335701bc-e23b-45be-abae-49f7dbadfa22.pdf
27/01/ 2016
Company Announcement Office Australian Securities Exchange
rimfire pacific mining nl
a.c.n. 006 911 744
ASX Code "RIM"
Exchange Tower
Suite 411, 530 Little Collins St Melbourne Victoria
Australia. 3000
T 61 3 9620 5866
F 61 3 9620 5822
E [email protected] W www.rimfire.com.au
QUARTERLY EXPLORATION AND ACTIVITIES REPORT
(For the period 1st October 2015 to 31st December 2015)
High Grade Gold Results Continue in Sorpresa RC Drilling
Includes 9m @ 18.15g/t Au & 100g/t Ag from 18m at Trench31
Highlights - Sorpresa Gold and Silver area
RC drilling at Sorpresa in the known mineralised zone at Trench 31 area has revealed gold with consistent high grade results at shallow depths (typically 0~40m).
Further metallurgy at Sorpresa in the oxide and primary zones provided promising gravity, floatation and leaching recoveries. Conceptual plant and process options are being reviewed.
Additional RC drilling assay results are expected shortly from Trench 31 and Roadside locations.
(This RC drilling was part of an ongoing assessment of the structural controls and orientation of high grade gold and silver lens areas within Sorpresa. The positive results provide further encouragement for an economic feasibility appraisal. Additional RC drilling is planned at Roadside area within the 1st Quarter 2016 and is underway.)
Highlights - Fifield Regional Activities (within 6km radius of Sorpresa)
Detailed geological mapping has been conducted and continues in the Eclipse Trend - Yoes areas (4km2), to assist interpretation and targeting for the copper-gold signature now established
Broader deployment (km scale) geophysics programs (EM and 3DIP) will be considered to assist discovery of potential large scale copper-gold mineralisation at Eclipse Trend - Yoes areas
Regional soil programs and mapping were conducted north of Eclipse Trend & Yoes Trend, with encouraging mineralized float identified and providing a positive context for potential copper-gold porphyry systems
New regional creek and auger geochemical sampling programs are underway for copper and gold Further refinement of the geological model concepts has occurred and additional targets have also
been identified, based on geochemistry, mapped geology and geophysics
Highlights - Corporate and other activities
The AusIndustry R & D submission was successfully concluded and provided the Company with
$1.046m in additional non-dilutive funds in early November.
Numerous presentations were made including at the international resources conference, IMARC. Discussions for potential partnership opportunities were continued, including site visits.
1 for 7 rights issue at 2.0 cents (plus free option) raised $1.043m before costs in December
The Company was awarded a new exploration license EL8401 (288km2) located east of Yoes. The area is deemed to extend the prospective opportunity for gold and copper discovery. Review of target areas is underway (see map Figure 4) and doubles the Company's exploration area.
A major upgrade to the Company website was implemented (www.rimfire.com.au)
CEO and Managing Director, John Kaminsky commented:
"The Company had another positive quarter both in developing a better understanding of the gold distribution in the Sorpresa Trench 31 area and the pursuit of discovery growth in its regional activities.
"The Trench 31 area results demonstrate good continuity within the higher grade gold (and silver) lenses in the oxide zone (0~60m) and we have gained important further insights.
"This assists both delineation and extension discovery strategies for Sorpresa, so further testing will be undertaken. There is a priority to focus our efforts on increasing the gold resource that is suited to shallow open-cut mining, with ideas emerging from the recent work for new shallow extensions. Outcomes include:
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The RC drilling continues to improve the knowledge of the orientation and controls operating on the higher grade gold and silver, with new results reinforcing the robustness of these zones.
-
The Company will keep assessing the Sorpresa mineralisation in the oxide zone aiming to increase grades, ounces and the commercial context.
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This recent drilling (and subsequent work to follow) will contribute to parts of the resource at Sorpresa moving to measured status in due course with model upgrades. Pitshells will be modelled as appropriate.
