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Rimfire Pacific Mining to assess Sorpresa discoveries this quarter


The company is awaiting assay data which is expected in January 2019.

Fifield project in NSW

Quick facts: Rimfire Pacific Mining NL

Price: 0.002 AUD

Market: ASX
Market Cap: $3.02 m

Rimfire Pacific Mining NL (ASX:RIM) is pursuing a dual strategy to develop its company — appraise its Sorpresa gold and silver asset in the central west of New South Wales and make new regional discoveries.

The technical and economic assessment of the Sorpresa greenfields discovery made in 2011-12 at the Fifield project is a priority for the company, as outlined in a corporate strategy shared with the market in September 2018.

READ: Rimfire Pacific Mining confirms six priority targets near Sorpresa gold and silver discovery

The company went on to raise $1.1 million to advance the discovery’s development in November 2018.

Company directors, chairman Ian McCubbing, managing director and CEO John Kaminsky, non-executive director Ramona Enconniere participated in the rights issue, with non-executive director Andrew Greville also boosting his stake after the capital raising.

READ: Rimfire Pacific Mining directors up their stake in the company

Rimfire’s wholly-owned Fifield project is located along the Lachlan transverse zone, where Rimfire has 669 square kilometres of tenement land.

The district’s gold and copper signature is established along the Lachlan corridor.

Rimfire CEO Kaminsky spoke to Proactive Investors’ Stocktube video channel about the company’s Fifield ground in September 2018, saying it had “diverse geology in terms of metals.”

“Our focus is … the Fifield district in central New South Wales, where we have a greenfields gold-silver discovery as kernel to gold projects in a gold-copper district.”

The Fifield project, home to the Sorpresa discovery made in 2011-12

Fifield project, home of the Sorpresa discovery, is surrounded by prospective ground

Five mines and a copper-gold processing plant are positioned about 200 kilometres northwest of Rimfire’s tenure, along the zone.

This includes the mid-sized gold and copper underground mining operation Peak Gold Mines Pty Ltd which started production in 1992, supplying gold to the Western Australian Government’s state-owned Gold Corporation which operates Perth Mint.

New Gold Inc (TSX:NGD) (NYSE American:NGD) agreed to sell Peak Mines in Cobar to Aurelia Metals Ltd (ASX:AMI) (FRA:YTR) in November 2017 for cash consideration of C$58 million.

The subsequent sale helped contribute to Aurelia’s production increases in 2018.

READ: Rimfire Pacific Mining confirms six priority targets near Sorpresa gold and silver discovery

In late November 2018, Rimfire Pacific outlined a number of priority targets near Sorpresa, including the high-priority target Rabbers Lookout.

Rimfire business development manager Craig Riley said at the time: “This prospect has many similarities with higher grade areas in the Sorpresa resource, such as Trench 31.

“High-grade zones will be the key contributors to a cash-positive mining development and I look forward to seeing the first-pass exploration results from Rabbers Lookout.”

Rabbers Lookout is 2-kilometres from the Sorpresa discovery and is also part of Fifield project.

Rimfire has reported gravity and magnetic data and previous mapping highlighted similarities between Rabbers Lookout and the Sorpresa resource area.

Sopresa’s resource consists of 125,000 ounces of gold and 7.9 million ounces of silver.

Rimfire believes the target has the potential to add gold resources to a future mining development.

READ: Rimfire Pacific Mining identifies high-priority target with potential to host gold mineralisation

The other five targets are Casuarina Valley, Wiggies, Fortuna, Northern Gold and Transit Corridor.

These were also identified during the company’s dual strategy review in the December 2018 half, as it integrated high-resolution gravity survey results with past exploration data from its Sorpresa discovery.

Rimfire's Fifield ground in central west New South Wales

Rimfire's Fifield ground in central west New South Wales, near Peak Mines

Riley spoke on the planned drilling of the six priority targets, saying: “This work plan will provide additional momentum to component I of the dual strategy for the appraisal of the known Sorpresa gold and silver resource.

“(It will) quickly and efficiently assess the immediate surrounds of Sorpresa mineralisation for discovery extensions.”

The targets are suited to surface and bedrock sampling via auger and aircore drilling.

Rimfire was to start its first work phase, auger drilling, in the fortnight following its November 20-22 reports.

The company has timetabled a completion to its data analysis after it receives assay data from the auger drilling, with last assays expected in January 2019.

Capital structure

Rimfire had more than 2,000 shareholders according to figures released on November 15, 2018.

Its top 20 shareholders held 35% of the company, while management held less than 5%.

The company’s top institutional shareholder was New Gold, which held a 2.5% stake.

People power

Rimfire’s team includes geologists with experience working on a variety of projects, including those at greenfields discovery stage through to development.

Kaminsky told Proactive, “We have some very old-school geologists on our team and, to be frank, we’ve had some pretty big companies come to our site to review the quality of their work, their working methods and they rate them as world-class.”

The geologists on the company’s team include business development manager Craig Riley who joined the company in September 2018.

Riley has more than 25 years experience in mining and exploration and a track record in project appraisal and development.

He has experience along the Lachlan belt, at Northparkes Mine, and has previously worked with BHP Group PLC (ASX:BHP) (LON:BHP) (NYSE:BHP) and Rio Tinto Limited (ASX:RIO) (LON:RIO) (NYSE:RIO) (OTCMKTS:RTNTF) and junior companies such as Nautilus Minerals Inc (TSE:NUS), being chief operating officer of a number of junior companies.

Also on the team is consulting project manager and competent person Todd Axford, a geologist of more than 23 years who founded Geko-Co Pty Ltd geological services in 2010.

Consulting senior exploration geologist Colin Plumridge has been with Rimfire since 2004.

Plumridge’s fellow consulting senior exploration geologist Michael Love is a geologist and geoscientist of more than 46 years who explored the Northparkes porphyry copper project mined by China Molybdenum Luoyang Co Ltd (HKG:3993) (SHA:603993) (FRA:D7N) (OTCMKTS: CMCLF).

Board faces

Rimfire chief executive Kaminsky was previously country president for Elders Resources in South Korea and originally joined the Rimfire board in 2014, holding the chairman role for 11 years before becoming MD and CEO.

Chartered accountant and Rimfire chairman McCubbing joined the board in 2016 and also holds posts as a non-executive director of Avenira Ltd (ASX:AEV) (FRA:WTP) (OTCMKTS:MMMKF), Swick Mining Services Ltd and Kasbah Resources Ltd.

Non-executive director Enconniere joined the board in 2005 and draws on her corporate banking, mergers and acquisitions, and project financing experience with organisations such as Citibank, Bank of America Corp (NYSE:BAC), Overseas-Chinese Banking Corp. Limited (SGX:O39) (FRA:OCBA) (OTCMKTS:OVCHY) and National Australia Bank Ltd (ASX:NAB) (FRA:NAL) (OTCMKTS:NABZY) (OTCMKTS:NAUBF).

Non-executive director Greville took a seat at the boardroom table in 2017 after founding West End Mining & Consulting in 2015.

Greville was previously executive general manager of business development and strategy for Xstrata Copper.

— with Danielle Doporto

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Rimfire Pacific Mining outlines new focus and exploration potential for Sorpresa

Rimfire Pacific Mining (ASX:RIM) managing director and chief executive officer Craig Riley, and consulting geologist Michael Love update Proactive Investors, on a new focus and exploration potential in the South and North prospect areas of the Sorpresa project at Fifield, central NSW. The...

on 11/7/19

7 min read