Migori Indicated Resource

RNS Number : 3507R

Red Rock Resources plc

19 August 2010

 



RED ROCK RESOURCES PLC

Migori: Indicated Resource at Macalder Tailings

Dated: 19 August 2010

Red Rock Resources plc ("Red Rock" or the "Company"), a gold mining and exploration company with projects in Kenya and Colombia, and interests in steel feed and uranium, announces an Indicated Mineral Resource Estimate for the Macalder tailings, Migori, Kenya.

The interest in the Macalder tailings is held through the joint venture of the Company in the Mid-Migori Mining Company/Migori gold project (15% interest with farm-in option to increase to 60%).

The Macalder tailings material was produced as a product from historical metallurgical processing from the Macalder open pit and underground mining operation. The tailings material is contained within a dam and is composed of four types of tails material, namely, Gossan, Sulphide, Calcine, and Oxidised Sulphide.

One metre samples from 38 holes were collected using shell and Auger drilling. A total of 437.5m was drilled producing 438 samples, which were assayed at the SGS Mwanza laboratory. Five holes are situated on a smaller tailings dam to the south of the main Macalder tailings dam, and were excluded from the Resource calculation as no volume information was supplied for this area. Survey information for this area would allow the material to be added to the Resource. 

A 3D geological model was produced by CSA Global (UK) Ltd from drill hole data and sectional interpretations provided by the Company, and used to produce a volume block model. Grade was estimated into the block model using the Inverse Distance Weighted method. An in situ dry bulk density of 1.98 g/cm² was used to estimate tonnes for the Resource.

CSA Global (UK) Ltd have produced an Indicated Mineral Resource estimate for the Macalder tailings of 1.424 million tonnes at 1.64 grams Au per tonne, giving a total contained metal content of 75 thousand ounces of gold. The Mineral Resource Estimate has been classified according to the standards defined in the JORC code (2004 Edition).

Material	KBCM*	KTonnes	Au ppm	Bulk Density
Sulphide	412	816	1.53	1.98
Calcine	245	485	2.03	1.98
Gossan	63	125	1.74	1.98
Total	719	1,424	1.64	1.98

Note: The resource is estimated using no gold grade cut-off. Appropriate top cuts have been applied.

All figures are rounded to reflect appropriate levels of confidence.

Apparent differences may occur due to rounding

*KBCM - thousands of bank cubic metres, a measure of volume representing cubic metres of rock or material in the ground before it is excavated.

This Resource focuses on Au grade only as complete data populations were not available for Ag, Co, Cu, and Zn due to some sample grades being recorded above detection limits. Re-assaying may provide further information on other economic elements which have the potential to increase the value of the project. CSA Global (UK) Ltd note that Co and Ag have the potential to be present in economic grades with more than 50% of the samples assaying above the detection limits.

CSA Global (UK) Ltd has recommended that:

(a) the Macalder tailings dam and smaller dam to the south be resurveyed with a Differential GPS to sub-metre accuracy;

(b) a representative portion of the samples be sent for re-assay at another laboratory;

(c) the results from the ongoing metallurgical testwork be used as a guide for re-assaying elements that may be capable of being economically extracted and may add value to the project; and

(d) a metallurgical desk top study be undertaken to produce process flow sheets.

Recommendation (a) has been completed, and once the other recommendations are completed, the Company proposes to conduct additional work with a view to including additional relevant information and potentially upgrading the classification of the Mineral Resource Estimate.

The Company considers the results of the Indicated Resource calculation on the Macalder tailings to be promising, and once the metallurgical results are in hand hopes to be in a position to make a decision on moving towards production.

Enquiries:

Andrew Bell Sandra Spencer	0207 402 4580 or 07766 474849 0207 402 4580 or 07757 660 798	Red Rock Resources plc Red Rock Resources plc	Chairman Public and Investor Relations
Peter Trevelyan-Clark/ Ben Jeynes	020 7444 0800	Religare Capital Markets	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker

Competent Person Statements

The information in this release that relates to in-situ Mineral Resources is based on information compiled by Mr Malcolm Titley of CSA Global (UK) Ltd. He is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) and is a "Qualified Person" as defined in the Note for Mining and Oil & Gas Companies, June 2009, of the London Stock Exchange. The Qualified Person has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in this release.

Mr Titley consents to the inclusion of such information in this release in the form and context in which it appears.

Updates on the Company's activities are regularly posted on its website, www.rrrplc.com.

 

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