Renaissance Gold Reports Year-End 2015 Results

White Rock, British Columbia (FSCwire) - Renaissance Gold Inc. (TSX: REN) (“RenGold” or the “Company”) reports financial results for the year ended June 30, 2015.  Details of the Company’s financial results are described in the audited consolidated 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 year ended June 30, 2015 was $1,858,296 (2014 - $2,156,813).

Cash at June 30, 2015, was $1,897,176.  This amount includes $245,881 of cash advances received from funding partners which is disclosed as amounts due to funding partners. 

Total assets at June 30, 2015 are $2,409,282 of which $2,095,666 are current assets and $313,616 are exploration and evaluation assets, equipment, investment in private corporation and reclamation bonds.

Operations

RenGold is an exploration stage business engaged in the acquisition and exploration of mineral properties located in Nevada and Utah.  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 level of the Company’s exploration expenditures is largely determined by the strength of the resource capital and commodity markets and its ability to obtain funding partners and investor support for its projects.  The Company anticipates there will be less capital available for exploration joint ventures in the immediate future. RenGold is therefore concentrating activities in Nevada and Utah to upgrade current projects and identify targets with significant growth potential.  Accordingly, RenGold sold its Argentine subsidiary in February 2014, its Spanish subsidiary in August 2014, and dissolved its Chilean subsidiary in September 2014.

Exploration expenditures on RenGold projects totaled $1,601,499 (2014 - $1,694,259) during the year ended June 30, 2015.   Of this amount partners funded $1,207,448 (2014 - $974,599) and RenGold funded the balance of $394,051 (2014 - $719,660).  In addition to the exploration expenditures recorded in RenGold’s accounts, funding partners also conducted additional exploration programs directly on RenGold’s projects as required under the particular exploration earn-in agreement.

Overall Performance

At the date of this press release, RenGold has six properties under exploration funding agreements:

RenGold’s current portfolio of precious metal exploration targets is located in Nevada and Utah. Certain of these projects are in earn-in agreements with different industry partners providing funding for exploration activities.  The details of the earn-in agreements and the Company’s expenditures on these activities, both before and after recoveries from funding partners, are detailed in Note 8 of the Financial Report.  The highlights of activity by RenGold and its funding partners on its exploration properties during the year ended June 30, 2015 and to the date of this MD&A follow in alphabetical order.

Nevada projects with funding partners:

Arabia: On February 24, 2015, the Company signed a letter of intent to enter into an earn-in agreement with Coeur Mining Inc. (“Coeur”).  Pursuant to the letter of intent, Coeur paid the Company US$78,000 and reimbursed the Company for certain exploration costs incurred by the Company on behalf of Coeur.  The terms of the earn-in agreement require Coeur to pay RenGold escalating anniversary payments of US$50,000 up to a total of US$325,000. Minimum work commitments are US$100,000 for the first two years with the first year being an obligation, US$200,000 in the third year and US$500,000 each anniversary through the tenth year. Upon completing a bankable feasibility study, Coeur will have vested a 70% undivided interest in the project. If Coeur terminates the option after expending more than US$3,000,000 then Coeur will be entitled to a 3% net smelter return (“NSR”) royalty capped at twice the amount of Coeur’s investment prior to termination. 

The Arabia project is located in Pershing County just west of the Humboldt Range and RenGold’s Fourth of July project. Field work, completed as a follow-up to detailed aeromagnetic and gravity surveys, helped to delineate areas of interest within the project. An infill gravity survey is being designed to enhance the areas of focus for a 2016 drill program.

Fourth of July: The Fourth of July project is located in the northern Humboldt Range of Pershing County and just north of the evolving Spring Valley gold project, which is a joint venture between Barrick and Midway. Field work is underway to precisely define the next round of drill targets. The drill program will test several targets predominantly using RC (reverse circulation) drilling, likely in September 2015. This year's budget is US$600,000 and will be used to fund drill tests of this target rich project. The exploration focus is silver and gold although the district has historically produced tungsten and antimony as well.

The Fourth of July project is funded by Summit Mining Exploration II, Inc., (“Summit II”) a US subsidiary of Sumitomo Corporation.

