REG - Red Rock Resources - Update on Gold Exploration in Victoria

Red Rock ResourcesAnnouncement

12/04/2022 14:00

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RNS Number : 1540I  Red Rock Resources plc  12 April 2022

Red Rock Resources PLC

("Red Rock" or the "Company")

Update on Gold Exploration in Victoria

 

12 April 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 in relation to the exploration
programme being carried out by joint venture subsidiary New Ballarat Gold
Corporation plc ("NBGC") in the Victoria Goldfields of Australia. Exploration
is carried out by Red Rock Australasia Pty Ltd ("RRAL"), the 100% owned
Australian operating subsidiary of NBGC.

Highlights

·    First phase diamond drilling at Mt Linton and O'Loughlin's
complete.

·    Initial results received confirm that two gold-bearing structures
have been intersected at the O'Loughlin's Prospect, including 0.4 m at 12.34
g/t Au from 75.7m downhole, and 0.5m at 1.44 g/t Au from 50.6m downhole from
hole OL21D002.  (Note - As further explained below: Due to low core recovery
across select areas, up to several meters or core across the main mineralised
zones were not recovered. The core that was captured and available to be
sampled is thought to be highly under-representing the nature and width extent
of the mineralized zone.).

 

·    To date, the O'Loughlin's prospect area extends over 2 kilometres
along strike and up to 500 metres wide; a size comparable to the nearby
Ballarat Gold Mine.

·    Investigation of structural and geological complexities from recent
core drilling underway, with additional drilling at the O'Loughlin's Prospect
planned following completion of the analysis.

·    Preliminary Mo and Bi results from Mt Bute suggest that models
incorporating new concepts for bigger targets of Intrusive related gold
("IRG") mineralization model may be more applicable to Victorian gold deposits
than first thought.

·    Extensive soil sampling to begin over the remaining granted tenures
held by RRAL in the Victoria Goldfields in order to identify further
previously untested or unidentified targets.

·    The Daylesford exploration licence (EL7330) covering the historical
Ajax mine is a step closer to grant having successfully passed through the
objection phase and Native Title assessment.

RRAL Exploration Director Mr David Holden comments: "After drilling a combined
860m at the O'Loughlin's and Mt Bute prospects, drilling has been paused to
allow for processing of samples and geological interpretation. At O'Loughlin's
we continue to see geological similarities to the nearby Ballarat mine, and
and we have already encountered high-grade gold from the initial assays we
have received that have further validated our exploration thesis.

 At Mt Bute prospect the anomalous molybdenum and bismuth initially
identified in XRF test work suggests the possibility of an intrusive-related
component to the mineralization.  This implies potential for larger and
deeper gold-molybdenum-tungsten targets at Mt Bute. Rock chips sampled here
have returned notable gold results.

As we plan for a listing of the Victoria gold interests, these initial
drilling results combined with the progress of the important Daylesford
exploration license towards grant, are important steps that will enable us to
list NBGC with immediately prospective projects that possess the potential
grade and scale that we seek."

Overview:

RRAL has now completed diamond drilling at two of its advanced prospects, Mt
Bute and O'Loughlins, which are located approximately 30km and 20km from the
town of Ballarat respectively.

Figure 1 regional location map

http://www.rns-pdf.londonstockexchange.com/rns/1540I_1-2022-4-12.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1540I_1-2022-4-12.pdf)

The intention of the drilling was to allow detailed geological investigation
of mineralized structures seen within historical narrow workings but otherwise
not visible at surface.

At both prospects mineralized quartz reef structures were successfully
intersected.

Whilst assays for the first two holes at O'Loughlin's have been received, the
remainder are due back before the end of the second quarter 2022.  Delays
have been experienced in assaying with high demand for analytical work coupled
with staff shortages due to the COVID pandemic. This is resulting in high wait
times for the sample assays.

