Nicole Brewster, Renforth Resources (C.RFR) put out a news release today announcing 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 is the second pit constrained resource the company has announced in all of two weeks.
As usual, with the release, Nicole has put out a note.
“Renforth has gold resources with near term development potential (the economically derived pit constraints), these are real assets. The other 3 properties in the company are all mineralized but require additional exploration to define resources. Penny stocks are by definition risky, yet with risk comes reward. The two open pit gold resources which have just been published in the last week serve to de-risk the assets and illustrate the opportunity for, literally, pennies.”
Well worth going and reading the whole note here:
Renforth really is trading for pennies, $0.04 as I write. I suspect this reflects the fact that the two resource estimates are, including indicated and inferred, more than 500,000 ounces of gold. Now, if those resources were out in the hinterland or deep underground, there would be a real concern as to economic viability. However, these resources are near-surface, pitable, just off the highway and surrounded by operating mines and mills which need new reserves or material to run through their mills. In fact, the relatively small size of each of the resources may make them more manageable and therefore more attractive to the many existing operators on the Cadillac Break.
This could turn out to be a perfect asset sale story as the price of gold firms and climbs.