Rockfire Resources (LON: ROCK) said a small scale open pit mining operation at its 100%-owned Plateau Gold Deposit in North Queensland, Australia, has returned positive results, causing its share price to rise on Thursday morning.
A preliminary study of the small-scale open-pit mine showed a net positive cash flow, ranging from A$6.8 million to A$19.4 million.
Multiple targets within the proposed pit are yet to be drilled, with the scoping study identifying numerous opportunities to increase gold ounces with additional shallow drilling, according to Rockfire.
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“There is therefore significant potential to increase the economic outlook of the project based on continued exploration success at depth,” said Rockfire.
They added there were several targets within 250 m of Plateau that will be drilled to explore for additional near-surface gold ounces, but they are not yet included in Rockfire’s JORC resources.
“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,” said David Price, CEO of Rockfire.
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“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,” added Price.
Source: IG
Rockfire Resources share price is currently trading at 0.898p, up over 8%. Session highs of 0.95p were reached immediately after the London open.
Should You Invest in Rockfire Resources Shares?
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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.
