REG - Red Rock Resources - Asset Review and Current Developments
05/08/2022 07:00
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RNS Number : 0021V Red Rock Resources plc 05 August 2022
Red Rock Resources PLC
("Red Rock" or the "Company")
Asset Review and Current Developments
5 August 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.
A review of current projects and news outlook was issued on 24 March 2022, and
updated at the interim results announcement on 29 April 2022.
Highlights:
Ø Arbitration continuing in the DRC; outcome unknown
Ø Activity reduced in Kenya in pre-election period
Ø New contract signed for reverse circulation drill programme at Bilbale
project in Burkina Faso
Ø Continue to expect near term listing of Elephant Oil
Ø Continue to plan listing for Australian JV gold company
Ø Strengthening of battery metal presence with lithium as well as
cobalt/copper
Red Rock Chairman Andrew Bell comments: "As many will know, we recently
returned from a trip to the DRC of over 6 weeks, the primary purpose of which
was to participate in arbitration proceedings in Kinshasa where we are
pursuing claims to our share of the sale proceeds of the key assets of a joint
venture, which were disposed of without our knowledge.
$15m of these proceeds are held by the buyer of those assets pending the
result of the arbitration.
In the light of shareholder speculation, we wish to set out to the best of our
understanding the current situation.
After several hearings, which clarified the factual background, the
arbitrators urged us and the other party to negotiate between ourselves before
the arbitration concluded to arrive at, if possible, an agreed outcome.
A compromise, which represented a significant discount to what we believe to
be our entitlement, but which exceeded 50% of the amount still retained by the
buyer, was put to us and in the circumstances where we believed it was
accepted by the other party and in deference to the wishes of the arbitrator
at that time for an agreed solution, we were minded to concede, though with
reluctance.
Subsequently it appeared that the representative and negotiator of the other
party had either lacked authority or had changed his mind, and the negotiation
ended without agreement. We now continue to assert our claim to over 50% of
the total $20m principal paid or to be paid, plus damages.
The arbitral award, when and if made, and we hope it may be soon, will not now
reflect a consensus arising from the negotiation of the parties, but the
decision of the arbitrators. As we await it, we must consider a range of
possible outcomes, and uncertainties of timing, but continue to press for a
just solution which includes a resolution of the earlier court proceedings.
We emphasise that although we are confident in our case, it cannot be assumed
that an award will be made, or that it will be at or above any previously
discussed level.
Meanwhile the Company continues its activities elsewhere. We were delighted to
see New Ballarat Gold Corporation bringing two high quality and historic
assets into the portfolio, which takes that company to a new level. We are
also able to announce the beginning of a small drilling campaign on two
excellent targets in Burkina Faso."
PROJECT 2022 UPDATE
Mikei Gold Project Results of drilling of 20 Reverse Circulation (RC) holes totalling 2,093m were
announced in March 2022.
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)
16 of 20 holes intercepted gold mineralisation, in 15 holes at or above
cut-off grade, including:
100% economic interest
· 37m @ 0.73 g/t Au from 120m to 157m in KKRC095 (including 5m @ 2.05
g/t Au from 135m, 1m @ 1.59g/t Au from 145m, 2m @ 2.18g/t Au from 150m)
· 19m @ 0.54 g/t Au from 81m to 100m in KKRC087 (including 3m @ 1.07
g/t Au from 90m, 1m @ 2.55g/t Au from 95m)
· 10m @ 1.5g/t Au from 61m to 71m in KKRC103 (including 3m @ 1.02 g/t
Au from 61m, 5m @ 2.23 g/t Au from 67m)
· 8m @ 1.23g/t Au from 87m to 95 m in KKRC189 (including 4m @ 1.81 g/t
Au from 87m, 2m @ 1.07 g/t Au from 92m)
· 17m @ 1.02 g/t Au from 116m to 133m in KKRC102 (including 1m @ 3.15
g/t Au)
· 6m @ 1.17 g/t Au from 8m to 13m in KKRC082 (including 1m @ 3.75 g/t
Au)
· 4m @ 1.37 g/t Au from 83m to 87m in KKRC101 (including 1m @ 2.7 g/t
Au)
An EIA has already been obtained for drilling on four of the remaining
prospects.
The next stage diamond drilling programme has begun the planning process, with
consultant input, the ultimate intention being a JORC Resource revision.
IP, mapping, and sampling programmes have been carried out on a number of
projects. With the Presidential and General Elections due on 9 August, and
with maintenance and recalibration of geophysics equipment due, activities
have been reduced pending the election and any post-election period of
uncertainty.
Luanshimba Copper-Cobalt Project Results of first 2,469m, 29 hole, RC drill programme on the prospect were
announced in February 2022.
Copper/Cobalt: Katanga, DRC
Copper intersections of significance included:
80% interest
· 6 metres at 0.61% (including 1 metre at 1.45%) towards the bottom of
hole DRC014 at Kilembwe
· 3 metres at 0.7% and 3m at 1.14% encountered towards the bottom of
holes DRC019 and DRC021 at Luanshimba North.