On February 17, 2015, the Company released the results of the initial 2014 drill program.  The program was a small campaign of 3 core holes to determine the architecture of this complex system as a precursor to the larger RC drill program. This initial phase tested the concept that the graben-bounding faults were conduits for the mineralizing fluids that formed the flat veins of the Arizona Mine and several other smaller mines nearby.  Assay results of the drilling identified several anomalous zones of silver and/or gold that will assist in defining drill targets for the next phase of drilling.  Drill hole penetrations (1) defined the geometry of the graben-bounding structures, (2) defined the depth and geometry of the unconformity between the overlying limestone and the older rhyolite, (3) identified the presence of multiple generations of mineralization and intrusion and (4) identified the presence of strong alteration and mineralization in the rhyolite units within the Arizona Graben. Regional surface geochemistry indicates a zoned intrusion related system that focuses silver within the Arizona and Wheeler Mines and a peripheral high gold signature to the east and west. 

Golden Shears: On March 25, 2015, the Company entered into an exploration earn-in agreement with Walmer Capital Corp. (“Walmer”).  On signing the agreement, Walmer paid RenGold $23,474 (US$20,000).  The payment was first credited against the acquisition costs for $1,386 (US$1,184), with the remainder of $22,088 (US$18,816) being recorded as a recovery of exploration and evaluation expenditures on the statement of loss and comprehensive loss for the year ended June 30, 2015.  The agreement requires a down payment of US$50,000 so US$30,000 is still outstanding as is the cost of claim fees paid in 2014 of US$33,426.  These amounts are due September 25, 2015.  Pursuant to the agreement, the annual exploration commitments are US$200,000 in the first year, US$300,000 in the second year, US$400,000 in the third year and US$500,000 in the fourth through seventh years, to earn a 70% interest in the property.  A bankable feasibility study is also required and if not completed at the end of seven years Walmer can extend the option period for another five years by spending US$1,000,000 per year on the property and by paying the Company US$100,000 per year in each of the years in this subsequent option period.  If Walmer terminates the option after expending more than US$3,000,000 then Walmer will be entitled to a 3% NSR royalty capped at twice the amount of Walmer’s investment prior to termination. 

As announced August 25 2015, the Company delivered Walmer a notice of default as certain amounts were not advanced on time.  The Company is currently working with Walmer to revise the terms of the agreement.

Walmer has commissioned a technical report from Mr. R.A. Lunceford, an independent Qualified Person reporting on the extensive work done by the Company and the results of 8 audit rock samples collected by Mr. Lunceford from targets on the property.

The Golden Shears project is located on the east side of the Goodsprings district in Clark County. The Phase I recommended budget includes five RC drill holes averaging approximately 600 feet in depth as well as a rigorous and comprehensive program of QA/QC sampling to validate drill results.  A minimum of US$200,000 must be spent in the first agreement year.

The Golden Shears Project is a series of precious and base metal rich occurrences on the east side of the Goodsprings District, partially hosted in a shear zone and related to a string of shallow intrusions mostly interpreted through recent ground geophysics and mapping completed by RenGold. This zone is > 2.5 km (1.5 miles) in strike length. Sampling by RenGold on the property has yielded assays from below detection up to 5.1 % Zn, 2.62 % Pb, 4.3 % Cu, 937 ppm Ag, and 14.3 ppm Au.

The Goodsprings Mining District is unusual for Nevada in that it includes Zn and Pb Mississippi Valley-type deposits, Cu sometimes associated with precious metals and platinum group elements, and gold + silver deposits associated with late (Triassic) porphyritic dikes.

Golden Shears contains high grades of precious and base metal mineralization in a zone with significant strike length. In addition, the targets are shallow and should allow extensive testing at relatively low cost.

Silicon: RenGold's Silicon property is in the Bare Mountain Mining District of southern Nevada. The property consists of unburdened claims on federal BLM ground. RenGold is advancing the Silicon property with Altius Minerals Corp. (formerly Callinan Royalties Corp.) funding a $140,000 work program in exchange for a 1.5% NSR royalty. Field work has commenced and will be followed by a gravity survey. Silicon is an epithermal project in a productive district. The property has been underexplored and holds large deposit potential. The ultimate objective is to do enough geoscience work on the project to attract a partner who will enter into a standard agreement by funding exploration to earn an interest in the project.

