Update - Migori

RNS Number : 0181K

Red Rock Resources plc

08 July 2011

 



RED ROCK RESOURCES PLC

Update - Migori

Dated: 8 July 2011

Red Rock Resources plc ("Red Rock" or the "Company"), the gold mining and exploration company with projects in Kenya and Colombia, exploration in Greenland, and interests in steel feed, uranium, and rare earths, reports on progress of the current resource and exploration drill programme on the Migori licences in Kenya with and an outline of continuing and proposed exploration work. The company is also pleased to announce results from the aeromagnetic geophysical survey that was conducted in late 2010. A large exploration programme to assess the targets is planned for next year.

Summary of Migori Gold Project, SW Kenya

·     Current drilling programme

Drilling status since December 2010.

·     Resource Estimation Work and scheduling

Infill drilling at KKM deposit is nearing completion, with a revised gold resource estimation scheduled.

·     Conductors identified from the AEM geophysical survey

Drilling is scheduled shortly to commence at the historic Macalder VMS (Volcanogenic Massive Sulphide) mine and nearby 'Barnabas' prospect following an induced polarisation ("IP") ground geophysical survey.

·     Interpretation of aeromagnetic survey

Planning underway to investigate structural targets adjoining gold resource areas with aircore drilling.

Current programme

In late 2010 drillers were engaged to complete 15,000 metres of infill and resource drilling (RC and Diamond coring). In early 2011 an additional drill rig was engaged to complete exploratory aircore drilling over the wider licence area. This regional exploration programme is expected to drill approximately 20,000 metres of air core drilling for geochemical sampling and some exploration diamond coring.

Infill drilling at the Gori Maria, KKM, MK and Nyanza gold deposits totalling 9626 metres in 81 holes has been completed using RC and diamond coring. Including exploration drilling, a combined 16,051 metres has been drilled to June. Five batches of sample have been dispatched to the ALS laboratory in Mwanza, Tanzania, with more being prepared and assays are pending.

At the KKM deposit, all holes but three have been drilled and at the MK deposit, all but five holes have been drilled.  A multipurpose drill rig with both RC and diamond coring capabilities has been moved to Nyanza where it has commenced drilling twenty holes.  There are approximately 2,300 metres of drilling to be carried out at this deposit, prior to the drill rig being moved to test base metal and gold exploration targets.

Resource Estimation

The diamond core and RC drilling program currently in progress, aims to increase resource confidence levels through the existing 1.2 million oz NI 43-101 Indicated Resource (from 2006), and is expected to result in a revised mineral resource estimate for each deposit.

Resource estimation revision will commence on the KKM gold deposit first, once drilling has been completed and all assays have been received. Consultants CSA Global will be managing this resource estimation revision, followed by those on the other gold deposits.

Scheduling

The company will complete the resource estimation revisions prior to commencing a pre-feasibility study on the proposed gold mining operation.

A regional exploration programme has been designed aiming to increase the gold resources through exploration during 2012.  The eastern Migori licence SPL202 has had a lack of exploration, and previous exploration programmes have focused primarily under historic mines in the district.

The zones in-between the known deposits will be the exploration focus for the company, after it completes the current resource infill drill programme. Targets delineated by the 2009 ground prospecting, 2010 aeromagnetic survey data and the current air core drilling geochemical sampling programmes will be explored in greater detail.

Airborne Electromagnetic Survey (2010)

During 2010, a helicopter-borne, airborne electromagnetic (AEM) survey was flown over a small portion of the Migori Greenstone belt, SW Kenya. This survey covered the Macalder VMS mine area extending further south and south east from the mine. The airborne electromagnetic survey identified two medium strength conductors, announced to the market in December 2010.

AEM Interpretation

The two AEM conductors being conductor 1 at Macalder mine and conductor 2 at the Barnabas exploration prospect are shown in figure 1. These two conductors have been plate modelled by consultants EMIT. The models show potential 3D shapes and dip angles of the conductive bodies based on the electromagnetic signatures. At the Macalder mine and Barnabas prospect conductor plates have been modelled in 3D.

