Renaissance Gold Reports First Quarter 2016 Results
White Rock, British Columbia (FSCwire) - Renaissance Gold Inc. (TSX: REN) (“RenGold” or the “Company”) reports financial results for the three months ended September 30, 2015. 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 www.rengold.com and on the Company’s profile on www.sedar.com. All amounts presented are in Canadian dollars unless otherwise stated.
On November 6, 2015, the Company announced it had received final approval to list its common shares on the TSX Venture Exchange (the “TSX-V”). RenGold’s common shares will continue to trade under the symbol “REN” and will be listed and posted for trading at the opening of the TSX-V on Monday, November 23, 2015. The Company’s common shares will be delisted from the Toronto Stock Exchange at end of trading on Friday, November 20, 2015. The Board of Directors of the Company feel that as the majority of the Company’s peers trade on the TSX-V it is a better fit for the Company at this stage of its development.
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, 2015 was $331,845 (2014 - $550,184).
Cash at September 30, 2015, was $1,557,036. This amount includes $194,833 of cash advances received from funding partners which is disclosed as amounts due to funding partners.
Total assets at September 30, 2015 are $2,136,788 of which $1,795,310 are current assets and $341,478 are exploration and evaluation assets, equipment, investment in private corporation and reclamation bonds.
RenGold is an exploration stage business engaged in the acquisition and exploration of mineral properties located in Nevada and Utah. 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 enabling the earn-in partner to obtain an interest by conducting and funding exploration on that property.
The level of the Company’s exploration expenditures is largely determined by the strength of the resource capital and commodity markets and its ability to obtain funding partners and investor support for its projects. The Company anticipates there will be less capital available for exploration joint ventures in the immediate future. RenGold is therefore concentrating activities in Nevada and Utah to upgrade current projects and identify targets with significant growth potential.
Exploration and evaluation expenditures on RenGold projects for the three months ended September 30, 2015, totaled $785,148 (2014 - $624,754). Of this amount partners funded $582,532 (2014 - $402,091) and RenGold funded the balance of $202,616 (2014 - $222,663). In addition to the exploration and evaluation expenditures recorded in RenGold’s accounts, funding partners also conducted additional exploration programs directly on RenGold’s projects as required under the particular exploration earn-in agreements.
The highlights of activity by RenGold and its funding partners on its exploration properties during the three months ended September 30, 2015 and to the date of this press release follow in alphabetical order.
Nevada properties being prepared for joint venture
Buffalo Canyon: RenGold is advancing permitting for the Everson Deposit on the Buffalo Canyon project in northern Nye County. New drilling at the Everson Deposit will test for extensions to gold mineralization intersected in 25 of 40 historical reverse circulation drill holes. The gold intersections lie within a 400 x 600 m area that is part of a pyrrhotitic halo 1.5 by 1.0 km in size that appears to be related to a complex of reduced intrusions. Most of this prospective halo remains untested. This mineralized area is expected to grow substantially by drilling parts of the halo containing robust surface rock chips and soil anomalies. The drill plan will include holes that will drill below previous holes that reached total depth in mineralization and attempt to test the carapace (margins) of an inferred source intrusion. The maximum depth of drilling to-date is only 525 feet. RenGold is in discussions with a financial group that would supply initial drilling funds for equity in the project.
Fireball Ridge: Detailed structural analysis at the Fireball Ridge property located in NW Churchill County, Nevada has resulted in an important new exploration model. The East Graben target is recognized as being controlled by a cymoid loop (as is the case at the Fire Creek and Midas gold deposits), but previous drilling did not penetrate this zone. Significant drill results in the past (up to half ounce Au) can be greatly enhanced by a drill program utilizing this new model.
Gilbert South: RenGold’s new Gilbert South property contains a large gold-bearing epithermal system located in the Monte Cristo Range west of Tonopah in Esmeralda County, Nevada. The property is located directly south of the Gilbert Property being explored by Hecla Mining and west of the Eastside Project drilled in 2015 by Columbus Gold. Shallow drilling in one area was done in the 1980's by Atlas Gold as they attempted to define a shallow open pit target. Historic data and preliminary field work has located many large multi-veined zones with historic multi-gram gold that have not been sufficiently tested.
Maggie Creek: The Maggie Creek property, acquired in August 2015, is located east of Gold Quarry on the Carlin Trend in Eureka County, Nevada. RenGold has modeled 241 historic drill holes, carried out field reconnaissance and is developing several drill targets. Much of the past drilling and mapping was completed prior to 1993, with 60 of the 241 holes drilled to less than 100 feet (30.48 meters). The overwhelming number of these shallow vertical reverse circulation holes did not penetrate primary mineralized structures which occur throughout the property.
