October 11, 2012 at 07:30 AM EDT
Renaissance Gold Reports Fiscal Year 2012 Results

Renaissance Gold Inc. (TSX: REN) (“RenGold”) reports financial results for the year ended June 30, 2012. Details of the Company’s financial results are described in the annual audited consolidated 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 year ended June 30, 2012, was $3,951,607 (2011- $5,258,239).

Working capital at June 30, 2012 was $7,359,029 of which $7,443,385 is cash. There are no long-term liabilities.

Total assets at June 30, 2012, are $8,889,021 of which $7,773,809 are current assets and $1,115,212 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 14 properties under exploration earn-in agreements:

ProjectFunding partner
Nevada:
Big Gossan Summit Mining Exploration, Inc.
Leonid, Pasco Canyon 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

RenGold’s current portfolio of precious metal exploration targets is located in Nevada/Utah, Argentina and Spain. Many of these projects are in earn-in agreements with different industry partners providing funding for exploration activities. The details of the Company’s expenditures on these activities, both before and after recoveries from funding partners, are found in the Financial Report. The highlights of activity by RenGold and its funding partners on its exploration properties during the year ended June 30, 2012 and to September 26, 2012, follow in alphabetical order.

Nevada projects with funding partners:

Big Gossan

The Company acquired the Big Gossan copper property, located at the southern end of the Sahwave Mountains on the common boundary of Pershing and Churchill Counties about 28 miles northeast of Fernley, Nevada in 2012. Proprietary processing of satellite data yielded a strong anomaly coincident with a 1.2 by 0.4 kilometer area of strong gossan developed in quartz-sericite altered granite and phyllitic country rock. An aeromagnetic low encloses the area of gossanous outcrops. Nearby prospects exposing copper oxide minerals, molybdenum, and scheelite indicate potential for porphyry or skarn base metal deposits. Plans are in-place for mapping and rock chip sampling supported by soil grid sampling and detailed aeromagnetic surveys.
On June 11, 2012, RenGold announced it had reached its second agreement with Summit Mining Exploration II, Inc., (“Summit II”) a subsidiary of Sumitomo. Summit II is required to spend a minimum of US$570,000 within the first agreement year and to maintain the option must spend a minimum of US$500,000 per year thereafter. A bankable feasibility study must be completed by year eight to vest 70% in the Big Gossan copper project.

Lynx / RenGold deal

As announced on February 29, 2012, the Company executed three earn-in agreements with Lynx Resources (US) Inc. a private Nevada corporation. All three agreements on the Leonid, Pasco Canyon and Gold Star with Lynx are similar with variable rates of spending to a cumulative $1,000,000 by the fourth anniversary of the agreement year on each project to earn a 70% interest. To retain its 70% interest in each project Lynx must expend a minimum of $500,000 a year and complete a bankable feasibility study by agreement year seven. If the bankable feasibility study has not been completed by year seven and Lynx wishes to maintain the option then the required annual expenditure will be increased to a minimum of $1,000,000 per year and Lynx will pay RenGold $100,000 per year on each property. In the event that Lynx terminates the agreement prior to completing a bankable feasibility study it will sell back any interest earned to RenGold for $1.00. Lynx will be the operator.

Leonid

The Leonid Project in western Elko and northern Eureka counties is a Carlin-style target with a similar structural setting and stratigraphy to the Rain deposit and the evolving Railroad project, where Gold Standard Ventures recently announced successful drilling results. Mapping and sampling has been completed. A detailed gravity survey over the entire project area is complete. Lynx will use this data in conjunction with the surface geochemical data to design an initial drill program.

Pasco Canyon

The Pasco Canyon Project is in Northern Nye county and sits between Round Mountain (20 M. Oz.) and Northumberland (7 M. Oz.). It is on the opposite edge of the Mount Jefferson Caldera related to the new Gold Hill Deposit (2 M. Oz.), which lies in a similar setting. This project is on Forest Service ground but is permitted, bonded, and Lynx completed a two hole diamond drill program before both the Company and Lynx agreed to terminate the agreement and to drop the Pasco Canyon project.

Gold Star

The Gold Star Project is in the middle of Pershing County and includes tourmalinized quartz veins and aplite cutting a Cretaceous granodiorite stock similar to the Spring Valley deposit across the valley to the east. Numerous high grade veins were mined historically, but there has been no modern drilling. Lynx is currently mapping the property and a detailed ground magnetic survey is complete. Two reverse circulation drill holes were recently completed on a single patented claim in September 2012. Assays are pending.

