Rimfire Pacific Mining NL (ASX:RIM) has a two-part strategy focused on the proven world-class copper-gold area of the Lachlan Fold Belt in central New South Wales, which is attracting significant new attention.
The company has proven its ability to make exploration success in the belt with the Sorpresa gold and silver discovery within the historic mining district of Fifield and is now seeking further discoveries in the area, which has significant current and historical gold and copper production.
An earn-in agreement covering 103 square kilometres with Golden Plains Resources (GPR) aims to bring this discovery into production monetising Sorpresa and achieve accretive growth by further gold discoveries proximal to Sorpresa.
New substantial shareholder
This agreement brings additional benefits to Rimfire with GPR recently becoming a substantial shareholder in the company, after accumulating a total of 85 million shares for a 5.36% interest.
In May 2020 GPR acquired 75 million shares valued at $240,000 in a placement and on August 5 bought another 10 million shares in a $50,000 on-market transaction.
The earn-in agreement includes GPR’s annual investment of $1.5 million for three years to earn a 50.1% interest in the JV area.
Focus turns to Valley
Rimfire is also exploring in areas outside of the earn-in area for additional gold/copper prospects in the Lachlan Fold Belt with its next target being the highly prospective Valley prospect.
Valley is on the western flank of the large caldera that also hosts the Northparkes mine (CMOC/Sumitomo) and the local (5-kilometres east) Mordialloc prospect (Kincora Copper).
An Induced Polarisation (IP) survey has identified a range of interesting chargeability and resistive zones which are close to surface and can be tested with shallow 150-metre deep holes (below).
The company’s Sorpresa asset monetisation strategy is centred on the earn-in with GPR which not just provides a pathway for mine development but also the opportunity to deliver further gold discoveries.
This earn-in covers 103 square kilometres of highly prospective ground, including the Sorpresa discovery, which has a resource of 74,300 ounces of gold and 3.4 million ounces of silver.
The agreement covers around 10% of the exploration licences held by Rimfire in the Fifield area.
Rimfire will have control of the design and execution of fieldwork programs to be undertaken during the earn-in period.
Of GPR’s $1.5 million annual investment, $1.2 million will be for in-ground exploration and technical work to obtain mine development approvals in the earn-in area and $300,000 for Rimfire corporate purposes.
Following completion of the earn-in, GPR has committed to fund the development of the Sorpresa project, including Rimfire’s portion, while the partners have also committed to form an unincorporated joint venture over the area.
During the June quarter, partial payment of funds due has been made with remaining funds due for the first quarter work program of year one, expected to be paid before the end of the September 2020 quarter.
Remaining funds due have been delayed due to GPR awaiting settlement of another transaction that has been delayed due to a number of issues including COVID-19.
The timeline to obtain mining development approval is around 18 months.
Within the earn-in area, intrusion-related gold system (IRGS) exploration is being planned, which will include a vectoring study.
Rimfire will continue to fund and manage exploration programs on the other 90% of its ground in parallel to the work programs being undertaken in the earn-in area.