Renaissance Gold Options Nevada’s Spruce Mountain Project to Sumitomo
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Renaissance Gold Inc. has entered into an exploration earn-in agreement with Summit Mining Exploration, Inc., a US subsidiary of Sumitomo Corporation.The agreement covers the company’s 100 percent owned flagship Spruce Mountain Project located in Elko County, Nevada.
The Spruce Mountain Project is located approximately 180 miles west of Salt Lake City, Utah, and 350 miles east of Reno, Nevada, and 50 miles east of Elko, Nevada. Known gold and base metal mineralization occurs in historic underground mines and small prospect pits located along the range front of the RenGold Spruce Mountain Project. RenGold has been successful in defining three areas that are prospective for gold mineralization; the North Target, the South Target and Sprucemont. The North Target hosts Carlin-style gold mineralization in favorable rocks of the Pilot Shale, similar geologically to the Alligator Ridge Vantage deposit to the southeast.
The Sprucemont Target has geochemical and geophysical signatures similar to gold skarns and distal porphyry mineralization.The South Target is conceptual, based on geological and geophysical interpretations projecting favorable units of the Pogonip Group and Notch Peak Formation at depth beneath range front bedrock exposures and beneath alluvial cover in the valley west of the range front.It has geological characteristics similar to the Carlin-style mineralization at the Long Canyon deposit 25 miles to the northeast.
Exploration activities by RenGold were designed to confirm the historical activities and generate new data to define targets for further exploration and drilling at the Spruce Mountain Project.Rock and soil geochemical surveys have confirmed and further defined the areas of interest delineated by previous operators. Geophysical surveys have increased the understanding of the structures and defined possible buried intrusive bodies.Based on RenGold’s work, all three target areas require further work and drill testing.
Under the terms of the agreement, Summit paid the company US $358,355.50, comprised of the initial option payment of US $200,000 plus US $158,355.50 representing claim maintenance fees for 2011. Summit must spend US $1,300,000 the first year (including payments to RenGold), US $1,500,000 the second year and a minimum of US $500,000 per year thereafter. To maintain the agreement and to vest its 70 percent interest in the property, Summit is required to produce a bankable feasibility study by July 15, 2019, and to have expended a minimum of US $10,000,000 in exploration and development expenses by that date. If Summit elects to terminate the agreement without vesting but has expended a minimum of US $10,000,000 it shall be entitled to a 3 percent net smelter return royalty on the property’s production capped at twice the amount it has expended to the date of termination.
If Summit has not produced a BFS before July 15, 2019, but wishes to maintain its earn-in right then it must pay RenGold US $100,000 a year and expend a minimum of US $1,000,000 a year until it has either completed a BFS or has terminated the agreement. If Summit vests at 70 percent, then RenGold and Summit will enter into a joint venture agreement, which will provide that if a party is reduced to less than 10 percent then that party’s interest shall be converted to a 3 percent NSR royalty. If a minority partner in the joint venture votes against commencing mine construction then the minority partner will have a one-time option to cause the majority partner to purchase their interest in the joint venture at a price based on information in the BFS.
About Renaissance Gold Inc.
Renaissance Gold Inc. is a gold/silver exploration company that has a large portfolio of exploration projects in Nevada, Utah, Argentina 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 to search for and acquire new precious metal exploration projects that are then offered for joint venture.
To stop by Renaissance Gold’s website, CLICK HERE
About Sumitomo Corporation
Sumitomo Corporation is one of the largest integrated trading and investment companies in Japan. Sumitomo Corporation, a fortune 500 company, conducts commodity transactions in all industries utilizing worldwide networks, provides related customers with various financing, serves as an organizer and a coordinator for various projects, and invests in businesses from the information industry to the retailing industry. Summit Mining Exploration, Inc. is wholly owned subsidiary of Sumitomo Corporation and it’s headquarter is located in Colorado.
To stop by Sumitomo Corporation’s website, CLICK HERE
