TIDMROCK
RNS Number : 7261U
Rockfire Resources PLC
08 April 2021
08 April 2021
Rockfire Resources plc
("Rockfire" or the "Company")
Positive Scoping Study at Plateau paves way for expansion
Rockfire Resources plc (LON: ROCK), the gold and base metal
exploration company, is pleased to announce that a Preliminary
Scoping Study has returned positive results for a small-scale, open
pit mining operation at the Company's 100%-owned Plateau Gold
Deposit ("Plateau") in North Queensland, Australia. This study lays
solid foundations for in-fill and extension drilling, which is
expected to result in an expanded Scoping Study later in 2021.
Preliminary Scoping Study Results:
-- A modest, net positive cash flow, ranging from AUD $6.8m to
AUD $19.4m (GBP GBP3.7m to GBP GBP10.7m), results from a
small-scale, open pit mine. The range of anticipated cash flows
dependents on technical and operational variables, however five
differing scenarios all resulted in positive cash flow
outcomes.
-- Multiple targets within the proposed pit outlines are yet to
be drilled and the Scoping Study has identified numerous
opportunities to increase gold ounces with additional shallow
drilling.
-- Only the top 70 m has been incorporated into the Scoping
Study, yet gold up to 16.9 g/t Au has been intersected more than
400 m below surface. There is therefore significant potential to
increase the economic outlook of the project based on continued
exploration success at depth.
-- The study assumes utilisation of one of the nearby existing
processing facilities. There are several processing plants within
commercial trucking distances of Plateau and, for this reason,
capital costs are deemed to be minimal.
-- 69% of the scoped production originates from JORC Indicated
Resources from both the Central and Eastern Breccias.
-- Average mined grades range between 1.26 g/t Au and 1.94 g/t
Au from within the optimised pit outlines, with grade variations
depending on the pit shape and depth.
-- A spot gold price of AUD$ 2,220 (US$ 1,718) per ounce was
used and the current study excludes any contribution from recovery
of silver.
-- Metallurgical test work will form part of the next drilling
phase to provide important information regarding the expected metal
recovery from processing.
-- Several excellent targets within 250 m of Plateau (refer to
the attached image) will be drilled to explore for additional
near-surface gold ounces, which are not yet included in Rockfire's
JORC resources.
Cautionary Statement
This Scoping Study is preliminary in nature and based on
low-level technical assessments and economic assumptions. The study
is insufficient to support the estimation of Ore Reserves, or to
provide assurance of economic development. There is no certainty
that the economic conclusions of the Scoping Study will be
achieved. Further exploration work, investigation into milling
methods, geotechnical studies and drilling to increase the
confidence in the mineral resource category are recommendations
resulting from the Scoping Study.
The following link is a map showing the in-fill and extension
drilling at both Central Breccia and Eastern Breccia. This image
also shows the multitude of targets close to Plateau which do not
form part of the JORC resources identified so far by Rockfire.
http://www.rns-pdf.londonstockexchange.com/rns/7261U_1-2021-4-7.pdf
David Price, Chief Executive Officer of Rockfire, commented:
"We are very pleased that this preliminary Scoping Study has
returned results indicative of a small-scale, open pit operation,
delivering a range of net positive cash flow outcomes. At an early
stage of a project's exploration history, it is prudent to focus on
the possibility for eventual economic extraction and a positive
result at this stage is a very significant achievement and a
promising start for Plateau. As more work is completed, the
understanding of the financial and operational parameters of a
project become apparent and more confident. With numerous
opportunities identified by the Study for further drilling,
Management is excited by Plateau's growth potential to improve the
economics to achieve a larger production profile.
"Rockfire's preliminary Scoping Study included multiple cost and
technical scenarios and concludes that Plateau is cash-positive on
a small-scale, assuming minimal capital costs, and based on toll
treatment of trucked ore. The purpose of this preliminary study was
to identify areas throughout the project where more work is
required to drive our on-going exploration. This has been
successfully achieved. Work required in the next exploration phase
includes metallurgical test work, infill drilling to close gaps in
the drilling pattern and extension drilling to test areas within
the pit outline with little or no drilling.
"Only five holes have been drilled into the target zone at 400 m
below surface and these holes have all been successful,
intersecting 16.9 g/t Au, 2.46 g/t Au, 9.3 g/t Au, 3.53 g/t Au and
5.03 g/t Au, respectively. There are also multiple, shallow
exploration targets surrounding Plateau which are within 250 m of
the designed pit outline. Rockfire intends to drill these targets
and any success from this drilling would be expected to add ounces
to our JORC resources. Management is confident that the input
parameters for the project can be improved on multiple fronts and
work over the next six months will be aimed at increasing
resources.
"A comprehensive programme of in-fill and extension drilling at
Plateau and exploration drilling at the nearby targets will
commence shortly and the market will be updated on a regular basis
once drilling commences."
For further information on the Company, please visit
www.rockfireresources.com or contact the following:
Rockfire Resources plc: info@rockfireresources.com
David Price, Chief Executive Officer
Allenby Capital Limited (Nominated Tel: +44 (0) 20 3328
Adviser & Broker) 5656
John Depasquale (Corporate Finance)
Matt Butlin / Kelly Gardiner (Equity
Sales)
Yellow Jersey rockfire@yellowjerseypr.com
Sarah Hollins / Henry Wilkinson Tel: +44 (0) 20 3004
9512
Notes to Editors
Rockfire Resources plc (LON: ROCK) is an exploration company
with a portfolio of 100%-owned near-surface gold and large-scale
copper projects in Queensland, Australia. Each of the gold projects
are located within 50 km of operating gold mines and the Company's
copper projects lie within 250 km of Australia's largest copper
refinery.
The Company's flagship project, the Plateau Gold Deposit, is
part of the Lighthouse Tenement, and bears significant geological
similarities to the nearby Mt Wright gold mine (45km to the
northeast), where 1.5 million ounces of gold have been mined. More
than 14,000 m have been drilled within the Lighthouse tenement.
Drilling to date at the Company's copper projects, Copperhead
and Copper Dome (35 km and 85 km southwest of the town of
Proserpine respectively), are indicative of large-scale porphyry
targets. Both projects have been drilled by previous explorers but
remain under-explored, leading the Board to believe that they
demonstrate significant exploration upside potential.
Rockfire Resources has adopted a strategy of growth based on
advancing exploration across its existing portfolio of projects, as
well as the continual assessment of opportunities to acquire
outstanding strategic mineral projects worldwide.
The Company is led by a highly skilled management team, with a
proven track record in exploring and discovering projects.
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