REG - Red Rock Resources - Update on Australian Joint Venture Subsidiary

Red Rock ResourcesAnnouncement

07/12/2021 11:00

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RNS Number : 8354U  Red Rock Resources plc  07 December 2021

Red Rock Resources PLC

("Red Rock" or the "Company")

Share Exchange Agreement on Australian Assets

Grant of New Licence in Victoria

Results From Soil Sampling Programme

 Testing of Multiple Strike Extensions by Drilling to Begin in December 2021

 

7 December 2021

Red Rock Resources Plc ("Red Rock" or "the Company"), the natural resource
development company with interests in gold, manganese and copper, announces an
exploration update, further to that of 16 September 2021, from its joint
venture subsidiary Red Rock Australasia Pty Ltd ("RRAL") which is undertaking
gold exploration at its granted licences in the Victoria Goldfields in
Australia.

Highlights

·    Red Rock exchanges shares in RRAL for 50.1% of newly formed New
Ballarat Gold Corporation PLC -  a UK public company which now owns 100% of
RRAL and will be the vehicle for a possible listing in London.

 

·    Grant of new 164 km(2) exploration licence EL007328 in Victoria,
Australia, with 8 licences now granted covering 1,012 km(2).

 

·    1091 soil samples tested by Portable X-ray Fluorescence (pXRF)
significantly confirm regional correlation of arsenic anomalism with gold
workings and gold-bearing structures

 

·    Identification of wide North-South anomaly continuing North of
Buninyong with 1 km length, and parallel 400m structure

 

·    South of Buninyong at O'Loughlins, a diamond drill programme on 1 km
long structures planned to begin in December.

 

·    Advanced planning for drill programme at Pitfield early in new year,
with further target identified for potential February drilling

 

http://www.rns-pdf.londonstockexchange.com/rns/8354U_1-2021-12-7.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8354U_1-2021-12-7.pdf)

Map 1: Arsenic in Soils - Buninyong EL007271. Large anomaly to SE is
O'Loughlins prospect, S and central is previously defined Monmouth prospect

Red Rock Chairman comments: "With the completion of the share exchange
agreements at RRAL, Red Rock and Power Metal Resources PLC become the initial
shareholders of New Ballarat Gold Corporation PLC ("NBGC"). The Company
continues to hold a 50.1% economic interest in the Victoria gold project, as
RRAL now becomes the 100% owned subsidiary of NBGC. The new structure will
enable the project to advance more quickly, access outside capital more
easily, including through a planned separate listing, and act more
independently. We have confidence in the professional team now in place out in
Ballarat, who continue to do excellent work on the ground."

 

NBGC Director and CEO Dave Holden comments: "We thank our shareholders for the
confidence they continue to show in us as we move ahead under our new
corporate banner.

 

Now that we have tested the 1091 soil samples we took in the three tenements
south and west of the Ballarat Mine we believe we have confirmed the
importance of arsenic anomalism as a pathfinder for gold and gold-bearing
structures in this region. We have seen a good correlation with known gold
structures we were already exploring, and have been able to identify a number
of strike extensions, including a significant northern extension of the trend
passing through Mt Buninyong. The information we continue to derive from this
programme assists our drill targeting and could be important as we seek out
economically significant orebodies.

 

Our exploration work to date, mapping and creating 3-D models in and around
the historical workings, searching in the archives, entering and tracking old
workings, and conducting focused geochemistry, has enabled us to move very
rapidly to the drilling phase on some excellent targets, starting we
anticipate in the middle of this month.

 

Progress in granting of our remaining licence applications continues. The
newly granted EL007328 lies south and south east of Ballarat, is adjacent to
two of our key granted licences, and contains a southern extension of one of
the mineralised trends we are currently preparing to drill.

 

December and January look set to be active and important months for NBGC, only
briefly interrupted by Christmas."

 

Soil Sampling Programme

Interim results from the ongoing the soil sampling programme south of Ballarat
has continued to identify further extensions of linear trends in potential
gold bearing structures reflected in arsenic values in soils.  Given the
known association, NBGC has focused on defining anomalism away from and along
strike from known mineralization and has been rewarded with positive results
in the latest soil sampling programme.

Preliminary interpretation has identified anomalism that have previously not
been targeted within all licenses. This anomalism appears to correlate along
strike with known historical workings or exploration successes.

1,091 samples have been collected and analyzed using pXRF techniques.

