REG - Red Rock Resources - Assessment of Ajax Mine Potential
01/08/2022 14:00
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RNS Number : 4819U Red Rock Resources plc 01 August 2022
Red Rock Resources PLC
("Red Rock" or the "Company")
Victoria Gold JV
Assessment of Ajax Mine Potential
1 August 2022
Red Rock Resources Plc, ("Red Rock" or "the Company"), a natural resource
development company with interests in gold and base metals, principally in
Africa and Australia, announces an update in relation to its 50.1% held gold
joint venture New Ballarat Gold Corporation Plc ("NBGC") in the Victoria
Goldfields of Australia where 1,832 sq km of exploration ground is held
through NBGC's subsidiary Red Rock Australasia Pty Ltd ("RRAL").
Following the announcement of 24 May 2022, noting the grant of the key licence
EL 007330 containing the historic Ajax mines, RRAL staff have continued to
work on developing gold exploration targets. Average lode thicknesses taken
from the literature have been set in a wireframe model of the mineralised
structures and combined with production and exploration information to create
upper and lower grade estimates. The exploration targets generated are
conceptual in nature. Once the initial programme designed to validate the
models has been completed, it may be possible to further refine the targets
and apply discount factors to better estimate the probability of economic
quantities and grades being present.
Highlights
Ajax
· Initial exploration target confirmed for historical Ajax mines of
254,318 tonnes to 1,422,443 tonnes at a grade range of 6.4 g/t to 18.7 g/t.
· Only near-term targets so far defined, with additional targeting
likely along strike and down plunge and potentially parallel reef systems to
the east and at depth.
· First phase drilling anticipated before end of 2022.
Target plunge Extent width extent Range Thickness Tonnes Grade Ounces
McMillans 600 150 lower 0.9 216,270 6.4 44,500
avg 2 480,600 13.7 211,682
upper 3.7 889,110 21 600,281
Ajax 175 100 lower 0.3 14,018 6.4 2,884
avg 1 46,725 12.2 18,327
upper 6.1 285,023 18 164,942
North 300 100 lower 0.3 24,030 6.4 4,944
avg 0.75 60,075 8.7 16,803
upper 3.1 248,310 11 87,815
Weighted % totals lower 0.8 254,318 6.4 52,328
avg 1.8 587,400 13.1 246,812
upper 2.8 1,422,443 18.7 853,037
Source:
Exploration Target, Ajax Line EL 007330, Report by D Holden, D Sharp and T
Meehan, July 2022
Mt Bute
· Mt Bute drilling confirms coherent mineralised structure; technical
assessment in preparation for second phase exploration drilling as an
Intrusive related gold prospect.
Red Rock Chairman Andrew Bell comments: "The initial targets for further
exploration at the old Ajax mines, combined with those we recently announced
at the old Berringa mines, show that at these two major historic mines we have
immediate potential for additional ounces. Treatment facilities with spare
capacity are within easy distance."
Summary
The recent grant of Exploration licence 7330 has given the Company a robust
advanced exploration prospect, on the Ajax line near the small town of
Daylesford.
http://www.rns-pdf.londonstockexchange.com/rns/4819U_1-2022-8-1.pdf
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Figure 1: Location Map
Investigations into the historical mines along the Ajax Line is progressing
quickly as the technical team moves towards drilling to validate the
significant quantity of historical data as the Company refines its first
near-mine exploration target.
This target has been determined from spatially locating abundant historical
mine plans and workings, and incorporating them into the 3D model, with
historical mapping and production recorded by the Geological Survey of
Victoria from the start of mining through to the first closure around the
1930s. Untouched down-plunge mineralisation has been identified through this
process and target zones have been generated over these areas as probable
mineralised lodes below the level of existing workings.
Separately, RRAL has completed diamond drilling activities at its Mt Bute and
O'Loughlin's project. Work now shifts to detailed studies of the
multielement data, lithological data, and structural data collected as a
precursor to further drill testing later in 2022.
