Interim Results

RNS Number : 6775M

Rockfire Resources PLC

23 September 2021

 

23 September 2021 

Rockfire Resources plc

 ("Rockfire" or the "Company")

Interim Results

Rockfire Resources plc (LON: ROCK), the gold and base metal exploration company, is pleased to announce its unaudited interim results for the six months ended 30 June 2021.

Rockfire continues to focus effort and resources on its strategic campaign to attain growth, primarily through exploration success. This forms an integral part of the growth strategy adopted by the Board to achieve increased asset value and therefore, shareholder wealth.

The Company's exploration activities have pivoted towards our large-scale porphyry copper projects in Queensland, Australia at a time when copper prices have materially increased. The Board believes the timing of higher copper prices, exploration drilling at our copper projects and the stable jurisdiction of Queensland are combining to Rockfire's advantage.

Corporate Summary

On 6 May 2021, the Company announced that it had completed a placing of 121,429,200 new ordinary shares at a price of 0.7 pence, raising gross proceeds of 850,000.  Rockfire's largest shareholder and Non-executive Director, Nicholas Walley subscribed for 6,000,000 shares in the placing, thereby increasing his holding in the Company to 59,000,000 ordinary shares.

The net proceeds of the placing were for

(i)  inaugural Reverse Circulation ("RC") drilling at Copper Dome;

(ii)  exploration RC drilling close to the resource at Plateau; and

(iii)  inaugural drilling at Copperhead.

Rockfire Project Portfolio

Lighthouse

In 2019, Rockfire estimated a maiden JORC resource of 1,147,330 t @ 1.10 g/t Au for a total of 40,400 ounces of gold at the Plateau gold deposit ("Plateau") within the Lighthouse tenement. On 29 January 2021, Rockfire released an updated resource estimate for Plateau.

The overall gold envelope at Plateau (grades above 0.2 g/t Au) now stands at (Indicated and Inferred) 11.4 Million tonnes @ 0.6 g/t Au and 4.0 g/t Ag for 208,278 ounces of gold and 1.5 Million ounces of silver. Within this envelope and using a more commercial higher cut-off (grades above 0.5 g/t Au), the Indicated and Inferred Mineral Resource is 3.9 Million tonnes @ 1.1 g/t Au and 6.4 g/t Ag for 131,302 ounces of gold and 800,000 ounces of silver.

Using the same 0.5 g/t Au cut-off, a subset of the Mineral Resource at shallow depths (0-100 m) includes an Indicated and Inferred 1.4 Million tonnes @ 1.2 g/t Au and 8.8 g/t Ag for 53,336 ounces of gold and 390,000 ounces of silver.

Importantly, the Mineral Resource remains open along strike and at depth, leaving scope for further resource increases. Within 200 m to the north and south of Plateau, rock chip sampling has returned 12.10 g/t Au and 6.69 g/t Au, respectively. Both areas are undrilled and are not included in the current Mineral Resource estimate.

PLATEAU ALL
Cut-off Au ppm	Tonnes	Au ppm	Au oz	Ag ppm	Ag oz
3	45,686	4.15	6,102	20.4	29,974
2	279,441	2.63	23,586	15.0	135,074
1	1,490,322	1.63	77,957	8.7	416,638
0.75	2,274,013	1.36	99,743	7.7	560,363
0.5	3,896,758	1.05	131,302	6.4	801,373
0.3	7,811,806	0.72	179,937	4.8	1,206,767
0.2	11,381,037	0.57	208,278	4.0	1,475,277
0.1	15,308,341	0.46	227,640	3.4	1,691,638
0	15,716,940	0.45	228,755	3.4	1,707,657

Results from a preliminary scoping study at Plateau were announced to the market on 8 April 2021. The purpose of this study was to consider the economic potential for open-pit mining at Plateau.

A modest, net positive cash flow, ranging from AUD $6.8m to AUD $19.4m (GBP 3.7m to GBP 10.7m), results from a small-scale, open pit mine. The range of anticipated cash flows depends on technical and operational variables. Multiple targets within the proposed pit outlines are yet to be drilled and the study identified numerous opportunities to increase gold ounces with additional shallow drilling.

Only the top 70 m was included in the study, yet gold up to 16.9 g/t Au has been intersected more than 400 m below surface. There is therefore significant potential to increase the economic outlook of the project based on continued exploration success at depth. The study assumed utilisation of one of the nearby existing processing facilities, of which there are several within commercial trucking distances of Plateau. Average mined grades range between 1.26 g/t Au and 1.94 g/t Au from within the optimised pit outlines. The range of anticipated cashflow depends on technical and operational variables. Several excellent targets within 250 m of Plateau were identified for future drilling to explore for additional near-surface gold ounces.

