Rockfire Resources (LSE:ROCK) has announced that an engineering assessment of historic underground infrastructure at its Molaoi zinc-lead-silver project in Greece suggests the existing access portal and decline remain in sufficiently good condition for potential reuse. According to the review, consultants found no visible signs of significant deterioration or structural instability at the entrance to the underground workings.
The assessment indicates that the 700-metre decline, originally developed in 1991 to a depth of approximately 55 metres, appears to remain largely intact. While many of the orebody crosscuts have been backfilled, the main access route is believed to be substantially open, offering a potential opportunity to incorporate existing infrastructure into future mine development plans.
Rockfire said the next phase of work will include evaluating additional geotechnical studies, redesigning underground layouts to accommodate ventilation and emergency escape requirements, and advancing environmental impact assessments and permitting activities. These steps were recommended by the company’s mining consultants as part of the ongoing project evaluation process.
Should the existing underground workings prove suitable for rehabilitation, Rockfire believes it could eliminate the need to construct around 700 metres of new decline development. The company estimates this could reduce future capital expenditure by as much as €5 million, lowering development costs and potentially enhancing the overall economics of the Molaoi project.
Rockfire’s investment outlook continues to be affected by weak financial fundamentals, including the absence of revenue, ongoing losses and negative free cash flow. A debt-free balance sheet provides some support, while technical indicators have shown modest short-term improvement despite remaining weaker over longer periods. Valuation metrics are also constrained by the company’s loss-making position and the lack of dividend income.
More about Rockfire Resources PLC
Rockfire Resources is a London-listed exploration company focused on gold, base metals and critical minerals. Its principal asset is the high-grade Molaoi zinc, lead, silver and germanium deposit in Greece. The company also holds a portfolio of gold, copper and silver exploration projects in Queensland, Australia. Several of its Australian assets, including the Plateau and Marengo prospects, are covered by farm-in agreements with ASX-listed partners, helping to provide exploration funding and reduce development risk.
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