Rockfire Resources (LSE:ROCK) fell by nearly 30pc this morning to 1.1p after failing to find gold or copper in two holes drilled at its Marengo project in Australia. The business said the holes, which it drilled into blind geophysical anomalies beneath and to the northeast of the project’s One Mile Mountain prospect, contained 1-2pc pyrite but no precious metals.
However, chief executive David Price was quick to highlight that the results had been obtained ‘rapidly and at minimal cost, adding that the firm can now focus on the most prospective targets and test them according.
Future work at Marengo will now focus on its Homeward Bound prospect, as well as more than 30 additional prospectsacross the site’s entire goldfield. A 19-hole RC drilling programme is expected to begin this month at an area called Double Event, while an induced polarisation (IP) geophysical survey is plannedfor November at another called Copperhead.
Drilling at Double Event will test the western limits of a 3km-long system of veins, while the work at Copperhead willcheckfor the presence of sulphides at around 300m below the surface for drill targeting. Historical drilling at Copperhead has intersected copper mineralisation in five drill holes, the deepest of which was a 300m diamond hole.
Earlier this month, Rockfire told the market it had identified a very strong IP chargeable anomaly at Copperhead through the discovery of data from a IP geophysics survey on the site carried out in 1972. It said the anomalyis four times stronger than that identified at Marengo in May this year and provides an opportunity to grow the copper resource on its tenement.
On today’s news, Price added: ‘The Homeward Bound Prospect comprises 17 historical gold shafts and pits. The recent drilling only tested beneath one of the old workings at Homeward Bound and intersected gold (+/- copper)-bearing veins at very shallow depths. The Marengo licence incorporates an entire goldfield andfuture work at Marengo will focus on the numerous historical workings, including more than 30 historical prospects within a 5 square km area. Rockfire has a large portfolio of prospects andthis strategy demonstrates our conviction that discovery is only delivered from the drill bit. We will continue to drill our targets in a systematic, thorough and swift manner.’
Author: Daniel Flynn
The author of this piece does not hold a position in the company covered in this article