At the end of March 2021, the results from 34 rock chip samples were announced, collected from several high priority target areas surrounding Plateau. Rock chip sampling at the "Northwest Breccia" at Plateau returned high grade results up to 16.8 g/t Au and 50.4 g/t Ag, whilst rock sampling at the "Northern Breccia" returned results up to 1.89 g/t Au and 24.2 g/t Ag.

Lighthouse Regional

Ten rock chip samples taken from the Bell Rock gold prospect ("Bell Rock"), which lies 3.5 km southeast of Plateau returned high-grade gold, including 9.9 g/t, 5.2 g/t, 5.0 g/t and 4.1 g/t Au. This led to the commissioning of a detailed soil sampling programme. On 3 February 2021, Rockfire released the results of this soil sampling, which successfully defined a gold/copper anomaly in excess of 300 m long and 100 m wide. The highest gold-in-soil value was 1.7 g/t Au (1,700 ppb) and the highest copper-in-soil value was 605 ppm Cu. Elevated gold and copper values extend beyond the limits of the expanded survey area.

Detailed soil sampling was completed over the northern half of the Jeddah gold prospect ("Jeddah"), also within the Lighthouse tenement and only 2 km southwest of Plateau. A total of 210 samples were collected at Jeddah, where continuous rock samples, collected by Rockfire in May 2018 had returned 10 m @ 1.68 g/t Au, 8 m @ 1.23 g/t Au and 5 m @ 1.35 g/t Au. On 10 February 2021, it was announced that a cohesive gold anomaly has been detected, covering an area of 250 m (east-west), by 150 m (north-south). The anomaly is defined by a low-order zone of + 10 ppb Au, with a peak value of 62 ppb Au and remains open towards the south.

Copperhead

Rockfire announced on 6 January 2021, that a helicopter magnetic survey completed at the Copperhead porphyry project had doubled the copper target area. The copper target has increased to include an area of 5 km east-west x 3 km north-south. Faults and fractures were defined by the aeromagnetics and correlate well with known copper mineralisation discovered in streams, soils, and drilling completed by Carpentaria Exploration in 1972.

Three-dimensional magnetic inversion modelling was undertaken on the helimag data. This work resulted in a magnetic body being detected, starting at approximately 450 m below surface. The magnetic feature is approximately 4.5 km long and 1.5 km wide and is positioned beneath soil samples containing highly anomalous copper (up to 0.5 % Cu) and directly beneath five mineralised diamond drill holes drilled in 1972.

On 24 June 2021, Rockfire announced the commencement of access track development at Copperhead in preparation for diamond drilling. Within several kilometres from the actual drilling site, Rockfire geologists were observing weathered sulphides in fractures and veins within the intrusions.

Copper Dome

On 19 May 2021, Rockfire announced the results of a helicopter-supported aeromagnetic and radiometric survey at the Copper Dome porphyry project. High resolution images have been produced, with the magnetic data offering a detailed insight into the geology and structure beneath the dome.

A revised and expanded target, based on the new aeromagnetic signature, occupies an area 4 km x 3.5 km in size. At least three separate intrusions are now evident, with one intrusion having been historically drilled and copper successfully found. Abundant structures, including faults (and possibly veins) were identified, providing a greater understanding of the structural setting for the emplacement of the porphyries.

Three-dimensional magnetic interpretation identified two main targets, with both showing very strong magnetic responses. These are interpreted as magnetite alteration commencing approximately 500 m below surface. The larger target is 1.5 km long, 700 m wide and occurs between 400 m and 1.3 km deep and remains open beyond that depth. The smaller target is 900 m long, 250 m wide and occurs between 600 m and at least 1 km deep.

Post-period Highlights

Diamond drilling is in progress at Copperhead. During the preparation of tracks, pads and infrastructure for drilling, Rockfire geologists continued to observe weathered sulphides in fractures and veins. As the access tracks advanced towards the drill site, zones of malachite and azurite (copper carbonate) were mapped, as well as occasional fresh chalcopyrite (copper sulphide) in veins.

On 26 July 2021, the Company announced that it had raised 1.0 million, before expenses, through a placing of 125,000,000 new ordinary shares with an institutional investor at a price of 0.8 pence.

A further 1,640,069 new ordinary shares were issued to Patrick Elliott on 6 August 2021 in settlement of Director's fees for the period 01 January 2021 to 30 June 2021.

