(Alliance News) - Rockfire Resources PLC said Tuesday that drilling of a new Breccia zone at the Plateau Gold deposit in Queensland, Australia has discovered high-grade, near-surface gold.
Rockfire Resources shares were up 33% in London at 1.80 pence each on Tuesday.
The gold and base-metal explorer said the gold was discovered 120 meters east of drill hole BPL025, which returned 177 meters at 0.5 grams per tonne gold.
The company said the central Breccia was identified from mapping and sampling by Rockfire geologists. The company believes this new mineralised zone forms part of the near-surface expression of the large gold system encountered by the BPL025 drill hole.
The newly identified zone includes an intercept of 1 meter at 21.7 grams per tonne gold, which is the highest gold grade encountered in drilling at plateau, the company said.
David Price, chief executive officer, said: "We are starting to get a better understanding of the geology of this zone and the more we learn from each drill hole, the higher our drilling success rate becomes."
"These holes are interpreted to represent the near-surface expression of the large gold system encountered at depth in hole BPL025. Importantly, these holes extend the mineralised target zone by another 120m towards the east. It is our expectation that the geophysics recently completed at Plateau may highlight potential for a "sweet spot" with higher average grades at depth," Price said.
At the end of November the company said that drilling to test a target at the Plateau gold deposit in Queensland Australia intersected broad and consistent gold assays, indicative of a large-scale gold deposit.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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