Substantial Price Target Increase for Renforth Resources
Renforth Resources (CA:RFR – $0.07 & US:RFHRF – $0.04 & GER:9RR – €0.04) is a mineral exploration company that focusses on easily accessible Canadian-based gold projects.
Following the sale of the New Alger project, Renforth is fully funded with a working capital position of $8,600,000 in cash and securities.
Its main project Parbec is located in one of the premier mining districts in Canada. An attractive gold deposit has already been outlined with similarities in geometry and grade to the adjacent Canadian Malartic gold mine.
Surimeau is maturing as the next high profile discovery prospect, featuring two extensive geologic systems entirely within the property boundaries. Each demonstrates early stage indications with the potential for large deposits awaiting discovery.
It is early in the exploration process, but the evidence in hand certainly suggests there is something special awaiting discovery at Surimeau. It is extremely encouraging to outline such a large area with the characteristics that are associated with large deposits.
The discovery of a significant VMS (Volcanogenic Massive Sulfide) deposit is usually a transformative event for an exploration story. The potential scale and magnitude of these deposits attracts speculative interest, and establishes the project on the radar screen of senior mine developers. Senior mining companies are only interested in the largest deposits and joint-venture transactions are frequently completed shortly afterwards.
Investors may look forward with confidence. Ongoing exploration at Parbec provides the speculative upside to build gold leverage. The geologic setting at the nearby Surimeau project holds great promise to develop as another exciting discovery prospect. Renforth continues to deliver as one of the most successful junior explorers within one of the best mining districts in Canada.
We reiterate our buy recommendation for Renforth Resources with a price target of $0.19, which is 192% above today’s stock price.
|Smallcaps.us Advice: Buy||Price Target: $0.29||Latest Company Report (pdf)|
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