For further information on the Company, please visit  www.rockfireresources.com  or contact the following: 

Rockfire Resources plc:	[e-mail]
David Price, Chief Executive Officer
Allenby Capital Limited (Nominated Adviser & Broker)	Tel: [phone]
John Depasquale / George Payne (Corporate Finance) Matt Butlin / Kelly Gardner (Sales and Corporate Broking)
Yellow Jersey	[e-mail]
Sarah Hollins / Henry Wilkinson	Tel: [phone]

ROCKFIRE RESOURCES PLC

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2021

		6 months to 30 June 2021	6 months to 30 June 2020	12 months to 31 December 2020
		£	£	£
	Note	(unaudited)	(unaudited)	(audited)
Impairment of intangible assets		-	1,104	(12,324)
Administrative expenses		(425,937)	(275,202)	(707,663)
Loss before taxation		(425,937)	(274,098)	(719,987)
Taxation		-	-	-
Loss attributable to shareholders of the Company		(425,937)	(274,098)	(719,987)
Items that may be subsequently reclassified to profit or loss:
Foreign exchange translation movement		(42,929)	58,000	50,591
Total comprehensive loss attributable to shareholders of the Company		(468,866)	(216,098)	(669,396)
Loss per share attributable to shareholders of the Company
Basic and diluted (pence)	3	(0.05)	(0.04)	(0.10)

ROCKFIRE RESOURCES PLC

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2021

		6 months to 30 June 2021		6 months to 30 June 2020		12 months to 31 December  2020
		£		£		£
	Note	(unaudited)		(unaudited)		(audited)
ASSETS
Non-current assets
Intangible assets		2,925,443		2,096,980		2,655,196
Property, plant and equipment.		24,760		28,295		25,706
Total non-current assets		2,950,203		2,125,275		2,680,902
Current assets
Cash and cash equivalents		1,493,441		181,405		1,350,926
Trade and other receivables		27,110		20,676		39,383
Total current assets		1,520,551		202,081		1,390,309
Total assets		4,470,754		2,327,356		4,071,211
EQUITY AND LIABILITIES
Equity attributable to shareholders
of the Company
Share capital	4	6,950,667		6,628,608		6,828,085
Share premium		17,337,252		14,752,576		16,658,354
Other reserves		2,295,035		2,295,035		2,295,035
Foreign exchange reserve		(70,105)		(19,767)		(27,176)
Retained deficit		(22,089,406)		(21,437,910)		(21,779,517)
Total equity		4,423,443		2,218,542		3,974,781
Current liabilities
Trade and other payables		47,311		108,814		96,430
Total current liabilities		47,311		108,814		96,430
Total liabilities		47,311		108,814		96,430
Total equity and liabilities		4,470,754		2,327,356		4,071,211

ROCKFIRE RESOURCES PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2021

	Share capital	Share premium	Other reserves	Foreign exchange reserve	Accumulated losses	Total
	£	£	£	£	£	£
At 1 January 2020	6,625,077	14,736,107	2,295,035	(77,767)	(21,163,812)	2,414,640
Loss for the period	-	-	-	-	(274,098)	(274,098)
Foreign exchange translation movement	-	-	-	58,000	-	58,000
Total comprehensive loss	-	-	-	58,000	(274,098)	(216,098)
Issue of share capital	3,531	16,469	-	-	-	20,000
Total transactions with shareholders	3,531	16,469	-	-	-	20,000
At 30 June 2020	6,628,608	14,752,576	2,295,035	(19,767)	(21,437,910)	2,218,542
Loss for the period	-	-	-	-	(445,889)	(445,889)
Foreign exchange translation movement	-	-	-	(7,409)	-	(7,409)
Total comprehensive loss	-	-	-	(7,409)	(445,889)	(453,298)
Issue of share capital	199,477	2,016,931	-	-	-	2,216,408
Cost of share issue	-	(111,153)	-	-	-	(111,153)
Share-based payments	-	-	-	-	104,282	104,282
Total transactions with shareholders	199,477	1,905,778	-	-	104,282	2,209,537
At 31 December 2020	6,828,085	16,658,354	2,295,035	(27,176)	(21,779,517)	3,974,781
Loss for the period	-	-	-	-	(425,937)	(425,937)
Foreign exchange translation movement	-	-	-	(42,929)	-	(42,929)
Total comprehensive loss	-	-	-	(42,929)	(425,937)	(468,866)
Issue of share capital	122,582	737,423	-	-	-	860,005
Cost of share issue	-	(58,525)	-	-	-	(58,525)
Share-based payments	-	-	-	-	116,048	116,048
Total transactions with shareholders	122,582	678,898	-	-	116,048	917,528
At 30 June 2021	6,950,667	17,337,252	2,295,035	70,105	(22,089,406)	4,423,443

