Earn-in agreement with OceanaGold Corp.
Located in Nevada
Low sulfidation gold mineralization below a large sinter terrace with local upflow zones indicated by the presence of geyserite.
The Spring Peak property is located in the Bodie Hills, approximately 5 kilometers (1.5 miles) SE of the historic Aurora gold mine, and 73 kilometers (22 miles) SW of Hawthorne, in Mineral County, Nevada.
On January 25th 2019, Orogen (then Renaissance Gold) announced that it had signed a definitive earn-in agreement with OceanaGold U.S. Holdings Inc. (“OceanaGold”), a subsidiary of OceanaGold Corporation on its Spring Peak Project. Upon signing the definitive agreements, OceanaGold paid the Company US$15,000.
OceanaGold has the option to earn up to a 51% interest in the Spring Peak Project by spending US$4,000,000 over a five-year period, and making payments to the Company totaling US$215,000. In addition, OceanaGold agreed to spend US$150,000 (committed expenditure) within 12 months of signing the definitive agreement. Upon earning the initial 51% interest, OceanaGold has a one-time option to elect to earn an additional 24% interest on the Spring Peak Project by spending an additional US$6,000,000 over a four-year period from the date of exercise of the Phase II earn-in option.
About the project
The Spring Peak project area covers multiple structurally controlled vent areas identified by the presence of sinter terraces with local upwelling textures. Additional targets on the project include hydrothermal breccias and banded epithermal veins with gold in rock samples from detection limit up to 35 g/t associated with anomalous As, Sb and Hg. Soil geochemistry also yields anomalies in these elements.
The host rocks on the project are Cretaceous granitic basement, probably equivalent to the nearby Sierra Nevada batholith, overlain by a sequence of Jurassic metasediments and Tertiary volcanic and volcaniclastic units including rhyolitic to dacitic dikes. Young basalts cap the sequence and even younger ash deposits, derived from the nearby Mono craters form a mantle of variable thicknesses over the project area, partially concealing the geology. The CSAMT surveys have helped see through the cover and reveal potential feeder structures for the hydrothermal system which will be targeted by drilling.
The Bodie Hills and the Aurora District have had a productive history with gold and silver production from Aurora, Borealis and Bodie. Exploration in the district has been intermittent and in the early 1980s Labradex conducted exploration including an RC drill program which encountered low-grade gold intercepts in many of the holes, which were all very shallow (mostly 305 feet, one hole to 505 feet). More recently, Radius Gold Corp. explored Spring Peak in 2016-2018 under an earn-in agreement with Kinetic Gold (US) Inc., a wholly owned subsidiary of Renaissance Gold. Radius conducted geologic and alteration mapping, soil and rock chip sampling, a CSAMT survey and successfully permitted drilling, however changed their priorities and returned the project in 2018 without drill testing. In 2019, OceanaGold Corp. entered into an earn-in agreement on the project, and conducted additional mapping, soil and rock sampling and CSAMT, defining several compelling drill targets which are planned to be drilled in 2020.