Price Target Increase Justified for Renforth Resources
Renforth Resources Inc. (CA:RFR – $0.035 & US:RFHRF – $0.03 & GER:9RR – €0.03) is a mineral exploration company that focuses on easily accessible Canadian-based gold projects.
Renforth delivered two NI43-101 compliant resource estimates in May 2020 for its active exploration projects New Alger and Parbec, both located in Quebec. Each of these emerging deposits is economically attractive, with gold grades that are considered robust for open-pit mining assumptions. The near surface zones are already significant in terms of the ounces of gold established. However, the total gold resources will very likely amount to much larger deposit areas as further exploration work continues.
The Company is gaining recognition for these accomplishments. Very few junior explorers have achieved the stature to present compliant resource reports for two separate projects.
The steady advancement of these two high profile projects serves as the catalyst for a higher share value. Combined with the bullish background for the price of gold itself, Renforth shareholders may look ahead with anticipation to higher market premiums for this attractive stock.
With its recent exploration activities, Renforth has established itself as one of the most active junior explorers in Canada, and the New Alger property as one of the top discovery prospects in Quebec.
If the Company is able to deliver further success from this work, the profile of this emerging gold deposit area in one of the hottest mining districts in Canada will attract further attention. With a market cap that may be considered in the bargain range at the present, the prospects for steady news flow from New Alger will be a catalyst to move this stock higher.
We reiterate our buy recommendation for Renforth Resources with a price target of $0.14, which is an increase from $0.12 in our previous report, and 300% above today’s stock price. The price target increase is justified, as the Company made some significant progress since our previous publication.
|Smallcaps.us Advice: Buy||Price Target: $0.29||Latest Company Report (pdf)|
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