REG - Red Rock Resources - Victoria Gold JV - Key Licence granted

Red Rock ResourcesAnnouncement

24/05/2022 07:16

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RNS Number : 5205M  Red Rock Resources plc  24 May 2022

Red Rock Resources PLC

("Red Rock" or the "Company")

Victoria Gold Joint Venture - Grant of Key Licence

 

24 May 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 gold 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

·    Three further exploration licences have been granted, bringing RRAL's
footprint in the Victoria Goldfields to over 1,800 sq km.

·    Grants now include the 202 sq km licence (EL 007330) North-East of
Ballarat which includes the historical Ajax mine where in the 1920s the Ajax
line recorded production of 312,789 ounces at 14.8 g/t.

Red Rock Chairman Andrew Bell comments: "The grants of EL 007330, EL 007294
and EL 007507 bring our total ground position in prospective areas north,
south and east of Ballarat up to 1,832 sq km, covering the sites of a number
of old mines and workings as well as fresh geological targets. The latest
grant covering the old Ajax mine (EL7330) is a significant milestone for RRAL,
as it includes the site of a former high grade near-surface mine that was
mined a century ago at 14.8 g/t.

In our view, this exploration asset enhances our exploration portfolio and
makes our goal of achieving a listing of the RRAL business less sensitive to
market conditions.

Further detailed announcements, both on the Ajax project and on progress
towards listing, will follow."

EL 007330 Exploration Licence (including Ajax Mine)

The Ajax mine comprise numerous former shafts and workings over a strike of
several kilometres, which was historically mined to a vertical depth of
approximately 400m. The possible down dip and along strike extensions to the
main ore zones remain virtually untested.  Minor diamond drilling completed
in the 1990s by Continent Resources intersected multiple lode structures with
the best intersection showing 5.3m at 15.2g/t Au from 120.9m downhole,
demonstrating the continuity in lode structure and associated gold grades.
The mine shaft itself has been backfilled and is currently not accessible.

A more detailed description including a table of the 1990s drilling is
contained in the paper previously published on and accessible through the
Company's website in the Project section labelled "Licence Report: EL007330"
with the title "Tenement Review and Exploration Strategy- EL007330".

Work is currently under way to digitise the old workings, stopes and geology
into a 3D computer model, in advance of a planned diamond drilling campaign
which is expected to commence in late 2022.

http://www.rns-pdf.londonstockexchange.com/rns/5205M_1-2022-5-23.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5205M_1-2022-5-23.pdf)

Fig 1: Long Section of Ajax Mine workings

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 land position comprising 14 granted licenses of in total 1,832 sq
km in the rich gold fields of Victoria, Australia, principally around the
mining centre of Ballarat.

 

Five licences covering 493 km2 await grant. The company has assembled its
portfolio of properties comprising a broad range from 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
initial exploration of selected targets, including a diamond drill test of two
prospects starting in December 2021.

 

520m of drilling has been carried out at the O'Loughlin's target within EL
007271and 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 fourteen granted licences cover high priority areas covering 1,832km(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         164
 State land within EL007271

                             -                    9 

 EL007505
 State land within EL007271

                             -                    9 

 EL007506
 State land within EL007271

                             -                    8 

 EL007507                    (Announced today)
 EL007330                    Daylesford          202

                             (renamed)

                             (Announced today)
 EL 007294                   Talbot              129

(renamed)

                             (Announced today)

 Total                                           1,832

 

Licence Applications

RRAL has applications in process for five other new gold exploration licence
areas covering 493 km(2) in the Victoria Goldfields of Australia including:

 

 License Application Number   Project Name    Area (km(2))

 EL007540*                    Outer Ballarat  142

 (3 competing applications)

 EL007756                     Monmouth        22
 State land within EL007327   Dereel (2)       3 

 EL007799
 EL007826                     Ballarat East   4
 EL007460                     Kilmore West    325

 TOTAL                                        493

 

* 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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