REG - Red Rock Resources - Asset Review and Current Developments

Red Rock ResourcesAnnouncement

04/02/2022 07:00

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RNS Number : 6763A  Red Rock Resources plc  04 February 2022

Red Rock Resources PLC

("Red Rock" or the "Company")

Asset Review and Current Developments

 

4 February 2022

Red Rock Resources Plc. ("Red Rock" or "the Company"), is a natural resource
development company with interests in gold and base metals, principally in
Africa and Australia.

Current projects and likely near-term news are summarised below.

Highlights:

Ø Drill programmes in three countries where gold, copper and cobalt
exploration results now expected imminently

Ø Acquisition of new ground in Burkina Faso and Côte d'Ivoire

Ø Preparation for new exploration phase in Kenya

Ø Expected near term listing of investee company

Ø Listing process for Australian JV gold company continues

Ø Focus on strengthening of battery metal presence with lithium as well as
cobalt/copper now an area of interest

Red Rock Chairman Andrew Bell comments: "We have completed drill programmes in
Kenya and the Congo, already have the raw results returned from the laboratory
in the case of Congo and expect them imminently in the case of Kenya. The
results and analysis, which we shall announce as soon as we have them, will be
key near-term milestones.

Our colleagues in Australia, where we have our joint venture with Power Metal
Resources Plc, are making good progress with their drilling and once they have
the full suite of results from the first target, where drilling has completed,
we expect them to provide us with an early analysis.

The Company is therefore in the unusual position of expecting drilling results
from six targets in three countries over the coming weeks.

We also look forward to the slightly delayed listing of Elephant Oil
Corporation, a group in which we have been a longstanding shareholder, in the
U.S. We anticipate this may happen in the first quarter, and if it does it
will be the first of a series of planned monetisation or value crystallisation
events, and a most important one.

Moving to IPO with, or seeking partners for, some of Red Rock's other assets
will also form part of this strategy which will be a strong focus in 2022.

Our royalty interest in Mt Ida has had good news in that Juno Minerals Ltd in
its recent quarterly report has stated its intention to complete the
feasibility on Mt Ida and has stated:

 

"The Mount Ida Project remains the largest magnetite resource and the most
technically advanced magnetite project in the Yilgarn. With magnetite
concentrate being a higher grade and consistent product, commanding a premium
price over DSO iron ore, it also has the advantage of a lower environmental
footprint in the smelting process and is considered as the "green steel" which
is becoming the preferred raw material in the steel making process".

This new emphasis by Juno's management on Mt Ida and their recognition of its
potential vindicates our consistent encouragement while represented on the
board of Mt Ida's previous owner Jupiter Mines Ltd, of the concept of spinning
out Jupiter's iron ore assets into a separate listing. The coming into
production one day of Mt Ida would be a development of the first order for Red
Rock.

We shall watch developments there carefully during 2022."

 PROJECT                                                              UPDATE

 Mikei Gold Project                                                   20 Reverse Circulation (RC) holes totalling 2,093m drilled in H2 2021.

 Western Kenya                                                        Drilling was over the Central KKM project area within and just outside the

                                                                    Resource envelope.

 Gold: 723,000 oz Mineral Resource Estimate at 1.49 g/t (JORC 2012)

                                                                    RRR announced on receipt from the laboratory of the first 950 sample results
                                                                      that 7 of the first 9 holes encountered gold mineralisation with  intercepts

                                                                    including 17m at 1.02 g/t to end of hole (including 1m at 3.15 g/t).
 100% economic interest

                                                                    Drill results for the next 11 holes is expected from the laboratory within
                                                                      7-10 days and will be announced, with full interpretation to follow.

                                                                      Elsewhere in the licences an EIA is being prepared for future drilling and

                                                                    ground geophysics work continues.

                                                                    An injunction was obtained to prevent illegal foreign miners and those acting
                                                                      on their behalf from infringing on a part of RRR's licence area.

 Luanshimba Copper-Cobalt Project                                     First drill programme on prospect carried out in H2 2021, with 2,469m drilled

                                                                    in 29 RC holes.

