Renforth Resources, a Canadian-focused mineral exploration company, is both asset- and cash-rich with a collection of four 100% owned gold and battery metal projects within the Abitibi Greenstone Belt, a world-class mining region, with three projects in Quebec and one in Ontario.
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I’m Cassandra Bolinski for Investmentpitch Media
Today’s latest Equity Research report comes from eResearch Corporation.
Analyst Chris Thompson gives Renforth Resources Inc. a speculative buy rating and a one-year target price of $0.25, a premium of 150% to the $0.10 price on April 28th, the day the report was issued.
The full report is available on www.eResearch.com.
Renforth Resources, a Canadian-focused mineral exploration company, is both asset- and cash-rich with a collection of four 100% owned gold and battery metal projects within the Abitibi Greenstone Belt, a world-class mining region, with three projects in Quebec and one in Ontario.
Renforth is cash-rich after selling its New Alger Gold Property to Radisson Mining for $500,000 in cash and $4.26 million in Radisson Mining shares, and then raising $3.24 million in an equity financing.
Renforth could receive another $1.5 million which would be payable on the announcement of commercial production at New Alger, a sale of New Alger for more than $40 million, or a change of control of Radisson Mining.
Mining activity in the Abitibi Greenstone Belt, which reaches from Wawa, Ontario to Val-d’Or, Quebec, is reported to have produced over 180 million ounces of gold in its history, plus millions of ounces of silver and billions of tons of copper and zinc.
Mineral deposits are commonly located along or near the fault zones, with the two most prolific and well known
fault zones being the Destor-Porcupine in Ontario and the Cadillac-Larder Lake in Quebec.
Renforth’s projects in Quebec are on or near the Cadillac-Larder Lake Fault Zone and, in Ontario its property straddles the Destor-Porcupine Fault Zone.
Renforth’s main project is the Parbec Gold Project, which is adjacent to and on strike with the Canadian Malartic Mine, Canada’s largest gold mine, operated by Agnico Eagle and Yamana Gold.
The Canadian Malartic Mine has reached the bottom of its open-pit mine and is shifting to underground mining, which could require CMM to stockpile low-grade ore and seek other sources, like that from Parbec.
At Parbec, the company completed a total drill program of 15,569 metres and with the current backlog at the labs, the company still awaits the results of 35 holes drilled in both Phase 1 and Phase 2 so lots of news still to come.
In May 2020, Renforth published an updated, NI 43-101 compliant, pit-constrained resource for Parbec for a total Indicated and Inferred Resource of 281,000 ounces of gold at an average grade of 1.77 g/t gold.
As a near-surface resource, the company believes this asset would be attractive to any gold producer in the area that is looking to add or replace depleting ounces.
The company’s Surimeau Battery Metals Project is a district-scale project of 215 square kilometres with seven mineralized targets with the potential for a VMS deposit of sulphide nickel.
Its nearby Malartic West Copper-Silver Project, another district-scale project of 53 square kilometres, is also adjacent to the western border of the Canadian Malartic Mine property.
In Ontario, the company’s Nixon-Bartleman Gold Project, 45 km south-west of Timmins, sits on the Destor-Porcupine Fault and hosts five gold-bearing quartz veins, with gold on the surface over a strike length of 500 metres, which remains open.
Management has extensive experience, with the company led by Nicole Brewster, President and CEO, who takes her compensation in shares, thus her interests are aligned with those of shareholders.
Based on their geological knowledge of the region and a well-established Abitibi-based team, the company is well-positioned to take advantage of exploration opportunities in the region.
Merger & acquisitions activity in the area is strong, highlighted by the recent deals of Eldorado Gold (TSX: ELD) announcing a $132 million agreement to buy QMX Gold (TSXV: QMX) and Yamana Gold closing its $152 million acquisition of Monarch Gold.
With Renforth’s current focus on growing the resource at Parbec, management has expressed an interest in selling Renforth and the Parbec project in the next 12-18 months, and then spinning out the remaining assets into a new company.
Analyst Chris Thompson stated: “An experienced management team with diverse commercial, market, and technical expertise supports Renforth. Based on their long-standing experience and geological knowledge of the region, the Company is well-positioned to take advantage of exploration opportunities and the recent sale of New Alger illustrates their ability to execute project sale transactions to deliver value to shareholders.”
The full report is available on www.eResearch.com.
The shares are trading at $0.095.
For more information, please visit the company’s website www.RenforthResources.com, contact Nicole Brewster, President and CEO, at 416-818-1393 or email nicole@RenforthResources.com.
I’m Cassandra Bolinski for Investmentpitch Media
