Stellar Resources (ASX: SRZ) has reported that Renaissance Uranium (ASX: RNU) has intersected 12 metres at 0.42% copper from 186 metres to end-of-hole at the southern portion of the Glensea Prospect, within the Pirie Basin Joint Venture Project.
The strongly elevated copper interval from reconnaissance drilling at the prospect, suggests that elevated copper grades in this area may continue to greater depths.
The prospect is an area of strong gravity gradient adjacent to an anomalous magnetic zone. Elevated gold, uranium and rare earth elements associated with the copper intersection suggest possible IOCGU or Hillside-style mineralisation.
Renaissance plans follow-up work to include more comprehensive basement drilling of the copper intersection, as well as more detailed geophysical surveying and drilling in the wider prospect area.
In November 2010 Renaissance agreed to sole fund $3.5 million of expenditure over five and a half years to earn a 75% interest in the tenement.
During the initial 18 months, Renaissance is required to spend a minimum of $500,000 on geophysics and drilling before it can elect to earn an interest.
On election, Renaissance will sole fund $3 million of expenditure over four years to earn a 75% interest in EL 3978. The minimum expenditure commitment in each of the four years is $500,000.
Upon Ministerial consent being granted to the joint venture agreement, Renaissance will issue Stellar 750,000 ordinary shares and 750,000 options in Renaissance.
On election to commence the earn‐in, Renaissance will issue Stellar with a further 750,000 ordinary shares and 750,000 options.