Press releases laden with geological detail and largely opaque to the lay reader are an unfortunate necessity in the junior exploration business. After all, geology is what it is all about.
Reforth Resources put out a highly technical release on the 28th of September. I’ve been working in junior resources and reading press releases for over fifteen years and, honestly, I could not tell you what was important about this release.
Fortunately, Renforth CEO Nicole Brewster published one of her wonderful notes:
“And apologies – it was a very technical press release, but once in a while they have to be, and our geologists are more than capable of ensuring that is the case. With sulphide nickel, and VMS, we are speaking to a totally different audience, more of an industrial end user audience. Batteries need nickel (hello Elon, you may have heard about his tweets), and it is heavy to transport…the EV crowd also need copper, but so do a lot more groups, everyone needs zinc to make several metals/materials, these and other minerals are found in a VMS. The area we are in also has a rich VMS history (from Rouyn to Val d’Or – Horne, LaRonde, Louvicourt Mines – not a complete list, just west to east examples), so this discovery is not an outlier, or unusual, we are also still proximal to the Cadillac Break and, finally, a VMS can also mean gold.”
This has the potential to be a very big deal and, best of all, Renforth has the cash to drill and develop a Large-Scale Sulphide Nickel System to the point where a larger company will want to buy it or do a joint venture. But this is a big system which may contain a lot of very valuable metal. Renforth’s market cap as I write is 13.9 million dollars. If Surimeau is on same scale as some of the other VMS systems in the district are, that market cap is about 1% of the potential value of the deposit.
[Disclosure: I hold shares in Renforth, Jay Currie.]