On 31 January 2019, Rimfire Pacific Mining NL (ASX: RIM), a company which belongs to the metals and mining industries and is into the business of exploring and developing economic mineral deposits, shared its quarterly activities report for 2Q19 ending December 31, 2018.
During the quarter, RIM had started the auger drilling work at five priority prospects and completed 543 auger holes over Rabbers Lookout, Forturna, Northern Gold, Casuarina Valley, and Wiggies. It is currently waiting for the geochemical results. Prior to this, it completed the rock chip sampling at Transit Corridor to obtain bedrock samples for lithological analysis.
It also received confirmation for two new Exploration Licenses (EL8804 and EL8805) over the area where the rocks had been reinterpreted as Ordovician age expanding the overall tenement area by 234 square km to 915 square km.
During the quarter, RIM reported net cash used in operating activities of A$0.693 million (as compared to the guidance of A$0.725 million as per 01 November 2018 report) arising from the payments for exploration and evaluation of A$455 K, staff costs of A$122 K, administration and corporate costs of A$157 K, and interest received of A$1 K. For 1H19, it reported net cash used in operating activities of A$1.144 million. For the next quarter, RIM estimates a net cash outflow of A$0.480 million.
RIM reported cash used in investing activities of A$1 K during the quarter and cash flow from investing activities A$1 K for 1H19. RIM’s net cash flow from financing activities during the quarter and 1H19 was reported at A$1.002 million against the issuance of shares of A$1.128 with a cost of issuance of A$126 K.
There was no effect of movement in exchange rates on cash held for the quarter as well as the first half of FY19 and reported a cash balance of A$753 K as on December 31, 2018.
The presentation, released on 29 January 2019, highlighted that the company is pushing for gold production in Central NSW by 2022. They are targeting its first production from its Sorpresa gold deposit by 2022. The company is looking for an optimal pathway for the project where it can monetize its Sorpresa gold deposit which is located in at Fifield, central New South Wales with over 100 years of mining activity.
The JORC resource estimate at the Sorpresa gold deposit was 125,000oz gold and 7.9Moz of silver.
The company also highlighted that Rimfire exploration licenses have the potential to hold a large gold and porphyry copper/gold style deposits. There was a new interpretation of rock ages where there is a possibility of world-class discoveries. Also, there is an ongoing regional exploration program which might give a positive cash flow. It also highlighted in the presentation that its initial aspiration is to be a 10,000oz per annum gold producer in the next three years.
Looking at Rimfire Pacific Mining NL’s stock performance, it has generated a negative return of 30.00% during the past six months. It is currently trading at A$0.007 at the close of trading session on 1 February 2019, with no change in the price during the day’s performance.
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