TIDMROCK
RNS Number : 4476Y
Rockfire Resources PLC
09 September 2020
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information for the purposes of Article 7 under the Market Abuse
Regulation (EU) No. 596/2014 ("MAR"). With the publication of this
announcement, this information is now considered to be in the
public domain.
9 September 2020
Rockfire Resources plc
("Rockfire" or the "Company")
Interim Results
Rockfire Resources plc (LON: ROCK), the gold and base metal
exploration company, is pleased to announce its unaudited interim
results for the six months ended 30 June 2020 and provides an
update in respect of the Company's exploration activities on its
100%-owned licences in Queensland, Australia.
Rockfire has maintained a focused and strategic campaign of
continuous exploration on its portfolio of tenements. The Company's
exploration activity has focused on the Plateau gold deposit
("Plateau"), which lies within the Lighthouse tenement and is
situated 17km east of the operating Pajingo Gold Mine. The
geological and mineralisation model for Plateau is based on the
operating Mt Wright Gold Mine, which lies 47km to the north east of
Plateau.
Exploration by the Company at Plateau has identified a gold
mineralising system similar to that at Mt Wright. Similarities in
geology, mineralogy, geophysics and geochemistry have been
supported by the intersection of broad, low-grade gold intervals
over several hundred metres, starting from surface. The majority of
the gold ore at Mt Wright occurs at depths between 400 m and 850 m
from surface, with underground mining reaching depth of 1,200m
below surface. Nearly 1.5m ounces of gold have been mined at Mt
Wright and Rockfire is exploring for a similar high-grade core to
the gold already intersected at Plateau.
Recent, post-period exploration has intersected various types of
sulphides, with the observation of pyrrhotite being made for the
first time in drilling at Plateau. Pyrrhotite is an important
component of the high-grade core at Mt Wright and Rockfire is
keenly awaiting further drill results, including core from this
pyrrhotite zone. The Company is encouraged by the observation of
these sulphides, indicating multiple mineralising episodes which is
often favourable for gold deposition and enrichment. Rockfire's
Phase 2 diamond drilling programme is nearing completion, which is
designed to drill 6 holes to approximately 500m from surface to
test for a high-grade gold core to the mineralising system.
Drilling results are pending.
Exploration Highlights
-- 1,155m of reverse circulation (RC) drilling in six holes was
completed at Plateau in January. The results included:
-- 171 m @ 0.4 g/t Au in hole BPL027 (from 26 m)
-- 170 m @ 0.4 g/t Au in hole BPL030 (from 37 m)
-- 154 m @ 0.2 g/t Au in hole BPL026 (from 97 m)
-- Silver assays include 187 m @ 6.3 g/t Ag (from 15 m) and 203 m @ 3.68 g/t Ag.
-- Rock sampling at Cardigan Dam returned gold assays up to 23.4 g/t Au.
-- 3D magnetic imagery confirmed a gold target down to and beyond a depth of 600 m at Plateau.
-- RC drilling recommenced at Plateau in June, with approximately 1,000 m of drilling planned.
-- A 6 hole diamond drilling programme commenced at Plateau in
late July to test the gold system at depths of around 500m from
surface.
RC drilling of 1,155 m in six drill holes was completed in
January at Plateau. Drilling was designed to test to depths of
around 250 m below surface and to follow-up hole BPL025, which
intersected 177 m @ 0.5 g/t Au in December 2019.
These follow-up holes returned extensive intercepts of
continuous gold mineralisation, comparable to hole BPL025. An
important project milestone was reached with a + 2.0 g/t Au zone
being encountered over 11 m from 145 m downhole. All drill holes
encountered broad intervals of sulphides and each hole also
returned significant silver assays.
All drill holes hit gold, expanding the Plateau footprint to
+200 m long, +70 m wide and +200 m deep. Assay results included 171
m @ 0.4 g/t Au in hole BPL027, including 39 m @ 1.0 g/t Au and 11 m
@ 2.3 g/t Au (from 145 m). Hole BPL030 intersected similar lengths
and grades of 170 m @ 0.4 g/t Au, including 10 m @ 1.0 g/t Au (from
54 m) and 19 m @ 1.0 g/t Au (from 174 m). These holes extended
mineralisation more than 100 m east of drill hole BPL025.
L ong intervals of anomalous silver (Ag), zinc (Zn) and lead
(Pb) were intersected, providing further evidence that Plateau is a
significantly large mineralising system. Silver assays up to almost
one and a half ounces per tonne (43.9 g/t Ag) over a 6 m section of
drilling, including 1 m @ 113 g/t Ag represent some of the highest
silver grades encountered so far at Plateau.
