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Rockfire Resources leaps as it unveils maiden gold resource at Lighthouse in Queensland

Drilling at two prospects at Lighthouse has indicated an inferred resource of 1.35mln tonnes at 1.18g per tonne of gold

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Rockfire said the two prospects drilled remain open in all directions

Rockfire Resources PLC (LON:ROCK) shares surged on Thursday after the explorer announced a maiden gold resource of 51,000 ounces at its Lighthouse licence in Queensland, Australia.

Drilling at two prospects at Lighthouse has indicated an inferred resource of 1.35mln tonnes at 1.18g per tonne of gold.

WATCH: Rockfire more than doubles in-situ copper resource at Copperhead project

The two areas, which are both within easy trucking distance from operational processing plants, remain open in all directions.

As such, the company plans to expand the resource, with a total target at Lighthouse of 2.7mln-4.8mln tonnes, grading between 1.2g/t and 1.6g/t of gold.

Chief executive David Price said the maiden JORC-compliant resource “provides a solid resource base to underpin the company valuation”, adding to the historical 122,600 tonnes of copper owned at the Copperhead Project.

“Rockfire is on an exciting and rapid growth curve and we are looking forward to further expansion of our copper and gold resources with continued exploration success.”

In late morning trading, Rockfire shares were 23.1% higher at 0.80p.

In a note to clients, analysts at Rockfire’s joint ‘house’ broker First Equity commented: “The news of a JORC resource by Rockfire Resources represents a landmark event for the Group and validation of the management’s bold strategy just under two years ago to re-focus exploration activities and project ownership from Papua New Guinea to Queensland.

“The discovery cost at just over US$9 per ounce shows Rockfire is being operationally prudent and economic in its exploration pursuits on the ground.”

They added: “Given today’s landmark news and increased speed at which the Group is now advancing, prospect of similar news to come from other projects in Queensland such as Copperhead, against the background of a resurgent gold price trading at around 3-year highs and modest market cap of just under £3m, we recommend the shares in Rockfire Resources as a ‘Buy’.” 

 -- Adds share price, analyst comment --

Quick facts: Rockfire Resources PLC

Price: 0.875 GBX

LSE:ROCK
Market: LSE
Market Cap: £7.25 m
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