WHITE ROCK, British Columbia--(BUSINESS WIRE)--
Renaissance Gold Inc. (REN.TO) (“RenGold”) is pleased to announce the execution of a letter of intent (the “Letter”) to enter into an earn-in agreement (the “Agreement”) with Coeur Mining, Inc. (CDE) (“Coeur”) on the Arabia Gold Project in Pershing County Nevada. The project is located just 20 km northwest of the Coeur Rochester Mine and 19 km north of Lovelock Nevada.
Upon execution of the Agreement, Coeur will make certain payments to RenGold and to fund an exploration and development program to be conducted by RenGold in accordance with the specific terms and conditions to be included in the Agreement. Coeur and RenGold plan to work together to complete a Bankable Feasibility Study on or before the eleventh anniversary of the execution of the Agreement, in which case Coeur will have the option to acquire a 70% interest in the project for no additional consideration.
The Arabia Project is a consolidation of the polymetallic Arabia District. It is a series of mesothermal quartz veins that may be intrusion related or orogenic in origin. It is composed of 15 patents and BLM mining claims. Historic mining records indicate high grades of lead, silver, antimony and gold. Sampling by RenGold has yielded up to 30.1% Pb, 1811.5 ppm Ag, >1.5% Sb and 18.9 ppm Au.
The Arabia District was organized in 1863 with production feeding the first Ag-Pb smelter in the western United States from which Pb was shipped in commercial quantities. A 1913 report from the Electric vein down to 150 foot depth reports assays averaging Au 0.15 opt, Ag 18.7 oz., and Pb 14.2%.
A new airborne magnetic and radiometric campaign has already been completed over the district and a gravity survey will be carried out shortly. RenGold plans to drill at least two deep orientation holes later in the year and total expenditures should be close to US$400,000, nearly four times the initial work commitment.