RFHRF: Renforth Resources - Recap of 2022 Exploration Programs at the Surimeau Polymetallic (Ni-Cu-Co-Zn) Project. Significant Exploration Progress made at both Victoria West & Lalonde.
OTC:RFHRF
READ THE FULL RFHRF RESEARCH REPORT
Renforth Resources had an eventful and productive year in its exploratory efforts at its Surimeau Polymetallic Project in 2022. After completing drilling and stripping work at Victoria West in 2021, the company completed several exploratory programs in 2022 in order to better define the battery mineralization situated within its Surimeau Polymetallic District Project. To put the company’s 2022 exploratory efforts in perspective, a brief summary of the geophysical, prospecting, trenching, stripping, channel cutting, chip sampling and drilling work follows.
During February, an aerial electromagnetic-magnetic geophysical survey was received, flown over the entire 20km west-east anomaly from the historic magnetic features at Victoria West in the west to Colonie in the east. In addition, this new EM/Mag survey was conducted over the Lalonde mineralized target, located approximately 4km north of Victoria West.
Renforth has been very successful in locating mineralization at Surimeau by utilizing the EM/Mag survey, particularly when confirmed by outcrop sampling. The EM (electromagnetic) component of the geologic survey is capable of detecting conductive sulfide deposits down to 150m below surface. Renforth has recently received a conductivity map (created using data from the electromagnetic component of the survey) that may help detect copper sulfide mineralization. When using the magnetic survey, which detects the variations in magnetic properties, the company has been very successful in locating mineralization at Surimeau, particularly when confirmed by outcrop samples.
From early May to July, a surface sampling, prospecting campaign was conducted at Victoria West and Lalonde. Assay results of the grab samples were released in September. These grab samples collected from outcrops consistently indicated the presence of polymetallic mineralization. Highlighted grab sample results include 0.71% Ni from a previously unexplored area of central Victoria and 0.32% Ni in two separate samples collected within the stripped area at Lalonde.
In July, a channel sampling program was conducted at Victoria and Lalonde. At Victoria, a second undrilled mineralized horizon was discovered 75m north of the stripped area. At Lalonde, a mineralized shear was revealed visually and confirmed in the field utilizing an XRF device. Soon thereafter, the company planned for a stripping program and applied for the required permit.
In the Fall (September-October), three trenches (aka Trenches 9-11) were completed at Lalonde. Thereafter, the trenched were stripped and washed. Then, a single channel was cut in each trench and samples taken. The assay results of the channel sampling were released in late-November. Despite some access issues, each channel intersected surface ultramafic nickel mineralization.
Significant conclusions from the 2022 exploration programs include,
• At Victoria West,
o north of the stripped area, a second mineralized horizon was discovered by channel sampling; the mineralization was confirmed by a 3-hoile drilling program in November
o Having discovered this second shoulder at Victoria, Renforth incorporated this information and began stripping across known mineralized strikes (instead of along strike) in exploration at Lalonde. In so doing, Renforth later confirmed that the Lalonde structure is similar to Victoria, with two mineralized shoulders (see below)
• At Lalonde,
o Two mineralized horizons were discovered, the first by surface sampling fieldwork in May and the second by channel sampling in July
o The mineralized strike at Lalonde expanded from 2.5km to 9km, and it remains open on strike
• The February 2022 EM/Magnetic survey has proven to be a powerful roadmap for discovering mineralization, especially when coupled grab sampling at outcrops
Summary of Surimeau District Property & Current Geological Interpretation
Renforth’s 330 km2 Surimeau District Property hosts numerous areas of polymetallic mineralization, most notably at Victoria, a 20-km mineralized structure, and Lalonde, currently ground-truthed over a 9-km strike. These two similar ultramafic bodies are magnetic and can be discerned on the geophysical map created from data collected from the February 2022 EM/Magnetic survey. The two bodies are roughly parallel and are separated by 3.7 kilometers with Lalonde being north of Victoria West.
Victoria West is a 6km area situated west of the road at the western end of a 20km magnetic anomaly, which is also mineralized at the Colonie showing on the eastern end. Other currently known polymetallic showings within the Surimeau Property occur at Surimau, Huston and Foulliac. The Surimeau District Property still has a significant amount of ground that is unexplored.
Management’s current interpretation of Victoria West and Lalonde is that they are two, separate but somewhat similar, east-west trending polymetallic mineralized bodies with Victoria-Colonie system having a confirmed mineralized structure of approximately 20 kilometers and Lalonde being roughly nine kilometers.
The current geological interpretation is that Zn-Cu (zinc-copper) mineralization was deposited by a hybrid VMS-MMS (volcanogenic massive sulfide-mono-sulfide solid solution) system which later was intruded by nickel-enriched ultramafic magmas and sulfide-enriched sedimentary material. The copper & zinc mineralization is generally hosted in a thick sequence of greywacke sedimentary rock while the nickel & cobalt mineralization is mostly hosted within ultramafic flows. It appears that higher levels of mineralization are found in and around areas where there is sedimentary rock contact with sheared and altered ultramafics, primarily altered albite and calc-silicate.