Reef

On March 1, 2012, RenGold announced results of drilling at the Reef project in southwest White Pine County, Nevada located immediately south of and adjacent to Midway Gold Corp.’s Pan gold deposit. In late 2011, five widely spaced reverse circulation drill holes (in most cases a kilometer apart) totaling 4,210 feet, were drilled to test for inferred structures in the eastern portion of the property. Deeper than expected alluvium and/or late volcanic rocks suggests the target horizon was eroded in most holes, although weakly anomalous gold, up to 35 ppb, was reported in bedrock from holes RF-11-3 and 4. A new geological model will be produced incorporating the latest drilling. Additional work is being recommended and will focus on sampling and geological mapping in the vicinity of newly discovered jasperoid mineralization returning elevated (78 ppb gold) values, and where sufficient room exists to host significant volumes of mineralization.

Rose Mine

On January 18, 2012, RenGold announced the assay results from reverse circulation drilling completed by Navaho Gold on the Rose Mine gold exploration project located 8 miles (13 km) southwest of the 2.23 MM ounce Archimedes Deposit operated by Barrick Gold Corporation in the Eureka Mining District. Navaho completed 10 reverse circulation holes totalling 4,960 feet (1,512 meters) and 3 holes intersected anomalous gold mineralization exceeding 0.05 grams. The drilling tested geophysical and soil geochemistry targets on the covered pediment of the basin east and north of the original Rose Mine target area. The area of the historic Rose Mine, where numerous multi-ounce silver bearing jasperoids in outcrop, was not tested. Navaho Gold is ahead of their work commitment and is considering a second round of drilling in 2013, which could include the main part of the known silver mineralization and nearby areas of gold anomalism.

Spruce Mountain

On April 26, 2012, RenGold announced anomalous drill results from the Spruce Mountain Project located in southern Elko County, Nevada southwest of the nearby, evolving Pequop Gold District. Reverse-circulation drilling totaling 8,711 feet (2,655.1 meters) in 11 holes, completed preliminary tests of seven target areas located along the western slope and piedmont of the Spruce Mountain upland, the site of recurrent silver and base metal production circa 1870 through 1950. The most notable hole, RSM-07, intersected 50 feet averaging 217 ppb gold from a depth of 280 to 330 feet. RSM-07 intersected mineralization spanning the unconformable contact of the calcareous Pilot Shale and the underlying limestone of the Guilmette Formation. This intercept lies about 2,000 feet (600 meters) north of a cluster of gold intercepts obtained in six reverse-circulation drill holes in 1985 by Santa Fe Mining Inc. (Santa Fe). RSM-07, also, intersected 10 feet (3 meters) of 4.4% zinc in Joanna Limestone. In addition RSM-02 intersected 80 feet (24 meters) of 0.23% Zn and RSM-03 intersected 50 feet (15 meters) of 0.35% Zn. The spacing of the new and historic holes is too broad to allow a reliable estimate of true thickness of the gold and zinc intercepts.
Three additional holes intersected thin gold anomalies. RSM-10, located about one kilometer north of RSM-07 intersected 282 ppb gold in a 5 foot (1.5 meter) sample at 715 feet down-hole within a 45 foot interval of 100 to 200 ppm arsenic spanning the Pilot Shale/Guilmette Formation contact. Although the true thickness of the interval is unknown, it presents an opportunity for further exploration drilling. Other weak gold intercepts occur in holes RSM-08 and RSM-11 and range from 109 to 218 ppb gold over 10 to 20 feet (3 to 6 meters). These holes test a low-lying exposure of limestone and jasperoid underlying the pediment about 1.5 kilometers southwest of RSM-07. The spacing of the drill holes is insufficient to support estimates of the true thicknesses of these intercepts. All but one of the remaining drill holes intersected intervals of strong alteration with weak analytical results. These and the mineralized holes are guiding the selection of targets for the second phase program comprising reverse-circulation, mud rotary and core drilling which is now underway.

