High Grade Assay Results Continue to Build Expectations at Parbec Project

Months have passed since the completion of the most recent round of drilling at the Parbec project. The exceptional progress achieved by the drilling contractor has not been matched by the assay laboratory. Persistent delays to receive assay data from drill core samples has characterized the summer. The encouraging aspect to this situation is that the results that are being reported in small batches are very good. This week Renforth Resources Inc. (CA:RFR – $0.08 & US:RFHRF – $0.06 & GER:9RR – €0.05) presented another set of assays for a full drill hole from the spring drilling program.

PAR-21-132 was collared as a confirmation hole to ‘twin’ historical exploration completed many years ago by a previous operator. The results of this drill hole were encouraging. Five separate gold-mineralized intervals were encountered, starting from near surface. A highlight section spanning more 11.75m was reported bearing an average of 3.3g/t gold. This section is among the ten best drill core intervals ever reported in the various drilling programs at Parbec. A very high-grade subinterval within this section included 15.53g/t gold within 1.75m of drill core. Another notable section of more than 7m bearing a respectable 1.2g/t gold was also presented in this news.

The twinned holes at Parbec validate the assay data from between 1986 and 1993, which was excluded from the 2020 resource estimate.

Assay results are still pending for a further 15 drill holes from the spring program. The results from this ambitious drilling program have served to outline new resource zones, confirm the historic exploration results and extend the overall deposit area well beyond the limits established in the maiden Parbec resource estimate. Therefore, as the final assays are reported, the tremendous volume of additional gold values will likely contribute to a significant upgrade in the total gold resources defined for the project. Ideally, most of this increase will come within the conceptual open pit shell.

Program to Twin Historic Holes Achieves Desired Results

Ten of the drill holes completed during recent drilling were planned to confirm results of historical drill data reported by previous operators of the property. Historical exploration activity encountered gold zones that often included very attractive intervals. Yet strict guidelines demanded by the NI43-101 reporting process restricted this data from consideration for compliant resource reports. To do so, these historical results required a confirmation program to validate accuracy as per the current standards for quality assurance and supervision of sample material.

Renforth opted to target carefully aligned drilling work that passed within 10m of historic drill sections. At least 10% of the historical drilling data must be confirmed with twinned drill holes to validate previous drilling. Thereafter the entire data base of historic holes would be considered valid for inclusion into the pending resource update.

Renforth appears to have achieved the desired objective of the confirmation drilling. Assays for all ten of the twinned drill holes have now been received. Each of these was successful to confirm previous historical data. And several of the twinned holes actually presented more attractive gold zones than were originally expected. Most of this additional data was generated in specific areas of the deposit that carried a null value in the previous resource estimate.

Consider that numerous attractive gold intervals from work done in the 1980s and 1990s will now be included in the pending resource update. Many of the gold zones presented were of much higher gold grade than the average reported in the maiden resource estimate. Wider intervals of mineralization will also contribute greater resource clout. The prospect for a much larger overall gold resource at Parbec is exceptional.

Progress at Surimeau Updated in Context for the Importance of Future Exploration Work

With the second drill program at the Victoria West target area of Surimeau now completed, the focus shifts to evaluation of assay results. Similar to the delays at Parbec, the drill core samples from Surimeau are also taking longer than usual for laboratory analysis. This week Renforth confirmed that partial assay results have been received for some of the earlier drill holes. Given the magnitude of the exploration effort, the Company believes that it is appropriate to wait until all the assay data is received before presenting the full suite of results.

The Victoria West target area has now been tested with two significant drilling efforts across more than 2.2km of strike length. Nickel and Copper sulphide minerals were observed in the drill core. However the project geologists are still very early in the process to interpret the structural controls of the system and determine the most optimum program to advance further work.

Surimeau spans more than 260 square kilometers of property area. At least 6 major exploration targets (including Victoria West) have been identified so far. The data from each of these early drill holes is therefore of great importance at this early stage. As the results trickle in, the technical team will scrutinize the data and optimize the exploration model for the next phase of work. As it stands, it appears that two distinct mineralizing events have occurred at Victoria West in close proximity. The system remains open in all directions. The recent drilling effort was successful to extend the deposit further to depth. Renforth will endeavor to interpret the results as received and plan to continue expanding the defined deposit area.

Conclusion

It bears repeating that when the maiden resource estimate was presented by Renforth for the Parbec deposit, none of the historical drill data was included in the calculation. The final drill hole focused towards twinning the previous data has now been presented. The assay values from PAR-21-132 are attractive and in line with expectations. Successful confirmation achieved by the twinned drill holes enables a large block of historical drill results to become eligible for inclusion when the calculation for the updated Parbec resource estimate is prepared.

Combined with the full suite of the exploration results from more than 15,000 meters of drilling in this latest round, a substantial increase of exploration data will be available for the next resource update. This work includes ‘gap zones’ where no previous data was available to account for gold resources. Additional discovery areas of the deposit and multiple high grade showings will also build the expectation for a material increase to the total gold endowment calculated with the updated resource report is presented.

The work at Surimeau is also advancing rapidly, and exceeding expectations for the early stages. Shareholders await assay results with the knowledge that visible nickel and copper have been observed. Base metals alteration was encountered in every drill hole so far at the Victoria West target. This project will evolve into a major exploration effort with the potential to create tremendous shareholder value in the years ahead.

The steady trickle of assay results has delivered positive results and anticipation builds for more successful reports. Both projects are advancing along the value curve. The process to update the resources for Parbec draws closer. This in turn should be the catalyst for a boost to shareholder value if indeed a significant boost in the gold resources of the project is presented. Smallcaps Recommendation: BUY.

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