WHITE ROCK, British Columbia--(BUSINESS WIRE)--
Renaissance Gold Inc. (REN.TO) (“RenGold” or the “Company”) reports
financial results for the three months ended September 30, 2014. 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.
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, 2014,
was $550,184 (2013 - $868,521).
Cash at September 30, 2014, was $2,405,332, which includes $157,287 cash
advances received from earn-in partners. There are no long-term
liabilities.
Total assets at September 30, 2014, are $3,290,804, of which $2,523,274
are current assets and $767,530 are exploration and evaluation assets,
equipment, investments and reclamation bonds.
Operations
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 define significant growth potential. Accordingly, RenGold
sold its Argentine subsidiary in February 2014, its Spanish subsidiary
in August 2014, and is in the process of winding up its Chilean
subsidiary.
Exploration expenditures on RenGold projects for the three months ended
September 30, 2014, totaled $624,754 (2013 - $534,703). Of this amount,
partners funded $402,091 (2013 - $175,873) and RenGold funded the
balance of $222,663 (2013 - $358,830). In addition to the exploration
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 agreement.
Overall Performance
At the date of this press release, RenGold has four properties under
exploration earn-in agreements:
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Project
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Funding partner
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Fourth of July
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Summit Mining Exploration, Inc., a US subsidiary of Sumitomo
Corporation
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Golden Shears
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Callinan Royalties Corporation (CAA.V)
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Trinity Silver
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Liberty Silver Corp. (LSL.TO)
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Wood Hills South
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Newmont USA Limited, a subsidiary of Newmont Mining Corporation
(TSX:NMC)
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The highlights of activity by RenGold and its funding partners on its
exploration properties during the three months ended September 30, 2014,
and to the date of this press release follow in alphabetical order.
Nevada projects with funding partners:
Fourth of July On October 2, 2014, a 3,000 foot drill core
program commenced at the Fourth of July project in the Humboldt Range of
Pershing County Nevada funded by Summit Mining Exploration II, Inc.,
(“Summit II”) a US subsidiary of Sumitomo Corporation. The first core
hole has tested the eastern bounding fault of a graben that confines the
historic flat reefs in the Prida limestone at the Arizona mine. The
fault could have been part of the fluid pathway that controlled mineral
deposition. The hole appears to have been a geologic success (assays
pending) having hit intervals of sulfidic breccias and quartz stockworks
adjacent to the old mine workings. In addition, the hole has penetrated
the rhyolite flows and tuffs of the underlying Triassic Koipato Group,
which are the preferred host rocks at Spring Valley and the Coeur
Rochester Mine to the south. Below the unconformity between the
limestone and the rhyolite drilling has encountered breccias with
quartz-sericite-pyrite alteration that is believed to be an early event,
which is cut by later quartz veins in the core.
Golden Shears RenGold is advancing the Golden Shears property in
Clark County Nevada with Callinan Royalties Corporation ("Callinan")
funding the work in exchange for a 1.5% royalty. RenGold has been doing
significant geologic work within a 2.5 km long shear zone with high
grade precious and base metal values. Geologic mapping in combination
with ground magnetics and gravity indicate the presence of continuous
structures between the outcropping areas of mineralization and suggest
the potential for a large mineralized system. In addition, the magnetic
data indicate that a number of shallow intrusions lie beneath cover with
potential for two skarns within this domain.
Trinity Silver In fiscal 2013, Liberty Silver Corp. (“Liberty
Silver”) completed their work commitment of US$5,000,000 on the Trinity
Silver project located in Pershing County, Nevada. On November 14, 2013,
Liberty Silver announced a loan facility for US$1.21 million.
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.
Woods Hills South On February 18, 2014, RenGold announced an
agreement with Newmont USA Limited (“Newmont”) to explore the Wood Hills
South project, an extension of the Pequop gold district in Elko County,
Nevada. Newmont has now completed data compilation and modeling of
existing drilling. In addition, Newmont has conducted proprietary low
detection soils sampling in conjunction with pediment mapping to
distinguish different alluvial fans and surface cover types. Finally,
they have run a CSAMT survey and created resistivity maps. Taken
together, with existing magnetic data, they have started permitting for
a number of drill holes. On November 4, 2014, RenGold announced that
Newmont commenced a reverse circulation drill campaign (2,000 to 2,500
feet).
Arabia - Effective April 4, 2014, until it was terminated
November 1, 2014, the Company was party to an exploration and mining
lease earn-in to purchase agreement with First Liberty Power Corp.
(“FLPC”). Under the terms of the agreement, FLPC paid RenGold US$2,500
on September 8, 2014 together with a late payment penalty of US$3,632.
Subsequent to September 30, 2014, FLPC issued RenGold 10,000,000 common
shares of FLPC (less than 1% of FLPC). Rengold will seek a replacement
funding partner.
Nevada and Utah properties being prepared for joint venture
Work has continued on data compilation and target definition at the
Company’s projects being prepared for joint venture. These properties
include Arabia, Big Gossan, Buffalo Canyon, Bunce, Fireball Ridge, JPW,
Leonid, Reef, Secret Canyon, Silicon, Sinter, Spruce Mountain, Whistler,
and Wildcat projects.
Generative
Generative exploration is the core of RenGold’s business. Property
submittal evaluations and generative programs in Nevada and Utah are
ongoing but the current focus is on upgrading projects with quality
drill intercepts. 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.
On October 30, 2014, RenGold announced the execution of a six year
extension of the large Pequop and Woodhills land package in northeastern
Nevada with New Nevada Resources, LLC ("NNR"). This includes 34,408
acres (13,924 Hectares) of important exploration terrain in the evolving
Pequop Gold District. A good portion of the NNR land is included within
the Woodhills South land package that is currently under an exploration
earn-in agreement with Newmont USA Limited.
Qualified Person
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 rbedell@rengold.com
or Eric Struhsacker, 775-337-1545 or estruhsacker@rengold.com
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.