The Ajax Mine.
Regional Geology
EL007330 is located in the Bendigo Structural Zone of the Tasman Fold Belt and
covers the north-trending Muckleford Fault. The basement lithology comprises
of interbedded slates, siltstones and sandstones, turbiditic sequences of the
Ordovician Castlemaine Group that have undergone east-west compression during
the Benambran Orogeny. Limb thrusts propagating from bedding parallel layer
slip planes formed as fold lock-up approached. The folds form part of larger
scale anticlinoria which form broad, gently plunging dome and basin
structures. The Daylesford Goldfield is located at the culmination of such a
dome on the Daylesford Anticlinorium. Major west-dipping reverse faults are
interpreted as listric faults. The regional north-northwest trending
Muckleford Fault passes 3 km west of Daylesford and truncates the Daylesford
Anticlinorium west of its hinge. (Gough, 2013) 1 Widespread orogenic gold
mineralisation associated with faulting occurred during the late stages of
deformation. (Arden, 1997) 2
Local Geology and Mineralisation
Underground mapping in several mines by the Geological Survey of Victoria
(GSV) has shown an alternating sequence of shale and sandstone horizons. In
practice these may sometimes represent shale horizons up to 2 metres wide,
sandstones that may be massive channel deposits up to 10 metres thick, or
alternatively they may represent upward fining sand-dominated turbidite units
mapped individually or as groups of units with similar characteristics.
Folds in the area are upright with axial planes dipping steeply to the east,
with wavelengths varying from over 500 metres to less than 50 in some places.
The fold pattern appears to be far less regular than that observed in the
mineralised corridors of the Bendigo or Castlemaine goldfields. Although
faulting may in part explain this irregularity, it appears likely that
significant variation in wavelength does exist, as shown on several traverses
that have been mapped in detail by the GSV.
Larger amplitude folds appear more likely to host significant mineralisation,
with the Ajax line associated with one of the broadest fold limbs in the area.
Examination of the available mine plans, combined with the relationship
between the faulting and bedding, strongly suggests that the overall plunge of
the Ajax anticline is to the south in the Ajax South (14°S) (Macdonald,
2006) 3
The Ajax mines worked a series of nine stacked reverse fault hosted lodes that
dip between 45(o) and 90(o) to the west (Whitelaw and Baragwanath, 1923) 4 .
The faults strike oblique to bedding and consists of laminated quartz that is
highly mineralised in places. Mineralisation appears to occur in 'shoots'
within these fault systems which have been identified to potentially
correspond with favourable lithology. In the case of the Ajax line, the shoots
are associated with sandstone containing thinner beds of slate (Whitelaw and
Baragwanath, 1923). These lodes have a variable thickness along strike. The
following lode thickness in the Ajax Mine have been described and summarised
by Whitelaw and Baragwanath, 1923:
· Ajax Lode: 1 foot to 6 feet. (0.3-2m)
· McMillans Lode: 3-10 feet. ( 1-3m)
· North Lode: 1 to 4 feet. (0.3-1.2m)
These faults are only payable in the eastern limb of the anticlines although
limited exploration has occurred in the western limb where these faults are
reported to be parallel to the bedding with little or no quartz (Arden, 1997).
There is the potential for mineralisation in the western limb where these
faults become bedded in dark shale units directly after intersecting. This
style of mineralisation is commonly seen in the Ballarat goldfields.
At the Nuggetty and North Nuggetty Ajax mines, sub-horizontal tensional veins,
known locally as 'flat makes' occur. These veins are up to 90m in width, 2m
thick were mined for 340m north and south (Baragwanath, 1923). These veins
border the west dipping faults and probably formed in a response to movement
along them (Mahar, 2002) 5 (#_ftn5) In the Ajax line, these veins increase in
abundance where the lithology is dominated by thick sand beds which is
considered to a reflection of the competency of these units (Mahar, 2002).
