Shares of Rockfire Resources PLC (LON: ROCK) shot up 65% after announcing that its 100% owned Plateau Gold Deposit, in Queensland Australia, has surpassed a JORC (2012) Mineral Resource of 200,000 ounces of gold.
The gold and base metal exploration company noted that the current estimate of 208,278 gold ounces represents a 515% increase in gold ounces following the Company's maiden JORC (2012) Mineral Resource announced in July 2019.
Rockfire also discovered 53,336 ounces of gold within shallow depths of up to 100m, while an extra 131,302 ounces of gold could be mined using higher cut-off grades. The company is working hard to start mining the 53k gold ounces found at shallow depths.
However, deep drilling operations are scheduled for April this year as Rockfire strives to monetise the plateau for its shareholders' benefit. The company also noted that the production of silver alongside the gold would make the operation cost-effective.
The mine's location within 50km of other gold processing facilities could significantly lower the production costs.
David Price, Rockfire’s CEO, commented: “This outstanding resource upgrade demonstrates the quality of the Plateau asset. I am particularly pleased that we have delineated near-surface gold, at an average grade of 1.2 g/t Au. This represents real potential for Rockfire to achieve its ambition of near-term, open-cut gold production whilst the deposit continues to be expanded through further exploration.”
Adding:
“This is just the beginning of Plateau and we see opportunity for more resources along strike to the east and west, as well as repetitions of the favourable geological and structural setting in the immediate vicinity of Plateau. Within 200 m to the north of Plateau, rock chip sampling has returned 12.10 g/t Au and similarly, 200 m south of Plateau, rocks have returned 6.69 g/t Au. Both areas are undrilled.”
The company also touted that most of the plateau is undrilled and initial sampling has indicated significant gold potential.
Rockfire Resources share price
.Rockfire shares shot up 65% to trade at 1.70p having risen from Thursday’s closing price of 1.03p.