SUMMMARY OF DRILLING TO DATE

 HOLEID    No of samples  Total Depth(m)  Azimuth  dip  Easting(m)  Northing(m)  Elevation(m)                  Lab status
 OL21D001  79             80.2            280      -70  755592      5819620      352.8         returned
 OL21D002  112            88.7            278      -85  755593      5819620      352.8         returned
 OL22D001  88             122.1           88       -74  755539      5819638      354           In progress
 OL22D002  77             143.5           71       -60  755539      5819638      354           In progress
 OL22D003  34             91.5            300      -65  755623      5819692      349           In progress
 MB22D001  149            119.2           284      -55  723996      5821769      389           In progress
 MB22D002  187            119.3           300      -55  723996      5821769      389           In progress
 MB22D003  150            101.5           265      -55  723996      5821769      389           In progress

Note datum is MGA2020 Zone 54 and azimuth is magnetic north

 

SUMMARY OF RESULTS TO DATE

 HOLEID    FROM      TO      ASSAY NOTES
 OL21D001   30.55m   31.00m  0.45m@0.38g/t
                             core loss 31.0m - 31.8m (0.8m)
 OL21D002  50.65m    52.00m  1.35m@0.62g/t incl.  0.5m@1.44g/t        core loss 52.0m - 53.1m
                             (1.1m)
 OL21D002  70.40m    70.80m  0.4m@0.21g/t.
                             core loss 70.8m - 75.7m (4.9m)
 OL21D002  75.70m    76.10m  0.4m@12.32 g/t

All intervals and widths are as apparent widths as measured in the drill
core.  Where possible core has been oriented using Boart Longyear TruShot TM
V7R7 downhole orientation tool.

All HQ diameter drilling was completed by Trimac Drilling of Buninyong,
Victoria. Assaying was completed on half-core samples which were selected
based on geological observations made by on-site geological staff.

All half-core samples were sent to MinAnalytical Laboratory Services Australia
in Western Australia.  Gold determinations used photon assay for gold
(OL22D001) and traditional fire assay for the remaining holes. In addition a
34 element suite assay has been requested on all samples utilising a four-acid
digest with an ICP-OES finish which will give further insights into the
geochemical signature of the mineralised zones intersected. .

 

Comparison of photon assay vs fire assay will be completed once all assays are
returned. Standards were submitted at the time of sampling at a rate of 1 in
approximately 30 samples and repeat assaying by an alternate laboratory will
be done on selected samples once all initial assays are returned to further
assist the QA/QC validation process.

Comparison of gold results determined using photon assay vs fire assay will be
completed once all assays have been received. Standards were submitted at a
rate of 1 in approximately 30 samples and duplicate assaying via an alternate
laboratory will be done on selected samples once initial assays are returned
to further assist in the QA/QC validation process.

Given the soft nature of the shale/slate/sandstone wall rock, in contrast to
the hard quartz comprising the veins within the main mineralized lodes at the
O'Loughlin's Prospect, core recovery has been low; and across select areas up
to several meters of the main mineralised zone were not recovered. The core
that was captured and available to be sampled is thought to be highly
underrepresenting the nature and width extent of the mineralized zone. A link
to core photos highlighting the core loss through select mineralised zones can
be viewed at the link below.

Figure 2 selected core photos

http://www.rns-pdf.londonstockexchange.com/rns/1540I_2-2022-4-12.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1540I_2-2022-4-12.pdf)

Assays that have been returned to date do confirm that coarse nuggety gold is
present with good continuity of mineralization within the structure.
Discussion with drilling contractors as to suitable modifications of method to
increase core recovery are in progress prior to any further drilling.

Mt Bute Prospect

At Mt Bute, a similar genesis model to the O'Loughlin's Prospect was
originally targeted, however the results from the recent diamond drilling now
suggest the possibility of intrusive related mineralisation which may be of a
more recent age than previously thought.

Preliminary X-ray Fluorescence results of selected core intervals returned
highly anomalous molybdenum and bismuth results. This suggests a possible
relationship to the nearby Mt Bute I-type granite and opens the possibility
for additional types of mineralisation at the prospect.

Considering the differing geological model now seen as potentially applicable,
RRAL is conducting further investigations before additional drilling, as the
recent results demonstrate the possibility that a more substantial target may
be present. These include additional mineralogical studies, as well as
reinvestigation of induced polarisation (IP), aeromagnetic and gravity data
over Mt Bute.

