Gold major AngloGold Ashanti has elected to complete the purchase of an option on the Silicon gold project, in Nevada, US.
AngloGold would make the final payment of $2.4-million out of a total $3-million to purchase the option, TSX-V-listed Renaissance Gold said on Thursday.
"We are very pleased that AngloGold has received enough encouragement from their drilling to date to elect to complete the option and make the final payment to RenGold.
“The payment is very meaningful to the company and the royalty represents significant future value as well. We look forward to seeing the advancement of this project in this exciting and quickly evolving district in Nevada,” said RenGold president and CEO Robert Felder.
Following completion of the option and transfer of ownership, RenGold would retain a 1% net smelter royalty within a defined area of interest (AoI) covering about 15 000 acres.
AngloGold's plan of operations (PoO) permit application was submitted to the Bureau of Land Management, which has prepared an environmental assessment. If approved, the PoO would allow for up to 155 acres of surface disturbance in phased exploration programmes, and the proposed Phase 1 programme will include up to 109 drill sites within a 3 630 acre project area located on unpatented mining claims.
All of the permitted drilling is within the RenGold AoI.
Felder said the payment for Silicon strengthened RenGen’s treasury.
“Building on our knowledge of the Silicon project, we have recently acquired an additional 4 000 acres in two new epithermal projects in Nevada, and plan to utilise the payment to continue an aggressive exploration programme that could potentially lead to our next discovery."