Rockfire Resources PLC (LON:ROCK) has exercised its option to acquire the Copper Dome project in Queensland, Australia.
The company has been carrying out exploration work at the deposit and had until the close of play today (Thursday) to decide whether it wanted to acquire it.
It's bosses have now opted to do so, and Rockfire will pay A$30,000 in cash to Symbolic Resources, as well as issue Symbolic with 3.72mln shares worth around A$50,000.
READ: Rockfire discovers more high grades at Copper Dome
The decision is unlikely to surprise many investors after recent soil surveys identified “coherent, strong gold and copper anomalism”.
Some samples returned copper (Cu) values of up to 23.4% Cu and gold (Au) to 3.2 grams per tonne Au. Previous drilling back in the 1970s also confirmed the presence of copper.
Rockfire said Copper Dome, which sits only 50km from its Copperhead prospect, is “vastly under-explored” and potentially host to a “large-scale mineralised system”.
The plan now is to carry out further exploration at both Copper Dome and Copperhead, including ground magnetic surveys and gradient array IP. This will help to identify clear targets, Rockfire said, and will lead towards drilling.
Developing both projects together
“Our management team is encouraged by the confirmatory work done by the Rockfire exploration team as part of our technical due diligence on Copper Dome,” said chief executive David Price.
“With coherent copper occurring around the rim of a mapped porphyry, as well as gold occupying the boundaries of two close-spaced porphyries, the geological setting shows excellent signs for gold and copper mineralisation.”
“The company's objective is to grow and expand the mineralisation at Copper Dome in conjunction with Copperhead and to develop both porphyry projects simultaneously, with the aim of outlining very large tonnage copper resources.”
Rockfire shares were down 2.1% to 0.71p at the opening bell on Thursday.