 Copper/Cobalt: Katanga, DRC

                                                                    Cobalt Heterogenite oxide mineralisation in multiple fault gouges, as well as
                                                                      Copper including a pyritic zone overlying chalcopyrites, observed in Zambian

                                                                    Copperbelt style mineralisation.
 80% interest

                                                                    Results from all 2,763 samples (including standards and blanks) now received
                                                                      from laboratory, and report undergoing peer review by consultants before
                                                                      release to the market.

 New Ballarat Gold Corporation Plc                                    New Ballarat Gold Corporation Plc (NBGC) takes over as 100% owner of local

                                                                    operator Red Rock Australasia Pty Ltd.

 Gold: Victoria, Australia

                                                                    9 granted licences totalling 1,501 sq km are held around the historic mining
                                                                      centre of Ballarat, with 3 licences totalling 657 sq km going through the

                                                                    grant process and a further licence in a competitive grant process.
 50.1% interest

                                                                      A diamond drill programme to test three target areas began before Christmas
                                                                      with a 6 hole programme at the O'Loughlins prospect SE of Ballarat, before
                                                                      moving to current drilling at Pitfield SW of Ballarat. Drill results from
                                                                      O'Laughlins are expected within the next weeks.

                                                                      It remains the intention of Red Rock and its JV partner to seek a listing for
                                                                      NBGC, and work on this will proceed with due regard to market timing.

 Faso Minerals Ltd                                                    Faso Minerals Ltd (FML) through its 100% subsidiary Faso Greenstone Resources

                                                                    SARL holds 348 sq km of highly prospective ground acquired from local holders
                                                                      in the SW of Burkina Faso at Bilbale and Boulon.

 Gold: Boromo and Banfora greenstone belts, SW Burkina Faso

                                                                      Applications for other areas have been prepared.

 100% subsidiary

                                                                      A remote sensing screening of the areas which have generally 2-5m of laterite
                                                                      cover, using visible near infrared (VNIR), shortwave infrared (SWIR), longwave
                                                                      infrared (LWIR) and ALOS-1

                                                                      synthetic aperture radar (SAR) imagery, is under way, preparatory to ground
                                                                      geochemistry, geophysics, and drilling.

 LacGold Minerals Ltd                                                 LacGold Minerals Ltd (LGM) through its 100% subsidiary LacGold Resources SARLU

                                                                    has made initial applications for five prospective areas, screened from a long
                                                                      list, for gold exploration. The first two totalling 781.69 sq km have been

                                                                    approved by the Interministerial Committee (CIM) and the signed Décrets are
 Gold: greenstone belts in Côte d'Ivoire                              awaited.

 100% subsidiary                                                      Official visits are planned to the next two before they go to the CIM.

                                                                      An initial MMI (mobile metal ion) programme will be undertaken immediately
                                                                      upon grant.

 African Lithium Resources (Private) Ltd                              RRR is in the process with a local partner of assembling a lithium portfolio

                                                                    by purchase of old mining areas and by pegging of prospective areas with
                                                                      evidence of lithium mineralisation.

 Lithium: historical pegmatite areas in Zimbabwe

                                                                      The process is well advanced and will be reported to shareholders once

                                                                    critical mass is achieved and all documentation is in hand.
 75% subsidiary

 Other DRC interests                                                  The Company's 100% owned subsidiary has obtained three judgments and two

                                                                    monetary awards through the DRC courts this year in relation to wrongful acts
                                                                      by a business partner.

 Copper-Cobalt

                                                                      RRR continues to pursue the matter in order to obtain compensating assets,

                                                                    payment of the awards, and further financial compensation.

 Other                                                                RRR has c397,873 shares in Elephant Oil Corporation, where an application for

                                                                    listing on a North American market has now been applied for. Current
                                                                      expectations, as reported to RRR, are for  a March listing. Should the
                                                                      listing occur, the Company is likely to possess a liquid asset of considerable
                                                                      value.

                                                                      The Company retains its royalty on the El Limon gold mine in Colombia
                                                                      (currently not paying but expected to resume payments in 2022). Other
                                                                      non-paying royalties include that over the Mt Ida iron ore asset in Australia,
                                                                      now part of Juno Minerals Ltd, and those over the Australian joint venture
                                                                      gold assets.

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
 

 

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