Last checked at 20 Jan 2023 07:20
The information contained within this announcement is deemed by the Company to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.
20 January 2023
Rockfire Resources plc
("Rockfire" or the "Company")Plateau JV to test for higher-grade gold
Rockfire Resources plc (LON: ROCK), the gold, base metal and critical mineral exploration company, is pleased to announce that the Company has entered into a new joint venture ("JV") at the Plateau gold deposit in Queensland, Australia. The purpose of the JV will be to test regional targets, as well as the discovery of higher-grade gold, close to Rockfire's JORC resource.
Highlights
· Rockfire has entered into a binding heads of agreement with Sunshine Gold Limited ("Sunshine") to advance the Plateau gold deposit in Queensland. Sunshine is listed on the Australian Stock Exchange (ASX:SHN).
· The JV includes the Lighthouse tenement (EPM25617) and the adjoining Kookaburra tenement (EPM26705) (together the "Tenements")
· The JV will result in Sunshine sole-funding exploration at Plateau for the next 3 years, with funding being engaged on direct exploration activity.
· Rockfire intends to focus its financial, logistical and human resources on the Molaoi zinc deposit in Greece, which hosts an Inferred, high-grade JORC resource of 2.3 million tonnes @ 9.4% zinc, 1.7% lead and 47g/t silver for 250,000 tonnes of zinc equivalent. The critical mineral, Germanium has also been discovered, associated with zinc.
· The Plateau gold deposit has a quoted Inferred JORC resource of 3.9 million tonnes @ 1.1g/t gold and 6.4g/t silver, using a 0.5g/t Au cut off.
· Sunshine will target potential for additional ounces in the top 100m from surface, where the JORC resource is quoted as Indicated and Inferred 1.4 million tonnes @ 1.2g/t Au and 8.8g/t Ag, (using a 0.5g/t Au cut off), for a total of 53,336 ounces of gold.
· Regional targets within the Lighthouse tenement, including Double Event, Cardigan Dam, Bluff Creek, Bullseye, Rollston River, Warrawee, Lower Lighthouse and Horse Creek will also be a focus for Sunshine to delineate near-surface resources at each of these regional prospects.
· Rockfire has the option to retain 25% ownership of the Plateau gold project by participating in 25% expenditure in on-going exploration, or the Company may elect to convert its right over a 25% share of the Tenements to a 1.5% net smelter royalty. With this structure, any discovery success by Sunshine will directly benefit shareholders of Rockfire.
David Price, Chief Executive Officer of Rockfire, commented:
"The establishment of this joint venture is a positive step for the Plateau project and for Rockfire generally. The JV enables our team to focus its efforts on the Molaoi project in Greece and allows for the advancement of Plateau at the same time.
"The joint venture structure is designed so that Sunshine will sole-fund exploration costs on the project, with minimum allowance for administration costs.
"Sunshine is an excellent JV partner, with a proven track record of thorough and sustained drilling. The Sunshine team is experienced and dedicated to discovery and Rockfire's management believes that Plateau is in good hands with Sunshine as a quality partner.
"In the meantime, our drilling at Molaoi in Greece has recommenced after the Christmas/New Year break and the market will be informed regularly as our drilling programme progresses and as drilling results are received."
Principal terms of the joint venture
The JV includes the Lighthouse Project exploration permit EPM25617 and the adjoining Kookaburra exploration permit EPM26705 in Queensland.
As at 30 June 2022, the Company's last announced financial statement, the Tenements accounted for £1,569,459 of the Company's Intangible assets. As all expenditure on the Tenements are capitalised, there were no losses or profits attributed to the Tenements.
During the sole funding period, Sunshine must keep the Tenements in good order and meet all statutory reporting, rehabilitation and expenditure obligations.
On the occurrence of each milestone set out in the table below, Sunshine will acquire the corresponding participating Interest in the Tenements. Up until the point as Sunshine reaches the stage 1 milestone, Sunshine will have a participating interest in the Tenements of 0%.
Stage | Milestone | Total participating interest earned by Sunshine at end of stage | Time frame |
1 | Sunshine has sole funded AUD $600,000 in expenditure | 40% | Maximum of 1 Year from execution date |
2 | Sunshine has sole funded a further AUD $600,000 in expenditure | 51% | Maximum of 2 years from execution date |
3 | Sunshine has sole funded a further AUD $1,000,000 in expenditure | 75% | Maximum of 3 years from execution date |
The expenditure requirement for each Stage 1, 2 and 3 is independent of the other stages and not cumulative.
At the conclusion of Stage 3, , Rockfire has 60 days from receipt of all data and reports and proposed program and budget, by written notice, to elect to either:
· contribute its 25% share of on-going exploration and development expenditure; or
· Convert its 25% share to a 1.5% net smelter royalty.
· Completion is expected in late January 2023
The terms of the net smelter royalty are to be based on the standard Energy & Resources Law Association (formerly AMPLA Ltd) template.
About Sunshine Gold Limited
Sunshine is listed on the Australian Stock Exchange with ticker (ASX:SHN). The Company is focused on discovery and development at its high-quality gold and copper projects in Queensland, comprising a 100% interest in the Triumph, Hodgkinson, Investigator and Ravenswood West projects.
The Sunshine board of directors includes Damien Keys, Paul Chapman and Les Davis, all of whom were responsible for the establishment and successful growth of Silver Lake Resources. As the Managing Director of Sunshine, Damien is a geologist with 20 years' experience in mining and exploration across a range of commodities. Damien has led teams to exploration success with Gold Fields Australia, Silver Lake Resources, Black Cat Syndicate and most recently at Spectrum Metals, with the discovery of the Penny North Gold Mine. Damien has completed a PhD in Structural Geology at James Cook University in Townsville.
For further information on the Company, please visit www.rockfireresources.com or contact the following:
Rockfire Resources plc: | info@rockfire.co.uk |
David Price, Chief Executive Officer | |
Allenby Capital Limited (Nominated Adviser & Broker): | Tel: +44 (0) 20 3328 5656 |
John Depasquale / George Payne (Corporate Finance) | |
Matt Butlin / Kelly Gardner (Sales and Corporate Broking) |
Qualified Person Statement
The technical information in this announcement is based on information compiled by Mr David Price, the Chief Executive Officer of Rockfire Resources plc, who is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). Mr Price has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which has been undertaken to qualify as a "Qualified Person" in accordance with the AIM Rules Guidance Note for Mining and Oil & Gas Companies. Mr Price consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.
Notes to Editors
Rockfire Resources plc (LON: ROCK) is a gold, base metal and critical mineral exploration company, with a portfolio of gold/copper/silver projects in Queensland Australia and a high-grade zinc/lead/silver/germanium deposit in Greece.
§ The Molaoi deposit in Greece has a JORC resource of 210,000 tonnes of zinc, 39,000 tonnes of lead and 3.5 million ounces of silver, using a 4% Zn cut off.
§ The Plateau deposit in Queensland has a JORC resource of 131,000 ounces of gold and 800,000 ounces of silver, using a 0.5g/t Au cut off. 53,000 of these ounces lie within the top 100m from surface.
§ The Copperhead deposit in Queensland has a JORC resource of 80,000 tonnes of copper, 9,400 tonnes of molybdenum and 1.1 million ounces of silver, using a 0.13% CuEq. cut off.