REG - Red Rock Resources - Asset review - current developments
14/11/2023 15:15
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RNS Number : 4303T Red Rock Resources plc 14 November 2023
Red Rock Resources PLC
("Red Rock" or the "Company")
Asset Review - Current Developments
14 November 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.
The following is an update of key points only in relation to the Company's
assets and current developments. For a more comprehensive summary of the
Company's assets, the announcement of 8 March 2023 may be referred to.
Highlights:
o RRR expects the most important near-term developments to be:
o Announcement of first shipments of Lithium Ore
o Release of arbitration result in the DRC
o An update on how to progress New Ballarat Gold Corporation
o RRR expects to initiate activity this month on its lead Burkina Faso
project with a view to possible short term production of alluvial Gold
PROJECT 2023 UPDATE
Lithium Project, Zimbabwe 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.
Sampling has been carried out over the areas of interest.
An Environmental Impact Assessment ("EIA") has been obtained over the first
production area.
Beaconing and environmental work on other areas is in progress.
The Company has the first 200t of spodumene lithium ore available for shipping
and expects to make a further announcement shortly.
Former Copper-Cobalt Joint Venture, 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
under appeal.
The buyer retains a further $15m unpaid consideration pending determination of
an arbitration where RRR claims $7.5m gross.
The release of the arbitration result is now anticipated.
New Ballarat Gold Corporation Plc 15 principal granted licences targeting gold and 1 purchased licence, together
totalling 2,517 sq km, are held around the historic mining centre of Ballarat.
Gold: Victoria, Australia
A further copper-prospective licence of 500 sq km is now also held in South
Australia.
50.1% interest
In 2022 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.
Three drill programmes have been carried out over target areas, and the
results at the old Berringa Mine were particularly promising.
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 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
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 Company is preparing a new exploration programme and has a team scheduled
to visit in the next weeks to investigate the possibility of fast-tracking
into production of the alluvial material.
Mikei Gold Project 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.
However the licences are due for renewal this year, in the course of which
some ground has to be dropped, and pending completion of this process the only
activity being carried out is work on additional EIAs, opening up new areas
for drilling.
LacGold Minerals Ltd LacGold Minerals Ltd (LGM) through its 100% subsidiary LacGold Resources SARLU
made initial applications for seven prospective areas, screened from a long
list, for gold exploration. The first 344.5 sq km licence at Djekanou has been
granted, and a further three in the same area totalling 1,060 sq km are
Gold: greenstone belts in Côte d'Ivoire awaited.
Subsidiary
Elephant Oil Corporation RRR has 397,873 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 the process is taking longer
than expected and the Company awaits definitive news. RRR has a strongly
positive view of the 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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