There is potential for local gold enrichment at the intersection of the east
and west dipping faults in the Ajax (Whitelaw and Baragwanath, 1923).
http://www.rns-pdf.londonstockexchange.com/rns/4819U_2-2022-8-1.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4819U_2-2022-8-1.pdf)
Figure 2 west dipping faults in the Ajax (Whitelaw and Baragwanath, 1923).
http://www.rns-pdf.londonstockexchange.com/rns/4819U_3-2022-8-1.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4819U_3-2022-8-1.pdf)
Figure 3 Flat Makes in the Nuggetty Ajax Mine (Whitelaw and Baragwanath, 1923)
The Flat Makes have not been included in the exploration target. They are seen
as unmeasured but positive additions to the existing target description. This
breakdown between the west dipping faults and flat makes and their individual
contribution to production is an important task the technical team is
focussing on as more data is recovered from the literature and added to the 3D
model.
It may be noted that the previous diamond drilling has indicated that
mineralisation extends into surrounding sandstone wall rock containing little
to no quartz veining. Petrographic examination of the sediments revealed
visible free gold associated with disseminated pyrite aggregates containing an
assemblage of arsenopyrite, sphalerite and galena (Bravo, 2001).
In effect the zones suggest the lodes may be wider than estimated for the
exploration target. It also suggests that potentially material stripped from
within the earlier workings during any plans to re-enter the former mines,
could be payable.
Production
Total gold production from the Daylesford goldfield to date is estimated at in
excess of 1.29 million ounces. Primary gold production amounts to 795,254 6
ounces. Most of this production came from the Ajax and Cornish lines, with the
Ajax line producing around 312,789 oz. at 14.8 g/t and the Cornish line
182,000 oz. at 10.8 g/t. The deepest mine on the Daylesford goldfield was the
Ajax Mine at 370.6m. Outside of the two main lines of lode, several other
mines produced significant amounts of gold including the Rising Star Mine
(78,458 oz), Maxwell Consolidated (21,989 oz) and the Specimen Hill Mine
(35,801 oz). (MacDonald, 2006).
Development of exploration targets.
http://www.rns-pdf.londonstockexchange.com/rns/4819U_4-2022-8-1.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4819U_4-2022-8-1.pdf)
Figure 4 plan view showing the relationship of the historical mine shafts to
the initial exploration targets
Determination of the exploration target relies primarily upon detailed
descriptions of development and production as recorded by the State's mining
authorities of the era. This information has been detailed for every
reported drive shaft and stope.
It has been over 20 years since any exploration drilling was conducted on the
Ajax line of workings and even then, only two drill holes have been drilled
beneath the existing workings. This presents RRAL with a very real opportunity
to develop resources in the short term as a precursor to fast track the steps
to reopening the mine.
The width of the targets has been calculated based on average lode thicknesses
detailed by Whitelaw and Baragwanath, 1923 and numerous Government Survey
Bulletins, report and Government Mines survey records. Refinement of the
widths continues as every known work record is added to the complex 3D
computer model.
The downdip extensions of these lodes were selected as targets due to the
historical mining of the lodes being stoped as west dippers. The production on
the welcome and nuggetty lode were primarily from the flat makes. Although
they do provide upside for future targeting, following the down dip potential
of endowed west dippers are the preferred first stage exploration approach.
The exploration target discussed in this release, derived from the
approximations based upon the literature already reviewed, matches well with
the Whitelaw and Baragwanth descriptions.
For the exploration target numerous level plans, longitudinal and cross
sections have been registered into 3D. The outlines of workings then
digitized into the model including the broad shape outlines of known stopes.
From the wireframe polygons of stopes and developments, the volume of the 3
main lode structures has been calculated using Micromine mining software.
The combined images of the lode structures highlight the nature and extent
of plunging shoots and these have been followed to a distance past the last
known working as reflected in the accompanying table below.
