PERTH (miningweekly.com) – The share price of junior Rafaella Resources rose by 17.5% on Wednesday as the company reported a Joint Ore Reserves Committee- (Jorc-) compliant mineral resource estimate (MRE) of 27.8-million tonnes, at 1.49% copper equivalent, at its Horden Lake deposit, in Quebec.
Rafaella in September struck a deal to acquire the Horden Lake polymetallic/battery metals deposit from vendor Gestion Ora-Mirage Ltée, under which Rafaella would pay C$4-million, of which C$400 000 would be a non-refundable deposit and the balance would be payable within 90 days of signing.
Gestion Ora-Mirage Ltée would also receive a 1% net smelter return.
Rafaella on Wednesday said that the resource estimate was the first compiled using data from all previous drilling. Drilling is now planned to further extend and upgrade the mineral resource, focusing on higher-grade copper ore shoots.
“Caracle Creek conducted an extensive resource assessment utilising the entirety of the raw data. The resource has been modelled by detailed domaining of each of the metals, accounting for the 2012 drill hole data and updated commodity price forecasts. This has allowed the company to formulate a pit constrained MRE, presenting a more realistic assessment of the resource assuming an openpit for the shallower ore, followed by an underground operation,” said Rafaella MD Steven Turner.
“The 2023 prefeasibility programme will look to provide sufficient data to finally include the entirety of the contained gold as well as adding the cobalt and silver. Horden Lake, with new road infrastructure, HV power lines from the Le Grande hydro electric station and supportive jurisdiction, is a top class polymetallic deposit.”
Rafaella has now reached an agreement with Gestion Ora-Mirage Ltée to extend the closing date for the acquisition until December 23.