REG - Red Rock Resources - Co-operation in Next Phase at Bilbale

Red Rock ResourcesAnnouncement

27/02/2024 07:00

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RNS Number : 5216E  Red Rock Resources plc  27 February 2024

Red Rock Resources PLC

("Red Rock" or the "Company")

West African Gold Update

Co-operation in Next Phase at Bilbale

 

27 February 2024

 

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

This release is an update, further to the announcement of 23 January 2024, in
relation to the Company's gold operations at Bilbale and Boulon in Burkina
Faso.

Our planned February visit to join our colleagues at Riverstone Resources Ltd,
a Hong Kong company owned by Mr Mahendran Samuel ("Riverstone") on site at
Bilbale has now been scheduled for the first week of March, as a separate due
diligence trip involving key team members had to be conducted at short
notice

The team will include experienced geologists and engineers from India and
Africa with experience of mine development, including in Burkina Faso, as well
as our local staff. Initial work will consist of locating and setting up areas
for initial trials, some trenching and benching, drilling of two bore holes,
and civil works including ponds and preparation of areas for administration,
fuel storage, laboratory, furnace, and security.

In parallel, Riverstone will deliver the machinery and equipment needed for
exploration, much of which is held by them in stock, and which will be
imported by air and sea with a transport time of 6-8 weeks. This equipment
should arrive at a prepared site ready to start alluvial exploration
operations with the minimum of delay.

Red Rock and Riverstone will implement a test programme processing alluvial
material from different parts of the license, on a scale sufficient to
establish gold grade, including high grade zones. Red Rock will operate
initially on a trial basis, but expects to initiate the process of permitting
for bulk production and processing. Initial activities will be those permitted
by the exploration license.

Over the implementation period the parties will discuss the terms of future
co-operation, taking into account the results of the phase of work now
beginning. The license remains owned by Red Rock subsidiary Faso Greenstone
Resources SARL.

Chairman Andrew Bell comments:

"Our partners in this new venture are committed to building a long term
relationship with Red Rock and have extensive experience of gold production
and gold project implementation in Africa.

Our expectation is that when we leave site, there will remain behind a core
team that will work together in order to move the project through the steps
towards production.

This alluvial project reflects our stated intention to move into cash flow at
any of our projects where we can identify this potential. We and Riverstone
believe it has potential to scale rapidly, and will be looking to prove that
in the current phase of exploration. The experience of their personnel in
working with alluvial deposits will we expect complement our capabilities. We
will report as equipment is delivered and installed, and as other milestones
pass. Both parties will be making contributions, and our further potential
commitment in this phase is limited to £150,000 to £200,000. We consider
that our current resources and facilities, and indications of support we have
received, will enable us to meet this spend. In the event of discouraging
results at any stage, work on the alluvial potential will cease and Riverstone
will move equipment to another project. Red Rock will update the market as
work proceeds.

We are now working with a group that is deeply committed to our success whose
advice and help on other matters we have found invaluable."

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

Bob Roberts 0203
8696081
  Broker Clear Capital Corporate Broking

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

 

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