Extensive Cobalt was encountered including:
· 43m at 0.13% including 11m at 0.2% at Kilembwe in DRC015 in a
brecciated argillaceous arenite
· 3m at 0.37% related to a fault gouge, overlying 13m at 0.10% in a
brecciated argillaceous arenite at Kilembwe in DRC008
· 5m at 0.78% including 2m at 1.4% at DRC023 in Luanshimba East.
Several holes ended as they were entering pyrite and chalcopyrite
mineralisation.
The very promising results were reviewed during the recent visit to the DRC,
and it was agreed that the next step should be diamond drilling to test for
Copper and Cobalt ores deeper in the sequence.
New Ballarat Gold Corporation Plc 15 granted and purchased licences totalling 1,841 sq km are held around the
historic mining centre of Ballarat. A further 5 licences totalling 493 sq km
are completing the grant process.
Gold: Victoria, Australia
Encouraging results from a modest initial diamond drill programme over two
target areas were received in the course of the Spring and Summer. 520m of
50.1% interest drilling at the O'Loughlins prospect SE of Ballarat, and 340m at Pitfield/Mt
Bute SW of Ballarat, had been carried out in early 2022.
In May and July NBGC obtained grant of the historic Ajax Mine with recorded
production of 312,789 oz at 14.8 g/t, and purchased the historic Berringa
Mines, with recorded production of just under 300,000 oz at 8.3 g/t.
The acquisition of these two significant assets, among the largest producing
hard rock mines in the history of the Victoria gold fields, and with
significant associated exploration targets, is an important milestone for
NBGC.
Red Rock and its JV partner are seeking a listing for NBGC, as and when market
conditions permit.
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 using visible near infrared (VNIR),
shortwave infrared (SWIR), longwave infrared (LWIR) and ALOS-1
synthetic aperture radar (SAR) imagery, was undertaken.
A sampling and mapping programme covering artisanal and other areas with
evidence of surface or near surface gold was undertaken at Bilbale.
Two targets have been selected for immediate drilling in an reverse
circulation (RC) programme for an initial 500m: one artisanal target for
orogenic gold in the main Bilbale trend, and an underexplored structural
target at Djikologo where previous work had intersected 11m at over 1 g/t.
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 745.67 sq km after
adjustments, at Yamassoukro and Djekanou, have been approved by the
Gold: greenstone belts in Côte d'Ivoire Interministerial Committee (CIM) and the signed Décrets are awaited.
100% subsidiary Official visits have been conducted to the next 2, Tienko and Korhogo.
Some initial sampling has been carried out with results to be followed up upon
grant.
An extension area to one of the licences has been identified.
An initial MMI (mobile metal ion) programme will be undertaken immediately
upon grant.
African Lithium Resources (Private) Ltd RRR has been 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 good grade lithium mineralisation.
Lithium: historical pegmatite areas in Zimbabwe
Sampling has been carried out over the areas of interest.
Subsidiary
$100,000 was raised privately for a 10% project interest, and ALR will
continue to seek external finance to fund its initial activities.
Other DRC interests The Company's 100% owned subsidiary has obtained an executory judgment for
$2.5m (being 50.1% of $5m paid to local partner VUP by a buyer) and a $2m
damages judgment currently under appeal.
Copper-Cobalt
The buyer retains a further $15m unpaid consideration pending determination of
legal claims including that of the Red Rock group.
Arbitration hearings and negotiations have been held in Kinshasa in order to
resolve these matters without further litigation.
The decision of the arbitrators is awaited.
The acquisition of a 58% interest with a participating US partner in the
historic high grade Kimono cobalt project was announced on 27 June 2022.
Cobalt
Other RRR has c397,873 shares in Elephant Oil Corporation, where an application for
listing on a North American market has been made. Following some changes to
the shareholder register, and an updating of the accounts, we hope for a
mid-August to early September listing. Should the listing occur on the terms
indicated to us, the Company is likely to find itself at the conclusion of a
six month escrow with a valuable liquid asset.
The Company retains its royalty on the El Limon gold mine in Colombia, where
following extensive refurbishment and the start of production from the Cordero
mine earlier this year a re-opening of the mill and a resumption of royalty
payments are expected later in the year.
Other non-paying royalties include the 0.75% (fully diluted) NSR royalty over
the Mt Ida iron ore asset in Australia, now part of Juno Minerals Ltd, and
those over the Australian joint venture gold assets.
RRR notes the statement by Juno, which listed in 2021, in its interim results
announced in March 2022 that "with a renewed interest magnetite iron ore, Juno
commenced a review on the Mount Ida Project. The Project is on a granted
Mining Lease, has significant tenure for infrastructure, and expansive water
exploration licences over areas prospective for good quality water. The Mount
Ida Project remains the largest magnetite resource and most technically
advanced magnetite project in the Yilgarn. Juno intends to progress the
completion of the Feasibility Study on the Mount Ida Project, with the
objective of developing a long-life magnetite mine".
Juno described the Mt Ida project as having the "potential to become a
long-life tier one
magnetite mine".
On 3 May 2022 the JV farm-in by Hancock Prospecting to the Legacy/Hawthorn Mt
Bevan Project, adjacent along strike, was announced.
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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