Targeting at Ajax is based on following the down dip extension from the
historical stoping on the west dipping mineralised faults. The targets are
terminated on the fold hinges. Ajax, North and McMillans were selected as
primary targets due to the historical stoping occurring on the west dippers,
whereas Nuggety and Welcome lodes had stoping on the east dipping spurs.
To each structure a normal specific gravity (SG) of 2.67 g/cc is applied to
generate tonnes. This SG correlates with the SG of quartz (the primary vein
material within the lode systems) and is comparable to the SG calculated for
resource estimation at the nearby Ballarat mine.
From this maxima and minima for the width of lodes have been calculated from
the detailed work previously discussed and an average applied.
A breakdown of the different lode styles is under construction. For the
exploration target, however, this is not yet included. Research continues to
correlate the survey production record back to the active mining. This
information is all captured in the text of the Government Survey and mine
reports and bulletins and over time, will be further integrated into the model
to allow more constrained approximation for grade and volume equivalent to a
post mining stope reconciliation.
Grade has been determined using maxima derived from production records for the
historical mines and minima that has been defined as the current production
grade from the nearby Ballarat mine 7 (a strong parallel to the Ajax
system). The grade minimum is taken from the production grade at Ballarat.
This is seen as a strong parallel to the mineralisation at Ajax and assumes
the lower grade target expected would compare to the actual grade from a
larger mechanical mining method where recovery and dilution is present.
The range is further validated with an average grade of a similar tenor to
assays previously reported in both the underground workings and the Continent
Resources exploration drilling of the 1990s. 8
A detailed description including a table of the 1990s drilling is contained in
the paper previously published on and accessible through the Company's website
in the Project section labelled "Licence Report: EL007330" with the title
"Tenement Review and Exploration Strategy- EL007330". A more detailed
description of the methodology used to calculate the Exploration Targets, and
further information and diagrams, is contained in the paper now published on
and accessible through the Company's website in the Project section and
labelled "Exploration Target, Ajax Line EL 007330, Report by D Holden, D Sharp
and T Meehan, July 2022"
(https://www.rrrplc.com/projects-and-investments/gold/red-rock-australasia/
(https://www.rrrplc.com/projects-and-investments/gold/red-rock-australasia/) )
.
Ongoing work will allow RRAL to determine the grade distribution and variation
between lode styles and further constrain the maximum and minimum grades of
the initial Exploration Target.
The exploration target tabled below and referred to throughout this release is
not to be considered as an estimate of a Mineral Resource or Ore Reserve. 9
The potential quantity and grade is conceptual in nature, and there has been
insufficient exploration to estimate a Mineral Resource. It is uncertain if
further exploration will result in the subsequent estimation of any Mineral
Resource.
http://www.rns-pdf.londonstockexchange.com/rns/4819U_5-2022-8-1.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4819U_5-2022-8-1.pdf)
Figure 5 schematic cross section of the three primary target reefs
It is the intention of the Company to test and confirm the likelihood of the
targets with upcoming drilling and the company intends to be in a position to
confirm the nature and extent of the target on completion of the initial phase
of drilling slated for late 2022.
Exploration Strategy and time frames
Phase 1: Literature Search and Data Collation. Since most of the mines on the
Ajax line were large company mines that kept excellent records a large amount
of data relating to stoping and grades is available. The data from all these
records will continue to be collated to give a further understanding of the
grade distribution and average thickness of stopes for the different lodes and
style. The breakdown of production levels between individual shear hosted
lodes and flat makes will also be determined. Continent Resources completed an
extensive data review in the late 1990's. This data will be referenced where
available.
Phase 2: Diamond drilling of preferred targets at a spacing yet to be
determined. Creation of lithological models based on drill results. This will
assist in identifying favourable beds/zones for mineralisation. The key
outcome for the drilling will be to test the validity of the expulsion Target
as it stands. Variation to the expected outcome will also help drive an
update to the target and delineate further drilling requirements.