"Our third best drill hole at Fifield, in Fi 0689, with 9m @ 18.15g/t Au & 100g/t Ag from 18m shows Sorpresa still has many positive surprises in waiting. We have now hit high grades across a wide spatial setting on the 1.5km strike length of the Sorpresa system.
"This recent drilling, indicates to us to search for higher grades in other locations using a similar strategy of close spaced drilling. The frequency of the higher grade results (>10g/t Au) including results above 30g/t Au in numerous places, and provides more encouragement to the commercial assessment for potential development at Sorpresa.
"More locations are planned for drilling at Trench 31 and Roadside accordingly. The shapes and corridors are starting to emerge for a potential mining operation (Figure 3), at Trench 31.
Regional Exploration RC Drilling
Further planned drilling
"The Company strategy continues to focus on building its regional discovery inventory within a 6km radius of Sorpresa over the next 12 months. Priorities continue to emerge from a combination of ongoing geochemical sampling, as extensions to current anomalous trends, as well as promising geophysical targets.
"The work in the last two quarters at Eclipse Trend-CO2-Yoes confirms that we have important copper-gold anomalism on an extensive (km) scale (Figure 2), with potential for ore grades as shown with hole Fi 588 4m @ 6.5% Cu.
"Further work is required to better understand the geology and context, whilst recognising that there appears to be a large mineralising system operating at a district scale. Accordingly, additional creek sampling, geological mapping and
auger drilling programs are being used to advance the knowledge and improve targeting for copper and gold mineralisation.
"The Sorpresa resource is a possible peripheral mineralisation event to a much larger mineralising system operating at Fifield. With this in mind, we will be pursuing a number of key concepts over the coming months, to seek the best areas containing the strongest mineralisation potential within the copper-gold footprint currently identified. This also brings the new EL8401 into play, with a range of targets being reviewed over the next 6 months.
Annual General Meeting, Rights Issue and New Website
"The Company conducted its Annual General Meeting (AGM) 27th November in Melbourne, providing shareholders an opportunity to further understand the Company, its project areas, exploration strategies and engage with guest presenters on key trends within the industry. The Company, Board and management were favourably benchmarked within the industry and received strong endorsement from shareholders with all resolutions comfortably passed.
Rights Issue
"The non renounceable rights issue (NRRI) of 1 new share at 2.0 cents, plus a free option at 3.5 cents (expiry May 2017), for every 7 existing shares held, was completed during the week raising $1.043M in the first instance. In the context of the existing difficult global market conditions, this has been an extremely successful capital raising.
"We thank new and existing shareholders who have participated in the capital raising as the Company looks to continue with the following:
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Sorpresa resource, further definition, discovery growth and economic assessment towards feasibility
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Continue the definition and understanding of the high grade lens areas with further drilling
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Seek to extend the discovery growth into new adjacent areas, as only 10% of the known geology is tested
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Continue discussions with potential commercial partners for the Company's project areas, aiming to: o Assist accelerated outcomes in discovery growth through additional committed expenditure o Look at development opportunities for the Sorpresa resource
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Maintain a discovery growth focus on the regional opportunities for gold, silver, copper and platinum. In particular, make further advances in the regional prospects where an emerging gold and copper signature is being established.
"In total, the Directors subscribed to approx. $200,000 in combined entitlements and underwriting.
New Website
"The Company has launched its new website, providing more information for shareholders and stakeholders. Over time the site will be further streamlined for its presentation and content. We encourage shareholders to sign-up to receive future distributions of ASX news bulletins.