Secret Canyon: At Secret Canyon RenGold has developed a significant re-interpretation of a high-grade epithermal target located south of Winnemucca, Nevada and west of the evolving Kinross Gold Banks Project. A large recessive zone that was discovered by regional BLEG analysis brought Renaissance into the area. Recognition of this geologic setting has led to a series of high value targets that are shallow and easy to test. The property is being prepared to be drill ready with detailed geology, geochemistry, and geophysics.
In addition to the above, work has continued on data compilation and target definition at the Company’s other projects being prepared for joint venture. These properties include the Bunce, Whistler and Wood Hills South projects.
Nevada projects with funding partners
At the date of this press release, RenGold has six properties under exploration earn-in agreements:
|Arabia||Coeur Mining, Inc.|
|Fourth of July||Summit Mining Exploration II, Inc., a US subsidiary of Sumitomo Corporation|
|Golden Shears||Walmer Capital Corp.|
|Silicon||Altius Minerals Corporation|
|Trinity Silver||Liberty Silver Corp.|
|Wildcat||Troymet USA LLC|
Arabia: The Arabia project is located in Pershing County just west of the Humboldt Range and RenGold’s Fourth of July project. Field work, completed as a follow-up to detailed aeromagnetic and gravity surveys, helped to delineate areas of interest within the project. The Arabia project is funded by Coeur Mining, Inc. and includes a minimum work commitment of US$100,000 in the first year.
Fourth of July: The Fourth of July project is located in the northern Humboldt Range of Pershing County and just north of the evolving Spring Valley gold project, which is a joint venture between Barrick and Midway. The Fourth of July project is funded by Summit Mining Exploration II, Inc., (“Summit II”) a US subsidiary of Sumitomo Corporation.
In September 2015, RenGold started a drill program that includes 8 reverse circulation holes with a budget for 1,340 meters (4,400 feet). Careful execution of this program resulted in 16 holes totaling 2075 meters (6,805 feet) being drilled. This round of drilling has tested three target areas within this target-rich project that had multiple mines and was one of the largest silver-gold producers in Nevada prior to 1940. Results are expected to be released in late November.
Golden Shears: In March 2015, RenGold entered into an exploration earn-in agreement with Walmer Capital Corp. (“Walmer”) to earn a 70% interest in the property. In October 2015, the Company extended the date of any payments to February 1, 2016 in consideration of $10,000 to be paid on closing of a financing by Walmer.
Walmer has commissioned a technical report from Mr. R. A. Lunceford, an independent Qualified Person reporting on the extensive work done by RenGold and the results of 8 audit rock samples collected by Mr. Lunceford from targets on the property. The 8 samples were collected from areas and exposures Mr. Lunceford deemed to be important to validate the reported mineralized material. Mr. Lunceford collected and transported the samples in his sole custody directly to the preparation facility of ALS in Reno, Nevada.
Silicon: RenGold's Silicon property is in the Bare Mountain Mining District of southern Nevada. The property consists of unburdened claims on federal BLM ground. RenGold is advancing the Silicon property with Altius Minerals Corporation funding a $140,000 work program in exchange for a 1.5% NSR royalty. Field work has commenced and will be followed by a gravity survey. Silicon is an epithermal project in a productive district. The property has been underexplored and holds large deposit potential. The ultimate objective is to do enough geoscience work on the project to attract a partner who will enter into a standard agreement by funding exploration to earn an interest in the project.
Trinity Silver: In fiscal 2013, Liberty Silver Corp. (“Liberty”) completed their work commitment of US$5,000,000 on the Trinity Silver project located in Pershing County, Nevada. In addition to the US$5,000,000 work commitment, Liberty must complete a bankable feasibility study by March 29, 2017 to earn an undivided 70% interest in the property. Metallurgical studies are continuing in preparation of a preliminary economic assessment on the oxide deposit and this will be used to generate financing for development of the oxide deposit. Liberty reports that, pending funding, it next plans to do Preliminary Economic Assessment level work on the project.
Utah projects with funding partners
Wildcat: Wildcat lies in the Detroit Mining District, an historic gold producing region in the northern Drum Mountains of central Utah. In February 2015, the Company entered into an exploration earn-in agreement with Troymet USA LLC. Ongoing field work by RenGold, on behalf of Troymet, is producing important results that are redefining the model of the mineralization and generating new targets. Troymet is in the process of permitting trenches, drill roads and drill pads in the Core Main Target and Southeast Target areas.
All technical data, as disclosed in this MD&A, has been verified by the Company’s qualified persons Richard L. Bedell, M.Sc. and Registered Member and Eric M. Struhsacker, M.Sc. and Certified Professional Geologist.
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
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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.