Positive Metallurgical Test Results Advance Expectations for Emerging Surimeau Nickel Discovery
At this early stage, Renforth Resources Inc. (CA:RFR – $0.07 & US:RFHRF – $0.06 & GER:9RR – €0.04) has barely scratched the surface of the enormous Surimeau project. However, the first round of fieldwork has already presented encouraging showings of alteration. Drilling completed shortly after achieved the discovery of a VMS nickel deposit. Since then, the Company has been busy to incorporate this promising start into a comprehensive plan to advance the project. This week, Renforth reported more positive geochemical results after testing of sample material from Surimeau. Laboratory analysis has determined that an average of 68% of the nickel content from these samples is hosted within sulphide minerals.
Two sets of metallurgical tests were completed. The Four-acid digestion process is considered the most accurate process for analysis of nickel content since both sulphide and silicate minerals are more thoroughly digested during testing. In contrast, using the Aqua Regia digestion process most of the silicate nickel is not dissolved. Therefore, comparing the difference between the two assaying methods can determine sulphide nickel content of the alteration.
The significance of this news is based on the metallurgical properties of minerals encountered within a nickel deposit. The sulphide minerals are considered more attractive because the recovery efficiency is higher. Also, conventional processing technology is able to achieve optimum results with sulphide nickel. In effect, more nickel may be produced and at lower costs from sulphide minerals than from a similar grade of silicate mineralization.
The good news from this round of assays is the samples averaged 68% sulphide minerals, which is what the Company wanted to see. In fact, for 17 of the 18 samples tested, sulphide content represented more than 40% of the total nickel content.
Commitment to Accuracy and Achieving a Representative Assay Procedure Pays Off
The thorough approach by the Renforth team is intended to provide a more representative assaying process. Recall that Renforth made a similar decision when evaluating the gold assay results from work at the New Alger project. Subsequent assaying using Metallic Screen analysis was effective to illustrate a more accurate gold resource than simply relying on the fire assay process.
At New Alger, Renforth was able to present a higher overall gold grade for these sample sections tested with two assay procedures. Following this success, Renforth is also using this approach for some of the gold zones outlined at Parbec. And the positive data now being presented from the first fieldwork programs at Surimeau is yet another validation of the technical experience on behalf of the exploration team.
The Company has also decided to investigate Surimeau sample material for the presence of platinum group metals. A significant contribution to the overall value of a potential deposit may be generated by these high-value metals, commonly encountered along with the nickel bearing alteration.
Update on Activity Related to Parbec Exploration
Meanwhile, Renforth is proceeding with the full assay process for about 70m of drill core pulled from the Victoria West area that had not been submitted in the first round. The remaining core sections will be split and logged. Renforth anticipates that additional mineralized sections may be confirmed during assaying of the core adjacent to previously reported nickel alteration. This added mineralization may then build even further economic potential for this zone. The expectation for additional news flow in the weeks ahead is yet another catalyst to maintain speculative interest in the discovery area.
The extensive drilling program targeting the Parbec gold deposit continues to move forward. The second phase of the ongoing drill program is proceeding efficiently. A total of seven drill holes have been completed so far since work resumed following the holiday break. This represents more than 1500 meters of total drilling. In all, 19 drill holes are budgeted for this phase.
A significant backlog of assay results remains from drilling work completed late last year. This is in addition to previously drilled core that was in process for splitting and logging at the start of this year. And all of the new drill core that is pulled as the work continues at Parbec. The inventory of sample data is expected to be addressed more rapidly with two separate laboratory facilities now engaged to complete the assaying.
Bearing in mind that every drill hole completed by Renforth so far at Parbec has successfully encountered gold results, this does set up the expectation for more positive news flow in the weeks ahead. If this perfect track record remains intact with the pending results, the overall magnitude of the Parbec gold deposit is set to increase significantly.
The Surimeau project is already exceptional, given the enormous combined strike length of the interpreted structural corridors currently outlined. Within the context of its location in the midst of the prolific Abitibi mineral belt, it is even more astonishing that a junior explorer was able to secure 100% ownership of this promising district-scale system. Mineral extraction is the theme of this region, and as such there is abundant access to infrastructure in support of development.
Surimeau is located just 20kms south of the town of Cadillac. An access road from Cadillac runs right through the western end of the property, in proximity to the Victoria West target area that was recently drilled. From the eastern boundary, the nearby town of Malartic is a service center to the largest open pit gold mine in Canada. The setting is ideal for advancement of a large scale base metals deposit.
The economic potential for Surimeau is now even more attractive given that VMS alteration is defined from surface. With this latest report of predominantly nickel sulphide mineral content, another important indicator for a successful outcome is established. Nickel demand is projected to increase as a critical component for electric vehicle batteries. The drive towards green technology is perfectly timed with the discovery of the new deposit area at Victoria West.
Work is moving forward at Parbec and additional assay results are highly anticipated. Renforth is now planning an ambitious exploration program at Surimeau and will remobilize the drill as soon as the last drill hole is completed at Parbec.
It appears Renforth shareholders may continue to look ahead with confidence as a busy year of exploration is already in progress. A flurry of assay results and progress updates is imminent. Smallcaps Recommendation: BUY.
|Smallcaps.us Advice: Buy||Price Target: $0.19||Latest Company Report (pdf)|
|For important disclosures, please read our disclaimer.|