To date, preliminary results from the field show five of eight aircore holes drilled have encountered laterite up to 40 metres thick with assays pending.
The drilling is an important step in confirming prospective geology that may have an association with the adjacent Tout Intrusive, which hosts cobalt, nickel, scandium and platinum in laterite.
John Kaminsky, CEO, commented: “The implementation of the first phase of a broad scale reconnaissance geochemistry program designed by New Gold is underway.
“This work coupled with the completion of the recent high resolution geophysics means the broader geological assembly is taking shape. This will lead to target prioritisation for anticipated reverse circulation drill testing in the near future.”
Rimfire is focused on its 669 square kilometres of tenements located within the Lachlan Transverse Zone (LTZ) near the town of Fifield in central New South Wales.
The company discovered the Sorpresa gold and silver deposit and in 2014 delivered a JORC resource of 6.4 million ounces grading 0.61 g/t gold and 38 g/t silver for circa 250,000 ounces of gold equivalent.
Importantly, subsequent exploration has provided evidence that the “Wider Sorpresa Area” is now considered a significant gold mineralised system of some potential.
New Gold has committed to spend A$2 million during 2017 subject to conditions and may choose to spend up to $12 million within 5 years to earn up to a 70% interest in Rimfire’s Fifield tenements.
The focus of exploration results to date come from the area located 5 kilometres north-northeast of the Sorpresa gold and silver deposit.
The 253 hole geochemistry program is aimed at providing 144 square kilometres of coverage, providing geological data over this previously unknown area.
Rimfire’s field mapping and interpretation of the geophysics indicates that aspects of the geology from the Clean TeQ’s Tout Intrusive may continue into the Rimfire tenement holding.
The laterite profile intersected in the current aircore drilling is further evidence that a possible extension to this host geology exists, which Rimfire is naming Tout East.
The intersection of laterite is significant as Rimfire has not previously encountered laterite in prior exploration at the Fifield tenements.
Laterite is a prominent feature in the neighbouring Tout Intrusive which hosts Clean TeQ’s nickel, cobalt and scandium deposit.
Given laterites ability to host the targeted mineralisation as shown in the neighbouring deposit, the potential for Rimfire to drill out additional mineralisation is growing.
Furthermore, the Tout East area seems more structurally complex than Tout itself, which could favour the introduction of gold into the metal mix at Tout East.
Rimfire remains leveraged to exploration news flow over the short term as drilling with New Gold continues.
Rimfire shares are up 50% over the past 12 months, currently trading at $0.027.