Diving Deep Into Operational Updates Of Two Aim Quoted Mining Stocks: Rockfire Resources PLC and Thor Mining PLC

Diving Deep Into Operational Updates Of Two Aim Quoted Mining Stocks: Rockfire Resources PLC and Thor Mining PLC

Rockfire Resources PLC

The United Kingdom-based company, Rockfire Resources PLC (LON: ROCK) is into the exploration business for gold and copper resources in Papua New Guinea and Australia. The group was earlier known as Papua Mining Plc and then has its name changed to Rockfire Resources Plc in June 2018.

ROCK encounters Gold

Recently, in October 2019, the company reported of commencing the mining operations, as the company saw a deep potential in the mining asset. The AIM-listed base metal and gold exploration company commenced drilling operations at the Plateau gold deposit in North Queensland (Australia). The objective of this drilling was to check the confidence of the gold deposits inferred earlier in July 2019, which were estimated around 1.15 Metric tonnes @ 1.1 gram/t Au for 40,400 ounces. The drilling was also aimed at testing new target locations and current resource extension. This drilling also provided the company with an opportunity to test a geophysical anomaly with the help of analysing historical geophysical data.

In mid of October 2019, the study revealed large anomalies in North Queensland. The company completed an analysis of historical geophysical data of the Plateau gold deposit in North Queensland (Australia). The data was analysed with the help of latest algorithms which were not used earlier. The data revealed several large chargeable responses which shall be tested during the drilling operations. The mining asset, Plateau, has many high chargeability zones, which occur over 500 metres. The strongest chargeable response was sensed below the ground at a depth of 70 metres. The chargeable zones continue till depth. The company has planned drilling of a single hole, which shall be drilled at the centre of the chargeable responses to test for gold deposits till the depth of around 200 metres.

(Geophysical layers, Source: Company release on LSE)

Towards the end of October, the company struck extensive sulphide zone at Plateau. A hole was drilled with a depth of 215 metre through which the company encountered an extensive sulphide zone within a large-scale chargeable IP anomaly. The broad sulphide zone ranges from 74 metre to 215 metre in depth from the surface level and is 141 metre in length. This sulphide zone contains an average of 5-10 per cent of sulphides with a maximum level of 25 per cent. This drilling ended in sulphide mineralisation. These sulphide zones either contain fresh or weathered sulphides. Some samples were collected and sent to the lab for further analysis.

(Sulphide found in drilling operations, Source: Company release on LSE)

On 26th November 2019, in a press release, the company claimed to strike Gold, which occurred consistently throughout a 215-metre-deep hole, which was originally drilled to test the chargeable anomalies. The company intercepted gold mineralisation at 177 m @ 0.5 g/t Au.

The drilling encountered gold, silver and zinc consistently and the company believes that the mineralisation can be followed over long intervals. The company used Induced Polarisation (IP) geophysics as a method of exploration at Plateau.   The company awaits the results from the 13 remaining drill holes. The company will make an announcement once the results are received from the testing laboratory.

(Drill holes location, Source: Company release on LSE)

ROCK-Financial performance for H1 FY19 period ended 30th June 2019

(Source: London Stock Exchange)

The company suffered a loss of £307,318 in H1 FY19 as compared to a loss of £285,739 in the same period last year. The company’s administration costs amounted to £290,022 in H1 FY19 as compared to £285,739 in H1 FY18, due to increased personnel, payment of accrued liabilities and administrative costs related to on-going exploration programs.

Moreover, the company incurred exploration expenditure of £208,738 in the first half of the fiscal year 2019. The Cash and cash equivalents of the company amounted to £181,097 as on 30th June 2019.

ROCK-Stock price performance

Daily Chart as on 27-November-19, before the market close (Source: Thomson Reuters)

On 27th November 2019, while writing at 10:14 AM GMT, ROCK shares were clocking a current market price of GBX 1.46 per share. The company’s market capitalisation was at £5.96 million at the time of writing.

