Renforth Resources: Battery Metals (and Gold)

Renforth Resources’ (RFR.C) Surimeau District scale project located near the town of Malartic in the province of Quebec is, in many ways, too much of a good thing. It has 29 kilometers of surface battery metals mineralization. So far, all relatively low grade, but there is a lot of mineralization. Nickel, copper, zinc, manganese, cobalt, silver and even a couple of meters of .55 gpt gold. Outside the main exploration zone there is a stand alone copper discovery and, for lithium fans, an area of pegmatites.

This mix of metals is typical of a volcanogenic massive sulfide deposit and that is exactly what RFR CEO Nicole Brewster believes the company has at Surimeau. “At Surimeau we are seeing mineralized systems with significant footprints, 20 and 9 kilometres are long distances, currently we are seeing low grades, however, these are grades that are in the context of current and historic polymetallic mining operations, like Terrafame’s Talvivaara open pit heap leach operation in Finland, or Outokumpu in eastern Finland (as cited by Dr. Franklin). The fact that mines like those, large scale and low grade, north of the Arctic Circle, can operate gives us the motivation and validation we need to continue to define the extent of mineralization at Surimeau.”

All of which adds up to a lot of geology and a lot of exploration work for a junior explorer.

I have held RFR for a couple of years and, when it shot up to $0.09 I sold enough that I am playing with house money with the rest of my shares. RFR is not currently a client of motherlodetv.net but I have interviewed Brewster a number of times and each time she has impressed me with a get’er done attitude. Exploring a project of this size requires patience combined with perseverance. Brewster has both.

It also requires a fair degree of abstract thinking and visualization. In the February 15 press release, the company discusses developing a “mineralization model” for the property. “As Renforth generates more data on these two mineralized systems the mineralization model may change, presently the two systems are interpreted as two arms of a fold, the fold nose is located off the property and to the east.”

This is not geological speculation. Rather it is the conceptual foundation for whatever value there actually is at Surimeau. Trenching, sampling, airborne magnetic and electro magnetic surveys and, of course, drilling are all focused on attempting to confirm the mineralization model and, more importantly, modify that model to conform more closely with the actual results.

When companies talk about “de-risking” a deposit, while they are often referring to confirming a 43-101 resource, they are also talking about creating a robust and confirmed model of their deposit.

Renforth successfully found, explored, developed and sold the New Alger gold project in 2020. Brewster has a very clear idea of the work required to attract a buyer or joint venture partner for a mineral property. Having a well-confirmed mineralization model is critical.

Brewster is canny enough not to rely on a single project. In the background, work continues at Renforth’s Parbec gold project. We have not heard much about Parbec for a while but that means very little. Or it may mean a lot. The fact is that if a company is looking at buying Parbec a few months of quiet would be perfectly normal and, in fact, encouraging.

One thing which is refreshing about RFR is that, while the company will put out dry, technical, press releases, Brewster herself writes chatty, funny, smart newsletters. Here’s an example.

I expect, in time, to make a lot of money with RFR. Brewster is making the right moves, has cash in the treasury and is open to offers. The Surimeau District project is showing all the right signs of mineralization. Parbec is perking along. It won’t be quick money, but it will be a lot.

At the moment, RFR is very thinly traded. It is not illiquid, but $30,000 all at once and it could easily go from $0.035 to $0.06. From a trading perspective, there could be some money to be made, from an investment perspective, it offers a pathway to 5x and beyond.

[Disclaimer: This is not investment advice. I am not an investment professional. I am down about 30% at the moment. I will write about companies that I hold. I will disclose any holdings. Do your own due diligence. Do it hard. Call the CEO. Nicole is fun on the phone.

I currently hold shares in RFR.C and while I have no plans to sell anytime soon I reserve the right to take profits as they arise.]