Exploration company Renaissance Gold (RenGold), which specialises in gold and silver, has signed a ten-year mining sublease agreement with Newmont USA (Newmont Lease) to expand its Ecru Project in Lander County, Nevada.
The agreement will see Renaissance Gold lease approximately 1,120 acres of mineral rights adjacent to its claims on its Ecru project, which is located in the Cortez area on the prolific Battle Mountain-Eureka trend of gold deposits.
The agreement also includes an option to extend the lease for an additional five years as well as extend it further until mining, development and processing operations are being conducted on the property on a continuous basis.
As part of the deal, Renaissance Gold will make annual payments to Newmont as advance royalty payments to be offset against any future royalty obligations during mining operations.
Under the agreement, Newmont will hold a 0.875% net smelter return (NSR) on the leased ground.
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 mineralisation in this world-class district.”
In addition, the Newmont Lease area lies within the area of interest of an investment agreement that the company signed with S2 Resources on 31 July last year.
The lease will be included in the existing earn-in terms of S2 Resources agreement, under which S2 will maintain the Newmont Lease during the term of its investment agreement.
Furthermore, the agreement will extend the existing geophysical coverage to the Newmont Lease ground in the coming weeks in a move to offer maximum data for the siting of the planned initial deep stratigraphic/reconnaissance drilling.
The drilling operation is scheduled to commence in the fourth quarter of this year over the now expanded Ecru property.