On 27th November 2019, the shares of ROCK have touched a new peak of GBX 1.54, while they reached the lowest price level of GBX 0.25 on 14th October 2019 in the last 52 weeks.

The stock’s traded volume was hovering around 95,378,503 at the time of writing before the market close. The company’s 5-day stock's daily average traded volume was 77,755,739.40; 30 days daily average traded volume- 16,851,686.37- and 90-days daily average traded volume – 6,843,328.08. The stock has more volatility in comparison to the benchmark index as its beta stood at 1.14.

The shares of the company have delivered a positive return of 202.82 per cent in the last five days. The company’s stock surged by 241.27 per cent in last one month. The company’s stock has given investors 13.16 per cent of a positive return in the YTD time interval. 

Thor Mining PLC

Thor Mining Plc (LON: THR) is an exploration and development company primarily focussed on the exploration resources such as tungsten, copper project and with mining interest in lithium. The company’s primary projects are situated in Northern Territory of Australia and in Southern Australia. The company owns a tungsten project and a Lithium project in Nevada and Arizona (USA).

THR-Recent developments at Bonya and Kapunda

In the mid of October 2019, the company announced the commencement of its second drilling program at the Bonya tungsten deposits adjacent to its key wholly owned molybdenum project and Molyhil tungsten (located in Northern Territory of Australia). The Bonya project is a joint venture of the company with Arafura Resources Limited (ASX: ARU), as both parties bear the cost of the project in the ratio of their project equity (THR 40: ARU 60).

The drilling program consists of drilling 2,000 metres by the method of Reverse Circulation (RC) on White Violet deposits and Samarkand. Both deposits returned high-quality tungsten and encouraging copper from the Samarkand deposit, during the first drilling program conducted in April 2019.

On 25th November 2019, the company confirmed the completion of the second round of drilling at the Bonya project and reported the results obtained by X-Ray Fluorescence method which should be considered preliminary in nature, as they will be followed by geochemical analysis.  It reported that drill samples had been sent for laboratory analysis. The company found good grades of both tungsten and copper in the preliminary results particularly at shallow depths at Samarkand and White Violet.

The company launched field pumping experiments at the Kapunda copper project (South Australia). EnviroCopper Limited, in which Thor holds a 25% interest, has signed an agreement to capitalise, in two stages, up to 75% of the rights over metals which may be recovered at Kapunda deposit from Terramin Australia Limited, the ASX listed company. The samples from the drilling operations of copper, gold and other elements are to be evaluated.

On 26th November 2019, the company reported positive preliminary results from the initial pumping tests at the copper project of Kapunda. The pilot hole encountered Copper mineralisation with above- average grades and good consistency.

THR-Stock price performance

Daily Chart as on 27-November-19, before the market closed (Source: Thomson Reuters)

On 27th November 2019, while writing at 10:18 AM GMT, THR shares were clocking a current market price of GBX 0.26 per share. The company’s market capitalisation was at £2.25 million at the time of writing.

On 28th November 2018, the shares of THR have touched a new peak of GBX 2.08 and reached the lowest price level of GBX 0.20 on 20th November 2019 in the last 52 weeks. The company’s shares were trading at 87.50 per cent lower from the 52-week high price mark and 30 per cent higher than the 52-week low price mark at the current trading level as can be seen in the price chart.

The stock’s traded volume was hovering around 27,183,275 at the time of writing before the market close. The company’s 5-day stock's daily average traded volume was 7,809,290.20; 30 days daily average traded volume- 10,516,658.90- and 90-days daily average traded volume – 5,569,240.64. The stock has lesser volatility in comparison to benchmark index as the beta stood at 0.69.

The shares of the company have delivered a positive return of 61.60 per cent in the last quarter. The company’s stock plunged by 81.54 per cent from the start of the year to till date. The company’s stock has given investors 88.57 per cent of a negative return in the last year. 

 

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