The company noted that the project area is located approximately 45 kilometers (km) west-northwest of Tonopah, Nevada and sits within a large (8km2) alteration zone which is hosted by an arcuate rhyolite dome field.
It said the claims cover around four square kilometers and are located within a large alteration zone characterized by an alunite-kaolinite-buddingtonite mineral assemblage, consistent with alteration typical of the upper levels of an epithermal gold system.
Renaissance Gold noted that Elba is part of the “prolific” Walker Lane mineral trend and that historic drilling had intersected anomalous gold of between 0.1-0.7 grams per tonne (g/t) and mercury up to 10 parts per million in opalite horizons and breccia.
In a statement, Robert Felder, president and chief executive of Renaissance Gold said: "Our generative team has continued to effectively employ our proprietary exploration model to develop high-quality targets. Elba shares significant favorable characteristics with our Silicon project, and we believe it represents a meaningful discovery opportunity. We are happy to see AngloGold's interest in this target area, which is not surprising considering the striking similarities to Silicon."
Renaissance Gold's Silicon Project in Nye County, Nevada is under an option to purchase agreement with AngloGold Ashanti NA. Under the terms of the agreement, AngloGold has the option to acquire a 100% interest in the project by paying RenGold US$3,000,000 by June 21, 2020, of which AngloGold has now paid US$600,000.
If AngloGold completes the payments and exercises the purchase option, Renaissance Gold would retain a 1% net smelter return (NSR) royalty on future production from the project.
Contact the author Calum Muirhead at [email protected]