During February to May and whilst the wet season was active in
North Queensland, Rockfire completed further technical
interpretation on Plateau. Technical data analysis and comparison
studies between Plateau and the nearby Mt Wright Gold Mine remained
a priority for the Company.
Mr Gregg Morrison of Klondike Exploration Services, the
pre-eminent expert in North Queensland geology, analysed the
results of the Company's work and continues to assist Rockfire's
geology team. Mr Morrison developed the multi-element geochemistry
classification and zonation model which was used to characterise
the Mt Wright Gold Mine. Gregg has observed many similarities
between Plateau and the early observations at Mt Wright.
At the beginning of June 2020, the Company announced that
modern, three-dimensional ("3D") reprocessing of aeromagnetic data
flown in 2011 by Ramelius Resources at Plateau was helping to
clarify drill targets at depth. A gold target down to and beyond a
depth of 600 m was evident and appeared to support a steep easterly
plunge of the low-magnetic mineralised rhyolite host. The
geophysics also revealed a rolling, north-south change in dip
direction of the southern margin of the host rhyolite.
Rockfire resumed RC drilling at Plateau on 11 June 2020, with
six drill holes and approximately 1,000 m of drilling planned. This
drilling ("Phase One"), includes the drilling of a water bore to
provide sufficient water for planned diamond drilling. This first
phase of RC drilling was designed to define additional gold close
to surface at an area called the "Central Breccia" and especially
within the top 100 m. A second aim of this phase of drilling was to
test mineralisation down to 200 m in areas where drilling is
sparse, to increase confidence in gold grades to these depths.
Rockfire Project Portfolio
During the period, Rockfire sought quotations from geophysical
companies to fly aeromagnetic surveys over the Company's two
porphyry copper projects, also in Queensland, Australia. Both
projects are listed in the "Global Mineral Resource Assessment",
published in 2010 by the US Geological Survey.
The Copperhead Project is an under-explored porphyry
copper/molybdenum deposit. Exploration success from the early
1970's shows indications for bulk-tonnage, low-medium grade
potential. Based on 5 diamond drill holes drilled by Carpentaria
Exploration in 1972, Copperhead has a non-JORC historical estimate
of mineral content of 35,000,000 t grading 0.35 % Cu Eq., with
significantly more growth potential.
Copper Dome is a porphyry copper/gold deposit which lies
approximately 50 km to the southwest of Copperhead. In 1972, three
percussion drill holes and six diamond drill holes, totalling 1297m
were drilled. Each drill hole intersected geological/alteration
features which are indicative of a large-scale porphyry deposit.
Best results from this drilling include 12m @ 0.61 % Cu (including
3m @ 1.24 % Cu), 15m @ 0.88 % Cu (including 5m @ 2.28 % Cu), 24m @
0.27 % Cu, 12m @ 0.17 % Cu and 38m @ 0.13 % Cu. Only sporadic gold
analysis was done, with gold values peaking at 1.86 g/t Au. This
indicates the potential for the porphyry system to contain a
significant gold component.
Rock sampling by previous explorers focussed on faults in close
proximity to historical copper workings. The best rock sampling
results included 5.4 % Cu (0.41 g/t Au), 1.8 % Cu (13 g/t Au), 0.19
% Cu (2.45 g/t Au), 1.5 % Cu (0.2g/t Au) and 1.8 % Cu. Subsequent
rock sampling by Rockfire in March 2019 returned peak values of
23.4 % Cu, 3.2 g/t Au and 952 g/t Ag.
Both projects will be flown by a helicopter-supported magnetic
survey, which is expected to be completed prior to the end of the
2020 calendar year. The helicopter survey will provide optimum
terrain contouring in both areas, which are highly undulating.
Rockfire also holds the Marengo, Kookaburra and Monarch gold
licences in Queensland. Exploration activity is currently focussed
on the Plateau Gold Deposit within the Lighthouse tenement and our
potentially large-scale copper projects. During the reporting
period, the small New Leyshon exploration licence was relinquished
after a thorough review of past exploration demonstrated low
prospectivity. The tenement was originally acquired for its
proximity to the Mt Leyshon Gold Mine however, with low exploration
potential, the licence was subsequently relinquished.
Corporate summary
-- During the period, Rockfire announced the appointment of
Allenby Capital Limited as sole broker to the Company.
-- A placing of new ordinary shares was announced to the market late in the reporting period.
On 29 June, Rockfire announced a successful fundraise of
GBP1,000,000 gross through a placing of 117,647,100 new ordinary
shares. The issue price was 0.85 pence per share. These new shares
were subscribed for by a combination of new investors and existing
shareholders.
