REG - Red Rock Resources - Asset Review and Current Developments
08/03/2023 07:15
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230308:nRSH2196Sa&default-theme=true
RNS Number : 2196S Red Rock Resources plc 08 March 2023
Red Rock Resources PLC
("Red Rock" or the "Company")
Asset Review and Current Developments
8 March 2023
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 5 August 2022 and
a review of activities was included in the Annual Report dated 29 December
2022.
To facilitate comparison with the August review, the same order has been
adopted.
The relative importance of projects may change over time.
Highlights:
o Key short-term concerns are:
o the arbitration process in the DRC
o the drill programme in Australia
o progress with bringing initial lithium production on stream in Zimbabwe,
and
o Elephant Oil listing in the U.S. taking longer than expected
o Important for 2023 will be exploration activity for copper/cobalt and gold
at the African projects
PROJECT 2023 UPDATE
Mikei Gold Project Details of results of drilling of 20 Reverse Circulation (RC) holes totalling
2,093m were announced in August 2022.
Western Kenya
Drilling was over the Central KKM project area within and just outside the
Resource envelope showing continuity along strike and down dip.
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.
100% economic interest
An EIA has been obtained for drilling 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 will start in March to refine the next
drill targets.
Luanshimba Copper-Cobalt Project Results of first 2,469m, 29 hole, RC drill programme on the prospect were
announced in February 2022 and August 2022.
Copper/Cobalt: Katanga, DRC
Extensive Cobalt was encountered.
80% interest
Several holes ended as they were entering pyrite and chalcopyrite
mineralisation.
The next step should be diamond drilling to test for Copper and Cobalt ores
deeper in the sequence, but activity is paused pending the Arbitration results
(see below).
New Ballarat Gold Corporation Plc 17 granted licences and 1 purchased licence totalling 1,867 sq km are held
around the historic mining centre of Ballarat. A further 2 licences totalling
467 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 Spring and Summer 2022. 520m of
50.1% interest drilling at the O'Loughlins prospect SE of Ballarat, and 340m at Pitfield/Mt
Bute SW of Ballarat, were carried out.
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.
After successful renewal of the exploration licence covering the historic
Berringa gold mine, a diamond drill programme was begun at Berringa, which is
a significant development for the Victoria Goldfields JV.
As announced on 16 February 2023, visible gold was encountered in the first
three holes drilled. This shows the accurate targeting of the structures by
the geological team, and we look forward to receipt of detailed assay data as
soon as possible.
Geologically, all drillholes completed thus far have successfully intersected
the down dip and along strike extensions of the target mineralised zones.
We consider that our JV in the Victoria Goldfields is adding value with each
stage of exploration work, and as the drilling confirms the initial model.
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.
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 were selected for immediate drilling in an reverse circulation
(RC) programme for an initial 500m (later extended to 778m) of drilling, 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.
This initial scout drilling programme (later extended to 778m) of seven holes
across two locations in the extremely promising Bilbale licence produced, in
the first phase at the Djikologo target, gold intersections in three of the
four holes drilled, with three relatively high-grade intersections in the
BilR22-03 drillhole including 20m at 3.19 g/t gold from 22m depth.
The second phase intersected gold mineralisation in two of the three holes at
the Bilbale artisanal area, but at more modest tenors. As we emphasise in
early stage drilling, we are drilling at that point for structure and not
grade, and any intersections over 1 g/t show we are in mineralisation and so
are positive.
The results obtained across the two prospects from a small programme that, to
meet spend commitments on an acquired licence, had been accelerated and so had
not been preceded by any detailed geochemical and geophysical preparation,
were good. The next stage will be some ground geophysics in preparation for
further drilling.
LacGold Minerals Ltd LacGold Minerals Ltd (LGM) through its 100% subsidiary LacGold Resources SARLU
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.
Subsidiary Official visits have been conducted to the next 4, Tienko, Korhogo, Molonou
and Kokumbo. With Molonou and Kokumbo, the Company took over existing
interests of high prospectivity near or adjoining Yamassoukro.
Some initial sampling has been carried out with results to be followed upon
grant.
An initial MMI (mobile metal ion) programme will be undertaken immediately
upon grant.
African Lithium Resources (Private) Ltd RRR has been in a continuing 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.
c.50% owned
ALR has funded development to date from its own resources and by
raising $240,000 of external funding and has now raised so far a
further $80,000 of external finance for the development into small scale
production of one of its lithium assets. At the conclusion of this funding
round, the Company's ownership of ALR is expected to be about 50%.
An Environmental Management Plan and a Site of Works Plan have been filed for
the first project and the final element of the Environmental Impact Assessment
("EIA"), a stakeholder engagement process, is being completed with a view to
filing this week.
The first location selected is ALR's Tin Hill property, 29 km North-West of
Bikita in South-East Zimbabwe.
A further EIA may then be prepared for a second operation on its Beatrice
site where there are lithium ore stockpiles and test results have been
positive.
The initial plan is to produce and sell Lithium ore with a target grade of 2%
(1.5%-3%) into the local market, on a pick-up basis and with a seven day sales
to payment cycle. When the operation has been stabilised, ALR plans to
introduce a flotation unit in order to beneficiate the ore to 4.5%-5%, so that
it may be sold into the export market. There are no immediate plans to
delineate a mineral resource estimate.
Litigation and Arbitration (DRC) The Company's 100% owned subsidiary obtained in 2022 an executory judgment for
$2.5m (being 50.1% of $5m paid to local partner VUP by a buyer).
A further claim by the Company's subsidiary for $2m costs and damages is
currently under appeal, with a result expected in the next weeks.
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 has been received in draft and a finalisation
and signature is awaited.
Further information will be provided when there is anything definite to
report.
Other DRC interests 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
Activity has been paused pending the results of the Arbitration (above).
Elephant Oil Corporation RRR has c397,873 shares in Elephant Oil Corporation, where a Form S-1/A and a
presentation have been filed and are kept updated on the EDGAR website of the
Securities and Exchange Commission under the stock code ELEP. The intention of
Elephant is to list on a North American Exchange. It had been expected that
this would have taken place early in 2023, but clearly the process is taking
longer and RRR will report further when it has confirmation of a listing date
Royalties 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.
Royalties are held over the Australian, Zimbabwean, Ivory Coast, Burkina Faso,
and Kenyan assets.
Juno Minerals notes in its presentation of November 2022 that with 1.85
billion tons at 29.48% Fe, Mt Ida is the most advanced magnetite project in
the Yilgarn, with potential to become a long-life Tier 1 magnetite mine.
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
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END TSTFDLLBXXLZBBXRecent news on Red Rock Resources
See all newsREG - AIM - AIM Notice - 25/04/2024
AnnouncementREG - Red Rock Resources - Issue of Equity, Directors' Dealings and TVR
AnnouncementREG - Red Rock Resources - Issue of Equity
AnnouncementRCS - Red Rock Resources - DRC and Gold Assets Update
AnnouncementREG - Red Rock Resources - Half-year Report
Announcement