Renaissance Gold Inc. (“Rengold” or “Company”) is pleased to announce the release of a significant increase to the resource estimate for the Trinity Silver Project located in Pershing County, Nevada, as reported by venture partner Liberty Silver Corporation (TSX: LSL). SRK Consulting (U.S.) Inc of Reno, Nevada (SRK) prepared the resource estimate effective December 18, 2012. The resource estimate includes both oxide and sulfide material as reported in Tables 1 and 2 below:
Table 1. Mineral Resource Statement of the Trinity Oxide Silver Deposit
|Resource Category||Tons (MM)||Silver Grade||Contained Metal|
Table 2a. Mineral Resource Statement of the Trinity Silver-Lead-Zinc Sulfide Deposit
|Resource Category||Tons (MM)||Silver Grade||Lead Grade||Zinc Grade||Equivalent Silver Grade|
Table 2b. Mineral Resource Statement of the Trinity Silver-Lead-Zinc Sulfide Deposit, Total Contained Metal
|Silver (oz)||Lead (lbs)||Zinc (lbs)||AgEq (oz)|
Assumptions applied by SRK to the new resource estimate follow:
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability;
There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves estimate;
Oxide and sulfide resources are stated as contained within a single potentially economic mineable open pit using a 0.5 oz/ton Ag cutoff grade for oxide and a 0.8 oz/ton silver equivalent (AgEq.) cutoff grade for sulfide;
Resources stated in Tables 1 and 2 are the oxide and sulfide components of the total Trinity Deposit inferred resource;
Pit optimization is based on one-year trailing silver, lead, and zinc prices of US$31.08/oz, US$0.94/lb, US$0.88 respectively;
Silver equivalent is based on three-year trailing silver, lead, and zinc prices of US$28.41/oz, US$1.02/lb, US$0.96 respectively;
A tonnage factor of 13.7 cubic feet per ton was used for oxide;
A tonnage factor of 13.3 cubic feet per ton was used for sulfide;
Oxide metallurgical recovery of 68.6% for silver was applied with an ore mining and processing cost of US$7.05/ton;
Sulfide metallurgical recoveries of 85.5% for silver, 85.4% for lead, and 82.8% for zinc were applied with an ore mining and processing cost of US$10.55/ton;
A 4% Net Smelter Return(NSR) royalty associated with the project was applied in metal value calculations;
A pit slope of 50° was used based on historic performance of the existing Trinity Pit;
Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate and numbers may not add due to rounding.
The new classified oxide mineral resource estimate represents an increase from an inferred resource of 2,605,000 ounces silver at an average grade of 1.37 oz/ton (1,901,000 tons) prepared by Mine Development Associates and reported by Liberty Silver on February 28, 2011. Also, the new classified sulfide mineral resource estimate represents an increase from an inferred resource of 9,036,000 ounces silver at an average grade of 1.69 oz/ton (5,336,000 tons) reported in the 2011. The increases are mainly due to the acquisition of mineralized mining claims adjoining the eastern boundary of the 2011 Trinity Silver resource and to the increase in silver price since the announcement of the initial resource estimate. Liberty Silver reported the acquisition of the adjoining claims in a news release on August 8, 2012. Data from 89 historic conventional rotary and reverse circulation drill holes completed on the claims supports an expansion of the silver and base metal resource on the reunited Trinity Silver Project property.
The new oxide resource uses a cutoff grade of 0.50 oz/ton silver as compared to a cutoff grade of 0.65oz/ton silver in 2011. The updated cutoff grade was chosen to capture mineralization potentially available to open pit extraction and heap leach processing, and was derived using a US$31.08 per ounce silver price (one-year average) and a 68.6% heap leach recovery factor, as compared to $17 per ounce silver price (three-year average) and a 75% heap leach recovery factor in the 2011 report. The new sulfide resource uses a cutoff grade of 0.8 oz/ton silver equivalent as compared to a 1.3 oz/ton silver-equivalent cutoff grade in 2011, chosen to reflect potential open-pit mining, milling, and production of concentrates by flotation. The cutoff assumes 85.5% recovery by flotation for silver, 85.4% for lead, and 82.8% for zinc, and metal prices of US$31.08 per ounce for silver and US$0.94 per pound for lead, and US$0.88 per pound for zinc.
SRK prepared the new resource estimate using assay results from a historic database of 296 drill holes of which 89 were drilled on the recently acquired claims. U.S. Borax, the mine operator in the 1980’s, drilled most of the holes and completed processing and metallurgical studies used by SRK in the new resource estimate. The predominant use of historic drilling data mandated the classification of the resource as inferred. An upgrade of the resource to indicated or measured categories will require new validation drilling. Liberty Silver initiated a program of validation and step-out drilling early in 2012 and completed 18 reverse circulation holes as reported by their news release on July 9, 2012. Further drilling will test the resource area described in the NI 43-101 and surrounding areas for extensions to known mineralization.
Richard Bedell President and CEO of Renaissance Gold comments: “These results more than double the resource at Trinity and represent a solid asset for the company. The geology is similar to some of the world’s largest silver deposits such as Potosi in Bolivia and offers exploration opportunity. We expect that our partners will expand the resource in addition to their work on its economic definition."
The person responsible for the resource estimate on behalf of SRK is Jay Pennington, a Qualified Person as defined by National Instrument 43-101. Mr. Pennington is a certified professional geologist as recognized by the American Institute of Professional Geologists and has over 27 years of experience in mineral exploration and resource geology. Further details of the estimation procedure will be available in the NI 43-101 report, which will be posted on SEDAR (http://www.sedar.com/), no later than 45 days from the date of this release.
Eric M. Struhsacker, Certified Professional Geologist, is the Company’s designated Qualified Person for this news release and has reviewed the information contained in the release and confirmed that it is consistent with that provided by Jay Pennington of SRK, the independent QP responsible for the resource estimate.
About Renaissance Gold Inc.
Renaissance Gold is a precious metals exploration company that has a large portfolio of gold/silver exploration projects in Nevada, Utah, Argentina and Spain. RenGold controls over 100,000 acres of unpatented claims and fee land in prospective areas of Nevada. The majority of the projects are in exploration earn-in agreements with industry partners who provide exploration funding. Renaissance Gold applies the extensive exploration experience and high-end technical skills of its founders to search for and acquire new precious metal exploration projects that are then offered for joint venture. Renaissance Gold’s common shares trade on the Toronto Stock Exchange under the symbol REN.
Renaissance Gold Inc.
By: Richard L. Bedell, President and CEO
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although the management of Rengold 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 or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.
This press release uses the terms "indicated resources" and "inferred resources", which are calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. We advise investors that while those terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. In addition, "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally minable.
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