ROCKFIRE RESOURCES PLC

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2021

	6 months to 30 June 2021	6 months to 30 June 2020	12 months to 31 December 2020
	£	£	£
	(unaudited)	(unaudited)	(audited)
Cash flow from operating activities
Loss for the period	(425,937)	(274,098)	(719,987)
- Impairment of intangible assets	-	-	12,324
- Share-based payments	116,048	-	104,282
- Expenses settled in shares	10,000	20,000	38,000
- Depreciation	3,312	1,319	769
- Foreign exchange rate changes	(20,311)	58,000	(60,984)
	(316,888)	(194,779)	(625,596)
Decrease in trade and other receivables	12,058	35,296	18,007
Increase in trade and other payables	(48,153)	(37,709)	(55,803)
Net cash flow from operating activities	(352,983)	(253,064)	(663,392)
Cash flow from investing activities
Exploration expenditure	(293,276)	(365,220)	(817,153)
Acquisition of property, plant and equipment	(2,705)	(19,243)	(18,844)
Net cash used in investing activities	(295,981)	(348,463)	(835,997)
Cash flow from financing activities
Proceeds from issuance of ordinary shares	850,004	-	2,198,409
Share issue costs	(58,525)	-	(111,153)
Net cash generated by financing activities	791,479	-	2,087,256
Net decrease in cash and cash equivalents	142,515	(581,655)	587,867
Cash and cash equivalents at the beginning of the period	1,350,926	763,060	763,059
Cash and cash equivalents at the end of the period	1,493,441	181,405	1,350,926

ROCKFIRE RESOURCES PLC

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2021

1  Principal activities

The Company is a public limited company, admitted to trading on AIM and incorporated and domiciled in England and Wales.

The Group's principal activity is exploration for gold and base metals in Queensland, Australia.

2  Basis of preparation

The unaudited consolidated financial statements are for the six-month period ended 30 June 2021. They do not include all the information required for full annual financial statements and should be read in conjunction with the audited consolidated financial statements of the Group for the year ended 31 December 2020.  

The financial statements are prepared on the historical cost basis or the fair value basis where the fair valuing of relevant assets and liabilities has been applied.

The financial statements have been prepared in accordance with accounting policies consistent with those set out in the Group's financial statements for the year ended 31 December 2020.

The financial statements incorporate the financial statements of the Company and subsidiaries controlled by the Company as at 30 June 2021.

The financial information set out in this interim report does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2020 have been filed with the Registrar of Companies. Those financial statements received an unqualified audit report and did not contain statements or matters to which the auditors drew attention under the Act.

The Group's consolidated financial statements are presented in GB pounds sterling ("£" or "GBP") which is also the functional currency.

3   Loss per share

Basic and diluted loss per share

The calculation of basic and diluted loss per share is based on the loss attributable to ordinary shareholders of £425,937 (2020: £274,098) and a weighted average number of ordinary shares in issue of 833,273,833 (30 June 2020: 631,592,561).

4  Share capital

		30 June 2021	30 June 2020	31 December 2020
Issued share capital		Number	Number	Number
Ordinary shares of £0.001 each		954,997,653	632,938,535	832,415,592
Deferred shares of £0.099 each		51,215,534	51,215,534	51,215,534
		30 June  2021	30 June  2020	31 December 2020
Issued share capital		£	£	£
Fully paid		6,950,667	6,628,608	6,828,085
		6,950,667	6,628,608	6,828,085

Fully paid ordinary shares carry one vote per share and carry the right to dividends. There are no shares held by the Company or its subsidiaries.

The deferred shares carry no voting or income rights. The only right attaching to deferred shares is to receive the amount paid up on a winding up of the Company once the holders of ordinary shares have received £1,000,000 per ordinary share.

On 16 February 2021, 1,152,861 new ordinary shares were issued to  Patrick Elliott  in settlement of Director's fees for the period from 01 October to 31 December 2020, at a price of 0.87 pence.

In May 2021, the Company completed a placing of 121,429,200 new ordinary shares at a price of 0.7 pence, raising gross proceeds of £850,000.

The nominal value of the issued share capital includes a cumulative foreign exchange difference of £925,331 which was recognised in 2017 when the Group's functional currency was changed from US$ to GBP.

5  Post balance sheet events

In July 2021, the Company completed a placing of 125,000,000 new ordinary shares at a price of 0.8 pence to raise £1,000,000 to fund sustained drilling at Copperhead and Copper Dome and provide the Company with the opportunity to expand exploration at either or both projects.

In August 2021, 1,640,069 new ordinary shares were issued to Patrick Elliott in settlement of Director's fees for the period from 01 January to 30 June 2021.

 

END

 

 

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