Renaissance Minerals has entered into a deal to acquire Newmont Mining's interest in the Pinjin gold project in the Eastern Goldfields.
Renaissance Minerals has entered into a deal to acquire Newmont Mining's interest in the Pinjin gold project in the Eastern Goldfields.
Renaissance will make an upfront cash payment of $200,000 and issue approximately 1.5 million fully paid ordinary shares to Newmont.
The shares will be subject to a 12 month escrow period.
Additionally Renaissance will be required to make a cash payment of $1 million to Newmont upon establishment of a JORC resource of at least 0.5 million ounces of gold and a further cash payment of $1 million upon establishment of a JORC resource of at least 1.0 million ounces of gold.
The tenement package covers the Pinjin and Rebecca Palaeochannel systems that are host to numerous placer gold intersections up to 30grams per tonne.
First past drilling by Newmont returned significant results including 5.9m at 7.2 grams per tonne in fresh rock that demand immediate follow up.
The Board of Renaissance said it was extremely pleased to have reached an agreement.
See company statement below:
Australian gold exploration company, Renaissance Minerals Limited (ASX
code: RNS) is pleased to announce that it has entered into an agreement to acquire Newmont's interest in a highly prospective 277km2 tenement package in the Eastern Goldfields of Western Australia ("Pinjin Gold Project").
The Pinjin Gold Project is located 160km north-east of Kalgoorlie and 50km east of Saracen Mineral Holdings' operating Carosue Dam gold project and compliments Renaissance's existing 3,000km2 tenement holding in the area.
Since acquiring an interest in the project in 2005 Newmont has spent approximately $6 million completing high quality detailed geophysical surveys and initial RAB and aircore drilling, with some limited diamond drilling undertaken.
The tenement package covers the Pinjin and Rebecca Palaeochannel systems that are host to numerous placer gold intersections up to 30g/t gold. First past drilling by Newmont returned significant results including 5.9m @ 7.2g/t gold in fresh rock that demand immediate follow up.
Past Exploration and Prospectively
During the mid to late 1980's BHP undertook exploration targeting placer style gold deposits within the Pinjin and Rebecca Palaeochannel systems.
In 2005 Newmont acquired its interest in the Pinjin Gold Project with an objective of discovering the primary source of the palaeochannel gold. Newmont commenced initial RAB and aircore drilling in 2007 which resulted in the
discovery of mineralisation at "Target 12" and drill intersections including 10m @ 1.0g/t gold and 1m @ 30g/t gold.
This initial drilling was followed up with a 4 hole diamond drilling program in 2008. Diamond hole PJDD0001 was successful in discovering a primary gold system within a complex geological package beneath the palaeochannel. A
6 metre wide mineralised vein system was intersected, with fine visible gold, returning 5.9 metres @ 7.2g/t gold from 89.7 metres.
The Target 12 prospect is associated with a very broad alteration system and is coincident with a very strong 'bulls eye' aeromagnetic anomaly.
Due to internal budgeting constraints and other priorities, Newmont undertook very little follow up work and the mineralisation intersected remains open at depth and along strike and demands immediate follow up drilling.
The Pinjin Gold Project area lies within the NW-SE trending regional structural domain known as the Laverton Tectonic Zone that hosts over 20 individual gold deposits which cumulatively contain in excess of 27 million ounces of gold. The two largest gold deposits being the 10+ million ounce Sunrise Dam deposit and the 5+ million ounce Wallaby deposit. Both the style and geological setting are comparable to the initial discovery of Sunrise Dam, which is approximately 100 kilometres to the north, in the same structural domain.
Acquisition Terms
The interest in the Pinjin Gold Project to be acquired from Newmont comprises of:
80% interest in the Kirgella Joint Venture (71km2)
90% interest in the Lake Rebecca Joint Venture (34km2)
100% interest in some surrounding tenements (172km2)
Renaissance Minerals will make an upfront cash payment of $200,000 and issue approximately 1,500,000 fully paid ordinary shares to Newmont. The shares will be subject to a 12 month escrow period.
In addition, Renaissance Minerals will be required to make a cash payment of $1 million to Newmont upon establishment of a JORC resource of at least 0.5 million ounces of gold and a further cash payment of $1 million upon establishment of a JORC resource of at least 1.0 million ounces of gold.
The Board of Renaissance is extremely pleased to have reached agreement to acquire this highly prospective ground and looks forward to shortly announcing the commencement of drilling to follow up Newmont's initial success. The Board also welcomes Newmont as a shareholder of Renaissance.
The project has substantial discovery potential and compliments Renaissance's existing extensive Eastern Goldfields tenement package.
