Positive Assay Values Reported from Sediment-Hosted Alteration at Renforth’s Parbec

As expected, the backlog of assay results from ongoing drilling work at the Parbec project is gradually being resolved for Renforth Resources Inc. (CA:RFR – $0.06 & US:RFHRF – $0.09 & GER:9RR – €0.03). The Company reported sample assays from some of the drill holes late in December, and then followed up this week with another batch.

Including the previously reported data, Renforth has now received the full assay results for five of the drill holes from the current exploration effort. Of note, drill holes 20-104 and 20-104A were both collared from the same drill pad. A highlight interval of 13m from 20-104A averaged a grade of 1.72 g/t gold, representing one of the longest continuously mineralized sections presented so far. A second shallow gold zone of 6m was also encountered within this drill hole bearing 1.25 g/t gold. Meanwhile, hole 104 was completed to a much deeper target zone and also encountered multiple gold zones.

To put these results in context, the majority of higher grade gold intervals encountered through the ongoing exploration effort have come from the quartz veining associated with the Cadillac Break structural zone. However, Renforth continues to deliver attractive sections of gold alteration hosted within the adjacent Pontiac Sediments. As these sediment hosted gold intervals are encountered near surface, the geometry and grade of the overall deposit becomes much more attractive within the conceptual open pit shell.

The results are positive and Renforth maintains its highly enviable track record with a 100% success rate to encounter gold in every drill hole at Parbec so far.

Faster Turnaround Time Expected for Assay Results

The extensive drilling effort underway at Parbec has already surpassed expectations. More than 9600 meters of total drilling was completed late last year before work was suspended for the holiday season. Of this, results have been received for only 5 of the 27 drill holes so far. Approximately 5000m of drill core samples have been submitted for assay with results pending. Meanwhile, drill core pulled from eight holes completed in December is scheduled to be split and logged shortly in preparation for laboratory analysis.

Renforth reported in December that a second laboratory facility was selected in order to accelerate the assaying process. The Company anticipates that results from this new lab may also be presented before the end of this month. The steady flow of positive results is also expected to build speculative interest in the stock, even as the next round of drilling commences early February.

The Company remains committed to complete at least 15,000 meters of total drilling work in the current program. The program is fully permitted and funded. Upon completion, the additional assay data from the effort will be compiled as part of an updated resource estimate for the property.

Additional Exploration Activity Planned

Recall that Renforth seized the opportunity to deploy a drill rig to the Surimeau project in the fall of 2020. A series of shallow drill holes targeted alteration outlined near the Victoria West zone. This area is part of the extensive structural corridor defined on the property. The challenges of inclement weather and a mechanical issue with the drilling rig prevented the entire program from being completed. However drill core was pulled from several holes and submitted for assay. Visual inspection of the drill core confirmed the presence of alteration common within base metals deposits.

The assay results are eagerly awaited by the Company and may be received by the end of this month. Attractive grades from this early round will serve as further validation that a significant base metals deposit may be awaiting discovery at Surimeau. The planning process for a subsequent drilling effort is now underway. Following the completion of drilling work at Parbec, the drill will be mobilized to Surimeau to commence a more ambitious program to follow up on the first effort.

The Nixon-Bartlemen property in Ontario is also slated for attention. The project is located in close proximity to significant mines developed within this gold-producing district. The initial results from the surface gold zone were encouraging and follow up drilling is planned in this area. Other targets related to the Porcupine-Destor Fault system as it extends through the property will also be investigated. A structural-geochemical target will be investigated in this area. The property is considered under-explored and remains an important asset in the portfolio.

Conclusion

Despite the aggressive exploration posture advanced through 2020, Renforth remains lavishly funded with $2.6 million in cash to start this new year. This, in addition to its ownership of 12 million shares of Radisson Mining [RDS]. There is also the potential to receive a bonus cash payment if certain conditions are met in association with further exploration objectives at the consolidated O’Brien-New Alger project. With this strong working capital position, Renforth is fully financed for its ambitious exploration plans in 2021.

The potential for further discovery at Parbec is an important catalyst contributing to a higher share price. And while the discovery side of the story is creating speculative interest, the ultimate objective at Parbec is to define an economic deposit suitable for development to a producing gold mine. A large backlog of sample assays awaits analysis. As the assay results catch up to the progress in the field, the Company will turn towards updating the NI43-101 resource report.

Current exploration work is designed to upgrade the category of confidence and add to the total tonnage of mineralization for the deposit. This is expected to contribute to a material upgrade when all of the numbers are crunched and the resource estimate is updated. A successful outcome may trigger the interest of other companies to acquire Parbec.

The emerging prospect for a significant base metals deposit to be outlined at Surimeau is another potential catalyst that could lead to a much higher market cap for the Company. Assay results are pending. Another drill program is set to kick off in 2021. It appears Renforth will maintain its reputation this year as one of the most active junior explorers in Canada. Smallcaps Recommendation: BUY.

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