Renforth Resources (CSE:RFR) (“Renforth” or the “Company”) is pleased to deliver to shareholders an updated September 2018 Resource Estimate for Parbec consisting of an inferred 656,875 oz Au and an indicated 37,224 oz Au.
Renforth Resources (CSE:RFR) (“Renforth” or the “Company”) is pleased to deliver to shareholders an updated September 2018 Resource Estimate for Parbec consisting of an inferred 656,875 oz Au and an indicated 37,224 oz Au. This increase to the resource estimate is the result of positive drill results obtained in 25 holes over 5600.8 m in the last 10 months.
September 2018 Parbec Resource Estimate
“I am pleased that Renforth is able to deliver to shareholders this value increase to our asset. Despite the general lack of interest in the junior exploration market we have been able to fund our exploration plan and update our resource, acquiring the additional 146,399 contained ounces of gold at an “all-in” exploration cost below $9 CAD/ounce. I hope shareholders take comfort in this demonstration of our efficient use of shareholder capital. I personally believe that focusing on growing our assets where we can, cost-effectively, in this market where junior exploration is largely overlooked, will benefit Renforth once gold ounces are desired,” states Nicole Brewster, President & CEO of Renforth.
Mineralization at Parbec is at surface, down to a current maximum vertical depth of 738m, the deepest point included within the resource estimate is at a depth of 440m. With a few exceptions the bulk of the drilling at Parbec can be considered relatively shallow, resulting in a resource that is currently shallow but open at depth, offering the potential to add ounces with successful deeper drilling. In addition to being open at depth the mineralization is also open along strike, approximately 700m of interpreted surface strike of the mineralized structure remains on the Parbec property to be drilled.
The following graph illustrates that approximately 80% of the ounces and tonnage contained in the September 2018 Resource Estimate are located above a depth of 200m.
September 2018 Parbec Resource Estimate Cut Off Grade Sensitivity
The table above is included to demonstrate the effect of raising the cut-off grade above the 0.5 g/t used in the September 2018 Resource Estimate. As seen the tonnage meeting the higher cut-off grade decreases, resulting in fewer ounces within that tonnage with a higher grade than the 2018 Resource Estimate stated.
With the release of this resource update Renforth will, as previously announced, commence non-brokered fundraising efforts through the issuance of units on a common or flow-through share basis. These units will be priced at $0.05 with a full warrant exercisable at $0.10 for 24 months from closing and at $0.06 with a half warrant exercisable at $0.12 for 18 months from closing respectively. The amount to be raised will depend upon market conditions, at a minimum Renforth would look to raise $250,000, as this amount is sufficient for a drill program at Parbec.
A NI 43-101 technical report supporting this resource estimate update will be filed on SEDAR once available.
Technical Information in this press release has been reviewed and approved by Francis Newton P.Geo, a “qualified person” pursuant to the guidelines of 43-101.
For further information please contact:
Renforth Resources Inc.
President and Chief Executive Officer
#200 – 65 Front St. E, Toronto, ON M5E 1B5
No securities regulatory authority has approved or disapproved of the contents of this news release.
Forward Looking Statements
This news release contains forward-looking statements and information under applicable securities laws. All statements, other than statements of historical fact, are forward looking. Forward-looking statements are frequently identified by such words as ‘may’, ‘will’, ‘plan’, ‘expect’, ‘believe’, ‘anticipate’, ‘estimate’, ‘intend’ and similar words referring to future events and results. Such statements and information are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the risks of obtaining necessary approvals, licenses and permits and the availability of financing, as described in more detail in the Company’s securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and the reader is cautioned against placing undue reliance thereon. Forward-looking information speaks only as of the date on which it is provided and the Company assumes no obligation to revise or update these forward-looking statements except as required by applicable law.