Figure 1

http://www.rns-pdf.londonstockexchange.com/rns/0181K_-2011-7-7.pdf

Trenching at Barnabas and ground geophysics

To investigate the lithology in the vicinity of the Barnabas conductor, 6 trenches totalling 247 metres have been excavated as shown in figure 2. Three old trenches were also found in the area, located further east and were re-opened to assess whether the lithology in these regions might be related to the source of the conductor. The trenches were all logged and sampled and rock chip assay results are awaited.

Figure 2

http://www.rns-pdf.londonstockexchange.com/rns/0181K_1-2011-7-7.pdf

Multiple zones of ferruginous and/or silicified meta-andesite spatially associated with banded iron formations ("BIF") have been logged in the trenches. Graphitic schist has also been mapped in the vicinity, and it may be the case that the conductor is derived from these schists. Prior to drill testing of the conductor, a ground induced polarisation (IP) geophysical survey has been designed and is expected to be completed during August. This ground geophysical survey will provide better spatial resolution of the AEM geophysical survey data which partially covered the conductor along the survey boundary. An IP ground geophysical survey has also been designed across the Macalder central conductor.

Plate modelling and 3D drill design

The Barnabas plate model 3D drill design is shown in figure 3, with the plate models derived from the partial AEM response on the edge of the AEM survey boundary.

Figure 3

http://www.rns-pdf.londonstockexchange.com/rns/0181K_2-2011-7-7.pdf

At the historic Macalder VMS mine (background in figure 4) the plate models derived from the central conductor were complex.  This AEM conductor may be due to remnant mineralisation as the deposit was previously mined. The central AEM response provided a number of inversion model fits, with plate models providing varying dip angles (figure 4). The central conductor has 2 model variations and both have been displayed concurrently, being the angled conductor plates (red/yellow) and horizontal plates (green).

 

Figure 4

http://www.rns-pdf.londonstockexchange.com/rns/0181K_3-2011-7-7.pdf

The central conductor is over two flight lines 100m apart, with the AEM response quite possibly coming from remaining disseminated and/or stringer sulphide mineralisation surrounding the largest underground stope called the "A" lode. There are however two other stopes on the "B" lode and on the "C" lode, which the horizontal plate model may represent. If enough remnant ore remains, the aim is to delineate an open-pittable resource.

A deeper eastern conductor over two flight lines 100m apart, shows an AEM response quite possibly coming from a down-faulted zone off the eastern end of the old mine. The eastern conductor shown in the foreground (figure 4) has two deep drill holes planned initially to test the target. They will be PVC cased, and then will have a down hole electromagnetic survey performed to search for off hole conductors.

Aeromagnetic geophysical survey

In August 2010, a fixed-wing, aeromagnetic-radiometric survey was conducted over the Migori licences. The aeromagnetic survey data has been imaged and interpreted. A number of structural target areas have been delineated for shallow aircore drilling, to geochemically sample the basement for gold mineralisation. Bottom of the hole geochemical sampling is critical in deeply weathered soil profile environments, to sample past the weathered oxide zone which may be heavily leached and depleted of gold.

Interpretation of aeromagnetic data

The aeromagnetic image shown in figure 5 has major structural interpretation lines drawn on it, existing drill holes (yellow dots) and 4 priority target areas (pink outlines) which have limited drilling and are to be tested during 2012. The arrows are interpreted hydrothermal fluid flow directions, and these arrows change orientation from NNW to NW off the main shear.  Secondary shears branching off the main shear are a potential pressure shadow effect, immediately west of the Gori-Maria deposit.


Figure 5

http://www.rns-pdf.londonstockexchange.com/rns/0181K_4-2011-7-7.pdf

Secondary shears channel the hydrothermal fluids into lower pressure zones, permitting the fluids to precipitate gold bearing quartz veins within Andesitic tuff host rocks. Secondary shear structures have formed parallel to the granite intrusive along the southern margin of the non-magnetic felsic volcanics.

The bulk of the known gold mineralisation is at KKM. Recently drilled core shows widespread occurrences of graphitic schists through the KKM area, which may cause a reducing environment for gold precipitation.

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. Grant Donnes has sufficient experience in the style of mineralisation and type of deposit under consideration. 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.

Enquiries:

Andrew Bell	0207 402 4580 or 07766 474849	Red Rock Resources plc	Chairman
Sandra Spencer	0207 402 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.

 

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