Rome Resources Plc (AIM:RMR) CEO Paul Barrett talked with Proactive about the latest drilling results from the company’s Mont Agoma project in the Democratic Republic of Congo.
Barrett said the results delivered strong grades of tin, zinc and copper, and would shape expectations for the upcoming maiden resource estimate.
Here, we take a closer look at what was said.
Proactive: Paul, very good to speak with you. Your latest drilling at Mont Agoma delivered strong tin, zinc and copper grades. How did these results shape expectations for the maiden resource estimate?
Paul Barrett: Stephen good to be here. I think the answer really to that is the fact that it's quite complicated because there's a lot in the story. In terms of the main zone in Mont Agoma, which is a polymetallic copper, tin, zinc zone, we are really looking at a maiden resource of all those three elements. And the tin is likely to be a more significant element as we drill deeper next time around. Mont Agoma East, as we said in the RNS, was a very interesting tin intercept, very shallow. It was very weathered and difficult to drill with poor core recovery. The probability is that there's better quality rock and higher grades at depth. That would be the plan for Mont Agoma East. The MRE will cover the main Mont Agoma zone and the tin in Kalayi as well.
Proactive: With Mont Agoma East looking like a new growth area, how quickly can you follow up there?
Paul Barrett: We're still waiting for the helicopters to come back from service. It's been a long time, but we're doing our planning. We've planned a number of holes to the south and east, and that's really the growth area. The geochemical soil anomaly extends further to the east, and at depth we expect to see more. Drilling to the southeast is the core activity, and also drilling to the north where tin and copper anomalies may extend. We're planning a number of holes in different scenarios, including deeper into Mont Agoma main zone.
Proactive: Tin price is around $34,000 a tonne. How does that pricing influence the economic potential of your projects?
Paul Barrett: I don't think we should be looking too hard at the tin prices now, because our tin will come out in a few years' time. Still, the long-term macro picture for tin is pretty good. That's reflected in supply and demand at the moment. There are always supply issues, but demand continues to grow. It's the same for copper. Zinc is holding at around $3,000 a tonne. Even though zinc is not a prime commodity, it can still have a significant value. All three commodities are doing well in terms of pricing. But it's a bit like the oil industry — you make investment decisions without knowing the price years ahead. It does point towards long-term demand and price support.
Proactive: Beyond Mont Agoma, how important are Kalayi and the wider Bisie North targets in building long-term scale and value for shareholders?
Paul Barrett: Kalayi is important. We haven't drilled very deep there, but we believe the three zones of pure tin will increase at depth. We're going to drill deeper with a new drilling crew, new supervisor and updated equipment. We've only drilled about 500 metres of the overall tin anomaly. There is upside to the north and south, so all those areas need deeper drilling. There's a lot still to do.
Proactive: Paul, I hope you'll continue to keep us updated with your progress.