May 12, 2020
Renforth Resources Inc. (CSE – RFR) (OTC Pink – RFHRF) (WKN – A2H9TN) (“Renforth” or the “Company”) is pleased to provide shareholders with a pit constrained gold Mineral Resource Estimate for Renforth’s wholly owned New Alger Property, located on the Cadillac Break, in Cadillac, Quebec, contiguous to the historic O’Brien Mine and the LaRonde Mine. This Mineral Resource Estimate has been calculated by P&E Mining Consultants Inc. of Brampton, Ontario, with an effective date of April 30th, 2020, using only assay data from between 2007 and the first hole (of four in that program) drilled by Renforth at New Alger earlier this year. Renforth has in its possession all the core from 2007 to date.
“Delivering this pit constrained Mineral Resource Estimate for our wholly owned New Alger Gold property to Renforth’s shareholders is again done with a great deal of satisfaction. Renforth is pleased to now have updated pit constrained Mineral Resource Estimates in place at both New Alger and Parbec. With these in place Renforth has established a new level, one which we will build on, at our pace. We look forward to resuming work on our New Alger property, with our efforts focused on a mini-bulk sample from the Discovery Veins” states Nicole Brewster, President and CEO of Renforth.
New Alger 2020 Pit Constrained Mineral Resource Estimate
- The engineered open pit geometry has a maximum depth of 215 m and a maximum length of 1,400 m, whereas mineralization at New Alger reaches a maximum depth of 416m and is present the length of the Cadillac Break on the Property, ~1.4km.
- Renforth can use the new 3D model generated with this Mineral Resource to plan future drilling at New Alger relative to the constraining pit shell.
- Assay composite results used, those obtained between 2007 and 2019, were capped at 15 g/t Au in this model. Renforth has determined that there is a nugget effect present at New Alger which could impact future development, capping of the composite grade within the constraining pit shell is a prudent and conservative approach.
- The Mineral Resource Estimate totals 62,600 oz of gold in 1,035,000 tonnes at an average grade of 1.88 g/t Au in the Indicated classification and 188,000 oz of gold in 3,226,000 tonnes at an average grade of 1.81 g/t Au in the Inferred classification as follows;
1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
2) The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
3) The Mineral Resources in this report were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
4) Historically mined areas were depleted from the Mineral Resource model.
5.) The pit constrained Au cut-off grade of 0.32 g/t Au was derived from US$1,450/oz Au price, 0.75 US$/C$ exchange rate, 95% process recovery, C$17/t process cost and C$2/t G&A cost. The constraining pit optimization parameters were C$2.50/t mineralized mining cost, $2/t waste mining cost, $1.50/t overburden mining cost and 50 degree pit slopes.
6.) The out of pit Au cut-off grade of 1.44 g/t Au was derived from US$1,450/oz Au price, 0.75 US$/C$ exchange rate, 95% process recovery, C$66/t mining cost, C$17/t process cost and C$2/t G&A cost. The out of pit Mineral Resource grade blocks were quantified above the 1.44 g/t Au cut-off, below the constraining pit shell and within the constraining mineralized wireframes. Additionally, only groups of blocks that exhibited continuity and reasonable potential stope geometry were included. All orphaned blocks and narrow strings of blocks were excluded. The longhole stoping with backfill method was assumed for the out of pit Mineral Resource Estimate calculation.
Renforth would like to offer readers of this press release an understanding of the meaning of the Indicated and the Inferred Mineral Resource classifications. In both instances the gold ounces stated are verified to the satisfaction of the Qualified Person who authored the Mineral Resource Estimate. The difference is the level of confidence the author of the Mineral Resource Estimate has regarding the likelihood of mining, as stated in bullet #2 above the level of confidence is lower in the Inferred classification than the Indicated, it is reasonable to expect that with some amount of additional exploration Inferred ounces can be mined, whereas the Indicated ounces do not require any additional exploration, in the opinion of the Qualified Person.
New Alger Mineral Resource Gold Price and Cut-Off Grade Sensitivity
- The tonnes, gold grade and contained ounces within and outside of the engineered pit shell are sensitive to an increase or decrease in their respective numbers based upon the price of gold used in the economic calculations which constrain the pit shell. In the same way a change in the price of gold used can lower or increases the gold cut-off grade used in the calculation for the Mineral Resource Estimate sensitivity, as shown below.
|Sensitivity of New Alger Pit Constrained Mineral Resource Estimate|
*Au price used to determine Au cut-off grade for Resource Estimate sensitivity analysis.
|Sensitivity of New Alger Out of Pit Mineral Resource Estimate|
*Au price used to determine Au cut-off grade for Resource Estimate sensitivity analysis
This Mineral Resource Estimate has been prepared as a result of a continuous disclosure review, at the request of Staff of the OSC, and supersedes the previous 2014 Mineral Resource Estimate. This Mineral Resource Estimate, unlike the prior estimate, has been prepared on the basis of a constraining open pit shell.
Technical information in this press release was reviewed and approved by Eugene Puritch P.Eng, FEC, CET, President of P&E Mining Consultants Inc. and an independent “Qualified Person” pursuant to the requirements specified in NI 43-101.
For further information please contact:
Renforth Resources Inc.
President and Chief Executive Officer
#269 – 1099 Kingston Road, Pickering ON L1V 1B5
Renforth Resources Inc. is a Toronto-based gold exploration company with five wholly owned surface gold bearing properties located in the Provinces of Quebec and Ontario, Canada.
In Quebec Renforth holds the New Alger and Parbec Properties, in the Cadillac and Malartic gold camps respectively, with gold present at surface and to some depth, located on the Cadillac Break. In both instances’ additional gold bearing structures, other than the Cadillac Break, have been found on each property and require additional exploration. 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. 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.