Ginguro Jake, a subsidiary of Ginguro Gold, can earn the stake by spending US$3,000,000 over a five-year period and making payments to Renaissance Gold totaling US$25,000 before the first anniversary of the agreement.
For its part, Renaissance will exercise its option to acquire 100% of the Jake Creek from Ivy Minerals by issuing 372,541 shares to Ivy.
Jake Creek is a low-sulphidation epithermal gold target on the western margin of the Northern Nevada Rift, in a very similar geologic environment to the Midas gold deposit. Significant historical gold drill intercepts have been discovered but have never been followed up.
Ginguro is planning to conduct a surface geologic mapping and geochemical sampling program this season and the new data will be integrated with existing geophysical and drill data to design a follow-up drill program.
Renaissance also announced the acquisition of the Mars project in Lincoln County, Nevada.
The Mars project was acquired through a lease/option to purchase agreement with a third party, whereby Renaissance paid US$10,000 upon signing a definitive agreement and will pay US$10,000 on each anniversary of the agreement for up to 10 years to complete the purchase option.
Upon exercising the option, the vendor’s interest would revert to a 3% net smelter royalty, with 2% buyable for US$1,000,000 per 1%. Renaissance has no work commitments under this agreement.
Historic work on the project was conducted in the 1980s and 1990s and included three shallow drill programs that tested the system to a depth of less than 200 feet, and encountered multiple low-grade gold intercepts.
The company has staked additional claims to cover areas for new target generation and has begun geological, geochemical and geophysical work to develop a comprehensive understanding of the gold system and to develop additional targets for drilling. This project is available for an earn-in agreement, Renaissance said.
In other news, the company has decided not to maintain the Pluto project after examining recent drilling results while Troymet Exploration has returned the Wildcat project in Juab County, Utah to the company. Renaissance will retain the project and seek another partner.
“We are very pleased to get Jake Creek into a deal and continue exploration on this exciting project. Our new partners at Ginguro have significant technical experience exploring epithermal systems and are a good fit for this project,” said Robert Felder, the president and chief executive officer of Renaissance.
“We are also quite pleased with the acquisition of the Mars project. This represents a unique opportunity of the type that we seek in Nevada, where sound geological work around a known but under-explored system has the potential to yield very meaningful results.”