Rockfire Resources (LON: ROCK) shares are falling on Tuesday after the company provided an update on the Copperhead porphyry project in North Queensland, Australia.
Rockfire has completed drilling of the first two holes, while drilling of a third hole is in progress.
The London-listed company said its geologists are logging abundant, narrow, mineralised veins throughout each hole, including veins hosting both copper and molybdenum minerals. For example, the first hole has recorded copper-bearing veins from 8m to the end of the hole. In addition, chalcopyrite (copper sulphide) veins are being recorded at 500.87 m.
However, the frequency of the veins showing chalcopyrite varies significantly throughout the hole.
Analysis of the holes is at an advanced stage and core cutting and sampling are in progress.
David Price, CEO of Rockfire, commented: “Drilling at Copperhead is progressing well. The geology and mineralisation being observed in our first drillhole is in line with the geological logs from drilling in 1972. Assays are pending, however, so it would be premature to attempt to correlate copper grades with historical drilling.
“Even without knowledge of the grades yet, the presence of the copper sulphides throughout the hole and to a downhole depth of 500 m supports our belief for the potential of a large, mineralised porphyry copper/molybdenum system.”
Despite the Rockfire CEO's optimism, investors haven't been overly impressed by the update, with Rockfire Resources shares down 5.13% at 0.926p so far on Tuesday.
The company's shares are trading flat for the year and have been ranging since mid-August, when it also announced that diamond drilling was underway at the Copperhead project. However, today's news has seen its share price break below the range.
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