Rockfire Resources PLC (LON:ROCK) surged higher on Tuesdy as the firm returned broad, consistent gold assays from a geophysical target on its Plateau gold project in Australia.
The results are indicative of a large-scale gold deposit, similar to the Mt Wright gold mine, which is in turn part of the 10mln ounce-plus Ravenswood complex.
Of particular note was gold mineralisation occurring almost continuously throughout a 215 metre deep hole, including 177 metres at 0.5 grams per tonne gold.
Rockfire believes that this hole has intersected the upper levels of a large mineralised system.
Rockfire's technical team is anticipating gold grades to increase with depth at Plateau, as they do at Mt Wright. Results from 13 more drill holes are pending.
"Hole BPL025 was designed to drill down a sub-vertical pipe structure into the centre of a geophysical chargeable anomaly,” David Price, chief executive of Rockfire in a statement.
"This is the first indication that Plateau has grade continuity extending at depth and supports our belief that this deposit is much larger than previously demonstrated. With consistent gold, silver and zinc being encountered close to surface, we always believed that a large mineralised system was somewhere deeper down. This hole has demonstrated that mineralisation can be followed over long intervals," he added.
In late afternoon trading, Rockfire shares were nearly 130% higher at 0.95p.
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