Update

RNS Number : 6249T

Red Rock Resources plc

30 September 2010

 



RED ROCK RESOURCES PLC

Update

Dated: 30 September 2010

Red Rock Resources plc ("Red Rock" or the "Company"), the gold mining and exploration company with projects in Kenya and Colombia, and interests in steel feed  and uranium, reports on progress at its operations.

·    Colombian plant ahead of schedule

·    Increase in initial planned capacity at El Limon plant

·    Metallurgical analysis to determine tailings process route under way in Kenya

·    Annual results released at Jupiter Mines Ltd and Resource Star Ltd

Colombia gold project:

The final $400,000 loan tranche has been advanced to Mineras Four Points SA ("MFP"). The entire $2,000,000 loan to MFP required under the terms of the Funding and Co-Operation Agreement ("Agreement") announced on 10^th June 2010 has now been advanced, from funds provided by Red Rock.

There are no further performance requirements on the part of Red Rock, and MFP has provided security as required by Red Rock, so that the Agreement is fully operative.

At the El Limon mine, the target date for the plant renovation to be complete and for production to recommence is still 30^th November 2010, although currently work is ahead of schedule. The initial capacity is now planned at 150 tons per day rather than the previous target of 100 tons per day.

Mine safety work has proceeded well, with a second access now provided up to Level 0, and planned to be brought up to surface. Improvements to the ventilation system and replacement of air piping, and installation of the new winch, wire and bucket, are accomplished.

A substation with 1000 KW transformers is almost complete, and back up generators with 800 KW capacity are expected to be refurbished and operational within one month. Rewiring within the plant is not accomplished, but is estimated to take two weeks.

The last work on the conveyors, crushers, and mill is being completed, with an estimated timing of 10 days to 3 weeks.

The plant is near completion, with new 5 ton tanks expected to be installed within 2 weeks, and some adjustments to parts of the circuit likely to be required to fine-tune the plant after receipt of metallurgical test results from Canada, which are expected to arrive on Monday [4] October 2010. 

Labour relations with staff who have accepted the new contracts are good; some contractors however have not signed new contracts, and those who do not will not be retained when their current contracts expire in two months.

Expansion of the plant to 250 tons per day would require investment by MFP in expansion of the mill capacity and additional tanks, and could be put in place rapidly. Expansion to 400 tons per day would require plant investment of an estimated $620,000 and a new vertical shaft with an estimated cost of $500,000. Planning for expansion is under way.

Red Rock's consultant geologist in Colombia has established that the vein is thickening, with significantly higher grade, at the lowest levels of the mine now being developed, particularly at Level 6 south where the vein is over 1m thick. A tunnel is being driven from Level 0 to locate an expected second vein.    

At the La Aurora/Machuca mine, buildings and sub-station are now in place, with a new winch, and the crushing plant has been delivered. Priority is being given to completing the works at El Limon.

Migori gold project: An initial report and analysis

Analysis of the VTEM and Magnetic/Radiometric airborne surveys continues, with a a final report expected in October 2010. Multiple targets have been identified.

Metallurgical testwork results on the Macalder tailings samples have been received from Amdel Laboratories, and are being analysed. An update with initial conclusions as to process route and timings will follow shortly.

Red Rock expects to finalise a drill programme during October 2010.

Jupiter Mines Ltd (ASX:JMS)(22.64% held declining to 5.23% on completion of Jupiter Mines Ltd's acquisition of the Tshipi manganese project): 

The results for the year ended 30^th June 2010 have today been announced, and are available at http://www.asx.com.au/asxpdf/20100930/pdf/31stb4lflbm99y.pdf .

Jupiter Mines Ltd continues to prioritise exploration of the Mt Ida magnetite project, where Red Rock has a 1.5% gross production royalty.

The transfer of the mining rights at the major Tshipi manganese project to Jupiter have been approved by the South African authorities.

Resource Star Ltd (ASX:RSL)(26.9% held):

The results for the year ended 30^th June 2010 have today been announced, and are available at http://www.asx.com.au/asxpdf/20100930/pdf/31svmqfytd37j3.pdf .

Completion of the RC drill programme at the Machinga Rare Earth Project in Malawi, where the Company's farm-in partners Globe Metals and Mining Ltd are operators, was delayed due to the need to replace a rig during drilling. Results are now expected during October.

The helicopter magnetics/radiometrics over the Ilomba Hill uranium/niobium/rare earth prospect in Northern Malawi was completed, and announcement of results will be made shortly.

The drill programmes at Livingstonia in Malawi, to expand the Inferred uranium Resource, and in the Northern Territory of Australia, where multiple targets exist in the Edith River licenses, and some strong prospects are being tested, will commence during October.

Enquiries:

Regency Mines PLC                Andrew Bell, Chairman                               0207 402 4580

                                               Sandra Spencer, Public and

                                               Investor Relations                                        0207 402 4580

Nominated Adviser

Religare Capital Markets          Peter Trevelyan-Clark/Ben Jeynes               020 7444 0800

Broker

Simple Investments Ltd            Nick Emerson                                              01483 413500

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

 

END

 

 

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