Rock chip samples taken from these historical workings are also currently in
analysis and will provide further reference points to support the latest
results.  Infill sampling soil sampling will continue focused on the
anomalous (greater the 3 standard deviations normalised data) results in the
coming weeks as the region moves into the drier Summer period.

pXRF techniques

The proposition tested is that the pXRF, though limited in its penetration of
the soil partial analyzed (and thus  more likely to represent the surficial
elements on the grain rather than the composition of the grain itself), will
provide a low-level detection that may highlight any anomalous metal migration
laterally or vertically through the surface soils and could be indicative of
mineralisation beneath or adjacent to the anomalous area.  This is a broadly
similar concept to MMI (mobile metal ion) analytical work.

The following sampling and subsequent data manipulation methodology was
adopted.

1.     Samples were collected immediately below the surface top soil and
sieved. This produced a more homogenous sample for testing with organic
fragments removed.

2.     Samples were place in plastic chip trays for storage and analyzed
using pXRF in an offsite office. The office allowed for a more constant
temperature and humidity than in the field - samples were given time to air
dry before analysis.

3.     During the analysis blanks were inserted on a regular basis to
identify any drift developing in the instrument over time.

4.     Data was standardized.  Standardization allowed direct comparisons
of the historical data with the recently collected soil survey data and
compilation into one homogeneous dataset.  The relative value is considered a
more meaningful dataset than the raw ppm value.

5.     To minimize the overprint of obvious contamination obscuring the
potentially bed rock data, samples identified as external contamination were
removed.

6.        To aid graphic representation when developing contours
anything above three standard deviations was considered as highly anomalous
and a top cut of three SD was applied. This process allowed a more readily
interpretative contour of the data.

 

Discussion of Results

Preliminary evaluation for the pXRF analytical data has identified coherent
anomalism from arsenic.  Investigation into the possibility of other elements
is ongoing and further correlation between the current anomalies and
mineralised zones is under investigation.

 Number of sample points  mean     mode    Max value  1 SD  Project area  Tenement
 359                      21.2ppm  7ppm    157ppm     22.8  Dereel        EL007301
 434                      15.6ppm  6ppm    135ppm     17.7  Pitfield      EL007327
 298                      8.7ppm   6ppm    110ppm     7.9   Buninyong     EL007271

Table of raw data with actual arsenic record, and statistical parameters

EL7271, Buninyong

Key takeaways: exciting new 1 km  N-S structures identified in North,
following soil sampling, as addition to: previously identified and sampled
structures in S-E around O'Loughlins (December 2021 drill target, 2-3 parallel
N-S structures, up to 1 km and 0.4km identified, historically mined (no
recorded grades yet identified), and SW target; possible Eastern target needs
exploration

The soils sampling has identified anomalism relating to a line of
mineralisation extending north from Mt Buninyong. The latest sampling
highlights the definite break in mineralisation between Buninyong North and
the southern prospect areas. There is an inferred southwest oriented cross
fault from the Mt Buninyong which may be truncating mineralisation at the
southern end of the Ballarat East line of workings and is thought to show
sinistral strike slip. Termination of the Mt Buninyong soil arsenic anomaly
and the lateral shift would suggest the weak easternmost anomalism immediately
to the east of Mt Buninyong may be the continuation of the central Buninyong
line of workings.  This further reinforces the concept that the Scotsburn
workings (extending from just south-southeast of Buninyong down to
O'Laughlins) is the continuation of the main Ballarat East line currently
being mined underground (at the Ballarat Mine owned by Shen Yao Holdings).

Follow up sampling will continue over the cluster of workings central to the
licence area where access can be arranged.  Sampling will also occur around
the sporadic high grade values seen to the west of the main Scotsburn range.
There is growing evidence of a fourth structure to the far east of the
tenement extending south adjacent to EL007505.

To the west, low-level anomalism identified within EL007281 during a previous
programme is to be included in future sampling.

EL7301, Pitfield

Key takeaways: strong target around Mt Bute in N confirmed, and drilling
planned for around January 2022, no historic grades identified; new previously
unexplored targets generated in S; further sampling required.

 

http://www.rns-pdf.londonstockexchange.com/rns/8354U_2-2021-12-7.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8354U_2-2021-12-7.pdf)

Map 2: Arsenic values from pXRF sampling, Pitfield EL007301. Mt Bute target in
N of license

Samples collected predominantly alone east-west lines has provided approximate
boundaries to the known mineralisation at Mt Bute.  To the south strong
results to the lower west margin of the tenement and the southeast is in areas
not previously explored.  Additional sampling is required to further
constrain the anomalism and from this vector in on potential drill targets.
This initial result is highly encouraging that mineralising continues a broad
north south trend throughout the tenement.

The area is presumed to be in part overlain by recent volcanic rocks and this
may be the first indication that the pXRF sampling technique can assist in
exploring for mineralisation under cover.

