Renaissance Gold Reports Third Quarter 2013 Results
14.05.2013 | Business Wire
White Rock, British Columbia CANADA, May 13, 2013 - Renaissance Gold Inc. (REN - TSX), ("RenGold") reports financial results for the three and nine months ended March 31, 2013, Quarter 3 ("Q3" of fiscal year 2013). 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 three months ended March 31, 2013 was $779,509 (2012 - $946,151) and $2,899,197 (2012 - $2,814,609) for the nine months ended March 31, 2013.
Working capital at March 31, 2013 was $5,098,577 of which $4,928,810 is cash. There are no long-term liabilities.
Total assets at March 31, 2013 are $6,474,459 of which $5,198,291 are current assets and $1,276,168 are exploration and evaluation assets, property plant and equipment and reclamation bonds.
Operations
RenGold is an exploration stage business engaged in the acquisition and exploration of mineral properties located in the USA, Argentina, Chile and Spain. 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 Company's exploration expenditures are largely determined by the strength of the resource markets and by the status of the Company's projects in relation to those markets and its ability to compete for funding partners and investor support of its projects. The Company anticipates there will be less capital available for exploration joint ventures in the immediate future.
RenGold currently has 11 properties under exploration earn-in agreements:
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Project Funding partner:
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Nevada:
Big Gossan Summit Mining Exploration II, Inc. a US subsidiary of Sumitomo Corporation
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Leonid and Gold Star Lynx Resources (US) Inc.,
a US subsidiary of Cassini Resources Ltd. (ASX:CZI)
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Reef Golden Dory Resources Corp. (TSXV:GDR)
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Rose Mine Rose Gold LLC, a subsidiary of Navaho Gold Pty Ltd. (ASX:NVG)
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Spruce Mountain Summit Mining Exploration, Inc., a US subsidiary of Sumitomo Corporation
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Trinity Silver Liberty Silver Corp. (TSX:LSL)
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Argentina:
El Monte Agnico-Eagle Mines Limited (TSX:AEM)
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Gertrudis Agnico-Eagle Mines Limited (TSX:AEM)
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Meridiano Atala Resource Corporation
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Covadonga Atala Resource Corporation
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The highlights of activity by RenGold and its funding partners on its exploration properties during the three months ended March 31, 2013 and to May 13, 2013 (collectively "Q3"), follow in alphabetical order.
Nevada projects with funding partners:
Big Gossan
Q3 included analysis of results from Q2 and more detailed mapping and sampling to define drill targets in the area of the gossan.
Gold Star
Lynx has been reviewing results from Q2 and considering additional drill targets.
Spruce Mountain
A robust intercept in RSM-22 of 189.5 feet of 0.06% Mo offsets and validates historical drill results in the Sprucemont area and presents several possibilities for additional drill targets. In addition, the 2012 drilling intersected intervals of Carlin-style alteration and chemistry in carbonate host rocks located northwest of Sprucemont. Several targets remain for further consideration and work is in progress to assess the merits of the recognized targets and to develop a drilling program for 2013.
RenGold completed thirteen drill holes totaling 15,057 feet (4,589 meters) of drilling at Spruce Mountain in late 2012. The drilling program included 3,105 feet (946 meters) of mud rotary, 5,087 feet (1,551 meters) of core, and 6,865 feet (2,092 meters) of reverse circulation drilling. Drilling tested multiple targets including 8 holes in 3 zones along a 4.5 mile fault-controlled intrusive corridor striking northeastward from the town site of Sprucemont at the range front. An additional 5 holes were drilled in an area of peripheral Ag-Pb-Zn and Carlin-style Au mineralization northwest of the intrusive corridor. These holes tested extensions of targets detected with an 11 hole reverse circulation drilling program in 2011. The drilling intercepted multiple intrusions associated with base and precious metal mineralization under alluvial cover expanding the known extent of the intrusive systems along the range front.
Wood Hills South
In April 2013, the Company announced drill results from a 2013 drill program that was operated and funded by NuLegacy. Five reverse circulation angle holes were drilled totaling 1,225.3 meters (4,020 feet). The holes were designed to test three gravity lows including one near WHS11-007. The holes intersected considerable thicknesses of anomalous gold and trace elements. All five holes encountered intensely fractured and brecciated carbonate in the areas of the gravity lows, confirming the geophysical interpretation.