Details of the company’s most recent exploration efforts during the latter part of 2022
Channel Sampling at Victoria and Lalonde (July 2022)
The assay results from the July channel sampling program at Lalonde was released in early October. The channels were cut perpendicular to the mineralization strike in order to potentially uncover parallel horizons. The results significantly contributed to management’s current geologic interpretation of the mineralization, specifically that the higher nickel assay values were found within 10 meters of the shear zone, usually in albitized or calc-silicate altered ultramafics, but also sporadically in the contact zone with the Pontiac sediments.
At Lalonde, a mineralized shear was discovered (by identifying nickel, copper and zinc sulfides during the logging procedures) and confirmed in the field utilizing an XRF device. These results motivated management to plan a stripping program for the fall. Subsequently, the assay results confirmed the field analysis with the highlighted assay being in Channel 2 with
0.414% Ni over 0.6m.
At Victoria West, a second undrilled mineralized horizon (north of the stripped area) was discovered by channel sampling. Victoria West now consists of two mineralized shoulders. Also, a result of the discovery, Renforth began stripping across known mineralized strikes (instead of along strike). In so doing, Renforth later uncovered an additional parallel mineralized horizon at Lalonde.
Trenching/Stripping Program at Lalonde (Fall 2022)
From late-September to early-October, three trenches (aka Trenches 9-11 identified in the photo and table below) were completed at Lalonde, all being oriented north-south, but each being a different length: Trench 9 being 83m in length (20m in width), Trench 10 being 100m (20m in width) and Trench 11 being 150m (27m in width). The trenches were stripped and washed. The trenches exposed mineralized shear zones (between one and four meters thick) situated in the area where ultramafics come into contact with Pontiac sediments.
Thereafter, a single channel was cut in each trench, and chisel samples were taken. The assay results of the channel sampling were released in late-November. Despite some access issues, each channel intersected surface ultramafic nickel mineralization.
Fall Drilling Programs at Surimeau (Lalonde & Victoria West)
An 11-hole (3,076m) drilling program commenced in mid-November and was completed by December 15th. The program consisted of seven (7) drill holes at Lalonde and four (4) drill holes at Victoria West. All 11 holes intersected mineralization (nickel, copper and zinc sulfides), which was determined visually during the logging process. Assay results are expected in mid-late January 2023.
There being no surviving historic drill information at Lalonde, five drill targets (SUR-22-30, SUR-22-31,SUR-22-32, SUR-22-33 and SUR-22-34) were selected in order to undercut the battery metals mineralization (nickel-cobalt-copper-zinc) that were uncovered during the Fall trenching program.
In addition, the recent receipt of a conductivity map (created using data from the electromagnetic component of the geologic survey conducted in February 2022) caused management to test drill a conductive anomaly within the magnetic structure for potential copper mineralization with two drill holes (SUR-22-35 and SUR-22-36), specifically a sulfide-rich graphitic shale that is Cu-Zn bearing. The EM survey is capable of detecting conductive sulfide deposits, generally down to 150m below surface. Prior stripping and drilling have not tested this particular anomaly outlined in the conductivity map.
At Victoria, three drill targets (SUR-22-38, SUR-22-39 and SUR-22-40) tested for the presence of the northern mineralized zone. With all three holes intercepting mineralization, management’s expectations of a second northern mineralized structure were confirmed. Another target (SUR-22-37) was drilled at a high priority target determined by the new interpretation of the EM survey; this hole also intersected mineralization.
Expectations for Drill Program Scheduled for the First Quarter of 2023
Approximately four kilometers west of Victoria West, a high priority target has emerged through a recent geophysical interpretation coupled with initial prospecting efforts (grab samples) in 2021 and 2022. Assays of the samples ranged from 0.1% to 0.18% Ni, up to 0.4% Zn and up to 100ppm Co. In addition, the samples were taken from rocks consistent with the mineralization intercepted at Victoria West and Lalonde, namely albitized ultramafics, graphitic mudstone and albitized sediments. Management is now planning a drill program targeting this never drilled western anomaly.
Recent Financings
The company’s operations and exploration plans are being funded by financings. During November 2022, Renforth completed a private placement composed of two tranches totaling 780,000 Common Units (priced at $0.035 each) and 38,270,000 Flow Through Units ($0.04 each). Total gross proceeds were CDN$1,558,100. Net proceeds financed the drill program on the Surimeau property that was conducted in November-December 2022.
Synopsis
Renforth Resources has made consistent progress in the process of proving-up the assets at its Surimeau Property, an early stage polymetallic (Ni-Cu-Co-Zn) project that is in the discovery & exploration stage. Surimeau is highly significant to Renforth Resources for three reasons. First, the breakthrough discoveries 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 meaningful 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 Surimeau Property appears to have a litany of cost advantages: polymetallic surface mineralization that can be cost-effectively accessed by roads and surface open pit 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.
SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR.
DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives quarterly payments totaling a maximum fee of up to $40,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.