The O'Loughlin's prospect

Drilling at the O'Loughlin's Prospect is targeting 'Ballarat-style' gold
hosted quartz veins hosted within high-angle shear zones. The north-south
oriented zone encountered in the drilling completed there to date has
similarities to mineralised structures observed underground at the nearby
Ballarat Gold Mine. Once all assays are received, NBGC will undertake further
geological interpretations integrating the assay results and geological core
observations, with the intention of identifying further structurally hosted
targets at the prospect.

Daylesford Exploration Licence (Ajax Mine) - EL7330

With confirmation that the exploration licence application has progressed
through the Native Title assessment and is back to Earth Resource Regulation
Licensing for final approval, it is expected that this licence will progress
by mid-2022.   The progress so far does not guarantee that RRAL will be
granted the licence, which remains a decision for the regulator acting in
accordance with the relevant legislation.  The Ajax mine is on the western
margin of the extensive Daylesford gold camp and falls within exploration
licence application EL007330 .

The Ajax mine comprises numerous shafts and workings over a strike of several
kilometres, which was historically mined to over 400m vertically. Historical
production continued up in to the 1930's producing over 300,000 ounces Au at
an average grade of approximately 12-15 g/t Au.  The down dip and along
strike extensions to the main ore zones remains untested.  Minor diamond
drilling completed in the 1990s intersected multiple lode structures with
results up to 5.3m of 15.2g/t Au, demonstrating the continuity in lode
structure and associated gold grades.  The mine shaft itself has been
backfilled and is currently not accessible.

Work is currently under way to digitise the old workings, stope and geology
into a 3D computer model, in advance of a planned diamond drilling campaign
which is expected to commence following grant of the license application.

New Ballarat Gold Corporation

NBGC is a joint venture company, owned as to 50.1% by Red Rock and as to 49.9%
by Power Metals Resources PLC (AIM:POW), which wholly owns Red Rock
Australasia Pty Ltd , holder of the  Victorian Tenements.

 

NBGC holds a strong land position comprising 11 granted licenses of in total
over 1,501 sq km in the rich gold fields of Victoria, Australia, principally
around the mining centre of Ballarat.

 

Eight (8) licences covering 827 km2 await grant. 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 has already conducted
detailed exploration of its initial targets, including a diamond drill test of
two prospects starting in December 2021.

 

520m of drilling has been carried out at O'Loughlin's and 340m has been
carried out at Mt Bute, with samples sent to MinAnalytical Laboratory Services
in Perth, WA, for laboratory assay testing.

 

Granted Licences

The eleven (11) granted licences cover high priority areas covering 1,519
km(2) as outlined below.

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

                             (renamed)
 EL007281                    Blue Chip                      74

 EL007282                    Blue Sky                       489

 EL007285                    Blue Ribbon                    8

 EL007327                    Dereel                         60
 EL007385                    Sardinia                                          4
 EL007329                    Kilmore                        484
 EL007301                    Pitfield/Mt Bute               85
 EL007328                    Blue Yonder (Announced today)  164
 State land within EL007271

                             -                               9 

 EL007505
 State land within EL007271

                             -                               9 

 EL007506

 Total                                                      c 1,501

 

Licence Applications

RRAL has applications in process for eight other new gold exploration licence
areas covering approximately 827km(2) in the Victoria Goldfields of Australia
including:

 

 License Application Number   Project Name    Area (km(2))
 EL007294                     Red Queen       129
 EL007330                     Daylesford      202

                              (renamed)
 EL007460                     Kilmore West    325
 State land within EL007271

 EL007507

                                               8 
 EL007540*                    Outer Ballarat  142

 (3 competing applications)

 EL007756                     Monmouth        22
 EL007799                     Dereel (2)      3
 EL007826                     Ballarat East   4

 Total                                        c 827

 

* 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.

 EL45/5859  Paterson          227

 EL45/5885  Pilbara/Paterson  70

 

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 and a director of NBGC, and  the Exploration Director of RRAL.
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
 

 

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