Renaissance Uranium (ASX: RNU) has returned multiple anomalous gold intercepts over an extensive area through initial scout drilling at its Pinery and Tepco Prospects, within the Cutana Project.
Importantly, Cutana is located in northeastern South Australia, close to Polymetals Mining (ASX: PLY) and Exco Resources’ (ASX: EXS) White Dam gold mine, which is expected to produce 5.2 million tonnes of ore at 1 gram per tonne (g/t) gold.
Gold mineralisation has been identified in both the near surface oxide zone, as well as in deeper primary zones.
Oxide gold results include up to 6 metres at 0.73g/t from 32 metres at the Pinery Prospect, and up to 8 metres at 0.32g/t from 46 metres at the Tepco Prospect.
Primary gold intercepts include 2 metres at 0.89g/t from 98 metres at the Pinery Prospect.
The presence of multiple oxide and primary gold intercepts over areas where Renaissance’s previous soil sampling identified extensive anomalous soil gold geochemistry suggests that the potential for economic gold mineralisation within the project area remains high.
The drill program was undertaken to test local peak values in soil gold geochemistry.
At Pinery, Renaissance completed a total of 27 holes over 2,862 metres, and at Tepco, the company completed a two-hole program over 272 metres.
Because of the large lateral extent of the Pinery geochemical target, at around 2 kilometres, the six drill traverses were relatively widely spaced, at up to 500 metres, to provide an initial test of the entire anomaly area.
Next exploration steps
Renaissance is now looking to undertake detailed sampling, regolith mapping and ground geophysics in the areas of existing intercepts, to be followed by drill testing of defined drill targets.
Similarities to White Dam
Previous soil geochemical results from Cutana have indicated the potential for multiple zones of strongly anomalous gold with comparable gold geochemistry to Exco and Polymetals' Vertigo and Ambush prospects.
The White Dam orebody is roughly defined by soil gold geochemistry at +10 parts per billion gold, with the Hannaford pit producing around 124,000 ounces to date.
By comparison, the Pinery Prospect also has extensive soil gold geochemistry at +10 parts per billion gold in a similar regolith environment, demonstrating the potential to produce multiple White Dam sized deposits.
Cashed up
Renaissance is trading above cash backing with a market cap of just A$4 million and cash in the bank at the end of the March 2012 quarter of around $6 million.
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