Rockfire Resources PLC (LON:ROCK) has entered into an option deal giving it the right to acquire the Copper Dome porphyry copper project, in Central Queensland.
Historically known as Mt Leslie the deposit was the subject of a resource estimate, published in 2010 by the US Geological Survey, and, it is believed to be a large-scale mineralised system.
Copper Dome is seen to have a surface expression of copper mineralization across more than 2 kilometres length and 1 kilometre width, though Rockfire notes that the prospect is “vastly under-explored”. It is located some 50 kilometres from Copperhead, Rockfire’s existing large-scale porphyry target.
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Drilling took place in 1972, yielding grades of up to 0.88% copper and some gold grades were measured.
Rockfire highlighted that many intervals of visible copper mineralization have not been assayed, for either copper or gold, and, that only sporadic gold analysis has been done (peak grades in drilling were seen up to 1.86 g/t).
It also noted that as the mineralisation outcrops at surface, there are opportunities for low-cost, near-surface exploration.
Copper Dome is a “tremendous fit”
"The acquisition of Copper Dome would be a tremendous fit with Rockfire's existing portfolio of porphyry copper prospects and I view this as a potential strategic platform for future growth,” said David Price, Rockfire chief executive.
“Copper Dome provides opportunity to secure a project similar in many ways to Copperhead, with intervals of high-grade copper within a much broader envelope of copper mineralisation."
"What I particularly like about Copper Dome is its close proximity to Copperhead and to Australia's largest copper refinery near Bowen, approximately 250km to the north.
Price added: “Rockfire's work at Copper Dome will commence during the Option Period to ensure Rockfire has a better understanding of the mineralising structures and overall potential prior to exercising the option.
“Our work will focus on soil sampling, ground magnetics, geological and structural mapping and an XRF survey. Owing to its proximity to Copperhead, these campaigns can be run in succession with work planned at Copperhead also."
Deal terms
The option terms see Rockfire paying an option fee of A$20,000 to Symbolic Resources in return for a six month option period.
At any time, Rockfire can exercise the option with a further payment of A$30,000 in cash and A$50,000 of Rockfire shares.
It would then hold 100% ownership of the Copper Dome Exploration Permit to Mine.