Deepest Vein Intervals Yet Encountered at Renforth’s New Alger
The Cadillac Break system comprises at least three primary gold veins extending laterally along a wide corridor. There are often sub-parallel veins branching off, related to cross-trending structural features. The veins often pinch and swell and a variance in grade is common. Renforth Resources Inc. (CA:RFR – $0.04 & US:RFHRF – $0.03 & GER:9RR – €0.02) acquired the New Alger property to gain leverage to additional gold discovery potential for a significant strike length of the Cadillac Break.
All three of the main vein systems extend through New Alger for a strike length of approximately 1.4 kilometers. In addition, the geometry of the vein alignment within the property area is favorable for Renforth. The almost vertical plunge of the veins suggests that the gold-bearing zones related to the structure will remain entirely within the land package controlled by the Company.
This week, Renforth provided an update with assay results and commentary from the recently completed winter drilling program at New Alger. Four drill holes were completed, amounting to a total of 2052 meters of drilling. All four of the holes successfully intercepted the main vein system. The assay results from the first drill hole (REN-20-38) were reported in March.
Wide Mineralized Intercepts Encountered with Encouraging Assay Results
As the exploration progress is systematically extended to greater depths, consistent results are contributing to the definition of a robust gold-bearing system within the mine zone vein area. The quartz veins continue to demonstrate higher gold grades across variable widths. This is similar to the observed mineralization at many other projects along the Cadillac Break. In addition, Renforth has documented a wider band of disseminated gold mineralization in the adjacent wall rock. This ‘halo zone’ is building a larger tonnage of alteration and may amount to a larger overall gold resource.
The assay results were highlighted by a 7.45m section of drill core from hole REN-20-41 with an average grade of 1.71 g/t gold at #1 Vein (green). In hole REN-20-40, a similar interval of 6.3 meters contained an average of 1.46 g/t gold from #3 Vein (red). The highest grade section was encountered in hole REN-20-39, where 32.33 g/t gold was reported across an interval of 0.40 meters of #3 Vein. A wider interval of 17.4m bearing 0.71 g/t gold, from Vein #1 in hole REN-20-39.
It should be noted that the assay results are based on fire assay only. Renforth has demonstrated the presence of coarse gold in the mineralization at New Alger. Sample preparation for fire assaying tends to exclude coarse gold particles during the test procedure. This results in a lower overall grade reported. It is therefore very likely that subsequent program testing these samples using metallic screening may contribute towards even higher overall gold grades.
Entire Strike Length Remains Open for Expansion Further to Depth
As it currently stands, the latest round of drilling represents the deepest mineralized vein intercepts achieved so far. REN-20-40 penetrated the #3 vein starting at more than 490m down hole. This represents a depth of more than 410 meters below surface. It is likely that the other two established veins of the system would also have been encountered even further down if the drilling continued. However the hole was terminated due to challenging ground conditions.
The entire strike length of the system within the property area remains open for further expansion to depth. Geologie Quebec has stated that the Cadillac Mining Camp remains essentially unexplored below 400 meters depth.
A cluster of mines within a corridor of roughly 20 kilometers of the Cadillac Break in proximity to New Alger highlights this potential. For example, Agnico-Eagle Mines Ltd. has achieved significant success to outline new resources to depth and extend the mine life at its nearby Lapa Mine project. Exploration has now extended productive gold zones at Lapa down 1500m beneath the surface.
Also immediately to the east of New Alger, the O’Brien Mine extend to depths of at least 1500 meters. The same vein system continues laterally through New Alger. If it walks like a duck and quacks like a duck…
To more effectively complete deeper drilling work, Renforth plans to collar the next round of drill holes from the southern side of the structure. Project geologists believe that this change in alignment of the drills will avoid the fragmented rock that created difficulties in this latest round. This shift in the drilling will also enable the Company to test for extensions within the Discovery Veins targets as the drilling work continues down to the deeper mine area veins.
Renforth continues to demonstrate the most attractive characteristics for a speculative exploration story. The Company has aggressively advanced exploration work at its high profile New Alger property. Steady progress is being achieved to discover promising gold zones. High grade gold results have been reported in a variety of deposit settings. This early success bears similarities to other established gold deposits and producing gold mines located in proximity along the Cadillac Break.
More importantly, the results are also notable in that Renforth has encountered gold in every drill hole so far at this target area. Combined with the historical data from the Thompson-Cadillac gold mine, the confidence is building that the Company may indeed be in the early stages to outline a significant gold deposit.
With the widest interval encountered so far in this program, and the deepest intersection of the vein system yet achieved at New Alger, Renforth is delivering results to support the speculative interest in the story. Other target areas on the project may also contribute further discovery potential as work continues.
Renforth is achieving effective results and rapidly advancing New Alger. As one of the most active exploration stories in Canada, the Company is creating value for shareholders through discovery success achieved at several projects in the portfolio. New Alger remains an attractive prospect with the potential for a high-magnitude breakthrough as work continues further to depth. Smallcaps Recommendation: BUY.
|Smallcaps.us Advice: Buy||Price Target: $0.29||Latest Company Report (pdf)|
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Wanted to take a position but cannot buy them because they have .CN and not .TO or .V
Bought more Globex instead, they have exposure to Renforth too.