REG - Red Rock Resources - Asset Review and Interims Update
24/03/2022 07:01
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RNS Number : 8321F Red Rock Resources plc 24 March 2022
Red Rock Resources PLC
("Red Rock" or the "Company")
Asset Review and Current Developments
Interim Results Update
24 March 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 likely near-term news was issued on 4
February 2022, and this is an update of that review.
Highlights:
Ø Results from drill programmes in Congo and Kenya have been announced, and
laboratory results awaited from the Australian JV drill programme
Ø Pursuit of the Company's legal rights in the DRC progressing with judgments
rendered in favour of the RRR group
Ø Await laboratory sampling results in Côte d'Ivoire (gold) and Zimbabwe
(lithium)
Ø Planning and costing the requirements for next stage diamond drill
programmes in DRC and Kenya
Ø Expected near term listing of Elephant Oil
Ø Listing planned for Australian JV gold company
Ø Continued focus on strengthening of battery metal presence with lithium as
well as cobalt/copper now an area of interest
Interim Results
The Company also announces that further to the guidance published by the
London Stock Exchange in respect of the temporary measures for the publication
of half-yearly reports for AIM companies pursuant to AIM Rule 18 of the AIM
Rules for Companies, Red Rock intends to utilise the additional one month
period to prepare and notify shareholders of the Company's interim results for
the six months ended 31 December 2022 (the "Interim Results") and will
release its Interim Results in the second half of April 2022.
Red Rock Chairman Andrew Bell comments: "Our reverse circulation drill
programmes in Kenya and the Congo, where we have recently announced results,
achieved their objectives, and we are already planning and costing the diamond
drill programmes to follow up these successes.
We still have the gold drilling results from our diamond drilling programme in
Victoria, Australia, to look forward to, and we also await the full results
from a gold sampling programme across our Ivory Coast licenses, as well as
results from lithium and tantalum sampling in Zimbabwe.
We also look forward to the listing of Elephant Oil Corporation, a group in
which we have been a longstanding shareholder (currently holding under 4%)
in the U.S. The value to us of this holding upon listing is expected to be a
multiple of book value and will underwrite some of our continuing activity.
We have had two groups of assets in the DRC. One we recently drilled. When we
acquired our other JV interests in the DRC, the fact that we could in our
internal assessments based on previous work identify a quantifiable high grade
deposit exploitable from surface and within easy distance of processing
facilities created in our mind a potential route through an early transaction
or by mining out of the small company trap. Our success in negotiating the
replacement of the original assets offered to that JV with better assets
unfortunately created too great a temptation for some of our associates, and
the extent of the misbehaviour became evident late last year. We would hope
to obtain returns through compensation as opposed to those we should have
enjoyed through mineral extraction and sale; the pursuit of our legal rights
in the DRC is progressing.
Moving to IPO or partnership with some of Red Rock's assets remains a key
component of strategy, enabling us to balance risk, and fund programmes from
external sources.
The Company has reviewed its financial position and expects to have sufficient
working capital available to it for the foreseeable future. "
PROJECT UPDATE
Mikei Gold Project Results of drilling of 20 Reverse Circulation (RC) holes totalling 2,093m
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)
EIA already obtained for four of the remaining prospects.
Next stage diamond drilling programme being planned with consultant input,
with intention of following this with a JORC Resource revision.
IP programmes completed on four prospects, and mapping and sampling planned at
Masurura.
Luanshimba Copper-Cobalt Project Results of first 2,469m, 29 hole, RC drill programme on prospect 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 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, and the next step will be diamond drilling to test for Copper
and Cobalt ores deeper in the sequence,
New Ballarat Gold Corporation Plc 9 granted licences totalling 1,501 sq km are held around the historic mining
centre of Ballarat. A further 3 licences totalling 657 sq km (one of which
produced over 300,000 oz in mid-19th century mining) are completing the
grant process and a further licence is in a competitive grant process.
Gold: Victoria, Australia
A diamond drill programme to test three target areas began before Christmas
50.1% interest with a 6 hole programme at the O'Loughlins prospect SE of Ballarat, before
moving to drilling at Pitfield SW of Ballarat. Drill results from O'Laughlins
are expected from the busy Perth labs shortly.
Red Rock and its JV partner are seeking a listing for NBGC, and work on this
is progressing in what is now a better gold environment.
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 is about to be undertaken at Bilbale.
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 have been approved by the Interministerial Committee (CIM) and the
Gold: greenstone belts in Côte d'Ivoire 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 and most results are still awaited:
Yama Djekanou Tienko Korhogo
Termite 3 0 0
0
Soil 10 9 0
0
Rocks 17 21 37
1
Stream 4 10 0
0
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 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 reporting awaits the imminent receipt of
definitive documentation.
75% subsidiary
75 samples covering the areas of interest have been submitted for assay.
Other DRC interests The Company's 100% owned subsidiary has obtained judgments for $2.5m (being
50.1% of $5m paid to local partner VUP by a buyer) and $2m damages, plus
costs, in relation to its joint venture with VUP. An opposition filed to the
judgment by VUP was rejected by the Court.
Copper-Cobalt
VUP seeks a further $15m in relation to its contract with a third party, and
RRR has notified the buyer of its interest in 50.1% of that, if paid, or
assets in lieu.
RRR is moving to enforce the judgments, and further damages, against VUP and
other parties that have enabled its conduct.
This may require later proceedings in other jurisdictions, but the substantive
law to be applied in any claim will likely be that of the DRC.
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 an early April listing following
submission of an updated quarterly report. Should the listing occur on the
terms indicated to us, the Company is likely to possess a liquid asset with a
market value in the millions of dollars.
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 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 in 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".
The Company no longer holds a material investment in Jupiter Mines.
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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