Jake Creek Agreement And New Gold Target Acquisition
WHITE ROCK, BC - Renaissance Gold Inc. reported that its wholly-owned subsidiary, Kinetic Gold (US) Inc. has signed a definitive agreement with Ginguro Jake Inc., a subsidiary of Ginguro Gold Pty. Ltd. on its Jake Creek Project in Humboldt County, Nevada. The agreement grants Ginguro the option to acquire a 70% interest in the project by spending US$3,000,000 over a 5-year period and making payments to the Company totaling US$25,000 before the first anniversary of the agreement. Jake Creek is a low-sulfidation epithermal gold target on the western margin of the Northern Nevada Rift, in a very similar geologic environment to the Midas gold deposit. Significant historical gold drill intercepts, which have never been followed up.
Ginguro is planning to conduct a surface geologic mapping and geochemical sampling program this season, and the new data will be integrated with existing geophysical and drill data to design a follow-up drill program. Pursuant to an option agreement between Ivy Minerals Inc. (“IMI”) and Kinetic Gold (US) Inc., effective August 12, 2013 (as amended), the Company will immediately exercise its option to purchase 100% of the Jake Creek project from IMI for the agreed upon consideration of 372,541 common shares of the Company.
The Company also reported the acquisition of the Mars Project in Lincoln County, Nevada. The property hosts a Carlin-type target in lower Paleozoic sedimentary rocks, characterized by anomalous gold in soils, extensive jasperoid alteration with rock chip assays up to 3.7 g/t Au and strongly anomalous in the typical Carlin suite pathfinder elements As, Sb and Hg. Historic work on the project was conducted in the 1980s and 1990s and included three shallow drill programs that tested the system to a depth of less than 200 feet, and encountered multiple low-grade gold intercepts. The gold system is exposed over a 4.5 km area and occurs peripheral to a Mesozoic intrusive center. RenGold’s technical team recognized this project as a significant discovery opportunity based on the geologic setting, the existence of an already known, exposed gold system, the very shallow past drilling and the absence of past work to develop structural and stratigraphic targets where the system dips under cover rocks. The Company has staked additional claims to cover areas for new target generation and has begun geological, geochemical and geophysical work to develop a comprehensive understanding of the gold system and to develop additional targets for drilling. This project is available for an earn-in agreement.
Robert Felder, President and CEO said, “We are very pleased to get Jake Creek into a deal and continue exploration on this exciting project. Our new partners at Ginguro have significant technical experience exploring epithermal systems and are a good fit for this project. We are also quite pleased with the acquisition of the Mars Project. This represents a unique opportunity of the type that we seek in Nevada, where sound geological work around a known, but underexplored system has the potential to yield very meaningful results.”