A junior exploration company, Rafaella Resources Limited (ASX: RFR) has released its quarterly activities and cash flow report on 10 January 2019. In the quarterly report, the company informed about the high-grade copper results which were received from the sample taken from McCleery West Project in Yukon Canada. As per the analysis, the sample had an assay value of 2.9% Copper, 128ppb Gold, and 51.9ppm silver.
The presence of the copper mineralization at this location has added support to the potential for a larger mineralized system in the area of the McCleery projects.
In the report, the company also informed about the Versatile Time Domain Electromagnetic (VTEM) Survey results from McCleery Project which provided confidence to the company’s technical team to test the various targets within the project for VMS/skarn style mineralization.
In the report, the company also informed about the new and historic gold mineralization anomalies at Sandstone Project, located in Western Australia. In December 2018, the company received final assay results from the broad-spaced soils geochemistry program at the Project which defined key target areas comprising of key geological and structural settings.
Currently, the company is planning infill and extension gold geochemical surveys to refine the anomalies at the Sandstone Project. Further, the company is planning an initial air core drilling and pXRF testing of selected mineralized soil samples for base metals and pathfinder elements.
In August 2018, the company announced an entitlement issue of one option for every three shares held to eligible shareholders. The Options have an issue price of $0.01 per option, exercisable at $0.30 expiring 31 October 2021. The entitlement issue is non-renounceable, and the Company applied for quotation of the Options. The Offer was closed on 31 October 2018, fully subscribed, with final options being issued 16 November 2018. As at 31 December 2018 the company had a cash balance of $3.983 million which includes Bank balance of $983K and Call deposits of $3 million.
At the end of December quarter, the company had net cash used in operating activities of $318K and net cash from financing activities of $49K. During the December quarter, the company paid $209K on exploration & evaluation, $41k on staff costs and $68K on administration and corporate costs.
During FY 2018, the company incurred a loss after tax of $271,353 with basic and diluted loss per share of 3.66 cents. At the end of the financial year 2018, the company had total current assets of $5.158 million and total current liabilities of $4.97 million.
RFR’s shares last traded at $0.082 with a market capitalization of circa $3.12 million.