REG - Red Rock Resources - Lithium Subsidiary Established, Assets Acquired

Red Rock ResourcesAnnouncement

31/03/2022 10:30

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RNS Number : 7609G  Red Rock Resources plc  31 March 2022

Red Rock Resources PLC

("Red Rock" or the "Company")

Establishment of Lithium Subsidiary

Acquisition of first Lithium Assets

 

31 March 2022

Red Rock Resources Plc, ("Red Rock" or "the Company"), a natural resource
development company with interests in gold and base metals, principally in
Africa and Australia, announces an update to the announcement of 24 March
2022, in relation to its interests in lithium in Zimbabwe.

Highlights:

Ø African Lithium Resources Pvt Ltd ("ALR") has been established as a 75%
owned subsidiary in Zimbabwe with a local partner.

Ø ALR has acquired 51 ha of lithium claims 29 km NW of Bikita in SE Zimbabwe
at Tin Hill, and is in the process of transferring title.

Ø Spodumene and petalite lithium mineralisation identified in 10m thick
exposures averaging 1.43% Li(2)O (Geological Survey of Rhodesia 1975).

Ø ALR has taken 7 samples in one area of the licence, with best grades
received from an accredited laboratory at 2.07% Li(2)O, 1.082% Li(2)O, 0.87%
Li(2)O, 0.62% Li(2)O

Ø Consideration of $25,000, has been paid, with a further $10,000 retained by
ALR until completion of transfer.

Ø A new 125 ha application near Arcturus, a mining site 32km E of Harare in
Zimbabwe has been approved for grant  with a further application nearby in
process

Ø A 107 ha application near Bikita has been made and another property with
high grades from our sampling has been identified for purchase.

Red Rock Chairman Andrew Bell comments: "Zimbabwe has long been the biggest
lithium producer in Africa, and one of the largest in the world. Its
pegmatites have a mineral endowment that has considerable expansion potential,
and international investors have shown themselves willing to invest in lithium
exploration and development in this traditional mining country that has been
in disfavour for decades.

Two key centres are Bikita, the site of the best known Zimbabwe producer, the
Bikita mine, which is now 74% controlled by Sinomine group, and Arcturus,
where Australian miner Prospect Resources Ltd (PSC:AX) announced the sale of
its 87% interest in the Arcadia project for $389m to Zhejiang Huayou Cobalt on
22(nd) December 2021.

ALR has acquired one licence near Bikita and several applications and a
further potential purchase in the Bikita and Arcturus areas are at different
stages of negotiation and grant.

Sample results for a number of properties and their environs have been
received from the laboratory and will be announced as the acquisition of the
relevant properties progresses.

Red Rock's has existing battery metal interests through its copper/cobalt
exploration in the Congo.

The Company set up African Lithium Resources after discussion with its local
partner and others with a view to seeking further investment and developing a
significant presence in lithium, leading potentially to listing."

Further Information

The property at Tin Hill is a 51 ha claim named Houghton C on Plot No 5
Rippling Waters Farm, 2.2 km SSE of Marah Hill Trig beacon 132/5, in the
Bikita District of Masvingo Province in SE Zimbabwe, and is acquired from
Thebe Resources Pvt Ltd, a Zimbabwean company.

The nearby Bikita Mine is the largest lithium mine in Zimbabwe and has been in
production for over 60 years, and is one of the world's largest petalite
deposits.

The technical information in this release has been reviewed by Mr Bakhile
Batakathi, a geologist registered as a Professional Scientist with the
Engineering Institute of Zambia, and a member of the Geological Society of
Zimbabwe. He is a member of a recognized professional organization and has
sufficient relevant experience to qualify as a qualified person as defined in
the Guidance Note for Mining, Oil and Gas Companies published by AIM.

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
 

GLOSSARY

 

Lithium:           Lithium is the lightest of the metals and has
become important as an anode material in batteries due to its high
electrochemical potential; this use now accounting for three quarters of
demand

 

Petalite:           an important and high value ore of lithium

 

Spodumene:   the most important lithium ore found in pegmatite deposits

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