The placing price represented a discount of approximately 13 per
cent. to the closing mid-market share price of an existing ordinary
share on 26 June, the business day prior to the announcement.
Importantly, the Company did not issue any warrants in connection
with the placing.
Rockfire's largest shareholder and Non-executive Director,
Nicholas Walley subscribed for 748,200 shares in the placing,
thereby increasing his holding in the Company to 52,464,000
ordinary shares.
The net proceeds of the placing, amounting to GBP941,932, were
intended to be and are actively being applied to the drilling
programme at Plateau to test down to 750m deep. Funds were also
earmarked for geophysical studies within the Lighthouse tenement
and magnetometer surveys at Copperhead and Copper Dome and general
working capital purposes.
Following the period-end, the Company raised a further
GBP1,050,075 through a placing of 64,620,000 new ordinary shares at
a price of 1.625 pence per share, as detailed below.
Post-period highlights
-- A diamond drilling programme commenced at Plateau in July,
with six holes to be drilled down to 500m vertical depth expected
to be completed.
-- A placing of new ordinary shares, raising gross proceeds of
GBP1,050,075 (net GBP996,989) was announced to the market on 29
July. The proceeds provide the Company with significant financial
strength to ensure a continuity of deep drilling, should a main
gold zone be intersected at Plateau.
-- Since 30 June, 11,166,667 new ordinary shares have been
issued pursuant to the exercise of warrants at an exercise price of
1p per share, generating proceeds of GBP111,667.
-- In August, Rockfire released the results of Phase One
drilling. Results included some of the highest grades achieved in
the top 200m so far at the project, including:
-- 90 m @ 0.8 g/t Au
-- 100m @ 0.3 g/t Au, including
-- 43 m @ 1.5 g/t Au, and including
-- 22 m @ 2.0 g/t Au
The Company continues to explore Plateau with the aim of
identifying a higher-grade core in addition to the large, low grade
system intersected thus far. The elevated silver and zinc levels
indicate that drilling is currently at levels high above any
potential higher gold grades and, as a result, the Company is
actively drilling to 500m vertical depth. The Company believes that
a major gold mineralising system has been intersected already and
that a "main zone", similar to the Mt Wright Gold Mine (47km east)
may also be present at depth.
Competent Person statement
Information in this announcement that relates to exploration
results is based on information compiled by Mr Edward Fry, the
Exploration Manager of Rockfire Resources plc, who is a Member of
the Australasian Institute of Mining and Metallurgy (MAusIMM). Mr
Fry 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 Competent Person
as defined by the 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves (the JORC Code) and under the AIM Rules - Note for Mining
and Oil & Gas Companies. Mr Fry consents to the inclusion in
the announcement of the matters based on their information in the
form and context in which it appears.
For further information on the Company, please visit
www.rockfireresources.com or contact the following:
Rockfire Resources Plc info@rockfireresources.com
David Price, Chief Executive Officer
Allenby Capital Limited
(Nominated Advisor and Broker) +44 (0) 20 33 285 656
Corporate Finance: John Depasquale
/ Asha Chotai
Equity Sales: Matt Butlin / Guy McDougall
Yellow Jersey rockfire@yellowjerseypr.com
Sarah Hollins/Henry Wilkinson/Faye +44 (0) 20 3004 9512
Calow
ROCKFIRE RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2020
6 months to 6 months to 12 months to
30 June 2020 30 June 2019 31 December 2019
GBP GBP GBP
Note (unaudited) (unaudited) (audited)
Interest income - 1 -
Impairment of intangible assets 1,104 - (87,475)
Administrative expenses (275,202) (290,022) (548,067)
Loss before taxation (274,098) (290,021) (635,542)
Taxation - - -
Loss attributable to shareholders of the Company (274,098) (290,021) (635,542)
Items that may be subsequently reclassified to profit or
loss:
Foreign exchange translation movement 58,000 (17,297) (57,471)
Total comprehensive loss attributable to shareholders of
the Company (216,098) (307,318) (693,013)
============== ============== ==================
Loss per share attributable to shareholders of the Company
Basic and diluted (pence) 3 (0.03) (0.07) (0.14)
ROCKFIRE RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
30 June 30 June 31 December
2020 2019 2019
GBP GBP GBP
Note (unaudited) (unaudited) (audited)
ASSETS
Non-current assets
Intangible assets 2,096,980 1,650,404 1,731,760
Property, plant and
equipment. 28,295 - 10,371
------------ ------------ -------------
Total non-current
assets 2,125,275 1,650,404 1,742,131
