
|
|
|
|
|
|
|
|
Baza
|
|
The Baza Project comprises a 12,000-hectare land package in
Almeria Province of Southern Spain on the southern slopes of the
Sierra de los Filabres. Dozens of prospects and old mines explored
and mined multiple kilometers of iron-rich veins whose gold and
copper contents were largely neglected. No prior modern
exploration for gold and copper had been conducted prior to the
involvement of RenGold and its previous funding partners who have
now spent in excess of $2 million. Recent results of two core
holes intercepted the Cerro del Gallo vein (see press release
October 30, 2012). These results allow us to view and sample
unoxidized material from the Cerro del Gallo and Valenciano vein
systems for the first time. The results are encouraging because
they confirm the significant gold and copper grades documented by
extensive surface sampling. A new high grade prospect has been
identified at Minaleja where the mineralization is almost
completely hidden. Our extensive stream sediment geochemical
survey has identified highly anomalous gold concentrations in
other catchment basins whose hard-rock gold sources remain hidden.
This is a district scale opportunity with unusually high grades
and a unique style of mineralization.
|
|
|
|
|
|
|
In addition to work at Arabia and Baza, work has been continuing on data
compilation and defining exploration programs at the Company’s projects
being prepared for joint venture including Black Canyon, Broken Hills,
Buffalo Canyon, Bunce, Fireball Ridge, Fourth of July, Gold Point, Green
Monster, Holly Gold, JPW, King Solomon, Sinter and Sundance.
Generative
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.
In Nevada claims were acquired NW of Eureka along the Battle Mountain
Eureka trend on a Carlin style target. This will evolve into a project
currently named Whistler. Continued exploration in eastern and central
Nevada is ongoing and to locate areas to stake and acquire mineral
rights. Work continues in western Nevada on orogenic gold and
polymetallic targets including the Sundance project near Hawthorne, the
Holly Gold project in the west Humboldts and others.
In South America, in addition to work at El Monte, work has been
continuing on data compilation and defining Chilean exploration programs.
Qualified Person
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
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 webpage, please click on the following
link:
http://www.fscwire.com/pr/rengoldnov142012.htm