Phase 3: Closer space drilling to an inferred resource level. Drill spacing to
be determined once gold distribution and intersection repeatability have been
determined from the Phase 2 drilling and previous exploration drill
programmes.
Mt Bute.
The last of the assays from both Mt Bute and O'Loughlin's prospects are now in
and work commences on evaluating the assay results along with the geochemical
data derived from the drilling and sampling.
Technical work also progresses on a number of thin sections of mineralisation
identified at Mt Bute.
Hole ID Depth (m) from Interval (m) Gold in g/t
MBD002 8.80 1 0.87 Including 0.5m@1.57g/t
18.30 0.5 0.89
24.40 0.5 0.63
28.40 1.5 0.17
31.35 0.5 0.17
32.85 1 0.26
35.85 0.5 0.1
40.65 3.9 0.37
49.30 4.4 0.21
56.20 0.5 2.12
57.20 0.5 0.13
58.20 1 0.16
59.70 1.5 0.18
61.70 2 0.17
64.70 1 0.19
66.20 9.1 0.31
77.25 1 0.14
79.25 0.5 0.3
85.8 1 0.45
87.3 0.5 0.27
89.15 0.5 0.15
90.85 4.3 0.38
101.00 4.5 0.39 Incl 0.5@1.12g/t
113.4 0.5 0.18
115.4 0.5 0.24
Hole ID Depth (m) from Interval (m) Gold in g/t
MBD003 8.9 0.4 0.14
23.9 0.5 0.14
29.2 0.8 0.49
33.65 0.5 0.18
35.15 0.5 0.11
37.15 1.5 0.67 Incl 0.5m@1.06
39.8 6.8 0.38 Incl 0.2@1.52 and 0.3@1.46
47.5 0.5 0.23
48.5 0.5 0.33
50.65 0.4 0.14
51.55 0.5 0.17
52.55 0.5 1.29
56.4 0.95 0.15
58.45 0.5 0.11
59.45 0.25 0.41
62.6 1 0.26
64.1 0.5 0.30
66.1 2.15 0.43
68.75 0.5 0.44
69.75 0.5 0.17
70.75 0.5 0.15
71.75 0.5 0.14
73.3 0.3 0.11
74.6 0.45 0.20
75.35 0.4 0.13
76.25 3.35 0.46 Incl 0.4@1.68g/t
92.5 0.5 0.11
37% of all assays were above 0.1 g/t for 03 and 46% for 02
Assays from the final hole at the O'Loughlin's prospect (hole OL22D003) have
also been received. No reportable result above 0.1g/t were encountered.
Initial evaluation of the O'Loughlin's drilling has defined lateral extent of
the main mineralised structure and additional field work including detailed
mapping to the east of the drilled structure is planned. Conceptually, the
mineralisation appears to be bedding parallel structure on the eastern limb of
an anticline away from the hinge zone. More significant mineralisation may
exist closer to and in the hinge zone. Applying this structural model will
lead to better targeting at the prospect in the coming period.
Background
New Ballarat Gold Corporation
NBGC is a joint venture company, owned as to 50.1% by Red Rock and as to 49.9%
by Power Metals Resources Plc (AIM:POW), which wholly owns Red Rock
Australasia Pty Ltd , holder of the Victorian Tenements.
NBGC holds a strong land position, comprising 14 granted licenses of in total
1,832 sq km in the rich gold fields of Victoria, Australia, principally around
the mining centre of Ballarat.
Five licences, covering 493 km(2), await grant. The Company has carefully
assembled its portfolio of properties, comprising a broad range from robust
exploration targets to near term resource potential, all of which remain
largely undeveloped by modern explorers.
With the first tenements granted only in 2021, NBGC has already conducted
detailed exploration of its initial targets, including a diamond drill test of
two prospects starting in December 2021.
