Ambitious Drilling Program Now Underway at Surimeau Project

It should not come as a surprise that a junior explorer may be most effective to create shareholder value when it is busy actually doing exploration work. However many juniors seem content to look busy without actually accomplishing much in the field. Fortunately, the management team at Renforth Resources Inc. (CA:RFR – $0.08 & US:RFHRF – $0.06 & GER:9RR – €0.04) has different ideas. The Company has already earned a strong track record in terms of achieving success at the end of the drill bit. Indeed, Renforth has been engaged in exploration drilling activity for most of the last 6 months.

During this time the Company reported a breakthrough discovery of a volcanogenic massive sulphide system at the Surimeau project late last year. Renforth has also just completed a major drilling program at its Parbec property. The Company has managed to extend a winning streak to report gold values in every hole so far at the project.

So what does Renforth do now after wrapping up the biggest exploration drilling program in the history of the Company? Well, this week Renforth just announced the commencement of another major exploration drilling program. The drill rig has been moved from Parbec and is already in action at Surimeau. A round of follow up drilling is underway in the area around the Victoria Nickel Target. This more substantial program will continue exploration around the same structural corridor outlined previously at this section of the enormous property.

The drill program which has just commenced at Surimeau is focused on the Victoria target area, with drilling planned of ~3km of the ~5km of strike in that target area.

Attractive Exploration Upside at Surimeau Remains to be Investigated

Surimeau is notable in that it has leverage to so many potential metals including nickel, zinc, copper, gold, silver and platinum group metals. Some of these are now designated as strategic metals that are highly in demand and therefore would be of even greater value if Renforth is able to define a significant deposit. As such, Surimeau may become the most valuable property for the Company.

The Victoria Nickel Target extends laterally for at least 5 kilometers along strike. The current drilling program is expected to test around 3kms of the interpreted structural corridor. A total of 3550 meters of drilling is planned in a total of 16 drill holes.

Some isolated surface trenching work exposed mineralized alteration along this corridor in previous fieldwork. Shallow drilling confirmed a nickel-copper discovery below these sections in three drill holes separated by about 200 meters. Several nearby outcrops have been sampled. Even though very little of this attractive target has been explored, the Company has been able to present some very good results in this early stage.

One interval of more than 20 meters encountered an average of 0.126% nickel. In another drill hole, 13 meters of 0.156 nickel was reported. Several enriched zones of copper and zinc were also present in drill core intervals. Achieving notable mineralized intervals just below surface in what was a very limited amount of drilling, is a very good start for the program. This builds excitement for the current round.

Work is progressing and some of the core from the first hole has already been extracted. Well-maintained gravel roads in this section of the property enable much easier access to drill pad locations. The towns of Cadillac and Malartic are each located a few kilometers to the north of the property, providing support services while the fieldwork continues.

Most drill holes are planned in pairs (click on map to zoom in). Renforth intends to go across the entire magnetic anomaly. In order to do so, rather than drill one long deep hole the Company is drilling two holes. The southern hole will start where the north hole ends.

Flagship Parbec Property Remains in Focus for Updated Resource Estimate

The Parbec project currently remains the flagship asset for Renforth. Parbec also carries the potential for the greatest increase in shareholder value creation in the short term. The extensive drilling program at Parbec has now been completed, with a total of 15,569 meters of drilling since September 2020. Of this, the second phase of work that commenced this year included 5025 meters of drilling in 22 holes. Renforth is still awaiting assay results for core samples submitted from 42 drill holes. This large amount of pending data may generate many more positive surprises. Given the exceptional success rate so far, one may expect that some very encouraging gold zones remain to be reported.

As the backlog of assays is finally resolved, the Company will begin an updated resource estimate for Parbec to include all of this additional data. The expectation for a material increase to the total gold resource for the deposit is validated by the results in hand so far. The drilling program was designed to optimize the resources within a conceptual open pit shell. That near surface deposit is evolving into a potentially economic development candidate.

With several under-utilized processing plants in operation, a short distance from the property, Parbec may be advanced as a low cost mine with access to toll milling facilities. The project may also be under consideration for an acquisition deal by several established mining companies in the district. Either of these scenarios could be transformative events for Renforth. The anticipation for further positive assay results from Parbec will continue to build speculative appeal for the stock even as the focus shifts towards the drilling at Surimeau.

Conclusion

To embark on another ambitious exploration program just days after completing a significant drilling effort at another property is very rare in this business. For Renforth, this level of urgency in the fieldwork amounts to just another day at the office. And this is a very good thing for shareholders as the receipt of Parbec assay results will add to the news flow while the Surimeau drilling is underway.

Meanwhile, the partnership established with Radisson Mining Enterprises following the New Alger property transaction is also building value. Radisson has presented some high grade gold results this month that contributed to an increase in the value of its stock. Renforth continues to hold significant minority ownership of Radisson. This represents another potential driver to build shareholder value.

The commencement of drilling at Surimeau this year is the third drilling program launched by Renforth since the fall of 2020. The rapid pace of activity remains a defining characteristic for this Company. Renforth remains one of the most active explorers in Canada. With access to a fully funded treasury, all of this work is budgeted to continue with financial strength intact. Again, this is a rare occurrence for a microcap junior explorer.

The potential for a more significant discovery at Surimeau is a very real catalyst to move this stock to a higher trading range. Renforth is superbly positioned with such an exciting exploration upside awaiting at this 215 square-kilometer property. If the Parbec property becomes the target of another transaction, the Company may immediately refocus its full efforts to the wealth of untested exploration targets already outlined at Surimeau. The appealing prospect of a large nickel deposit in this high profile district may yet become the most attractive element for this junior explorer. The future looks great! Smallcaps Recommendation: BUY.

Smallcaps.us Advice: BuyPrice Target: $0.19Latest Company Report (pdf)
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