Renforth Encounters Excellent Gold Values At Parbec in New Assay Results
Renforth Resources Inc. (CA:RFR – $0.07 & US:RFHRF – $0.06 & GER:9RR – €0.04) issued an update regarding its Parbec property, as a further 15 holes have been completed since February 5th, for a total of 4095 meters of drilling. The fully funded program is progressing efficiently through to the final phase. The Company has opted to complete two additional holes as the program wraps up for a total of 21 drill holes and a little over 5000m of drilling work this year.
Meanwhile, after a series of delays awaiting assay results from the Parbec drilling program, it now appears the labs are getting back up to speed. This week Renforth reported assay results for four more drill holes. A tremendous backlog of sample assays remain in process and this means steady news flow should continue for some time.
All of the drill holes reported in this batch encountered multiple gold horizons extending down through various zones of the deposit. High grades of gold encountered across meaningful widths of drill core and within near-surface sections of the deposit, are all extremely positive indications. The strategic approach of this program is geared towards building the total gold resources at Parbec. Increasing the resource at Parbec advances the potential for an open pit mine development.
Wider Mineralized Intervals Reported Along with High Grade Gold Values
Several highlight intervals were reported in this batch of results. One section of more than 21 meters in Drill Hole 20-112 carried an average of 5.57 g/t gold. This is arguably the best interval reported so far from all of the work at Parbec up to present. Within this wide zone, an interval of one meter was mineralized with 37.3 g/t gold, another 1.1 meters carried 32 g/t gold. For emphasis, the average grade of the currently established compliant resource is roughly 1.78 g/t gold.
Hole 20-112 was aligned to target the down dip extension of a resource zone encountered previously in Hole 89-50, where an average of 4.64 g/t gold was reported in a 6.25 meter section of core. This gold zone is now confirmed further to depth and trending to elevated grades. Both considerations are favorable for the outlook in the context of this district. Many gold deposits elsewhere along the Cadillac Break are enriched at the deeper elevations of the system.
Drill Hole 20-111 also encountered several wider zones of gold mineralization, including sections of 7.3m and 8.4m that will further build the potential resource. Hole 20-110 was notable for the presence of seven different gold bearing zones down to more than 260m of core length.
Hole 20-113 was aligned to twin a historic drill hole completed in 1993 where gold values had been reported but were not acceptable for the compliant resource. With this updated drilling work, including a section of 3.9m that averaged 1.19 g/t gold, the segment will contribute to the updated gold resources of the project.
It is highly encouraging that most of the gold zones identified in this round are within the conceptual pit shell for the project. The gold zones not within the pit may extend and increase the open pit. The open-pit mining potential is taking shape as wider intervals of higher grade gold are reported at Parbec.
With data in hand for these four additional drill holes, the winning streak of achieving meaningful gold values in every drill hole remains intact. These additional gold bearing zones presented in this work contribute to the growth of the overall deposit area. Some of the attractive intervals were specifically targeted towards ‘gap’ zones missed in previous drilling. Confirmation of solid gold values serves to fill in some blanks for the upcoming resource update.
Several higher grade intervals were reported that extend beyond the proposed pit shell. The deepest drilling work yet attempted by Renforth continues to encounter encouraging gold values. The deposit remains open to depth.
The news flow is expected to continue for many weeks. Assay results from the remaining core samples of 18 drill holes completed last year, in addition to ongoing drilling this year, will keep the labs busy. If Renforth is able to present further successful intervals of the grade and widths outlined recently, this will be a very bullish factor.
An NI43-101 resource estimate will be prepared for Parbec immediately following the receipt of all data from the latest drilling activity. The growth of the Parbec gold deposit will support the potential for development of a mine. This should also attract the interest of other companies in the district that may proceed with a deal to acquire the project.
Renforth will plunge ahead with ambitious exploration work. The next important drill program at Surimeau is in preparation to commence immediately following the conclusion of work at Parbec. Renforth anticipates a program of 15 holes for a total of 3600m of drilling. The permit application process is underway and preliminary fieldwork has commenced. The Company is still awaiting assay results from additional samples submitted earlier this year.
Given the positive early results and strategic location of Surimeau, the potential to advance discovery of a large scale VMS nickel deposit is another catalyst to move the stock higher. Smallcaps Recommendation: BUY.
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