Ambitious Drilling Program Continues at Parbec as Renforth Reports Closing $3.24 Million Financing
Steady progress continues as Renforth Resources Inc. (CA:RFR – $0.07 & US:RFHRF – $0.06 & GER:9RR – €0.04) advances an ambitious drilling program at its Parbec Property. This week, the Company reported another milestone as more than 2000 meters of diamond drilling has been completed so far. In previous years, this total would have often amounted to the entire work program. However, this current round is planned for more than 7000 meters of total drilling through to the end of the year.
The objective to advance exploration further to depth accounts for some of the additional scale in this drill program. The Cadillac Break extends laterally through Parbec. Productive resource zones related to this structure have been encountered more than 1200 meters below surface elsewhere in the district. This discovery potential to depth will encourage further drilling down dip to continue building the gold deposit.
An attractive gold resource has been reported at the project, largely confined to the near surface zones of the property. Renforth is committed to the establishment of a more significant deposit at its flagship project. Expect to see the Company reporting more intensive drill programs as this effort targets the deeper zones.
Exciting potential Resource Zones Targeting Deeper Sections of the Cadillac Break
Drill Hole PAR20-103 was aimed to intersect the Cadillac Break at an angle to the axis of strike for the system. This will improve the prospects to encounter potential cross-trending structures offset from the main structure. The hole was continued to a length of 276 meters. Typical gold alteration lithologies of the Cadillac Break were encountered. These included sheared and magnetic diorites along with felsites rocks. Similar lithologies have carried attractive gold values in previous drilling at Parbec.
PAR20-104 was extended to more than 600m in length, representing the longest hole ever drilled by Renforth at Parbec. The drill core successfully penetrated the Cadillac Break through to the north, again encountering the expected gold-bearing lithologies before drilling was terminated in the volcanics some 530 meters below surface. The hole was oriented to pass between previously drilled sections closer to surface and therefore will contribute towards infill drilling and also for discovery targets down dip.
The status of the longest drill hole at Parbec is set to be extended further, as PAR20-105 is now in progress. This drill hole is also planned to penetrate through to the volcanics north of the Cadillac Break. It is expected to continue approximately 900 meters to do so. Again, the alignment of this drill hole is planned to pass below previously reported gold intervals encountered in prior drilling.
Samples of each drill core have been selected and prepared for submission for laboratory analysis.
Flow-Through Financing Arrangement Completed with Radisson
Renforth also confirmed that the previously announced private placement of flow through shares to Radisson Mining Resources has now closed. The arrangement included 24 million shares to raise a total of $3,240,000. The issue price of these shares was 13.5 cents per share, nearly double the market value for the stock. Of note, there were no finder’s fees or commission payable and this deal did not include attached warrants. In addition, both Renforth and Radisson have agreed to a lockdown provision to restrict the sale of these shares for a three-year period. Therefore the financing is an elegant solution to raise a large net cash position with minimal expenses and less dilution to the capital structure. This alone is a welcome improvement from the circumstances driving the financing activity of previous years.
With the transaction now closed, Renforth is extremely well-financed. The Company reports its working capital position now includes more than $8 million in cash and securities. Consider that the most aggressive exploration program so far for Renforth is currently underway at Parbec, budgeted for $1.5 million of drilling work. This certainly underlines the financial strength for the Company going forward into 2021. Renforth now has the opportunity to fund multiple drill programs. Other very appealing projects are in the planning stage for future exploration to commence.
With every meter of drilling completed in the current work program, Renforth is moving closer to the objective of defining a gold resource with the potential for development into a mine. The exceptional results that have been achieved previously must be acknowledged. However the Company is now in the enviable position with abundant working capital to enable a significant increase to the project spending.
Consider the circumstances as work continues. Parbec is located in one of the premier mining districts in Canada. An attractive gold deposit has already been outlined at Parbec with similarities in geometry and grade to the adjacent Canadian Malartic gold mine. Additional potential is at hand to build this resource as the drill density is increased and step out drilling advances. Add in the access to a financial war chest to underwrite a quantum leap forward in the scale of exploration activity. Renforth now has the luxury to investigate targets of interest within the scope of a much larger drilling program. Perhaps a few new discovery surprises are pending from this work.
It is that potential for a new discovery result that drives speculative interest in junior explorers. Renforth will proceed systematically nonetheless and with the discipline to ensure the maximum results for every dollar that is spent. However if the results further to depth at Parbec are at least as exciting as delivered in the first rounds of drilling work, the next few months may be the most rewarding for shareholders. Already one of the most promising exploration stories active in this world famous gold district, Renforth is extending the drill holes to new target zones with the prospect for a significant expansion to the gold deposit. Smallcaps Recommendation: BUY.
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