The United States is back in the fold of countries pledging to reduce greenhouse gas emissions, and that is helping to drive demand for an assemblage of metals that a global push to decarbonize and electrify is expected to require.
Renforth Resources Inc. (CSE: RFR) (OTCQB: RFHRF) (FSE: 9RR) continues to deliver good news for shareholders, this week announcing new assay results for the 2020 drill program on its wholly owned Parbec open-pit constrained gold deposit in Quebec.
Meanwhile, Renforth has also been making significant progress at its Surimeau District property (nickel, copper, zinc), a brownfield project covering an area of 215km2 south of the Cadillac Break among current and former producing mines.
Though early stage, the possibility of widespread sulfide nickel mineralization at Surimeau looks promising. The grades and rock value given here are conservative; the 0.224% Ni used to calculate the rock value of US$41.83 per tonne is based on only three intercepts from three holes drilled at Surimeau, less than 200m. Highlights from summer 2020 grab sampling show grades up to 0.495% Ni. If those grades start showing up in drill core, Renforth could really be onto something.
When looking for an investment, the approach I take involves looking at the global, big picture conditions. I study trends, read the news, basically watch and listen to what’s going on in the world. Then I study the different sectors to select the one (or ones) that I think is going to match up well with the overriding, long-term theme. This is top-down investing.
The second part of my search for the dominant investment is a bottom-up approach. This is where I find individual companies, in the specific sector I have chosen to invest in.
Renforth Resources (CSE:RFR, OTC:RFHRF, WKN:A2H9TN) continues to make good progress on its Parbec gold project in Quebec, releasing a cache of drill results to the market on Tuesday, March 9.
The highlight from was 21.45 meters grading 5.57 grams per tonne (g/t) gold, between 254.8m and 276.2m meters in hole PAR-20-112. Two higher-grade sub intervals returned 6.27 g/t Au over 16.7m and 37.3 g/t Au over 1m.
Several factors influence gold prices (mainly the US dollar, gold ETF inflows/ outflows, inflation rate, bond yields, safe haven demand, physical gold demand, gold supply) but none is more reliable than real interest rates.
The demand for gold moves inversely to interest rates — the higher the rate of interest, the lower the demand for gold, the lower the rate of interest the higher the demand for gold.