New Gold Zone Discovered at Parbec Property
Since the resumption of fieldwork at its Parbec Project in Quebec just over a month ago, Renforth Resources Inc. (CA:RFR – $0.07 & US:RFHRF – $0.06 & GER:9RR – €0.04) has achieved an impressive advance in total meters of drilling completed. Only two holes remain to be drilled in this second phase. Even better news however, is the fact that the Company is still encountering new surprises during this program.
This week, Renforth reported that a new gold-bearing zone has been discovered, hosted in the Pontiac sediments adjacent to the Cadillac Break structure. The Company presented assay results from drill hole Par-20-105, which included distinct gold zones at three separate intervals of core. Among these sections, one interval of 3 meters carried an average grade of 6.43 g/t gold. Another interval spanning 1.5 meters closer to surface encountered 5.34 g/t gold. A very narrow high grade interval between these two sections was mineralized with 15.8 g/t gold, which amounts to one of the highest grade intervals reported so far at the property. Assay results have not been reported yet for some core samples from this drill hole. So there may be more mineralized intervals awaiting confirmation further to depth.
Narrow diorites were also observed in near surface sediments in drill core from Hole PAR-20-118 which was collared nearly 200m to the west. The results have been interpreted as a restricted diorite zone that pinches out before reaching the surface. The gold intervals reported so far are attractive and much higher than the overall average grade for the deposit. It is also highly encouraging that these mineralized sections were encountered outside of the main gold bearing structural zone.
Further Evaluation Planned for South Pontiac Gold Zone
The diorite zone is further validation of the discovery potential at Parbec. This represents a new setting for gold mineralization at the property. The diorite target area corresponds with a magnetic high anomaly outlined through previous geophysical surveying. Gold bearing sections are hosted with quartz veining.
Renforth has presented several distinct discovery zones at the property as it advances exploration beyond the previously established gold-bearing target areas. Earlier, the Company identified potential cross trending structures which now appear to be confirmed with additional gold resources.
A diorite splay zone was identified in drill core from exploration work in 2018. Trending roughly 100m off from the main Cadillac Break structural zone, this target area offered the potential to increase the near-surface gold resources that may be suitable for open pit mining. Surface stripping was completed in the area in 2019 and confirmed the zone with several attractive gold intervals. Last year additional drilling was completed to target this area and achieved further success to outline gold across attractive widths.
The new diorite zone has the potential to add more gold resources to the open pit deposit shell. Given that it is peripheral to the main deposit area, previous drilling was not aligned to target this section. The outlook for similar grades of gold mineralization to be encountered along a meaningful strike length merits follow up. Renforth plans further evaluation and a strategy will be developed to evaluate this potential. Once again the Company has demonstrated the capacity to build on the gold resources at Parbec based on the skills of the exploration team to look beyond targets outlined by previous operators.
Upgraded Exploration Data to Support Increased Gold Resources
Renforth has stated that an updated NI43-101 resource estimate will be prepared immediately following the receipt of the final batch of assays from the extensive ongoing drilling program. Some of the drilling completed during this round was specifically targeted to investigate gap zones where there was insufficient data to confirm gold resources. This included known gold intercepts based on historical drilling work that did not qualify under NI43-101 standards. Additionally some of the drill holes were targeted to twin historic holes. If about 10% of the historical drill holes can be replicated and the drill core analysis generates similar results, then previous data is validated for these zones. If so, then the historical drill holes will be considered accurate and may be included in the next resource update.
All of the recently completed exploration work is expected to pay off with a material addition to the compliant gold resource for the project when the updated report is presented. Perhaps a few more higher grade gold discovery zones will be reported along the way. There are still assays pending for sample material from 20 drill holes completed last year in the first phase of the program. And laboratory assaying for all of the drilling work so far this year remains to be completed.
So far the news from Renforth this month has been extremely positive. Ongoing exploration work at Parbec has continued the winning streak for the Company. Gold values were reported in samples from every drill hole where laboratory assay analysis has been completed. The grades most recently reported have been trending sharply higher, and some much wider mineralized intervals have been encountered in drill core. With this latest update to confirm a new gold-bearing target zone the upside for the overall deposit is once again highlighted.
A tremendous amount of sample data remains to be assayed and this continues to build the speculative appeal for the project. Each of the drill holes from this program is designed to expand on known discovery zones or confirm gold known zones for inclusion in the total resource. Therefore the recurring success reported by Renforth as assay results are received from the laboratory facilities will increase the confidence that a much larger gold deposit is pending when all of this data is plugged into the updated NI43-101 resource report.
When the drilling campaign at Parbec is completed, the drill will immediately be moved to Surimeau. Renforth plans to drill 3550m at the high potential property, in 16 drill holes.
At Parbec the wider gold-bearing zones outlined through drilling, located near surface within a conceptual open-pit mine shell, improve the projected economics to develop a mine. This in turn builds the outlook that a gold producer will step forward with an offer to buy the project. Parbec is located in close proximity to several operating gold mines. The characteristics of the deposit are very similar to the Canadian Malartic gold mine operating immediately adjacent to the property boundary. As Renforth advances to complete this current round of exploration, the potential for another homerun property transaction in the months ahead is coming into focus. Smallcaps Recommendation: BUY.
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