Renaissance Gold Inc. (TSX: REN) (“RenGold”) reports financial results for the three and six months ended December 31, 2012, Quarter 2 (“Q2” of fiscal year 2013). 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 December 31, 2012, was $675,060 (2011 - $1,209,480) and $2,119,688 (2011 - $1,868,458) for the six months ended December 31, 2012.
Working capital at December 31, 2012 was $5,770,282 of which $5,686,922 is cash. There are no long-term liabilities.
Total assets at December 31, 2012, are $7,319,814 of which $6,120,834 are current assets and $1,198,980 are exploration and evaluation assets, property plant and equipment and reclamation bonds.
RenGold is an exploration stage business engaged in the acquisition and exploration of mineral properties located in the USA, Argentina, Chile 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 enabling the earn-in partner to obtain an interest by conducting and funding exploration on that property.
RenGold currently has 13 properties under exploration earn-in agreements:
|Big Gossan||Summit Mining Exploration II, Inc. a US subsidiary of Sumitomo Corporation|
|Leonid 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)|
|Wildcat||Newmont Mining Corporation. (TSX: NMC)|
|El Monte||Agnico-Eagle Mines Limited (TSX:AEM)|
|Gertrudis||Agnico-Eagle Mines Limited (TSX:AEM)|
|Meridiano||Atala Resource Corporation|
|Covadonga||Atala Resource Corporation|
The highlights of activity by RenGold and its funding partners on its exploration properties during the three months ended December 31, 2012 and to February 11, 2013 (collectively “Q2”), follow in alphabetical order.
Nevada projects with funding partners:
Q2 included more detailed mapping and sampling to define drill targets in the area of the gossan.
Lynx drilled two reverse circulation holes totaling 152 meters (500 feet) on one leasehold controlled patented claim where minimal permitting was allowed. Assays have two reportable intercepts: 3 meters (10 feet) of 0.75 g/t (0.022 opt) Au and 7.6 meters (25 feet) of 34.6 g/t (1.11 opt) Ag.
A widely spaced drill program covering many targets was conducted from August through October. Thirteen reverse circulation, core, and conventional rotary drill holes tested gold and base metal targets for a total of 4,591 meters (15,057 feet) of drilling. Results are being compiled for release in the third quarter.
An updated NI 43-101 compliant resource was announced January 7, 2013, that increased the inferred resource estimates in both the oxide and sulfide deposits. The oxide inferred resource is 6.43 MM tons at a grade of 1.134 Ag oz/ton for 7,387,369 contained ounces of silver at a 0.50 Ag oz/ton cutoff. The sulphide inferred resource is 19.79 MM tons at a grade of 1.07 Ag oz/ton, 0.217% lead, 0.354% zinc for an equivalent silver grade of 1.46 oz/ton for 28,836,759 silver equivalent ounces at a 0.80 AgEq oz/ton cutoff. This is a significant increase and Liberty Silver is currently moving multiple studies forward with a goal of getting the oxide into production. Importantly, these numbers do not include existing dumps and leach pad, which will be subject to future evaluation.
Wood Hills South
NuLegacy has mobilized a reverse circulation drill rig onto the property to test possible extensions of the gold-bearing zone intersected in drilling as reported March 14, 2012. Drill samples from this gold intercept display alteration and chemistry associated with Carlin Type gold deposits, suggesting that the Pequop Gold District could extend southwestward into the Wood Hills South prospect area.
Utah projects with funding partners:
Newmont has completed reverse circulation drilling of 2,751 meters (9,025 feet) on targets designed to test surface anomalies. The most significant intercept in the twelve hole program was 3 meters (10 feet) of 0.138 g/t (0.004 oz/ton) Au at 6 to 9 meters (20 to30 feet) in hole NWH-00006. Newmont has subsequently reinterpreted the geology and is considering further work.
Argentina projects with funding partners:
On October 15, 2012, RenGold signed an exploration earn-in agreement with Atala, a Canadian corporation, covering each of the Covadonga and Meridiano projects in Argentina. Atala has commissioned a NI 43-101 report on these projects that, when final, will be available on Atala’s profile on SEDAR expected to be in the third quarter of 2013.
The El Monte and Gertrudis Projects are in an agreement with Agnico Eagle. Work on the El Monte and Gertrudis Projects was temporarily suspended in the hope that the political and logistical climate will improve during calendar year 2013.
Nevada properties being prepared for joint venture:
During Q2, RenGold conducted reconnaissance exploration programs to prepare these projects for joint venture.
The Arabia project is located in an orogenic silver, lead, antimony and gold district near Lovelock in Pershing County, Nevada. RenGold consolidated both unpatented and patented mining claims to further expand the project. Pursuant to trenching results on the patents owned by RenGold, five shallow holes totalling 463.3 meters (1,520 feet) were drilled on a small portion of the property.
Reportable intercepts were encountered in four of the five drill holes. This drill data provided a geologic fence across a structural zone that was terminated at depth by a granodiorite sill, but mineralization was intersected beneath this unit providing further upside for the zone. This new drilling combined with results from prior drilling by New Sleeper Gold on another patented claim, under control by RenGold and located 760 meters (2500 feet) to the east, provides a framework for continued exploration.
Further mapping and sampling resulted in the discovery of stockwork mineralization in a rhyolite porphyry at the Black Canyon Project, similar to that found at the Barrick Gold-Midway Gold, Spring Valley deposit located to the south.
RenGold completed a drill road to prepare for drilling an outcropping banded epithermal vein. RenGold’s trenching across the footwall exposed 12 feet of 5.92 g/t Au with select grab samples up to 12.64 g/t Au. The more prospective hanging wall is buried.
The Whistler project, northwest of Eureka, Nevada, along the Battle Mountain Eureka trend received additional field work and sampling.
Spain property being prepared for joint venture:
The Baza Project comprises a 12,000 hectare (29,652 acre) land package in the Almeria Province of Southern Spain on the southern slopes of the Sierra de los Filabres. Additional field work and surface sampling was completed in Q2. In addition, 2 diamond core holes were drilled at the Rambla de Gilma Prospect within the Marcia III concession. Drill hole RGH-01 was drilled to a depth of 95.4 meters (313 feet). Due to poor recovery, a second hole drilled 4 meters (13 feet) to the northwest was completed to only 18.5 meters (59.3 feet). From 9.8 meters to 11.6 meters (32.2 to 38.1 feet) recovery was 0%. The recovered core is now split and at the lab for assay.
Work has continued on data compilation and target definition at the Company’s projects being prepared for joint venture. Black Canyon, Broken Hills, Buffalo Canyon, Bunce, Fireball Ridge, Fourth of July, Gold Point, Green Monster, Holly Gold, JPW, King Solomon and Sundance are currently available for venture.
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.
Work on orogenic gold systems continued in western Nevada as well as exploration for Carlin Type systems in eastern Nevada. In addition, programs were designed for exploration during the winter in the southern Great Basin.
In South America, the Company has organized Renaissance Gold Chile SpA as a wholly owned subsidiary and exploration programs in Chile have begun.
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, Chile 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
For further information, contact:
Richard L. Bedell, 775-337-1545 or firstname.lastname@example.org
Eric M. Struhsacker, 775-337-1545 or email@example.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.