EL7327, Dereel

Key takeaways: southern extension to the high grade historic Golden
Reefs/Dereel mine shown as anomalous; area targeted for early 2022 drilling;
anomalism also highlights previously unidentified prospects within license,
requiring further sampling.

 

http://www.rns-pdf.londonstockexchange.com/rns/8354U_3-2021-12-7.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8354U_3-2021-12-7.pdf)

Map 3: Arsenic values from pXRF sampling, Dereel EL007327

Initial results from Dereel highlight the southern extension to the Golden
Reefs/ Dereel Mine.  This mine was active sporadically from 1909-1937
producing of 2,735 t grading 15.7 g/t Au. Workings extended down to
approximately 80 m.  Field observations at the surface exposure of the reef
identified primarily a laminated quartz vein and surface expression including
additional historical shafts to the north suggest up to 500 metres of strike
to the reef system.

Subject to finalising land access agreements, the Company has intentions to
drill down dip and along strike early in 2022.

The soil sampling has also identified a strong arsenic anomaly on the
north-western margin of the tenement. There is no historical information
identifying any mining in this area,  and offers the prospect of a previously
unidentified zone. Follow up sampling is proposed early in the new year.

Similarly lower tenor anomalism in the far south west lines up with the strong
response  recognised over the Long Thought Of mine workings. This is inferred
to be southern extensions to the Berringa gold field and remains largely
untested.

New Ballarat Gold Corporation PLC

 

NBGC is a privately owned joint venture company owned as to 50.1% by Red Rock
and as to 49.9% by Power Metals Resources PLC (AIM:POW).

 

NBGC holds a strong land position of 1,012 sq km in the rich gold fields of
Victoria, Australia, principally around the mining centre of Ballarat, as the
result of a focused exploration strategy targeting high grade quartz hosted
gold veins systems in a region where the exploration models and targets are
well understood. The company has carefully assembled its portfolio of
properties comprising a broad range from robust exploration targets to near
term resource potential, all of which remain largely undeveloped by modern
explorers.

 

With the first tenements granted only in 2021 NBGC is already at a stage of
discovery where it has been able to define 3 promising gold prospects for
diamond drilling in Q4 2021/Q1 2022. Still able to actively operate in the
current global pandemic, the company has exploration geologists and field
crews active in the field. This is coupled with a technical team holding an
in-depth knowledge of Victorian geology including extensive underground
experience gained from working in currently operating mines in the area.

 

Granted Licenses

These licences cover high priority areas where NBGC has early drill targets
and in which exploration has already started.

 Licence Application Number  Project Name      Area (km(2))
 EL007271                    Buninyong         133

                             (renamed)
 EL007281                    Blue Chip         74

 EL007285                    Blue Ribbon       8

 EL007327                    Dereel            60
 EL007385                    Sardinia                             4
 EL007329                    Kilmore           484
 EL007301                    Pitfield/Mt Bute  85
 EL007328                    Blue Yonder       164
 Total                                         1,012

 

Applications

RRAL has applications in process for eight other new gold exploration licence
areas covering approximately 2,057 km(2) in the Victoria Goldfields of
Australia as follows:

 

 Licence Application Number   Project Name    Area (km(2))
 EL007282                     Blue Sky        489

 EL007294                     Red Queen       130
 EL007330                     Daylesford      202

                              (renamed)
 EL007460                     Kilmore West    325
 State land within EL007271

 [EL007505

 EL007506                                     [9

 EL007507]                                    9

                                              8]
 EL007540*                    Outer Ballarat  148

 (3 competing applications)

 Total                                        c 1,294

 

* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty
Ltd have put in competing applications the same day as RRAL for the ground
covered by EL007540. The application considered to have greatest merit will
eventually be given priority.

The following applications have been made in Western Australia, covering
largely areas previously held by the Company at the time of its original
listing. The two where there is another applicant will be subject to a ballot.

 EL45/5859                     Paterson          227

 (One competing application)
 EL45/5885                     Pilbara/Paterson  70
 EL45/5881                     Pilbara/Paterson  33

 (One competing application)

 

The technical information relating to exploration in this report is compiled
by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of
Geoscientists. Mr Holden has experience in the style of mineralisation and
type of deposit under consideration. Mr Holden is the Exploration Director of
RRAL.

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 020 7374
2212
    Broker First Equity Limited

 

 

GLOSSARY

 

MMI                             Mobile Metal Ions
are ions released into solution from soil samples by the action of
extractants, and geochemical analysis can be used on them to identify possibly
deeply buried mineral deposits

ppm                             parts per million

X-ray Fluorescence    The emission of secondary X-rays from a material that
has been excited by being bombarded with high-energy X-rays, used for
elemental analysis in geochemistry

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