520m of drilling has been carried out at O'Loughlin's and 340m has been
carried out at Mt Bute, with samples sent to MinAnalytical Laboratory Services
in Perth, WA, for laboratory assay testing.
Granted Licences
The fourteen granted and one purchased licence cover high priority areas,
covering 1,841km(2) as outlined below.
Licence Number Project Name Area (km(2))
EL007271 Buninyong 133
(renamed)
EL007281 Blue Chip 74
EL007282 Blue Sky 489
EL007285 Blue Ribbon 8
EL007327 Dereel 60
EL007385 Sardinia 4
EL007329 Kilmore 484
EL007301 Pitfield/Mt Bute 85
EL007328 Blue Yonder 164
State land within EL007271
- 9
EL007505
State land within EL007271
- 9
EL007506
State land within EL007271
- 8
EL007507
EL007330 Daylesford 202
(renamed)
EL 007294 Talbot 129
(renamed)
EL 5535 Berringa 9
(228 net ha)
Total 1,841
Licence Applications
RRAL has applications in process for five other new gold exploration licence
areas, covering 493 km(2) in the Victoria Goldfields of Australia including:
License Application Number Project Name Area (km(2))
EL007540* Outer Ballarat 142
(3 competing applications)
EL007756 Monmouth 22
State land within EL007327 Dereel (2) 3
EL007799
EL007826 Ballarat East 4
EL007460 Kilmore West 325
TOTAL 493
* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty
Ltd have put in competing applications the same day as RRAL for the ground
covered by EL007540. The application considered to have greatest merit will
eventually be given priority.
The following applications have been made in Western Australia, covering
largely areas previously held by the Company at the time of its original
listing.
EL45/5859 Paterson 227
EL45/5885 Pilbara/Paterson 70
The technical information relating to exploration in this report is compiled
by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of
Geoscientists and a director of NBGC, and the Exploration Director of RRAL. He
is a member of a recognised professional organisation and has sufficient
relevant experience to qualify as a qualified person as defined in the
Guidance Note for Mining, Oil and Gas Companies, published by AIM.
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
For further information, please contact:
Andrew Bell 0207 747
9990
Chairman Red Rock Resources Plc
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396
NOMAD Beaumont Cornish Limited
Jason Robertson 0207 374
2212
Broker First Equity
Limited
1 GOUGH, J. 2013. Gough, J. EL 5420. Annual report for the period ending 31
March 2013.
2 ARDEN P & CORLETT S. J, 1997. Annual Report for EL 3431 - Daylesford
for the year ending May 15, 1997. Minerals and Petroleum Expired Exploration
Reports File.
3 MACDONALD, G., 2006. Continent Resources Pty Ltd. EL 3431, Daylesford
Project, Victoria. Annual report for the period ending 30 June 2006. Minerals
and Petroleum Expired Exploration Reports File.
4 WHITELAW & BARAGWANATH, 1923. The Daylesford Goldfield. GSV Bulletin
No. 42.
5 MAHER S. 2002. Economic Geology, in Castlemaine 1:100,000 Map Geological
Report. GSV, in press
6 MACDONALD, G., 2006. Continent Resources Pty Ltd. EL 3431, Daylesford
Project, Victoria. Annual report for the period ending 30 June 2006. Minerals
and Petroleum Expired Exploration Reports File.
7 Independent Qualified Persons Report for the Ballarat Goldmine, Australia
for Shen Yao Holdings Limited Singapore Effective date 28 February 2021
8 BRAVO, A.P., 2001. CONTINENT RESOURCES PTY LTD. EL 3431, Daylesford
Project - Central Victoria.. Annual report for the period ending 15 May 2001.
Report No AR3431-2001. Minerals and Petroleum Expired Exploration Reports File
9 Australasian Code for reporting of Exploration results, Mineral Resources
and Reserves - JORC 2012 Edition
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