Nevada-based, gold-silver-focused Renaissance Gold Inc. (CVE:REN) announced Thursday it has entered into a mining sublease agreement with Newmont USA Ltd., covering approximately 1,120 acres of mineral rights adjacent the firm's controlled claims on its Ecru project in Lander county in Nevada.
The Ecru project is located in the Cortez area on the prolific Battle Mountain-Eureka trend of gold deposits.
"We are very pleased to have completed the Newmont Lease and bring this prospective ground into our project. We are now in a position to most effectively test the targets on the project, exploring for Carlin-type gold mineralization in this world class district," said president and chief executive officer Robert Felder.
The Newmont Lease is for a period of 10 years, with an option to extend the lease for an additional five years, and then indefinitely so long as mining, development or processing operations are being conducted on the property on a continuous basis.
RenGold is required to make annual payments to Newmont which will be deemed advance royalty payments to be offset against any future royalty obligations in the event of a mine being developed. Newmont holds a 0.875% net smelter return (NSR) on the leased ground.
The Newmont Lease area lies within the area of interest of an investment agreement with S2 Resources Ltd. (ASX:S2R), and will be included in the existing earn-in terms of that agreement. S2 will be responsible for maintaining the Newmont Lease during the term of the agreement.
The company said the existing geophysical coverage (gravity and audiomagnetotellurics (AMT) will be extended over the Newmont Lease ground in the coming weeks, to help to provide maximum data for the siting of the planned initial deep stratigraphic/reconnaissance drilling, which is planned for Q4, 2018.
Shares of Renaissance Gold were down 5% at C$0.19 on Thursday.