Tuesday saw Rockfire Resources (LSE:ROCK) confirm its exit from Papua New Guinea, leading shares in the Australia-focused business to inch down 3.33p to 0.65p.

The business’s move came after Papua New Guinea’s Minister for Mining decided not to renew its Nakru licence, which has been under review since September 2017. In reaching this conclusion, the minister noted that Rockfire had held the tenement since 2012 but had not identified any resources.

With Nakru representing Rockfire’s one remaining licence in Papua New Guinea, the organisation will now be able to maximise its focus on its 100pc-owned large-scale gold and copper projects in Queensland.

These include Copperhead, which is a coherent surface copper anomaly covering 3km by 2km in area. Five diamond drill holes in 1972 encountered visible copper and molybdenum minerals, including two that were 300m long. Results from all the samples collected at Copperhead average 0.35pc copper equivalent.

According to Rockfire’s chief executive David Price, the project potentially hosts a minimum of 300m of continuous copper mineralisation as all existing holes terminate with visible copper minerals still present. As such, the business is preparing for its maiden drilling program at the asset.

Meanwhile, the business also owns a long-term porphyry copper project called Copper Dome, where previous drilling has encountered very promising intercepts. These include 15m at 0.88pc copper, including 4.5m at 2.28pc copper, 12m at 0.61pc copper, including 3m at 1.24pc copper. and 51m at 0.20g/t gold.

On today’s news, Price said the following: ‘Today's announcement signifies the Group's exit from Papua New Guinea, a process which began almost two years ago under the direction of the then new management team, with the objective of focusing on more favourable jurisdictions and prospects that, the directors believe, can be more readily advanced to a JORC resource. This has recently been supported by our maiden gold resource at Lighthouse in Queensland, something we also plan to achieve at our Copperhead Project, also in Queensland.’

Author: Daniel Flynn

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