Western US focused prospect generator junior Renaissance Gold (RenGold) has entered into a mining sublease agreement with gold major Newmont, covering about 1 120 acres of mineral rights adjacent to claims on its Ecru project, in Nevada.
The Ecru project is located in the Cortez area on the prolific Battle Mountain-Eureka trend of gold deposits. The agreement with Newmont now enables RenGold to test the targets on the project, exploring for Carlin-type gold mineralisation, the junior firm’s CEO, Robert Felder, said last week.
The Newmont lease is for a period of ten years, with an option to extend the lease for an additional five years, and then indefinitely so long as mining, development or processing operations are being conducted on the property on a continuous basis.
TSX-V-listed RenGold has to make yearly 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 on the leased ground.
The Newmont Lease area lies within the area of interest of an investment agreement with S2 Resources 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.
RenGold maintains a large portfolio of gold and silver exploration properties and has entered into over 60 exploration agreements including those as its predecessor, AuEx Ventures, and those from Kinetic Gold. RenGold's objective is to place its projects into exploration agreements, testing as many drill targets as possible and providing maximum exposure to success through discovery.