------------ ------------ -------------
Current assets
Cash and cash equivalents 181,405 181,097 763,060
Trade and other receivables 20,676 41,401 55,973
------------ ------------ -------------
Total current assets 202,081 222,498 819,033
------------ ------------ -------------
Total assets 2,327,356 1,872,902 2,561,164
============ ============ =============
EQUITY AND LIABILITIES
Equity attributable
to shareholders
of the Company
Share capital 4 6,628,608 6,427,835 6,625,077
Share premium 14,752,576 13,789,185 14,736,107
Other reserves 2,295,035 2,295,035 2,295,035
Foreign exchange reserve (19,767) (37,593) (77,767)
Retained deficit (21,437,910) (20,751,311) (21,163,812)
------------ ------------ -------------
Total equity 2,218,542 1,723,151 2,414,640
------------ ------------ -------------
Current liabilities
Trade and other payables 108,814 149,751 146,524
------------ ------------ -------------
Total current liabilities 108,814 149,751 146,524
------------ ------------ -------------
Total liabilities 108,814 149,751 146,524
------------ ------------ -------------
Total equity and liabilities 2,327,356 1,872,902 2,561,164
============ ============ =============
ROCKFIRE RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2020
Foreign
Share Share Other exchange Accumulated
capital premium reserves reserve losses Total
GBP GBP GBP GBP GBP GBP
At 1 January
2019 6,369,011 13,458,124 2,295,035 (20,296) (20,529,205) 1,572,669
--------------------- ---------- ----------- ---------- ---------- ------------- ----------
Loss for the
period - - - - (290,021) (290,021)
Foreign exchange
translation
movement - - - (17,297) - (17,297)
--------------------- ---------- ----------- ---------- ---------- ------------- ----------
Total comprehensive
loss - - - (17,297) (290,021) (307,318)
--------------------- ---------- ----------- ---------- ---------- ------------- ----------
Issue of share
capital 58,824 441,176 - - - 500,000
Costs of share
issue - (42,200) - - - (42,200)
Share-based
payments - (67,915) - - 67,915 -
--------------------- ---------- ----------- ---------- ---------- ------------- ----------
Total transactions
with shareholders 58,824 331,061 - - 67,915 457,800
--------------------- ---------- ----------- ---------- ---------- ------------- ----------
At 30 June
2019 6,427,835 13,789,185 2,295,035 (37,593) (20,751,311) 1,723,151
--------------------- ---------- ----------- ---------- ---------- ------------- ----------
Loss for the
period - - - - (345,521) (345,521)
Foreign exchange
translation
movement - - - (40,174) - (40,174)
--------------------- ---------- ----------- ---------- ---------- ------------- ----------
Total comprehensive
loss - - - (40,174) (345,521) (385,695)
---------- ----------- ---------- ---------- ------------- ----------
Issue of share
capital 197,242 951,445 - - - 1,148,687
Cost of share
issue - (71,503) - - - (71,503)
Share-based
payments - 66,980 - - (66,980) -
--------------------- ---------- ----------- ---------- ---------- ------------- ----------
Total transactions
with shareholders 197,242 946,922 - - (66,980) 1,077,184
--------------------- ---------- ----------- ---------- ---------- ------------- ----------
At 31 December
2019 6,625,077 14,736,107 2,295,035 (77,767) (21,163,812) 2,414,640
--------------------- ---------- ----------- ---------- ---------- ------------- ----------
Loss for the
period - - - - (274,098) (274,098)
Foreign exchange
translation
movement - - - 58,000 - 58,000
--------------------- ---------- ----------- ---------- ---------- ------------- ----------
Total comprehensive
loss - - - 58,000 (274,098) (216,098)
--------------------- ---------- ----------- ---------- ---------- ------------- ----------
Issue of share
capital 3,531 16,469 - - - 20,000
Total transactions
with shareholders 3,531 16,469 - - - 20,000
--------------------- ---------- ----------- ---------- ---------- ------------- ----------
At 30 June
2020 6,628,608 14,752,576 2,295,035 (19,767) (21,437,910) 2,218,542
===================== ========== =========== ========== ========== ============= ==========
ROCKFIRE RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2020
6 months 6 months
to to 12 months
30 June 30 June to 31 December
2020 2019 2019
GBP GBP GBP
(unaudited) (unaudited) (audited)
Cash flow from operating activities
Loss for the period (274,098) (290,021) (635,542)
- Impairment of intangible
assets - - 87,475
- Share-based payments - 67,915 -
- Expenses settled as shares 20,000 - -
- Depreciation 1,319 - -
- Foreign exchange rate differences 58,000 (17,297) (57,471)
----------- ----------- ---------------
(194,779) (239,403) (605,538)
Decrease / (increase)in trade
and other receivables 35,296 (18,727) (33,298)
Decrease in trade and other
payables (37,709) (36,516) (39,744)
Net cash outflow from operating
