Renforth Resources (OTC:RFHRF) (CSE:RFR) released the assay results of the December 2021, 7-hole (1,203m) drilling program. The seven holes are designated by the pre-fix SUR-21 (denoting the property and year the holes were drilled) and numbered 23 – 29. In general, the assays revealed that the exposed mineralized magnetic ultramafic body is characterized by broad zones (30m - 170m) of lower grade mineralization in the ranges of 0.16% - 18% Ni and 100ppm – 159ppm Co range. All seven holes intersected zones of mineralization.
These broad zones were punctuated by higher grade intervals generally in the range of 8m to 19m with nickel assaying above 0.20% up to 0.54% and cobalt assaying above 135ppm up to 218ppm. Not shown in the table below is management's highlighted sub-interval of hole SUR-21-28, which assayed 3.46% Ni and 491 ppm Co over 1.5m.
Management current exploratory focus at Surimeau is on Victoria West, a 5km polymetallic (Ni-Cu-Co-Zn) surface system located along a 20km magnetic anomaly. Exploration programs have consisted of surface sampling, trenching, channeling and drilling (5,626m over 2.2km of the roughly 6km area known as Victoria West). Thus far, Renforth has delineated a low-grade, large scale nickel-rich polymetallic shallow occurrence.
During the fall of 2021, Renforth conducted an impressive stripping/trenching/channeling exploration program, which exposed part of the mineralized magnetic ultramafic body. Channel samples demonstrated elevated nickel-cobalt values, along with segments of elevated values of copper- zinc. Targeted parts of the stripped area were drilled in December 2021, and the assay results were released on March 29, 2022.
In February 2022, Renforth Resources conducted an aerial electromagnetic-magnetic (EM/Mag) geophysical survey over the entire 20km west-east anomaly from the Victoria West target to the Colonie magnetic feature, along with the Lalonde mineralized target approximately 4km north of Victoria West. The survey's data will be used to generate interpretation maps that will help identify and better define near-surface (up to 150m) anomalies along strike, thereby providing guidance for prospective follow-up exploration work. The data is expected to be received in mid-April.
However, the first maps detail magnetic highs coincident with EM anomalies. Management plans on drilling these targets with an initial 3,500+m program in May 2022. The entire drilling campaign during 2022 will be conducted in stages, and management indicates that up to 15,000m could be drilled, dependent on initial drilling results and the interpretation of the EM/Mag data.
The Surimeau District Property is highly significant to Renforth Resources for three reasons. First, this breakthrough discovery could be indicative of a district-scale nickel-copper-zinc project that is geologically similar to the commercially successful Outokumpu deposit in Finland. Second, the nickel mining industry is coming into favor as nickel demand for EV batteries is projected to outstrip supply within the next five years. Importantly, nickel is more easily and much less expensively recovered from nickel sulfide than from nickel laterite ore. And third, there is a significant valuation disparity between gold and nickel sulfide junior mining companies. Any change in the perception that Renforth has transitioned from a junior gold company to a junior nickel sulfide company potentially would close that gap.
The prospective Surimeau Property has many cost advantages: polymetallic surface mineralization that can be cost-effectively accessed by roads and surface mining methods and that is located in a mine-friendly jurisdiction and near a source of green hydroelectric power. In addition, the Surimeau Property is situated about only 70km from Glencore's Horne Copper Smelter.
Management's strategy is to acquire prospective mineral properties, and then through exploration & development (the company's core competencies), prove-up the assets for monetization. Management does not have an interest in pursuing the dilutive process of becoming a small-scale, producing mining company. Historically, management has acquired prospective properties in an early stage and has proceeded to advance a mining project through the development stages by completing sufficient exploration and resource identification work such that its resource estimation would confirm the feasibility of commercial production. Subsequently, management seeks a financial transaction with a mining company that intends to further the advancement of the project, which may include the financing and construction an operating mine.
Renforth Resources is a junior exploration & development mining company which is advancing two high-priority mining projects: the Parbec Gold Project and the Surimeau District Property. Parbec is an advanced gold project close to being monetized, which is expected to occur after its Mineral Resource Estimate is updated during 2022 while Surimeau is an early stage polymetallic (Ni-Cu-Co-Zn) project that is in the discovery & exploration stage.
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