Renaissance Gold Reports Second Quarter 2015 Results
Renaissance Gold Inc. (TSX: REN) (“RenGold” or the “Company”) reports financial results for the six months ended December 31, 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 six months ended December 31, 2014 was $1,030,411 (2013 - $1,201,960).
Cash at December 31, 2014, was $1,962,552, which amount includes $102,916 cash advances received from earn-in partners. There are no long-term liabilities.
Total assets at December 31, 2014 are $2,871,011 of which $2,080,647 are current assets and $790,364 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 wound up its Chilean subsidiary in September 2014.
Exploration expenditures on RenGold projects for the six months ended December 31, 2014 totaled $758,061 (2013 - $1,059,882). Of this amount partners funded $455,631 (2013 - $607,339) and RenGold funded the balance of $302,430 (2013 - $452,543). 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 agreements.
Overall Performance
At the date of this press release, RenGold has four properties under exploration earn-in agreements:
| Project | Funding partner | |||
| Fourth of July | Summit Mining Exploration, Inc., a US subsidiary of Sumitomo Corporation | |||
| Golden Shears | Callinan Royalties Corp. (TSXV:CAA) | |||
| Trinity Silver | Liberty Silver Corp. (LBSV:US) | |||
| Wood Hills South | Newmont USA Limited, a subsidiary of Newmont Mining Corp. (TSX: NMC) |
The highlights of activity by RenGold and its funding partners on its exploration properties during the six months ended December 31, 2014 and to the date of this press release follow in alphabetical order.
Nevada projects with funding partners:
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Fourth of July |
In October 2014, RenGold staff completed a three core hole 2,009 foot drill program 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. Results of this drill program are expected to be released in late February 2015, the results of which will guide a much larger drill program later in 2015.
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Golden Shears | RenGold is advancing the Golden Shears property in Clark County Nevada with Callinan Royalties Corp. ("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.
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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. In addition to the US$5,000,000 work commitment, Liberty must complete a bankable feasibility study by March 29, 2017 to earn an undivided 70% interest in the property. 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.
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| Woods Hills South | The Wood Hills South project is under an earn-in agreement with Newmont USA Limited (“Newmont”). Newmont completed significant activity in 2014 including further surface sampling, geophysics, and the completion of 5 reverse circulation holes totaling 3,460 feet. Results of these drill holes are expected to be released in late February 2015, the results of which will guide follow-up drilling in 2015.
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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 technical data, as disclosed in this press release, has been verified by the Company’s qualified persons Ronald L. Parratt, M.Sc. and Certified Professional Geologist, Richard L. Bedell, M.Sc. and Certified Professional Geologist and Eric M. Struhsacker, M.Sc. and Certified Professional Geologist.
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.
Contact
Renaissance Gold Inc.
Richard L. Bedell, 775-337-1545
rbedell@rengold.com
or
Eric Struhsacker, 775-337-1545
estruhsacker@rengold.com
