Renforth Resources Again Expands Surimeau as it Evolves into a Confirmed Battery Metals Discovery
The expanse of the Surimeau property, wholly owned by Renforth Resources Inc. (CA:RFR – $0.10 & US:RFHRF – $0.09 & GER:9RR – €0.05), is impressive to say the least. To secure such a large exploration prospect in a highly prolific mining camp is an exceptional accomplished. Nevertheless, Renforth has now delivered even greater potential upside to this exploration story.
This week the Company reported that it has acquired an additional section of property claims that adjoin the Northwest corner of the enormous land package. The new section, comprising the Huston Target area, was purchased from a private investor group for the issuance of 4 million shares of Renforth in November, 2020. The Company is now in process of transferring ownership of the new claims.
The combined area of the consolidated properties now increases to a formidable 260 square kilometers. The Huston Target was originally identified in the 1980s. Thereafter, Hecla Mining gained ownership of the claims and completed preliminary drilling. The historic data for this area indicates that copper and gold values were encountered in the drill holes but Hecla opted to forgo any further exploration on the property. The private investor group was able to secure ownership of these holdings, following the strategic decision by Hecla to release the claims.
Subsequent surface fieldwork was conducted in the area of the Huston Target and a small scale grab sampling effort investigated outcrops. Access afforded through crude logging roads enabled reconnaissance work and mapping of exposed alteration zones. Again, copper and gold values were confirmed through this work. The geological model advanced by previous operators suggested perhaps a deeper splay target off the main Cadillac Break structure may have been a factor in the mineralization identified at surface. As indicated on the map above, the Westwood Gold Mine operated by Iamgold is located a short distance to the north of these claims.
Enhanced Structural Targets Identified Extending into Huston Claim Area
The Quebec government completed a regional airborne geophysical survey across much of the Abitibi Greenstone Belt in 2012. Renforth reviewed data from this program and interpreted a promising target area extending through Surimeau. The presence of MAG anomalies from this data lined up precisely with some of the historic exploration results documented in specific areas of the property.
It is fortuitous that the newly acquired property holdings are also within the coverage of the geophysical surveying data. Renforth’s geologists were able to interpret similar MAG anomalies extending through the Huston Target area. This now brings the total to six high profile structural target zones identified so far within the consolidated property area. The Huston Target extends perhaps 5 kilometers along strike and the previously sampled areas where copper and gold were encountered show up directly within the geophysical interpreted structural corridor.
The additional strike extension along the northernmost limb of the structural zone is attractive for further discovery potential. The package of new land holdings was acquired extremely cheaply. Renforth may have assembled a key parcel that may ultimately become part of a larger discovery zone, and perhaps add to a major base metals mining camp within this important established district.
Battery Metals Discovery Confirmed at Victoria West Target Area
At the Victoria West target area, two separate drill programs have been completed so far by Renforth. This work confirms the geological model for the property and a new base metals discovery is in progress. Assay results are still pending for the most recently completed program, amounting to 3500m of drilling work this year. Visual inspection of the drill core however revealed wide bands of mineralization consistent with volcanogenic massive sulphide alteration.
Renforth has outlined a discovery area up to 250m in width. The drilling work has encountered base metals alteration in every drill hole for more than 2.2km of strike length. While the overall size of this mineralized system is impressive so far, Renforth’s geological team believes that the system may extend a further 4km to the west and 12km to the east of the currently outlined zone. The Victoria West Target area is therefore evolving into a promising discovery area with the potential to achieve a significant base metals deposit.
Base metals mineralization including chalcopyrite, pentlandite and sphalerite was observed in drill core. These sulphide minerals are commonly associated with deposits of copper, nickel and zinc. This suite of base metals is currently in high demand for industrial consumption related to the manufacturing of batteries for electric vehicles.
As the production of electric vehicles is expected to continue increasing, the market for battery metals is facing supply constraints. This in turn is contributing to higher prices for these metals, and also encouraging fast track for development of new mines to keep up with demand. The timing could not be better for Renforth to be advancing an exciting new discovery that is already demonstrating attractive intervals bearing battery metals even at this early stage of exploration.
Additional Parbec Assay Results Reported
Another batch of assay results from Parbec was also reported this week. The steady flow of assay data continues to provide a backdrop of good news for Renforth. Shareholders have become accustomed to the achievement of significant gold values in every drill hole and the winning streak at Parbec continues. This week the assays from another four holes were announced, plus a partial interval from a fifth drill hole.
Highlighting this batch was a section of 3.89 g/t gold over an interval of 1.75m in drill hole PAR20-120. The gold grade in this section is more than triple the average for the Parbec deposit. In fact many of the recently published intervals at Parbec have been well above the average grades from previous drilling. It is also notable that this section was targeted as an overcut to a high grade gold interval encountered in previous drilling. It appears this part of the deposit is a gold enrichment zone.
Recall that in Hole PAR20-116, a section was reported of nearly 50m with an average of 1.46 g/t gold. Renforth opted to send additional drill core samples from this hole for assay. Yet another gold interval was confirmed, as a further 1.25m of this core was found to be mineralized with a grade of 1.71 g/t gold. Therefore the widest interval so far at Parbec just became even more attractive.
In hole PAR20-119 a section of 1.27 g/t gold was encountered over 2.8m of core. This targeted at a gap zone of the deposit where no previous gold results were available. Additional gold zones from recent drilling fit like puzzle pieces into the overall deposit. This will fill in some of the blanks as the resource estimate is updated and add gold ounces to the deposit.
The ongoing stream of exploration results from the Surimeau and Parbec properties is contributing a powerful one-two punch combination for Renforth. Barely a third of the way into the year, the Company has completed two ambitious drilling programs. The backlog of samples awaiting assay required utilizing the services of a second laboratory facility. As these assay results are reported, each of these properties is gaining speculative value.
Surimeau has already evolved from the concept stage to where it is now positioned as a confirmed battery metals discovery. The structural targets further along strike may yet reveal a very large deposit area. Victoria West presents a high magnitude discovery that will attract a lot of interest as work continues.
The strategy to complete the acquisition for more land holdings at this early stage is yet another value proposition for shareholders. If Victoria West evolves into a high profile deposit, the value of land holdings in proximity to Surimeau will increase sharply. Other junior exploration companies will be clamoring for leverage to this district and the prospect for option deals and joint venture opportunities may arise. Meanwhile, the geophysical anomalies outlined at the Huston Target will add to the inventory of exploration prospects. Renforth has achieved notable success already and the Company will be busy for many years with untested target areas in the pipeline at Surimeau.
Parbec remains the flagship asset. The ongoing reporting of positive gold values builds the potential for a material upgrade to the overall deposit as the resource report is eventually updated. A larger and higher grade gold deposit will attract a premium market value as an acquisition target for a number of prospective suitors in the district. The shares of Renforth have been trading in a higher range in recent weeks, and for good reason. Yet, we feel this is only the beginning. Smallcaps Recommendation: BUY.
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