activities (197,192) (294,646) (678,580)
----------- ----------- ---------------
Cash flow from investing activities
Exploration expenditure (365,220) (208,738) (377,568)
Acquisition of property, plant
and equipment (19,243) - (10,371)
----------- ----------- ---------------
Net cash used in investing
activities (384,463) (208,738) (387,939)
----------- ----------- ---------------
Cash flow from financing activities
Proceeds from issuance of ordinary
shares - 432,085 1,648,686
Share issue costs - (42,200) (113,703)
----------- ----------- ---------------
Net cash generated by financing
activities - 389,885 1,534,983
----------- ----------- ---------------
Net (decrease) / increase in
cash and cash equivalents (581,655) (113,499) 468,464
Cash and cash equivalents at
the beginning of the period 763,060 294,596 294,596
Cash and cash equivalents at
the end of the period 181,405 181,097 763,060
=========== =========== ===============
ROCKFIRE RESOURCES PLC
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL
STATEMENTS
FOR THE SIX MONTHSED 30 JUNE 2020
1 Principal activities
The Company is a public limited company, admitted to trading on
AIM and incorporated and domiciled in England and Wales.
The Group's principal activity is exploration for gold and base
metals in Queensland, Australia.
2 Basis of preparation
The unaudited consolidated financial statements are for the six
month period ended 30 June 2020. They do not include all the
information required for full annual financial statements and
should be read in conjunction with the audited consolidated
financial statements of the Group for the year ended 31 December
2019, which were prepared under International Financial Reporting
Standards ("IFRS") as adopted by the European Union ("EU").
The financial statements are prepared on the historical cost
basis or the fair value basis where the fair valuing of relevant
assets and liabilities has been applied.
The financial statements have been prepared in accordance with
accounting policies consistent with those set out in the Group's
financial statements for the year ended 31 December 2019.
The financial statements incorporate the financial statements of
the Company and subsidiaries controlled by the Company as at 30
June 2020.
The financial information set out in this interim report does
not constitute statutory financial statements as defined in Section
435 of the Companies Act 2006. The Group's statutory financial
statements for the year ended 31 December 2019 have been filed with
the Registrar of Companies. Those financial statements received an
unqualified audit report and did not contain statements or matters
to which the auditor drew attention under the Act.
The Group's consolidated financial statements are presented in
GB Pounds Sterling.
3 Loss per share
Basic and diluted loss per share
The calculation of basic and diluted loss per share is based on
the loss attributable to ordinary shareholders of GBP 274,098
(2019: GBP290,021) and a weighted average number of ordinary shares
in issue of 631,592,561 (30 June 2019: 423,983,038).
4 Share capital
30 June 30 June 31 December
2020 2019 2019
Issued share capital Number Number Number
Ordinary shares of GBP0.001 each 632,938,535 435,886,277 629,407,844
Deferred shares of GBP0.099 each 51,215,534 51,215,534 51,215,534
30 June 30 June 31 December 2019
2020 2019
Issued share capital GBP GBP GBP
Fully paid 6,628,608 6,427,835 6,625,077
6,628,608 6,427,835 6,625,077
=========== =========== ================
Fully paid ordinary shares carry one vote per share and carry
the right to dividends. There are no shares held by the Company or
its subsidiaries.
On 10 March 2020, 3,530,691 new ordinary shares were issued to
Patrick Elliott , in settlement of Director's fees for the period
from 26 February 2019 to 31 December 2019.
5 Post balance sheet events
On 7 July 2020, the Company announced that 1,690,909 new
ordinary shares had been issued to Patrick Elliott in settlement of
Director's fees for the period 1 January 2020 to 30 June 2020.
On 17 July 2020, the Company announced that the registered
office has been changed to 201 Temple Chambers, 3-7 Temple Avenue,
London, United Kingdom, EC4Y 0DT.
On 29 July 2020, the Company announced completion of a share
placing of 64,620,000 new ordinary shares, issued at a price of
1.625 pence per share, raising net proceeds of GBP996,989.
On 31 July 2020, the Company granted 6,000,000 options to each
of the three Non-executive Directors. The options are exercisable
at a price of 2p each and have an exercise life of 3 years from the
date of grant.
During August 2020, the Company raised GBP111,667 through the
exercise of 11,166,667 warrants for 11,116,667 new ordinary shares,
at an exercise price of 1.0 pence.
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