Drilling in 2011 and 2012 consisted of 20 reverse circulation holes to test geophysical and soil geochemical anomalies, several of which intersected anomalous gold, the most significant of which was hole WHS11-007 which contained 10.7 meters of 0.40 g/t Au. (NR Feb 6, 2012). A subsequent microgravity survey defined several gravity lows suggesting areas of broken carbonate that might be similar in nature to those that hosted the large volumes of higher grade gold mineralization in the Long Canyon gold deposit. Hole WHS11-007 is located on the margin of one of the gravity anomalies.
In April 2013, NuLegacy terminated the earn-in agreement in order to conserve its cash and focus its activities elsewhere. Rengold has been approached by other parties interested in a possible venture agreement on the property. Drilling and surface data continue to support the potential presence of Carlin Type gold deposits, as southwestward extensions of the Pequop Gold District.
Utah projects with funding partners:
Wildcat
Newmont Mining Corporation completed reverse circulation drilling of 2,751 meters (9,025 feet) on targets designed to test surface anomalies. However, in April 2013 Newmont elected to terminate its earn-in agreement. RenGold is currently looking for a replacement funding partner.
Argentina projects with funding partners:
Atala
On October 15, 2012, RenGold signed an exploration earn-in agreement with Atala, a Canadian corporation, covering each of the Covadonga and Meridiano projects in Argentina. The first year work commitment is $100,000 on each project.
Agnico Eagle
The El Monte and Gertrudis Projects remain in an agreement with Agnico Eagle. A cessation of work on the projects continues in the hope that the political and logistical climate will improve during calendar year 2013.
Nevada properties being prepared for joint venture:
During Q3, RenGold conducted reconnaissance exploration programs to prepare these projects for joint venture.
Arabia
The Arabia project is located in an orogenic silver, lead, antimony and gold district near Lovelock in Pershing County, Nevada. Several parties are actively reviewing the Arabia property for a potential venture agreement.
Sinter
In April 2013, RenGold completed a shallow reverse circulation drill program designed to test the gold-bearing quartz-adularia vein system exposed in the trenches dug in November, 2012. The drill program consisted 1,720 feet in 10 holes, which were short angle holes ranging in depth from 80 to 350 feet. Assays are currently pending.
Whistler
Several parties are reviewing the Whistler project for potential venture. Whistler lies northwest of Eureka, Nevada, along the Battle Mountain Eureka trend.
Spain property being prepared for joint venture:
Baza
The Baza Project comprises a 12,000 hectare (29,652 acre) land package in the Almeria Province of Southern Spain on the southern slopes of the Sierra de los Filabres. Results from 2 diamond core holes completed in December 2012 at the Rambla de Gilma Prospect within the Marcia III concession are being compiled, QA/QC is being completed, and results are expected for release in Q4.
Work has continued on data compilation and target definition at the Company's projects being prepared for joint venture. Black Canyon, Broken Hills, Buffalo Canyon, Bunce, Fireball Ridge, Fourth of July, Gold Point, Green Monster, Holly Gold, JPW, and King Solomon are currently available for joint venture.
Generative
Generative exploration is the core of RenGold's business. Property submittal evaluations and generative programs in Nevada, Utah and Chile are ongoing. 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.
Work on orogenic gold systems continued in western Nevada as well as exploration for Carlin Type systems in eastern Nevada. In addition, programs were designed for exploration during the winter in the southern Great Basin.
In South America, the Company has organized Renaissance Gold Chile SpA as a wholly owned subsidiary and exploration programs in Chile have begun.
Qualified Person
All technical data disclosed in this press release, including sampling, analytical and test data have been reviewed by the Company's qualified person Mr. Eric M. Struhsacker, M.Sc., and Certified Professional Geologist as recognized by the American Institute of Professional Geologists.
Renaissance Gold Inc.
Renaissance Gold Inc. is a gold/silver exploration company that has a large portfolio of exploration projects in Nevada, Utah, Argentina, Chile and Spain. 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:
Renaissance Gold Inc.
Richard L. Bedell
775-337-1545 or rbedell@rengold.com
Eric M. 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.