Rockfire intersects zinc as company reassures over slow drilling progress

(Sharecast News) - Rockfire Resources said in an update on Thursday that drilling at its wholly-owned Molaoi zinc deposit in Greece had intersected visible zones of zinc mineralisation, although challenging geological conditions slowed progress on the first hole of its resource upgrade programme. The AIM-traded base, critical and precious metals explorer said hole HMO-008, the first in its campaign to upgrade Molaoi's resource to Indicated status, had encountered a 2.5-metre zone of visible zinc mineralisation high in the hole.

Portable XRF readings from five spot samples averaged 6.7% zinc, 2.5% lead and 42 grams of silver per tonne, with one sample recording as high as 18.7% zinc.

The interval had been sent for laboratory analysis, including germanium testing.

Rockfire said the hole was "dominated by extensive fault zones, shears, brecciation and fracturing," resulting in slow drilling and suggesting the drill had "unintentionally drilled directly down one of the growth faults which are responsible for the thickening of mineralised sedimentary units".

The entire 289-metre hole was reported to be heavily altered with epidote, silica, carbonate, chlorite and clay.

Chief executive David Price said the hole was "without question, the most fractured, broken and brecciated hole drilled at Molaoi so far".

"It is thought that hole HMO-008 has drilled directly down one of the growth faults," he added.

"These faults have provided the geological setting for thicker mineralised lodes at depth.

"It was hoped that, by drilling deeper, the hole might exit the fault into strong mineralisation, however the hole remained in the fault for its entire length."

Price said the intersection of the upper lodes occurred in the anticipated position and that these zones were being analysed.

"The rig has moved to the south to start the second hole, and we expect the rate of drilling to be faster," he said, adding that Rockfire was also seeking a second drill rig to increase productivity.

He noted that shareholders "can take comfort that not all our drill holes are expected to take this length of time and hole HMO-008 is extremely unusual," emphasising that the information gained would help model the fault structure in the company's forthcoming Indicated resource update.

Rockfire said drilling of the next hole had already started, with faster progress expected as the drill moved away from the fault zone.

At 1419 GMT, Rockfire Resources shares were down 2.86% at 0.17p.

Reporting by Josh White for Sharecast.com.