40 Holes Drilled, 40 Holes Gold Encountered
Several successful drilling campaigns have established gold resource zones at the Parbec Project in recent years. During the early phases of exploration Renforth Resources Inc. (CA:RFR – $0.06 & US:RFHRF – $0.03 & GER:9RR – €0.03) opted for smaller drilling programs. This afforded the opportunity to review geology and incorporate new data prior to moving ahead with the next round. It also made financial sense to restrain the scale of the drilling to get the most from every dollar of exploration spending. The Company was successful to encounter gold in all 37 drill holes completed, which resulted in a significant gold deposit. Earlier this year Renforth presented a compliant gold resource estimate based on the drilling results at Parbec.
The near-surface portion of the overall resource was outlined to define a shell for a conceptual open pit mine deposit. Targets were identified within this pit shell where exploration data was insufficient to include potential resources. Infill drilling became the priority to address these gap zones between known data points. With enough cash on hand due to the sale of New Alger, Renforth made the decision to aggressively advance drilling in these areas with the potential to add meaningful gold ounces to the resource.
In September of this year, Renforth embarked on its most ambitious drill program so far at Parbec. The initial objective for this round was 7000m of diamond drilling prior to the end of the year. This week the Company reported that more than 8800m of drilling has already been completed. Drilling will continue until Christmas break and resume in the New Year with the balance of the now targeted 15,000m drilled in Q1 2021.
The resource bull market has encouraged many junior exploration companies to step up field programs. This has created a large volume of sample material that is overwhelming accredited laboratory facilities. In addition, certain precautions related to the corona virus have reduced the capacity of laboratory facilities to handle the increased demand. As a result, it is taking a much longer time than usual to receive assay data for sample material.
Additional Assay Results Reported
So far this fall, assays results have slowly trickled in. As a result, Renforth has been limited to reporting small batches of results as they are received. This week the Company presented the remainder of assays for PAR-20-101. Several wider intervals of gold alteration were encountered at various depths. The data was highlighted by a section of 6.55 meters near the bottom of the hole bearing an average of 1.48 g/t gold. This drill hole was of interest because it was aligned oblique to the main axis of the Cadillac Break. Renforth anticipates that further analysis of these results will provide confirmation of cross trending structures that may have been missed in previously completed drilling. These structures may also be encountered elsewhere along the deposit.
Only the first 39 meters of PAR-20-102 has been received so far in this batch. An interval of 1.5m was encountered within this near surface section bearing 0.95 g/t gold. This gold alteration is hosted within sediment rock units to the south of the Cadillac Break and is not included within the current pit shell. The deeper extensions of this drill hole were the planned target zone so this newly reported gold section is a bonus that may also build the total gold resource later in the program.
Alternate Laboratory Facility Selected to Address Backlog
In the effort to achieve faster reporting of results, Renforth has now opted to begin shipment of sample material to a different laboratory for analysis. The new facility may provide results before the end of December for this latest sample batch, representing an improvement on the turnaround time.
Meanwhile, sample material from many drill holes completed earlier in the program are awaiting assay at the original laboratory facility. The results from these samples, some of which were submitted months ago, will continue to be reported as they are received. As of this week, assays have been received for only 736.2 meters of drill core samples. This amounts to less than 10% of the drilling work so far. Renforth management remains very confident that good news may be expected as the backlog of assays results is resolved in the weeks ahead.
Several promising indications may be drawn from the abbreviated news of this week. While results are in hand for only two holes plus a partial section of a third, new gold discovery results are still being achieved. Combined with the 37 drill holes completed in prior drilling programs, the winning streak at Parbec continues with a perfect record to achieve meaningful gold values in all 40 of the drill holes reported so far.
The increase in the scale of exploration is also evident. The 25th drill hole of the current program was completed this week with another drill hole underway. Much deeper targets are being tested through this program than in previous years. The limited results so far have also demonstrated that the geological model for Parbec remains valid. New zones have been encountered in areas that were believed to hold additional gold values, including previously unknown cross trending structures.
With a gold resource already in hand for Parbec, Renforth is incentivized to add to this deposit as quickly as possible. An updated resource report will be issued in 2021 from this work, most likely confirming a much larger gold deposit. This would build shareholder value, and also establish Parbec as even more attractive acquisition target.
Along with ongoing drilling at Parbec, exploration plans are advancing for both the Surimeau and Nixon-Bartleman properties in 2021. With more than $7.7 million in working capital, there is no urgency to complete a financing. Renforth plans to carry on as one of the most active explorers in the Abitibi Greenstone Belt. The longer term objective to create shareholder value through resource discovery remains in focus. Smallcaps Recommendation: BUY.
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