Renaissance Gold has entered into a mining sublease agreement with Newmont USA (Newmont Lease) covering nearly 1120 acres of mineral rights near its controlled claims on its Ecru Project, Lander County, Nevada.
The Ecru Project is located in the Cortez area on the prolific Battle Mountain-Eureka trend of gold deposits.
Renaissance Gold president and CEO Robert Felder said: “We are very pleased to have completed the Newmont Lease and bring this prospective ground into our project. We are now in a position to most effectively test the targets on the project, exploring for Carlin-type gold mineralization in this world class district.”
The Newmont Lease is for a period of 10 years, with an option to extend the lease for an additional 5 years, and then indefinitely so long as mining, development or processing operations are being conducted on the property on a continuous basis.
RenGold is required to make annual payments to Newmont which will be deemed advance royalty payments to be offset against any future royalty obligations in the event of a mine being developed. Newmont holds a 0.875% net smelter return (NSR) on the leased ground.
The Newmont Lease area lies within the area of interest of an investment agreement with S2 Resources Ltd. (the “Investment Agreement”) (see NR dated July 31, 2017), and will be included in the existing earn-in terms of that agreement.
S2 will be responsible for maintaining the Newmont Lease during the term of the Investment Agreement.
The existing geophysical coverage (gravity and audiomagnetotellurics (AMT)) will be extended over the Newmont Lease ground in the coming weeks to provide maximum data for the sitting of the planned initial deep stratigraphic/reconnaissance drilling, which is planned for Q4, 2018 over the now expanded Ecru property.
Source: Company Press Release