Update - Greenland

RNS Number : 2790U

Red Rock Resources plc

19 December 2011

 



Red Rock Resources

Preliminary Geophysical Survey Interpretation

and Licence Enlargement, Greenland

19 December 2011

Red Rock Resources plc ("Red Rock" or the "Company"), the mining and exploration company with an iron ore project in Greenland, a producing gold mine in Colombia, advanced gold and copper exploration in Kenya, and interests in steel feed, uranium and rare earths, is pleased to announce an update on geophysical interpretation on the Melville Bugt Project in north west Greenland.

Highlights

·     Aeromagnetic data confirms the presence and size of three magnetite targets visited and sampled during this year's geological reconnaissance program

·     The aeromagnetic geophysical survey was successful in delineating six new magnetic targets over 1,000 Nanotesla in magnetic field strength under snow cover

·     A 5km long magnetic target has been discovered under snow, along strike of sampled haematite mineralisation with up to 69.4% Fe

·     558km² licence enlargement approved, containing six magnetic targets

·     Total area under licence now 1,571km²

A low level aeromagnetic survey was flown across the Melville Bugt licence area between July and August 2011. The 13,170 line kilometre, fixed wing, airborne magnetic and radiometric survey was flown by Aeroquest Airborne Ltd at regional line spacings between 200m and 1600m. Initial interpretation of results indicates success in delineating an additional six snow covered magnetic targets suitable for drill testing. 

The Company has received approval for a 558km² licence enlargement over the area between the existing licence blocks from the Bureau of Minerals and Petroleum (BMP). This brings the total licence area to 1,571km². Six of the magnetic targets identified by the geophysical survey interpretation are within this licence enlargement area.

The aeromagnetic survey detected multiple magnetic targets greater than 1000nT (Nanotesla) worthy of further investigation (outlines shown in red in Figure 1) with the priority targets labelled 1 to 9, from left to right. These magnetic units are possibly related to Archaean banded iron formation (BIF) units in a meta-sedimentary basin environment. Three of the nine magnetic targets have been confirmed as outcropping BIF, however the remaining six targets do not outcrop.

http://www.rns-pdf.londonstockexchange.com/rns/2790U_1-2011-12-19.pdf

FIGURE 1: MAGNETIC TARGET MAP - Satellite image

The Total Magnetic Intensity (TMI) image generated from the raw geophysical data (Figure 2) identifies six magnetic targets potentially broken apart by rifting and subsequent glacial processes. The largest of these is the central target, referred to as De Døns Target 5, located on the northern margin of an elevated peninsula which is now situated inland from the present day coastline.

http://www.rns-pdf.londonstockexchange.com/rns/2790U_2-2011-12-19.pdf

FIGURE 2: MAGNETIC TARGET ZOOM MAP - TMI Image

De Døns Target 5 is a high tonnage target given its over 5km strike length, as indicated with the black arrow. As identified this field season, there is added potential for haematite mineralisation around the lower magnetic intensity margins, which strike over 10km in length.

During the last days of the field season, raw aeromagnetic images were used to locate a BIF outcrop, referred to as the Haematite Nunatak (Figure 2), approximately 500m along strike to the south east of the De Døns magnetic anomaly.  The highest iron content measured during the 2011 geological reconnaissance was from this BIF outcrop with a rock sample returning 69.4% Fe. The outcrop is located within a non-magnetic zone on the margin of the De Døns anomaly and may be related to this target.

Greenland Project Geology Manager Gary Hurst said "This field season, the central portion of the De Døns magnetic anomaly was not accessed and sampled due to ice cover. However, it was possible to locate a rock outcrop on its margin, referred to as Haematite Nunatak, which contained a 45m thick, massive to banded haematite, oxide facies BIF." Figure 3 shows the outcrop location where a sample returned iron concentrations up to 69.4% Fe (Sample number 970126, 534,260mE - 8,461,196mN).

http://www.rns-pdf.londonstockexchange.com/rns/2790U_3-2011-12-19.pdf

FIGURE 3: PHOTO FIGURE - Haematite Nunatak outcrop, 500m east of De Døns Target 5

The De Døns magnetic anomaly presented a measured field strength over 5,000nT in zones as shown in the following geophysical magnetic data profiles across the target (Figure 4). Processed aeromagnetic profiles from the IGRF (International Geographical Reference Field) show a measured twin peak response indicating that either the anomaly is formed of two parallel BIF units or the same BIF unit tightly folded.

http://www.rns-pdf.londonstockexchange.com/rns/2790U_4-2011-12-19.pdf

FIGURE 4: Aeromagnetic TMI profiles over De Døns Target 5 magnetic anomaly map

Another prospective target confirmed by the geophysical survey is the Havik East aeromagnetic anomaly, with a 2.5km strike length and strong magnetic signal, which in zones is over 10,000nT (Figure 5). As the target is outcropping, it measured a stronger magnetic signal than the snow covered central anomalies. This is due to the aeroplane's fixed sensor being closer to the source of magnetism during acquisition. Multiple assays were obtained from the Havik East target area during the field season, with grades up to 36.5% Fe.

http://www.rns-pdf.londonstockexchange.com/rns/2790U_5-2011-12-19.pdf

FIGURE 5: Aeromagnetic TMI profiles over Havik East Target 2 magnetic anomaly

In addition to haematite outcrop targets discovered during mapping, the aeromagnetic survey generated two priority magnetic targets; De Døns Target 5 and Havik East Target 2 as well as seven secondary targets.

Preliminary interpretation of the geophysics has enabled the Company to identify significant new targets, some of which may be explored further in 2012. Aeromagnetic modelling of the priority magnetic targets has commenced and these 3D magnetic models will be used to assist with planning for the 2012 season.

For further information contact

Andrew Bell	020 7402 4580 or 07766 474849	Red Rock Resources plc	Chairman
Sandra Spencer	020 7402 4580 or 07757 660 798	Red Rock Resources plc	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

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

Competent Person's statement

The technical information in this report relates to exploration results based on information compiled by consultant Mr. Grant Donnes, BSc (Hons - Geophysics), who is a Member of the Australian Institute of Geoscientists (AIG) and Australian Society of Exploration Geophysicists (ASEG). Mr Donnes has sufficient experience in the style of mineralisation and type of deposit under consideration and to the activity which 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" and as a "Qualified Person" as defined in the Note for Mining Oil & Gas Companies, June 2009, of the London Stock Exchange.  Mr. Donnes has reviewed this announcement and consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Mr. Donnes is a self-employed consultant to the Company.

 

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