Rockfire Resources (ROCK ), a gold and base metal explorer, updated markets this morning on progress at its 100%-owned Molaoi zinc-lead-silver-germanium deposit in Greece.
Rockfire said inaugural drilling at Molaoi had encountered "massive and semi-massive" sulphides at the predicted depth and position.
Specifically, massive sulphides occur between 130m and 134m, with semi-massive and disseminated sulphides continuing for a further 11m, down to 145m. Rockfire also reported more disseminated sulphides at 160m, which may represent a parallel lode beneath the main lode.
Molaoi benefits from historical drilling that took place between 1979 and 1988 when 173 diamond drill holes were drilled at the site. Also carried out were metallurgical tests, a feasibility study, and the development of a portal and decline to the orebody.
Rockfire's current, first hole MO_GTK_001 lies between historical drill holes and serves to provide core for geotechnical test work to feed into a feasibility study.
Additionally, Rockfire anticipates that sufficient mineralised core will be obtained to commence crushing and grinding work index studies. These studies will determine the cost required to crush and grind the mineralised rock, with results to feed into technical and financial feasibility studies.
David Price, CEO of Rockfire, commented:"This drilling is providing important geotechnical information for our team. In particular, the intensely broken, veined, brecciated and altered nature of the rocks is an excellent structural setting for mineralisation. This geotechnical information will aid in mine design, expected ground conditions for an underground mining operation, as well as support and safety requirements to ensure a safe mine."
The visible mineralisation appears to adhere well to the expected behaviour recorded in historical drilling. The massive sulphide zone tends to be around 3.0m average width and usually carries very high-grade zinc, lead, silver (+/- germanium) in historical core. This is accompanied by a broader zone of semi-massive sulphides beneath the massive sulphides, with slightly lower grades for at least another 10m downhole. mme progresses"
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Encouraging results from Rockfire's first drill hole at Molaoi following commencement of drilling three weeks ago. Molaoi benefits from prior drilling by the Greek government in the 1980s, accelerating Rockfire's timeline to production and monetisation of the project.
The finding of massive and semi-massive sulphides at the predicted depth and position verifies this historical drilling and validates the time and resources spent by Rockfire on mineralisation modelling. As a result, markets reacted favourably, sending ROCK shares up as much as 10% this morning.
Looking forward, Rockfire predicts a second, parallel lode, and has already deepened drilling of its inaugural hole in order to test for it. Rockfire said the core from the first hole demonstrated notable zonation that will assist with prediction of proximity to lodes in subsequent holes.
The aforementioned crushing and grinding work index studies will feed into Rockfire's feasibility study, to commence "as soon as possible". Further underpinning Molaoi's potential value was Rockfire's uncovering of high-grade Zn, Pb, and Ag from historical mining late last month.
Geotechnical drilling at the project's main resource area of Kalamaki is also progressing well, and investors should anticipate further updates as Rockfire's work programme continues. Based on data so far, there is good reason to expect excellent results from initial geotechnical tests.
Molaoi is shaping up to be a major win for Rockfire as Zn prices continue to rise and demand for critical metals increases. Malaoi so far shows far higher than economical concentrations of Zn and Pb, with the potential of Ge, Cu, and Au to add significant value to the asset in the future.
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