The attraction of junior mining stocks centres around their high leverage to success, when they put together an idea, skills and cash to explore, develop and operate resources. One such player, listed last year with the Australian Securities Exchange is Rafaella Resources Limited (ASX: RFR).
A junior exploration company, Rafaella Resources, is a global explorer and developer of world-class mineral deposits. It was listed on the ASX in July 2018 and has its registered office at Perth. The company was established with the purpose of exploring and developing gold, cobalt, copper and other mineral opportunities.
In this article, we would take a look at the key projects owned by the company:
- The Santa Comba tin and tungsten project in Spain,
- The McCleery cobalt and copper project in Canada and
- The Sandstone gold project in Australia.
The Santa Comba tin and tungsten project
The newest addition in RFR’s project portfolio is the Santa Comba Tungsten-Tin Project in Spain. The addition is transformational for RFR, as it will move from being an explorer of gold and copper to a developer of the fully-permitted brownfield tungsten and tin Santa Comba mine. The Project is located in a productive tin and tungsten province adjacent to an operating quarry and concrete plant, and close to infrastructure, including a sealed road and three deep-water ports.
In August 2019, the company completed the acquisition of Galicia Tin & Tungsten SL, which owns the Santa Comba mining licenses comprising the Santa Comba tin and tungsten project, with the Board confirming that all conditions precedent to completing the acquisition had been either met or waived.
Post shareholder approval, the company moved rapidly to deliver the Santa Comba Project feasibility study, under the lens of John Webster, the Feasibility Study Manager. Further to advance the FS, the company engaged a leading ore sorting company Tomra Sorting GmbH and engineering consultancy Grinding Solutions Ltd.
In September, drilling commenced at the Project, under the experienced local drilling contractor Geonor Sondeos y Peforaciones, S.L., who has mobilised an Atlas Copco diamond drilling rig to the Project. The drilling commenced at the highly prospective Quarry North prospect after which the adjacent Barrilingo and Eliseo prospects will be further tested.
(Source: RFR’s Report)
Rafaella Resources intends to fast track the Project through to production and early cash flows.
The McCleery cobalt and copper project
Located within the Yukon Territory in Canada, the McCleery Project consists of 42 granted mineral claims covering approximately 9km2. RFR has a conditional right to acquire the mineral exploration project, the granted mineral claims of which are currently held by Overland Resources (BC) Limited, which is the wholly owned subsidiary of Overland Resources Limited.
The Project is a prospective for cobalt and copper, where Copper mineralisation was discovered and staked in 1974. The initial exploration at the Project was aimed towards copper mineralisation, wherein the rock samples assayed up to 15.6 per cent copper and 461g/t silver. The past reports record various occurrences of cobalt bloom and cobaltite, and a sample which was assayed for cobalt, returned 0.76% cobalt and 14g/t silver.
Rafaella Resources is in an agreement along with Overland Resources, pertaining to the 100% acquisition of the issued share capital of Overland Resources (BC) Limited.
Even though no work has been completed on the Project since 1983 and there is no knowledge of the Project having been drilled, the company intends to explore the Project and focus on its potential to host economic cobalt mineralisation.
McCleery Interpreted Project Geology (Source: RFR’s Website)
The Sandstone gold project
Rafaella Resources has a 100% interest in The Sandstone Project, a mineral exploration project located 640 km north-east of Perth, in Western Australia. It comprises of a granted exploration licence and a tenement application w.r.t land near Meekathara, a probable spot for gold (Au). Presently, these tenements are held by Topdrill Pty Ltd of West Kalgoorlie in WA and the company is in agreement with the entity regarding 100% acquisition in the interest in the tenements.
The project is located in the Gum Creek Greenstone Belt, which has similar stratigraphy and lithology, as well a structure when compared to the (greenstone) belts of the Southern Cross Province.
As shown by historical workings and gold-in-soil anomalies, the Project consists of extensions to structures which are a host to mineralisation at the Gum Creek with their prospectivity. The past production and mining stance of the Gum Creek has depicted an extensive gold occurrence and substantial potential for additional discoveries.
Large areas of the Sandstone Project remain essentially unexplored whilst covering favourable structure and geology, though various targets have been defined on the Project by previous tenement operators, inclusive of several soil gold anomalies, past gold workings and RAB gold anomalies; a bunch of which remain inconclusively tested.
The Sandstone Project Location Over Greenstone Belts (Source: RFR’s Website)
Stock Price Information
The RFR stock settled the day’s trade at $0.135 on 10 October 2019, with a market cap of $7.93 million and approximately 66.05 million shares outstanding. In the past six months, the stock has delivered returns of 66.67%, and its YTD return is 46.34%.
We are committed to providing stock market enthusiasts with the latest business affairs and market updates to keep them abreast. Stay tuned for further updates pertaining to Rafaella Resources.
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