Programs commenced, or due shortly in 1st Quarter 2016 include:
"A range of programs (Figure 1) have been planned and are being implemented within first quarter 2016, continuing to take advantage of lower industry costs, and the opportunities presented to the Company in its project areas. These include:
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RC drilling continues within Roadside area at Sorpresa -4 new traverses started, shallow oxide focus
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Interpretation and modelling of recent RC drilling in Au/Ag zones at Sorpresa to build pitshell models and assess selective mining feasibility
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A ground Gravity Geophysical survey commences shortly, looking for repeat style structures similar to Sorpresa
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Geological mapping is underway in the Eclipse-CO2-Yoes copper/goldarea
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Creek and soil sampling within 6km radius of Sorpresa
"The Company strategy continues to pursue the Sorpresa resource definition, discovery growth and economic potential in parallel with the regional discovery advancement primarily within a 6km radius of Sorpresa.
"Regular newsflow will be generated in the ensuing period, where we look forward to reporting further results and milestones as they occur. The Company remains active with its work programs, despite the difficult market conditions, looking to enhance its project areas, to the benefit of shareholders."
Sorpresa RC Drill program comments - assessing high grade lenses
Currently the Sorpresa Deposit comprises 6.4Mt for 7.9Moz of silver and 125kOz of gold (at 0.5g/t Au & 25g/t Ag cutoff) as an Inferred and Indicated Mineral Resource, equating to approximately 250,000oz gold equivalent.
The Company believes that potential upside exists at Sorpresa by defining additional resources in under explored areas along strike to the south and at depth, down dip to the east and also in gap areas between mineralised domains.
During the quarter a program of 54 holes for 2,227m of shallow RC drilling was completed over high grade gold and silver areas within Trench 31 of the Sorpresa Resource (Figure 1 &3). Tables of significant results below (Table1 a,
Trench 31 recent drilling area
b & c) highlight a number of shallow and highly mineralised intersections indicating broad zones of gold and silver mineralisation.
Previous Recent Drilling Highlights at Sorpresa Trench 31 (Reported December 2015)
Continued RC drilling (6 holes for 252m) at the Trench 31 area previously reported 4th December 2015 with greater than 10 gramme-metres summarized as follows:
Table 1 (a)
|
Hole (location)
|
Main Intersection(s)
|
Including Intersection(s)
|
|
Fi 0689
(Trench31)
|
9m @ 18.15g/t Au & 100g/t Ag from 18m and1m @ 0.78 g/t Au from 35m
|
1m @ 16.75g/t Au & 140g/t Ag from 18m 1m @ 6.45g/t Au & 448g/t Ag from 19m 1m @ 69.00g/t Au & 254g/t Ag from 20m 1m @ 15.35g/t Au & 23g/t Ag from 21m 1m @ 38.60g/t Au & 10g/t Ag from 24m 1m @ 11.40g/t Au & 5g/t Ag from 25m
|
|
Fi 0687
(Trench31)
|
7m @ 6.80g/t Au & 9g/t Ag from 20m
|
2m @ 14.85g/t Au & 16g/t Ag from 20m
|
|
Fi 0690
(Trench31)
|
8m @ 4.62g/t Au & 4g/t Ag from 18m
|
1m @ 6.69g/t Au & 9g/t Ag from 23m and 1m @ 24.10g/t Au & 9g/t Ag from 24m
|
|
Fi 0686
(Trench31)
|
2m @ 2.05g/t Au & 138g/t Ag from 16m and 5m @ 3.64g/t Au & 6g/t Ag from 24m
|
1m @ 1.53g/t Au & 226g/t Ag from 16m and 1m @ 4.35g/t Au & 4g/t Ag from 24m and 1m @ 8.79g/t Au & 4g/t Ag from 25m
|
|
Fi 0688
(Trench31)
|
1m @ 1.62g/t Au from 19m and
4m @ 3.64g/t Au & 4g/t Ag from 22m
|
1m @ 7.45g/t Au & 9g/t Ag from 22m
|
Previous Recent Drilling Highlights at Sorpresa Trench 31 (Reported November 2015)
RC drilling program (20 holes for 833m) at the Trench 31 area previously reported 20th November 2015 with greater than 10 gramme-metres summarized as follows: