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Renaissance Gold targeting precious metal joint venture exploration projects

Snapshot

The company applies the extensive exploration experience and high-end technical skills of its founders and team members to search for and acquire high-quality precious metal projects

Renaissance Gold, Inc. - Renaissance Gold targets precious metal exploration projects

Quick facts: Orogen Royalties Inc.

Price: 0.325 CAD

TSX-V:OGN
Market: TSX-V
Market Cap: $55.44 m
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  • Gold-silver focused exploration company
  • Projects mainly located in Nevada
  • Involved in four partner-funded projects

What Renaissance Gold does:

Renaissance Gold Inc (CVE:REN) (OTCQB:RNSGF) is a Nevada-based, gold/silver-focused exploration company that emerged as a spin-out following the 2010 acquisition of AuEx Ventures, Inc. by Fronteer Gold, Inc.

The western US focused firm is a prospect generator utilizing a joint venture business model. The company applies the extensive exploration experience and high-end technical skills of its founders and team members to search for and acquire high-quality precious metal exploration projects that are then offered for joint venture to industry partners who provide exploration funding. It maintains a large portfolio of gold and silver exploration properties. 

Renaissance believes its extensive exploration experience and state-of-the-art technical capability that guided AuEx to a major discovery at Long Canyon, Nevada, will continue to direct the company toward new opportunities and new discoveries resulting in strong growth potential for shareholders.

The group employs leading-edge exploration technology, and has developed proprietary techniques for processing satellite, geophysical, and geochemical data to identify alteration and geologic features related to mineral deposits. It is this process of "refining the art of mineral exploration" that Renaissance thinks gives it an exploration advantage.

Renaissance is currently involved in four partner-funded projects: The Spring Peak Project, Mineral County, Nevada, where OceanaGold received the final drill permit from the US Forest Service in December 2019, and drilling is planned for Q3, 2020; the Mars Project, Lincoln County, Nevada where a reverse circulation drill program was completed in October 2019; the Jupiter project, Nye County, Nevada, which is subject to an earn-in agreement with Ramelius Resources Ltd and saw a third drill campaign under the agreement completed in November 2019.

The company also has the Silicon project in the Bare Mountains mining district of Nye County, Nevada, where in June last year its partner, AngloGold Ashanti Ltd (JSE:ANG) decided to keep its 100% earn-in option and made the first-anniversary payment of US$200,000.

How is it doing:

In an update in late March, Renaissance Gold told investors it is in good financial shape amid an uncertain time due to the coronavirus (COVID-19) pandemic.

"The COVID-19 threat has created a challenging situation around the world and we are fortunate to live at a time when our technical capabilities allow us to continue with our business remotely, with only minimal disruption," Renaissance CEO Robert Felder said in a statement, adding that the group has implemented a work from home strategy at both its Reno, Nevada and White Rock, British Columbia, offices until further notice.

The firm's 'generative' activities are continuing and discussions with potential new partners remain ongoing, he added.

As at the end of 2019, the firm said it had C$2.85 million in cash. A US$2.40 million (C$3.48M) payment is due in June this year from AngloGold Ashanti if it chooses to complete its option to acquire the Silicon Project. If it does so, Renaissance will retain a 1% net smelter royalty (NSR) on the project.

The firm said in March that six of its projects in option or earn-in agreements but added that drilling plans were uncertain and will be reported when they materialize later in the year.

In early May, the company announced that it had filed 66 unpatented mining claims comprising the Elba project in Esmeralda County, Nevada.

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.

Inflection points:

  • News on discussions with potential new partners
  • AngloGold Ashanti payment if it chooses to complete option to acquire the Silicon Project

What the boss says

Commenting on the Elba acquisition in May, Renaissance Gold president and chief executive, Robert Felder 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."

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