Preparation for Mini-Bulk Sample at New Alger Highlighted by Presence of Visible Gold in Sample Material
Exploration is advancing at several properties held by Renforth Resources Inc. (CA:RFR – $0.08 & US:RFHRF – $0.06 & GER:9RR – €0.05) but shareholders are currently focused on the New Alger property. This week the Company issued an update on the progress of preliminary work prior to commencing a mini-bulk sample program.
In preparation, about 275m of the Discovery Vein gold system has been stripped of overburden. Note that several suites of alteration have been encountered at this deposit area so far. There is some variance based on gold content and metallurgical characteristics from one section to the next. Four separate target areas were therefore chosen to include a more representative mix of sample material. At each target, previously completed trenching and sampling work carried out during 2014-19 had confirmed attractive gold values.
“A” Pit was highlighted by a section of 0.45m bearing 2.56 g/t gold. “B” Pit was chosen for a higher grade section of 7.59 g/t gold across nearly a meter of a trench sample. This area was also targeted in a previous surface blasting program completed back in the 1920s. “C” Pit also featured a higher grade gold section averaging 11.6 g/t across a 0.45m trench interval. The eastern section of the stripped area was chosen for “D” Pit with a gold sample of 1.92 g/t measured across 0.7m of a trench.
Blasting has been completed within these sections. A total of 1815 pounds of broken rock fragments and rubble was collected. This was packed in 100-pound bags and shipped for further analysis to SGS Lakefield. The lab will begin with assaying to determine the gold grade for each batch of samples. More importantly, processing and metallurgical studies will be carried out to include grindability testing, gravity concentration testing and net gold recovery analysis for each pit.
Anticipation Builds after Visible Gold Observed in Samples
Perhaps the most encouraging aspect to the early stage field work is that visible gold was observed in several of the samples collected within the “B” and “C” Pits. This confirms the presence of coarse gold within the sample material submitted for further analysis. It then opens the potential that pending assays will surpass the initial values reported during trench sampling in previous years. Moreover, the prospect of visible gold adds an exciting dimension to the outlook for this entire program.
The Company will now await the results from SGS Lakefield before moving ahead. Preliminary analysis is a precaution since it is of little value to continue with the bulk sample if the targets selected are within sections of the deposit with limited gold content. The mini-bulk sample will commence once grade has been confirmed.
Investors often focus on the gold assay values as an indication of the potential economics for the deposit. However, it is the metallurgical variables that are of greater importance to define the success of the program. The results of lab testing work will illuminate the best processing options for optimum gold recovery.
Renforth is considering a number of nearby locations to utilize for toll milling and processing of the bulk sample. For example, testing may indicate that a high percentage of the gold content may be recovered as coarse gold particles. Renforth would then select a processing facility with a primary gravity circuit to ensure more efficient recovery. As these details are resolved the decision on the toll milling facility will be finalized. Ideally the results will become available within weeks and the Company may return to the property in September to extract the mini-bulk sample for processing. Perhaps 2000 tonnes of the deposit will be extracted during this phase.
Drilling Work Completed at New Alger in Tandem with Bulk Sample Activity
In addition to the fieldwork completed in preparation for the mini-bulk sample, another round of diamond drilling work was completed this week at New Alger. Nine drill holes, totaling 1782 meters, have been completed targeting the Discovery Vein system.
Renforth reports that each of these 9 drill holes completed encountered mineralization similar to what was intersected through previous drilling programs. This is encouraging given that all of the prior drilling work successfully confirmed gold values. Core samples have been selected and submitted for assaying.
One key feature of the exploration process employed by Renforth is the ability to shift drill targets on the fly. With the evidence of visible gold encountered from “B” Pit, the drilling in this area was re-oriented to the north. By doing so, the geologists anticipate that will create a greater opportunity to intersect potential higher grade, flat lying veins that might otherwise be missed if a southern orientation was chosen. A successful result from this drill hole may validate the assumption for additional gold discovery. That would contribute to further increase the total resources of the deposit.
Renforth was able to present a compliant gold resource for New Alger earlier this year. The company outlined a portion of the total deposit area that appears to be suitable for open-pit mining. The next phase to build the value proposition for this deposit is now underway. The mini-bulk sample program may resolve many of the variables critical to determine project economics. The objective is to present confirmation of the estimated gold grade and advance recovery efficiency options for a conventional processing circuit. A successful resolution to this phase will contribute a much higher degree of confidence for the potential of a mine development at New Alger.
The drilling work completed this week also holds the promise to build shareholder value. Infill drilling work may contribute to upgrade the category of the defined resources as the drill density increases. Additional resource blocks may also be added to the next update for the resource estimate. As step out drilling continues the Company may continue to expand the overall deposit and perhaps encounter additional zones of higher grade gold alteration.
Considering the success rate achieved so far in the discovery process, shareholders may look ahead with confidence as the activity continues aggressively to move the project forward. The presence of visible gold is yet another positive affirmation of the gold endowment that remains to be discovered even after more than 100 years of exploration history within the property area.
Renforth shares traded to a 3-year high this week on very strong trading volume. The stock is now among the best performing juniors explorers active in Canada. At last it appears that the market is waking up to the potential of New Alger and the other projects held by the Company. Even so the market capitalization remains well into bargain territory. Smallcaps Recommendation: BUY.
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