Operational Update on Two Mining Stocks – Rockfire Resources PLC & Thor Mining PLC

Summary

• Rockfire Resources is currently developing the Plateau gold deposit in the Lighthouse tenement.
• The Company started phase 2 of diamond drilling for the vertical length of 500 metres at the project.
• Thor Mining acquired American Vanadium Private Limited. The Company owns vanadium and uranium projects in the US.
• The Company would issue 24 million new shares at 0.01 pence per share for the transaction.

Shares of Rockfire Resources PLC (LON:ROCK) were trading flat, and shares of Thor Mining PLC (LON:THR) were down by about 1.33 percent against the last closing price (as on 10 September 2020, before the market close at 1:00 PM GMT+1).

Rockfire Resources PLC (LON:ROCK) - Raised funds for the development of the Plateau gold project

Rockfire Resources PLC is a UK based mining company that is focussed on the exploration of gold and copper in Australia. The Company has three gold prospects and two porphyry copper prospects. It is listed on the FTSE AIM All-Share index.

Asset Portfolio of Rockfire Resources

(Source: Company website)

H1 FY2020 results (ended 30 June 2020) as reported on 9 September 2020

Rockfire Resources is engaged in the development of the Plateau gold deposit that is part of the Lighthouse tenement. Plateau has geological and mineralization features similar to that of Mt Wright Gold Mine, which is 47 kilometres away from the Plateau project. Approximately 1.5 million ounces of gold had been mined from the Mt Wright project, and Rockfire Resources is looking for the grade of similar quality. Rockfire Resources has identified low-grade gold intervals at several metres from the surface. During the drilling activity at Plateau, variety of sulphides has been discovered along with pyrrhotite, which is an essential component of the high-grade core. Sulphides and pyrrhotite are cues of high-grade deposits as it has been observed at Mt Wright. In August 2020, the Company announced the outcome of phase 1 of diamond drilling for 200 metres that showed 0.3 grammes gold per tonne at 103 metres and 0.8 grammes gold per tonne at 90 metres. Rockfire Resources started phase 2 of diamond drilling at Plateau gold, which involved six holes to 500 metres. Phase 2 is expected to complete soon. The Company is also looking for an aeromagnetic survey for its two porphyry copper projects situated in Queensland, Australia. The survey would provide terrain contouring of Copperhead and Copper Dome project. In June 2020, the Company raised £1.0 million through the issue of new shares. Rockfire Resources issued close to 117.6 million shares at 0.85 pence per share. In July 2020, it raised close to £1.0 million via the issue of 64 million new shares at 1.625 pence per share. The funds raised would be used for the drilling programme at Plateau gold deposits.

Drilling outcome at Plateau gold deposits

(Source: Company website)

Share Price Performance Analysis

1-Year Chart as on September-10-2020, before the market close (Source: EODHD/Others, Thomson Reuters)

Rockfire Resources PLC's shares were trading at GBX 1.13 and were flat against the previous closing price (as on 10 September 2020, before the market close at 1:00 PM GMT+1). ROCK's 52-week High and Low were GBX 2.40 and GBX 0.25, respectively. Rockfire Resources had a market capitalization of around £9.32 million.

Business Outlook

The Company is currently developing the Plateau gold deposit at Lighthouse tenement, and it is hopeful of developing the project on lines similar to Mt Wright. It has detected the large low-grade intersection, and it is looking for a higher grade deposit. The recent funding has strengthened the Company's position to perform the drilling activity at the Plateau project. The fly aeromagnetic survey of Copperhead and Copper Dome project would complete by the end of 2020.

Thor Mining PLC (LON:THR) – Good prospects witnessed at Pilbara gold field tenements

Thor Mining PLC is a UK based mining company. The Company is engaged in mining and development of metals such as tungsten, molybdenum, copper, uranium and vanadium. It owns a 25 percent stake in EnviroCopper Limited, and it has an interest in Ragged Ranged Pilbara project, The Pilot Mountain Tungsten project, The Molyhil Tungsten-Molybdenum project.

High-value metals of Thor Mining

(Source: Company presentation)

Acquisition of American Vanadium Private Limited

On 9 September 2020, Thor Mining completed acquisition American Vanadium Private Limited (AVU). AVU is an Australian company that has an interest in projects in Colorado and Utah in the US that are focused on uranium and vanadium. AVU wholly owns Standard Minerals INC in Colorado and Utah Company Cisco Minerals in Utah. Thor Mining performed the field sampling, and the assay result depicted high-grade uranium of 1.25 percent U₃O₈ and vanadium of 3.47 percent V₂O₅. Thor Mining would issue 24 million new shares at 0.01 pence per share to acquire AVU. The Company paid exclusivity fee of AUD 100,000 for the transaction. The Company has also agreed on the performance-based payments if the Company achieves below targets.

• >= 0.1 percent U₃O₈ or 1 percent V₂O₅ on sampling at Radium Mounting & Wedding Bell project it would pay AUD 108,000.
• >= 0.4 percent U₃O₈ on grade ore drilling it would pay AUD 252,000.
• On reporting mineral resource of five million tonnes at >= 0.1 percent U₃O₈ or 1 percent V₂O₅ Thor Mining would pay AUD 252,000

All the performance-based payments would be made through the issue of new shares.

Pilbara Goldfields update

(Source: Company presentation)

On 2 September 2020, Thor Mining announced good prospects from the assay of sediment sampling at Ragged Range Gold project. The Company stated that the results depict that it is heading towards gold-bearing source rocks. Pilbara goldfield tenements are of high priority for Thor Mining, and it is planning for upstream mapping and sampling of the project. The Company is seeking gold deposits at this project.

Share Price Performance Analysis

1-Year Chart as on September-10-2020, before the market close (Source: EODHD/Others, Thomson Reuters)

Shares of Thor Mining PLC's were trading at GBX 0.66 and were down by close to 1.33 percent against the previous closing price (as on 10 September 2020, before the market close at 1:00 PM GMT+1). THR's 52-week High and Low were GBX 0.80 and GBX 0.1301, respectively. Thor Mining had a market capitalization of around £8.65 million.

Outlook

Uranium metal has application in the nuclear industry. The Company is confident over the demand of the metal over the next 15 years. 300 nuclear reactors are proposed and close to 53 nuclear reactors are under construction, which would support the demand for uranium. The US is expected to drive the uranium consumption as it imports uranium for power generation. Vanadium is used for the production of reinforced steel as it adds tensile strength, and it is also used in the chemical and aerospace sector. The recent acquisition of uranium and vanadium projects have increased Thor Mining's portfolio of metals.