Trinity Silver

On July 11, 2012, RenGold announced the results of phase one drilling on the Trinity Silver project located northwest of Lovelock, Nevada. Eighteen vertical reverse circulation drill holes were completed to depths of up to 1500 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 released 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.
Liberty has announced that they have engaged an independent consultant to undertake a scoping study for silver production on the Trinity Silver property. The second phase of Liberty’s 2012 drill program is being planned.
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 back into production.

Wood Hills South

On February 6, 2012, RenGold announced assay results for the first ten holes of a planned twenty hole reverse circulation reconnaissance drilling program conducted by NuLegacy on the 100 sq km Wood Hills South gold project, Elko County, Nevada. The most significant result was in hole WHS11-007 which intersected an oxidized 10.7 meter (35feet) interval from 83.8 to 94.5 meters down hole that averaged 0.40 g/t (0.013 opt) gold within an approximately 60 meters (197 feet) zone of anomalous Carlin-style pathfinder elements and gold.
On April 26, 2012, RenGold announced assay results for the second 10 holes drilled, aggregating 1,656.6 meters (5,435 feet) on widely spaced select geophysical and geochemical anomalies. Analyses have been received and several gold anomalies were identified including one gold anomaly 1,500 feet (460m) west of WHS11-007. The results from the recent drilling combined with the newly obtained gravity survey and the induced polarization/resistivity and soil geochemistry surveys point to several areas with the potential of hosting significant gold mineralization that will be targeted in the next round of drilling.
This drilling is very significant in that it is similar to the mineralization in the adjacent Pequop Gold District. RenGold staked this project based on targeting regional magnetic data that defines the extent and orientation of Eocene aged intrusives responsible, in part, for the distribution of mineralization in the Pequop Gold District. The drilling results suggest that the Pequop Gold District could grow to the southwest into the Woods Hills South property given how small the footprint of the current gold resources reported at West Pequop and Long Canyon are, compared to most other Carlin-style gold districts in Nevada.

Utah:

Wildcat

Newmont Mining has the right to earn a 70% interest in the Wildcat property. Newmont has commenced a 10,000 foot reverse-circulation drill program that is expected to be completed by the end of September. The targets are high-grade gold-bearing jasperoids with high-grade values at the surface. The gold targets are in favorable Cambrian to Ordovician carbonate stratigraphy.

Argentina:

Atala deal

On March 16, 2012, RenGold signed an exploration earn-in letter of intent with Atala Resource Corporation, a Canadian corporation; on each of the Covadonga and Meridiano projects in Argentina. The parties are preparing a definitive agreement to replace the letter of intent on the same terms for each property. 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 will pay RenGold $12,500 on signing the two definitive agreements and 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.

Covadonga

The Cerro Covadonga project is located approximately 33 Km north of Cerro Vanguardia in the Deseado Massif of Santa Cruz Province. The project is centered around an area of NNW-striking, sub-vertical, low sulfidation, epithermal veins and structural zones with multi-gram gold grades on the surface and a high level geochemical signature.

Meridiano

The Meridiano project is located approximately 40 Km NNW of Cerro Vanguardia in the Deseado Massif of Santa Cruz Province. The project contains numerous gold bearing structures hosted in a pyroclastic vent breccia. Geochemistry reveals the epithermal system to be largely of a high level. Reverse circulation and diamond drilling along with IP and ground magnetic surveys point to a diatreme model with sub surface targets near the diatreme contacts.

El Monte

The El Monte project is located in Santa Cruz Province, Argentina and is being funded by Agnico-Eagle. Rengold conducted 4,000 meters of trenching, a soil orientation survey, rock chip sampling, mapping and geophysics on a gold and silver bearing epithermal vein and breccias system at the El Monte project. Data are being received and compiled in preparation for an initial drill program.

Gertrudis

The Gertrudis Project, located in the northern portion of Santa Cruz province, contains multiple veins in structural corridors within an andesitic dike complex. The prospect was initially identified using Thematic Mapper satellite imagery that was processed by RenGold. Detailed surface sampling and geologic mapping have been conducted to define drill targets that are planned to be tested once appropriate permits have been granted. The Gertrudis project is being funded by Agnico-Eagle.

Properties being prepared for joint venture

During the year ended June 30, 2012, and up to the date of this MD&A, RenGold conducted reconnaissance exploration programs to prepare these projects for joint venture.

