Encore Renaissance Negotiating for Property in New Gold Belt Discovery in Tanzania
Encore Renaissance Negotiating for Property in New Gold Belt Discovery in Tanzania
VANCOUVER, BRITISH COLUMBIA, Sep. 23, 2010 (Marketwire) -- ENCORE RENAISSANCE RESOURCES CORP. (TSX VENTURE:EZ) (FRANKFURT:OUH1) (PINK SHEETS:ERRCF) Encore Renaissance Resources Corp. (the "Company" ) announces that in recognition of its management team's experience and presence in Tanzania, the Company has identified a prospective property adjacent to the Canaco (CAN-V) property in the Handeni area of Tanzania. The property borders the western boundary of the Canaco property.
The Company is currently negotiating the terms to acquire an option to purchase a 80% interest in the property.
On September 13, 2010 Canaco announced significant new exploration developments including the identification of important new parallel trends of gold mineralization and discovery of a new mineralized zone five kilometres W/NW of the Magambazi Gold Discovery. Early results from the regional exploration on the Handeni Gold Trend indicate the work program has already made significant progress in identifying new gold targets and upgrading the potential of previously identified gold zones. Over the past month, the regional program has included over 3000 metres of Reverse Circulation ("RC") drilling, approximately 10,000 metres of reconnaissance Rotary Air Blast ("RAB") drilling, a detailed airborne survey, detailed mapping of some of the key target areas defined to date and geochemical interpretation. The Handeni Gold trend is now recognized as consisting of two, parallel gold trends with a combined strike length of over 15 kilometres (Source: Canaco Resources).
Significant drill results have recently been reported by Canaco, in their 2010-09-17 News Release:
Canaco drills 27 m of 4.29 g/t Au at Magambazi
Results from the project continue to provide steady growth to the mineralization at Magambazi with new intercepts from the high-grade shoot component of the Magambazi Main lode, including:
-- 15.6 metres at 6.6 grams per tonne gold (MGZD0082), including 10.6 metres at 8.39 g/t gold (Section 60,560N). Results from the Magambazi Central area include: -- 27 metres at 4.29 g/t gold (MGZD0079), including 14 metres at 6.21 g/t gold; -- 18 metres at 3.4 g/t gold (MGZD0076), including 7.3 metres at 5.7 g/t gold; -- 18.4 metres at 3.01 g/t gold (MGZD0077), including 4.9 metres at 6.45 g/t gold.
The new results from Magambazi Central are from 80-metre-spaced infill drilling of sections previously spaced at 120 to 200 metres and prove the continuity of the Magambazi Main lode to be over 860 metres of strike and still remaining open to the north.
A program of sampling the wall rocks above and around the Magambazi Main lode has defined an important new zone of mineralization in hangingwall gneiss, approximately 100 metres above the Magambazi Main lode, with the intercept of nine metres at 1.13 g/t gold (MGZD0010, from 81 metres). These results confirm the presence of mineralization in a new geological setting at Magambazi, and sampling of the hangingwall gneiss along the 860-metre strike length is in progress to define additional mineralization within the Magambazi system.
Exploration is gaining momentum with the diamond drilling capacity now at approximately 4,000 metres a month, increasing to approximately 5,500 metres with the arrival of a third rig in the near future. Extensional drilling to the north and exploration drilling testing the targets on the western side of Magambazi Hill will be combined with infill drilling along the trend in the coming months".- end quote
Canaco may have a major discovery, including 23 metres of 19.14 grams per tonne gold (see Canaco news release in Stockwatch of July 12, 2010), on their Handeni Tanzanian property. This discovery has created significant market attention recently in regard to Tanzania. Our immediate plan is to aggressively explore this project.
In April 2010, TD Newcrest, A Division of TD Securities, initiated coverage of Canaco Resources and announced a speculative buy recommendation with a $1.25 target price. They now believe that $175/oz is an appropriate resource multiple given the forecast high grade/low cost nature of the ounces discovered to date by Canaco. They have revised their target price to $6 per share and maintain their speculative buy rating.
Encore Renaissance expects to conclude negotiations, within the next 10 days, and will announce the terms of the agreement, in that time.
Exploration work, at Encore Renaissance's own White Gold Yukon Property is presently underway. See EZ press release, Sept 17, 2010: "Encore Joins White Gold Area Goldrush, Yukon Territory".
Encore Renaissance is enthusiastic about their Bonaparte, Yukon and Tanzanian projects.
Encore Renaissance will be updating and reporting developments, at the Bonaparte Gold Project and Yukon Exploration, over the next 3 weeks.
Michael Mulberry, President and Director
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the content of this press release.
Encore Renaissance Resources Corp. President and Director 778-994-6453 or 778-891-2702 Encore Renaissance Resources Corp. Suite 809 - 27 Alexander Street, Vancouver, BC V6A 1B27 info@encorerenaissance.com www.encorerenaissance.com
Source: Marketwire Canada (September 23, 2010 - 5:00 AM EDT)
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