Trinity Silver: In fiscal 2013, Liberty Silver Corp. (“Liberty”) completed their work commitment of US$5,000,000 on the Trinity Silver project located in Pershing County, Nevada.  In addition to the US$5,000,000 work commitment, Liberty must complete a bankable feasibility study by March 29, 2017 to earn an undivided 70% interest in the property.  Metallurgical studies are continuing in preparation of a preliminary economic assessment on the oxide deposit and this will be used to generate financing for development of the oxide deposit. Liberty reports that, pending funding, it next plans to do Preliminary Economic Assessment level work on the project.  

Wildcat: On February 23, 2015, the Company entered into an exploration earn-in agreement with Troymet USA LLC (“Troymet”).  On execution of the agreement, Troymet paid RenGold US$50,000 plus the cost of claim fees paid in 2014.  Pursuant to the agreement, the annual exploration commitments are US$50,000 in the first year, US$250,000 in the second year, US$350,000 in the third year and US$500,000 in the fourth through seventh years, to earn a 70% interest in the property.  A bankable feasibility study is also required and if not completed at the end of seven years Troymet can extend the option period for another five years by spending US$1,000,000 per year on the property and by paying the Company US$100,000 per year in each of the years in this subsequent option period.  If Troymet terminates the option after expending more than US$3,000,000 then Troymet will be entitled to a 3% NSR royalty capped at twice the amount of Troymet’s investment prior to termination.

Wildcat lies in the Detroit Mining District, an historic gold producing region in the northern Drum Mountains of central Utah.  Ongoing field work by RenGold on behalf of Troymet US Corp. (which has an option on the project), is producing an important structural reinterpretation. When the field work is completed and compiled, permitting will begin, most likely in late July. It is planned that drill roads, pads and test trenching will be carried out in the Fall in preparation for drilling in 2016.

RenGold will conduct the exploration work for Troymet.

Nevada properties being prepared for joint venture

Work has continued on data compilation and target definition at the Company’s projects being prepared for joint venture. These properties include Buffalo Canyon, Bunce, Fireball Ridge, Secret Canyon, Whistler, and Wood Hills South projects.

In particular, RenGold is advancing permitting for the Everson Deposit on the Buffalo Canyon project in northern Nye County. New drilling at the Everson Deposit will test for extensions to gold mineralization intersected in 25 of 40 historical reverse circulation drill holes. The gold intersections lie within a 400 x 600 m area that is part of a pyrrhotitic halo 1.5 by 1.0 km in size that appears to be related to a complex of reduced intrusions. Most of this prospective halo remains untested. This mineralized area is expected to grow substantially by drilling parts of the halo containing robust surface rock chips and soil anomalies. The drill plan will include holes that will drill below previous holes that reached total depth in mineralization and attempt to test the carapace (margins) of an inferred source intrusion. The maximum depth of drilling to-date is only 525 feet. RenGold is in discussions with a financial group that would supply initial drilling funds for equity in the project.

Generative     

Generative exploration is the core of RenGold’s business.  Property submittal evaluations and generative programs in Nevada and Utah are ongoing but the current focus is on upgrading projects with quality drill intercepts.  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.  

RenGold holds a large Pequop and Woodhills based land package in northeastern Nevada with New Nevada Resources, LLC ("NNR"). This includes 34,048 acres (13,924 Hectares) of important exploration terrain in the evolving Pequop Gold District.  A good portion of the NNR land is included within the Wood Hills South land package.

Qualified Person

All technical data, as disclosed in this MD&A, has been verified by the Company’s qualified persons Richard L. Bedell, M.Sc. and Registered Member and Eric M. Struhsacker, M.Sc. and Certified Professional Geologist.

About Renaissance Gold Inc.

Renaissance Gold Inc. is a gold/silver exploration company that has a large portfolio of exploration projects in Nevada and Utah. 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:

Richard L. Bedell, 775-337-1545 or rbedell@rengold.com or

Eric 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.

Maximum News Dissemination by FSCwire. http://www.fscwire.com

Copyright © 2015 Filing Services Canada Inc.