Renaissance Gold Inc. (TSX.V: REN) ('RenGold' or the 'Company') is pleased to announce it has secured permits to drill the Wildcat Project located within the Detroit Mining District in the northern Drum Mountains, Juab County, Utah. The project is being funded by TroyMet Exploration Corp. (TSX.V:TYE) ('TroyMet'). Under the terms of the option agreement Troymet is the operator and has retained RenGold as its contractor to take advantage of the Company's expertise and established infrastructure. RenGold anticipates drilling to start in mid-May 2016.
The permit includes 14 drill sites with an access road. The first phase of drilling is budgeted to include 1,220 meters (4,000 feet) of reverse circulation drilling in 9 holes ranging from 67 to 213 meters (220 to 700 feet) in three target areas. The first target, named the 'High Grade Hill', has unusually high grade jasperoids running from 10.2 to 301.1 g/t Au. The second target, named the 'Core Area', is defined by vectors of multivariate geochemistry and gold in the footwall of the Joy Fault. The third target, named the 'Southeast Area', returned analyses ranging from below detection limit to 4 g/t Au in rock chip samples taken along the footwall of the Joy Fault and is associated with a coherent tellurium soil anomaly.
Detailed geologic field work and extensive data analysis in the first year of the earn-in agreement have resulted in redefining the first two targets and the third target is newly generated. Troymet have deposited the US$250,000 cash call for the drill program and that will cover this year's minimum expenditure of US$250,000.
Richard Bedell, President and CEO of RenGold, comments: 'This project has a good chance of hosting significant mineralization and our detailed work has demonstrated strong structural controls with significant grades. We look forward to the commencement of drilling and hope to have the results in late June to early July.'
The Agreement
On February 23, 2015, the Company entered into an exploration earn-in agreement with TroyMet. The agreement requires a down payment of US$50,000 (received), plus cost of claim fees paid in 2014 of US$8,219 (received) and annual exploration commitments of US$50,000 first year, US$250,000 second year, US$350,000 third year and US$500,000 fourth through seventh years, to earn a 70% interest in the property. A bankable feasibility study is also required and, if not completed at the end of seven years, TroyMet can extend the option period for another five years by spending US$1,000,000 per year on the property and by paying the Company US$100,000 per year in each of the years in this subsequent option period. If TroyMet terminates the option after expending more than US$3 million then TroyMet will be entitled to a 3% NSR royalty capped at twice the amount of TroyMet's investment prior to termination.
Qualified Person
All technical data, as disclosed in this press release, has been verified by the Company's qualified person Richard L. Bedell, M.Sc. and a 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. RenGold's objective is to place the projects 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 protected]
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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.