AngloGold Ashanti (JSE:ANG) (NYSE:AU) paid Renaissance Gold (TSX.V:REN) $300,000 to maintain its 100% earn-in option on the Silicon project in Nevada.
AngloGold already kicked off a planned 17,000-metre, Phase 2 drill program on the property with one RC and one core rig.
If Anglo completes the payments and exercises the purchase option, RenGold would retain a 1% net smelter return royalty on future production from the projectAccording to the company's 2H 2018 report, drilling has taken place over a strike length of more than 3 kilometres along the Silicon-Thompson structural corridor.
AngloGold also reported multiple induced polarization geophysical surveys over the project, which are being used along with surface mapping to delineate additional targets within the Silicon claim block.
"Based on the observed amount of drilling they have completed and the recent comments by AngloGold's CEO, we think it is safe to say they are significantly encouraged by the results generated to date," RenGold's president, Robert Felder, said in a media statement.
AngloGold entered into an agreement with the Nevada-based prospect generator in 2017. The deal entails that Anglo has the option to acquire a 100% interest in the Silicon project by paying RenGold $3 million by June 21, 2020. Payments to date add up to $600,000.
Silicon is located 12 kilometres northeast of the town of Beatty, in the Bare Mountain mining district.