Renforth Resources Identifies New High Profile Target Area
Heading into the second half of 2020, Renforth Resources Inc. (CA:RFR – $0.05 & US:RFHRF – $0.03 & GER:9RR – €0.03) has already achieved a number of ambitious milestones, highlighted by the presentation of compliant NI43-101 resource estimates for two of its projects under exploration. The Company also completed drilling work, advanced the effectiveness of metallurgical testing options, and launched geophysical surveying programs. This was all accomplished despite a precautionary work stoppage due to the Covid-19 pandemic during the spring.
Yet, it appears the Company has no intentions of slowing down. This week Renforth issued an update on the progress for a cluster of three properties located in Quebec. The Parbec, New Alger, and West Malartic projects are all attractive exploration candidates on an individual basis. However, these properties are located within a geological corridor that is gaining prominence as a highly prospective setting for further discovery.
Applying a New Exploration Paradigm to a Historic District Pays Off
At the heart of this district is the Canadian Malartic Gold Mine, the largest open-pit gold mine in Canada. Renforth has secured abundant leverage to this area with its property holdings. Parbec and West Malartic are directly adjacent to the property boundary for this large mine, and New Alger is contiguous to West Malartic.
It should be noted that the Canadian Malartic project was considered a departure from conventional wisdom when the exploration process got underway about 15 years ago. Located in the midst of the Cadillac Break, a region of high grade gold mines targeting vein-hosted and structurally controlled deposits, Malartic was launched as a low grade, bulk tonnage story. The resource zones were mainly sediment-hosted. Some higher grade gold was encountered within vein systems and volcanic rock units but the majority of the deposit was vastly different from other nearby mining projects.
The operator of Canadian Malartic went on to validate its efforts with the definition of a multi-million ounce gold deposit suitable for open-pit extraction and a new chapter of mining for this historic district is now being written. Renforth believes it will contribute another episode to the success story.
Promising Geological Setting Defined to Establish New Project Area
The West Malartic property was acquired through staking around three historic resource showings. The main objective was to lock up the available property immediately to the west of the Canadian Malartic operation. It is usually a good idea to assemble land holdings in proximity to a major deposit. Defined resource zones often extend onto adjacent land packages. As more preliminary exploration work continues focusing on the West Malartic project, it appears this gamble is going to pay off.
In particular, the southern claims of the property have recently been investigated due to the presence of historical mineralized showings. Outcrops were confirmed through fieldwork. Broad corridors of prospective geology have now been defined within two bands, approximately 4 kilometers apart. Samples have been submitted for assay and results may be expected within 4-5 weeks.
The combined prospective strike length of these mineralized bands extends for 19 kilometers. Also of note, alteration within this area has been outlined bearing both nickel and zinc. These metals are not usually encountered within the same deposit areas, so further investigation is planned. The polymetallic upside for this system, and the potential for a VMS-style deposit, has been largely overlooked by previous operators. This large, underexplored target area, including the three historical showings, is entirely controlled by Renforth.
The Company has opted to delineate this highly prospective target area of West Malartic as a distinct exploration project area. The renamed Surimeau project comprises the southern extension of the holdings, including the full 19-km strike length of the combined systems. Renforth is the first Company to recognize this potential. Preparation for a systematic exploration program on the newly defined Surimeau project is underway.
Progress Continues at Other Properties in the District
The presentation of the compliant resource estimate at New Alger highlighted the potential for open-pit gold mining. Near surface resource zones have been defined with attractive gold grades to envision a small scale mining effort. Renforth is now planning to commence a mini-bulk sampling program to further explore this potential.
Surface stripping of overburden has already been completed at a portion of the deposit area to enable sampling and trenching. This provides a head start for a more intensive bulk sampling program. In addition, the Beep Mat survey was completed for this section. Interpretation of this data may further define targets. The next phase will involve blasting and extraction of the bulk sample. Another round of drilling is also planned as part of the ongoing objective to expand the total resource.
Meanwhile, Renforth has advanced work at Parbec, another project located cheek-to-jowl with Canadian Malartic. A Beep Mat geophysical survey was also completed for portions of Parbec to better illuminate geological signatures. Diorite splay mineralization has been associated with the gold resource zones at Parbec. While the most of the gold resources outlined so far at Parbec are hosted within the Pontiac Sediments, some gold is carried in veins within these splay structures.
A small portion of a diorite vein has been exposed at outcrop and sampling was completed. More of this structural target zone has been outlined following the Beep Mat survey. These areas are now being incorporated within plans for the next round of drilling at the property.
Renforth also reports that a small financing has been completed. A private placement offering of flow through and regular common shares successfully raised a total of $238,000. This will contribute to the budget for the next round of work.
Renforth is able to advance work for each of its property holdings entirely at its own pace. Some projects were acquired through staking. For those that were initially secured through option agreements, the Company has already satisfied all ownership commitments. There is no pressure on the management team to meet back-end payments or maintain work going forward. Time is on their side.
This is an exciting opportunity for Renforth. The Company is focused towards building shareholder value and has chosen to continue with active and aggressive campaigns to advance several projects. Further, Renforth remains fully funded for the ongoing work programs. The recently completed private placement will support appropriate spending that has been approved to advance the properties.
It should be noted that the Company has been able to advance multiple projects with extremely productive use of financial resources. Among the most efficient juniors in Canada, Renforth delivered enormously successful field programs, achieved through relatively modest project spending.
With the emerging discovery potential highlighted at the Surimeau property claims Renforth is now in position with another exciting value proposition. Gaining control of this entire system so cheaply through staking, on the door step of the largest open pit gold mine in Canada, is itself a worthy accomplishment. Preliminary mapping and evaluation work is underway.
For most of the junior explorers in Canada, leverage to just one attractive project is the story. Renforth controls six high quality projects. Significant accomplishments have been reported regularly. Surimeau is just the latest example of an exciting exploration prospect in a high-profile district to continue this winning streak. Smallcaps Recommendation: BUY.
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