Rupert Resources Ltd (“Rupert” or “the Company”) reports its financial results for the three and six months ended August 31, 2020 and reports further drill results and resulting geological interpretation from in-mine exploration drilling at the 100%-owned Pahtavaara mine in the Central Lapland Greenstone Belt, Finland.
James Withall, CEO of Rupert Resources commented “The Company is very well funded following the equity financings in July and is advancing its strategy to demonstrate the potential value of all its assets. Whilst the 50,000m drill program at Ikkari and other new discoveries continues, during the quarter ending August 31, 2020 we also received new drill results from the Pahtavaara mine which aimed to test an updated geological model. The results confirmed that mineralisation remains open in a number of directions and at depth and we will test this further in 2021.”
The work program at Pahtavaara is designed to identify and evaluate the mineral potential contained in the Pahtavaara licence area, including in the vicinity of the Pahtavaara mine. In July 2020 Rupert commenced a 40,000m to 50,000m diamond drill program to further evaluate six new discoveries previously made in an area within the Pahtavaara licence package known as Area 1 (including Ikkari).
Base of till (“BoT”) sampling continues across the Pahtavaara licence area, with circa 11,000 samples collected to end-August 2020 over geophysical anomalies of interest and this program has been extended to continue until mid-2021. Diamond drilling will be undertaken at new targets generated from this program with the aim to have completed a first pass assessment of the licence area within the coming 12 months.
Following the completion of a targeted drilling program at the Pahtavaara mine completed in May 2020, an updated geological model has been developed for the Pahtavaara deposit, recognizing a previously unidentified trend to mineralisation. Given this development, it has been concluded that further drilling should be carried out prior to updating the Mineral Resource Estimate at the Pahtavaara mine and a diamond drill program of circa 10,000 metres is planned for the first half of calendar year 2021, to be conducted from both surface and underground.
In August the Company concluded a joint-venture agreement with Trillium Gold Mines Ltd (“Trillium”) regarding the Gold Centre property in the Red Lake district in Ontario, whereby Trillium will have a participating interest in the joint venture (a “Participating Interest”) of 80% and Rupert will have a 20% carried Participating Interest. In order to maintain its 80% Participating Interest, Trillium will be required to spend CAD $2,000,000 per annum in each of the first five years and CAD $500,000 in each subsequent year. Further, Trillium will issue to Rupert 500,000 common shares in Trillium upon the start date of the joint venture and on each anniversary thereof for the subsequent three years, for a total of 2,000,000 common shares.
During the six months ended August 31, 2020, the Company spent $5,750,665 (6 months ended August 31, 2019 – $3,071,459) on its exploration projects. As of August 31, 2020, Rupert held cash or cash equivalents of $32,441,855. The Company recorded a net loss and comprehensive loss for the three months and six months ended August 31, 2020 of $(1,113,292) and $(2,172,836) respectively (three months and six months ended August 31, 2019 – $(1,221,874) and $(2,528,154) respectively) and a net loss per share for the three months and six months ended August 31, 2020 of $(0.01) and $(0.01) respectively (three and six months ended August 31, 2019 – $(0.01) and $(0.02) respectively).
New mine drilling
Further to the last reported mine drilling of 8,858m (results reported on May 21, 2020), 13 holes for a total of 1,657m were drilled as part of a follow up drill program at the Pahtavaara mine site, with the results received during the quarter.
For full release including tables and images of new mine drilling please follow the link below