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Renaissance Gold says advances at its Nevada gold project could mean step-change for company

Mining major AngloGold Ashanti has significantly advanced the property and sunk 47 drill holes so far

Renaissance Gold, Inc. -
RenGold has struck more than 70 exploration agreements in the last 16 years, it said

Renaissance Gold Inc (CVE:REN) (OTCQB:RNSGF), the USA-focused prospect generator, enters the new year strongly, with high hopes for its Silicon gold project in Nevada, where it is partnered with major AngloGold Ashanti (JSE:ANG), it told investors. 

AngloGold has significantly advanced the property and sunk 47 drill holes so far. 

READ: Renaissance Gold expects drilling newsflow in coming months as it updates on this year's exploration

It has plans to carry out further drilling under a new plan of operations permit and if it chooses to complete the purchase option, its final payment of US$2.4 million (C$3.1 million) would be due in June this year. Renaissance Gold would hang on to a 1% net smelter royalty (NSR).

"The payment would be very meaningful and would fund the company for nearly two additional years and the royalty could potentially be very material for the company as the Silicon project progresses and the NSR becomes monetized," noted RenGold in Monday's statement.

It noted that it enters 2020 in a "strong position", with funding partners on six of its projects and a healthy treasury of C$3.56 million as at September 30 last year. It expects partners to drill on at least three of those six projects this year.

In 2019, its partners completed drilling on five of the company's projects and successfully generated and acquired four new high-quality exploration opportunities, it added.

Significant shareholder

It also welcomed Altius Minerals as a significant shareholder.

"We see each of our projects as a value creation opportunity, and our ability to generate, partner and drill test several projects every year is an excellent platform from which to maximize the probability of making another significant discovery and bring meaningful value to our shareholders," said Robert Felder,  the president and CEO at the company.

RenGold has struck more than 70 exploration agreements in the last 16 years, including those of its predecessor, AuEx Ventures Inc., and those from Kinetic Gold.

The strategy is to place its projects into exploration agreements, testing as many drill targets as possible and providing maximum exposure to success through discovery.

Contact the author at [email protected]

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TSX-V:OGN
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