Renforth Drills Through 2,000m Target at Parbec Gold Deposit and Closes $3,240,000 Raise at $0.135/share

Rhea-AI Summary

Renforth Resources Inc. has reported a successful drilling program at its Parbec gold deposit, having completed over 2160m across five drill holes. The latest drill holes are designed to infill and expand the existing gold resource. Notably, the company closed a private placement, raising $3,240,000 by issuing 24 million shares at $0.135 each, increasing its cash and securities to over $8 million. The ongoing drill program aims to conclude by Christmas 2020, enhancing the potential for future resource estimation.

Positive

• Completion of over 2160m of drilling at Parbec, indicating progress in resource development.
• Successful closure of a private placement, raising $3,240,000 to fund ongoing operations.
• Increased cash reserves to over $8 million, facilitating further exploration and development.

Negative

• None.

PICKERING, ON / ACCESSWIRE / October 7, 2020 / Renforth Resources Inc. (CSE:RFR)(OTC US:RFHRF)(WKN:2H9TN) ("Renforth" or the "Company") is pleased to inform shareholders that the ongoing fully funded drill program at Renforth's wholly owned Parbec gold deposit has now drilled more than 2160m, in five drill holes, designed to infill and expand the May 2020 NI 43-101 open pit constrained gold resource at Parbec, located on the Cadillac Break, in Malartic, Quebec, contiguous to the Canadian Malartic Mine property, specifically the former East Amphi Mine which forms the NW corner of that property.

Since the last Parbec drill update press release which provided shareholders an update on drill holes PAR-20-100, PAR-20-101 and PAR-20-102, issued on September 22, 2020, Renforth has completed the following drill holes;

PAR-20-103: This hole was drilled from the collar location of PAR-11-04 for a total of 276m due north, drilled north in order to investigate the presence of cross-cutting structures and reach the volcanics on the north side of the Break. This hole successfully intersected the gold bearing lithologies typically seen in the Break at Parbec, including diorites, sheared diorite, the magnetic diorite and felsites. Samples have been selected by the geologists, these will be split and sent for assay, with results released once available.

PAR-20-104: This hole was drilled perpendicular to the Break, for a total of 600m, making it currently the longest hole drilled by Renforth at Parbec. This hole ended at a vertical depth of approximately 535 meters in the volcanics on the north side of the Break, intersecting the anticipated gold bearing lithologies, including magnetic diorite. This hole was planned as an undercut of PAR-86-04 and an overcut of PAR-10-07, providing infill data and down dip extension to the resource model. Samples have been selected by the geologists, these will be split and delivered to the lab for assay, results will be released once available.

Renforth has commenced an even longer drill hole, PAR-20-105, planned to be drilled for approximately 900 m, until the volcanic contact in the north is reached. This drillhole is targeting undercuts of PAR-10-05 gold intercepts, as well as testing for down dip extension of mineralization.

Renforth has now closed the previously announced private placement of 24 million shares of Renforth, issued on a flow through basis at a price of $0.135 cents per share for proceeds of $3,240,000. There was no warrant attached to these shares and there were no finder's fees or commissions paid in connection with this transaction. As previously announced the shares are, in addition to being restricted from trading for four months, subject to a three year escrow arrangement. Renforth holds, with the closure of this transaction, more than $8 million in cash and securities, approximately $1,500,000 of this balance is funding the current ~7000m drill program at Parbec, expected to conclude by Christmas 2020.

Following is a plan of drilling completed in the Fall 2020 program at Parbec, including the collar location of the just commenced PAR-20-105, and an example vertical cross section for line 5250 NW which includes the trace of the just completed PAR-20-104 drillhole, as well as previous drilling on that section and the outline of the May 2020 NI 43-101 Resource Estimate pit shell. Assay values in prior drilling >0.35 g/t Au (the resource cut-off grade) is in red.

Vertical Cross-Section 5250 NW Including Trace of PAR-20-104

Brian H. Newton P.Geo, a "qualified person" under NI 43-101, has reviewed and approved the technical disclosure in this press release.

For further information please contact:

Renforth Resources Inc.
Nicole Brewster
President and Chief Executive Officer
T:416-818-1393
E: nicole@renforthresources.com
#269 - 1099 Kingston Road, Pickering ON L1V 1B5

ABOUT RENFORTH

Renforth Resources Inc. is a Toronto-based gold exploration company with five wholly owned mineralized properties located in the Provinces of Quebec and Ontario, Canada.

In Quebec Renforth holds the Parbec Property in the Malartic gold camp, with gold present at surface and to some depth, located on the Cadillac Break, contiguous to the East Amphi portion of the Canadian Malartic Mine property. Parbec carries an open-pit constrained 43-101 resource with additional gold bearing structures, outside of the Cadillac Break on the property, outside of the current resource. Renforth also holds Malartic West, contiguous to the western boundary of the Canadian Malartic Mine Property, located in the Pontiac Sediments, this property is gold bearing and was the recent site of a copper discovery. Renforth has acquired the Surimeau property, also contiguous to Canadian Malartic and the southern border of the Malartic West property. Surimeau hosts polymetallic mineralization and represents the consolidation of four historic properties into one property for the first time. In addition to this Renforth has optioned the wholly owned Denain-Pershing gold bearing property, located near Louvicourt, Quebec, to O3 Mining Inc.

In Ontario, Renforth holds the Nixon-Bartleman surface gold occurrence west of Timmins, Ontario, drilled, channeled and sampled over 500m - this historic property also requires additional exploration to define the extent of the mineralization.

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.

SOURCE: Renforth Resources Inc.

View source version on accesswire.com:
https://www.accesswire.com/609557/Renforth-Drills-Through-2000m-Target-at-Parbec-Gold-Deposit-and-Closes-3240000-Raise-at-0135share

FAQ

What is the current status of Renforth Resources' drilling program at Parbec?

Renforth has completed over 2160m of drilling in five holes, aiming to infill and expand the existing gold resource.

How much did Renforth Resources raise in its recent private placement?

The company raised $3,240,000 by issuing 24 million shares at $0.135 each.

When is the drilling program at Parbec expected to conclude?

The ongoing drilling program is expected to conclude by Christmas 2020.

What is Renforth Resources' financial position following the recent financing?

Renforth now holds more than $8 million in cash and securities, supporting future exploration efforts.