(Alliance News) - Rockfire Resources PLC on Tuesday said it has found a potentially "major" gold system at the Plateau deposit in the north of Queensland, Australia.
Drilling at the deposit, on the Lighthouse tenement, has returned "extensive" intercepts of gold mineralisation.
London-headquartered Rockfire said an "important" milestone has been hit with a zone being found at a grade above 2.0 grams of gold per tonne of ore. This was discovered 145 metres downhole, with the same grade being found at the nearby Mt Wright gold deposit at a similar depth.
The Mt Wring gold deposit is located on London-listed Resolute Mining Ltd's Ravenswood gold mine, which produced over 50,000 ounces of gold in 2019. Resolute has since agreed to sell the mine for up to AUD300 million, or GBP152.5 million.
All of the holes drilled at the Plateau deposit hit gold, Rockfire continued, expanding the deposit to over 200 metres in length, 70 metres of width, and 200 metres of depth. The highest grade found was one metre at just over 10 grams of gold per tonne of ore.
"These long intervals of gold in the upper levels of Plateau are extremely positive and demonstrate the size of the mineralising system. The Rockfire technical team continues to see similarities to the Mt Wright gold mine, 45 kilometre to the north-east of Plateau, hosting over 1.5 million ounces of gold, where the main gold ore is between 400 metres and 850 metres below surface," said Rockfire Chief Executive David Price.
"We appear to be at the top of a similarly large gold deposit," he continued.
"The dimensions of Mt Wright, which is 250 metres long, 60 metres wide and mined to over 1,200 metres deep, compare favourably with those of Plateau; being 200 metres long, 70 metres wide, and currently drilled to only 240 metres. The broad intervals of gold mineralisation between 0.2 grams per tonne and 0.5 grammes per tone in the top 200 metres are also characteristic of Mt Wright."
Rockfire shares were 1.3% lower on Tuesday morning in London at a price of 1.18 pence each.
By George Collard; georgecollard@alliancenews.com
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