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 it has excavated the concrete entrance to the old underground portal and decline at the site. Mapping has located several old workings along the strike of zinc mineralisation, and substantial shafts greater than 30m deep have been located.
Rockfire said rock sampling was in progress, with 28 samples already submitted to the lab for analysis. The samples were from spoils around the collars of old shafts, and results will provide an indication of the grade of material extracted during historical mining. Rockfire said it would update markets on the results once obtained.
Rockfire maintains good relations with landowners in the Molaoi resource area. It has now finalised and signed an access agreement with the landowners for the initial drilling programme at Molaoi. A contract has also been signed with one of the landowners to lease an area suitable for a core processing yard. The core yard is currently being prepared for the commencement of drilling.
Additionally, a 30-year lease over a 10Ha parcel of land on top of the Malaoi resource has been transferred to Rockfire from the Greek state. The lease will allow unrestricted access to the portal site, and may also be suitable for hosting future infrastructure, the company explained.
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Rockfire reported good progress toward drilling at Molaoi this morning. Investors cheered the news, sending ROCK shares up 7% in early trading.
The access agreement with landowners is a significant step forward, bringing Rockfire closer to drilling. Four initial geotechnical holes are planned in order to gather information on ground conditions for later underground mine design. The initial holes will also measure the ability of the rock to withstand stress once mining commences.
As Rockfire has now excavated the old concrete portal, it has begun enquiries into permits required to reopen underground access. Mapping and rock sampling is ongoing, and the company reported a substantial number of old workings found. Investors should look forward to rock sample results containing indication of the grade of material extracted during historical mining.
Rockfire said it expects drilling at Molaoi to commence before the end of 2022.
Video of the old portal excavation:
On 23 May 2022, Rockfire delivered a maiden JORC mineral resource for Molaoi of 2.3 million tonnes @ 11 % ZnEq for 250,000 tonnes of ZnEq. Molaoi currently contains 210,000 tonnes of zinc, 39,000 tonnes of lead, and 3.5 million ounces of silver.
Rockfire's consultants, BHM Process Consultants, have reported the performance of the zinc system as "excellent" with a product grade of 57% Zn concentrate achieved in a single pass. This is well above the desired product grade of 50% Zn contained for a saleable concentrate.
First-pass metallurgical recovery of lead was 74%, expected to increase with more detailed test work. The lead circuit recovery was at 63.6% Pb concentrate achieved in a single pass. This also far exceeds the market requirement of 40%-50% Pb contained for a saleable concentrate.
Copper and gold both reported to the lead concentrate with grades of 2.62% Cu and 0.52 g/t Au. Historical copper mines exist in the northern part of the Molaoi tenement, suggesting copper and gold are likely to add material value to future concentrates.
Moreover, Rockfire announced in May the discovery of critical metal Germanium at Molaoi during re-analysis of the historical diamond drill core. The company reported the weighted average grade of 51 samples collected during the re-analysis was 51 grams per tonne (g/t) Ge, with a peak value of 197 g/t Ge.
Germanium currently sells for US$1.3m per tonne which, if commercially recoverable in concentrate from Molaoi, would add material value to the overall financial metrics of the Molaoi deposit.
Molaoi is shaping up to be a major win for Rockfire as Zn prices continue to rise and demand for critical metals increases. Malaoi 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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