Arabia

The Arabia project is located in Pershing County in the Arabia Mining District in the foothills of the Trinity Mountains, 20 miles north of Lovelock, Nevada. The Arabia District contains numerous occurrences of high-grade, poly-metallic, mesothermal gold and silver-rich deposits in a fractured granodiorite intrusive and metasedimentary rock. Targets include replacement deposits, fissure veins, sheeted veins and vein stockwork at or proximal to contact zones beneath impermeable metasedimentary caprock. Detailed geologic mapping and directed structural mapping to locate mineralized shoots has generated several drill targets. Results are pending on a RenGold funded trenching program to further quantify persistent gold and silver numbers at surface.

Broken Hills

The Broken Hills Project is a silver dominant property located about 50 miles SE of Fallon in Mineral and Nye Counties Nevada within the Walker Lane mineral belt and contains multi-ounce silver and some gold. During due diligence by Renaissance a surface sample of a half meter wide breccia vein assayed 250.3 parts per million silver, 141 parts per billion gold and 1.24% lead. This is in an area of old workings following a well mineralized broad structural zone covered in part by post mineral volcanics. There has been no modern exploration conducted on the property. RenGold has now conducted a geologic mapping and rock-chip sampling program and has developed target concepts.

Black Canyon

The Black Canyon project is located on the west side of the northern West Humboldt Range above the Florida Canyon Mine in Pershing County, Nevada. The property contains several swarms of gold-bearing mesothermal quartz veins that present promising vein intersection drill targets. The veins supported high-grade gold production from numerous historic small underground mines. The veins occur mainly in rhyolite tuffs, flows, breccias, and conglomerates of the Permian Rochester Rhyolite, known to be a host for the evolving gold deposit of Barrick Gold and Midway Gold at the Spring Valley property, 15 miles to the south. RenGold has filed and received permitting to re-open the drill road and prepare two drill sites.

Buffalo Canyon

On March 26, 2012, RenGold announced completion of drilling at its Buffalo Canyon gold exploration project, northwestern Nye County, Nevada. The drilling program was funded by Eldorado Gold Corp. It included 14 reverse circulation drill holes totaling 9,909 feet and 4 diamond core holes totaling 2,324.2 feet. A number of intervals are noteworthy on this target rich project area including gold intervals of 50 feet of 0.012 opt, 35 feet of 0.018 opt, 25 feet of 0.015 opt, 15 feet of 0.055 opt, and others as reported in the March 26, 2012 press release. These are considered significant intercepts for a first round of drilling. Multiple targets with up to half ounce gold in rock chip samples at surface remain to be drilled. Extensive drill roads allow access to permitted new targets and follow-up on remaining targets. Buffalo Canyon is a big area with many targets and the likelihood of finding significantly higher grades is strong. RenGold will be continuing to work on what it is believed are multiple systems of gold on the same property. The targets include intrusion related veins, breccias, stockworks and skarn associated with a tourmaline-bearing granodiorite. In addition, there are Carlin-like jasperoids with multi-gram gold at surface. Eldorado is focussing its efforts elsewhere and subsequently terminated its September 15, 2008, earn-in agreement with RenGold. In early September, the Company acquired adjoining claims that the previous owner allowed to lapse with large volumes of drilled low grade gold mineralization. The combined property offers a significant opportunity. RenGold will seek a new partner to continue with funding exploration of the project.

Holly Gold

The Holly Gold project is a newly acquired property located in the eastern part of the Antelope Springs Mining District in the southern part of the West Humboldt Range in Pershing County, Nevada. It is an epithermal gold, antimony and mercury exploration target located in a district with past production and historic drilling with meaningful grade. There are multiple target types including breccia-hosted, stockwork and disseminated gold. Known host rocks and a major thrust provide additional targets at shallow depths.

Sundance

The Sundance property is a newly acquired property located in the Wassuk Range about eight miles southwest of Hawthorne in Mineral County, Nevada. Gold with lesser silver values occurs in a set of southwest-dipping brecciated mesothermal quartz veins in a granitic host rock. Incomplete records of historic production between 1878 and 1936 indicate that several veins yielded a modest tonnage of high-grade ore. Initial mapping and sampling of the veins and adjoining wall rock to define drill targets will begin in the summer of 2012.

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.

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.

Contacts:

Renaissance Gold Inc.
Richard L. Bedell, 775-337-1545
rbedell@rengold.com
or
Eric Struhsacker, 775-337-1545
estruhsacker@rengold.com
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