Rockridge Drilling for VMS at Knife Lake
According to the Fraser Institute Saskatchewan is the 3rd highest rated mining jurisdiction in the world for 2020. With near record high prices quoted for copper perhaps it is time to revisit a project I have written about before located in the #3 place in the world to mine.
When I did a search to find that piece I wrote about Rockridge (ROCK-V) at the beginning of last August, I was struck by my opening two paragraphs.
It never ceases to amaze me that with all the people claiming to “know” what the market is going to do tomorrow, few of them ever make a correct call and almost none of them know how to spell the word correction. As it turned out, we did have a correction that began in the first week of August. In March of this year I said that I thought it had ended and metals and resources stocks were going to move higher. They have.
(Click on images to enlarge)
Since March of 2020 when the world almost ended, the price of copper doubled. Since I wrote my piece about Rockridge last August the price of the shares hasn’t budged much at all. Since then the stock has been as high as $.225 and as low as $.10 but doesn’t seem to show any correlation to the price of copper.
Rockridge has a 43-101 resource of 3.8 million tonnes of 1.02% Cu Eq in the indicated category and an additional 7.9 million tonnes of 0.67 Cu Eq in the inferred category all based on over 300 holes drilled. At today’s price of copper, that gives you $100 a tonne rock. Even in Canada that would be economic.
The Flin Flon camp itself 130 km to the south of Knife Lake has produced over 170 million tonnes of copper sulfide ore since discovery in 1915 from 31 different VMS deposits. Remember, VMS projects always seen to occur in clusters.
At Knife Lake there was little drilling below 100 meters. Until Rockridge began exploration at Knife Lake there had been no exploration work done in the region since 2001. For this year, Rockridge has completed a fully funded 2,100-meter drill program on the 31,000 square km property. The company began a $150,000 airborne EM survey in February and is in the midst of planning their drill testing for a summer program.
Rockridge has an option agreement with Eagle Plains to pick up 100% of Knife Lake subject to a 2.5% NSR. They are required to spend $3.25 million in exploration and to issue 5.25 million shares to Eagle Plains and make a $150,000 cash payment to the company. Rockridge did a short but very effective drill program in 2019 but was quiet in 2019 at Knife Lake. They did resume serious exploration early in 2021.
In addition to the Knife Lake VMS copper project, ROCK also has a gold property called the Raney Gold project consisting of 2,800 ha located about 110 km SW of Timmins in a splay off the Abitibi Greenstone Belt. Rockridge has completed their earn in on the property and owns it 100% subject to a 2% NSR. In their 2020 drill program they had a home run hole of 6 meters of 28 g/t Au.
Rockridge’s focus for 2021 will be Knife Lake. They did complete two short drill programs in 2020 with moderate success but with limited funds, they have to focus on one project at a time. With copper hitting all time highs, their Knife Lake project is timely.
Rockridge is a call on the price of copper. They have a solid resource at Knife Lake on a decent size VMS and will be doing a lot of serious exploration this year. Their primary value seems to me to be in their tiny market cap of $12 million. They can only drop $12 million but can go up a lot more. They are cheap but not yet cheap enough for me to load up the truck. Given success in their drill program I would be an eager buyer.
Rockridge is an advertiser so naturally I am biased. Do your own due diligence.