Update

RNS Number : 2308A

Red Rock Resources plc

28 January 2011

 

RED ROCK RESOURCES PLC

Update

Dated: 28 January 2011

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, uranium, and rare earths reports on developments.

After the Christmas and New Year break, review meetings were held in London, Nairobi, and Medellin, before return of supervisory and field staff to the Company's operational sites. 

Kenya

In October 2010, CSA Global Ltd ("CSA") and the Company finalised an infill drilling programme to test, validate and extend the current resource targets: Gori Maria, KKM, MK and Nyanza. The programme provides for approximately 10,000 metres of reverse circulation ("RC") and 5,000 metres of diamond core drilling.

Drilling commenced on the western licence (SPL122) at the Gori Maria prospect in mid-November 2010. Local contractor Drilling and Prospecting International Ltd ("DPI") was engaged to drill 2,000 metres of diamond core and 5,000 metres of RC, and partially mobilized in November and December. They are planned to be joined at the end of this week by R&L Exploration Ltd ("R&L") from Uganda, with a more powerful coring rig. A universal rig from Tanzania is expected to arrive later next week.

To date, 750 metres of RC have been drilled over 9 holes (3 of which are pre-collars) and 414 metres of diamond core have been drilled over 6 holes. All of these holes are on the Gori Maria prospect. Figure 1 shows the proposed drill hole locations relative to the previous RC drilling conducted during the 90s by ex-operators, Auvista. Hole ID prefix GMDD denotes coring and GMRC, RC drilling. Four more holes need to be completed before the 2 rigs (1 coring and 1 multipurpose) move to the next prospect. All drill core and RC chips are at the main base camp for logging by onsite geologists and are being prepped for sampling.

Figure 1: Planned Drilling At Gori Maria, Migori, Kenya

http://www.rns-pdf.londonstockexchange.com/rns/2308A_-2011-1-27.pdf

Further to the infill resource drilling, 325 exploratory holes on a 100 x 800 metre grid have also been planned by CSA. These holes will be drilled across the eastern licence (SPL202) where exploration has not been previously extensive. Air core drilling will be used to obtain geochemical samples of basement rocks in areas of transported cover. The programme is designed on a grid that extends parallel with the regional greenstone belt (figure 2). As the depth to bedrock is still to be explored, a minimum of 20,000 metres will be drilled. Australian-based drilling contractor, Wallis Drilling Pty Ltd, has been engaged to complete this air core programme and will mobilise to site at the beginning of February 2011.

Figure 2: Planned Drillholes and Transported Cover

http://www.rns-pdf.londonstockexchange.com/rns/2308A_1-2011-1-27.pdf

To continue investigating other potential targets in the eastern licence, Akili Mineral Services Ltd ("AMS") have been contracted for exploratory scout drilling at targets delineated during the 2009-2010 drilling programme. AMS commenced drilling BQ core at the Nyabisawa prospect in December 2010 (figure 3). Drilling will recommence later in January.

Figure 3: Satellite Image of Nyabisawa Hill Showing Drillholes

http://www.rns-pdf.londonstockexchange.com/rns/2308A_2-2011-1-27.pdf

The Company has brought into operation a second camp to serve the eastern license, and now has seven geologists and a drilling consultant working in the geological office at Mikei camp and in the field.

Work on defining the conductive target at the old Macalder VMS copper-gold mine continues. A plate model of the conductive target is being designed to show the best fit 3D position of the body based on the VTEM data, and geological sections are also being compiled. A drill programme to test the target will take place shortly.

The results from stage 2 of the metallurgical testwork on the Macalder tailings are expected soon.  

Colombia

Over the Christmas/New Year period the cone crusher at El Limon, where running-in problems had occurred, was stopped, disassembled, and repaired. The process of bringing the plant into full production is now proceeding, with the plant running at 30 tons per day ("tpd") and planned staged increases to 100 tpd.

The Machuca mine is also now in operation, producing to stockpile at the rate of 20-30 tpd.

Further updates will be released shortly, following the conclusion of site visits currently under way.

The Company is negotiating the early exercise of its option over a majority of the share capital of its partner Mineras Four Points SA, and expects to make an announcement shortly.

Tasmania

A previously undrilled 3 km North-South trending magnetic anomaly on the Arthur River tenement along strike north from the Savage River mine was tested by a five hole reverse circulation drill programme of 700m across the waist of the geophysical target in late 2010. Initial results were encouraging, with all holes encountering magnetite mineralisation. 189 samples in 4m composites were sent for testing, and test results are expected back from the laboratory within the next few days, when Red Rock will be able to form a better view of whether this discovery may have economic potential.

Associates and investments

Jupiter Mines Ltd (5.23% owned)

As earlier announced, Jupiter Mines has released a 530m tonne initial JORC Resource figure for the Mt Ida magnetite deposit over which Red Rock has a 1.5% gross production royalty ( http://www.asx.com.au/asxpdf/20110119/pdf/41w7ymsdjrcfzm.pdf )

On 25^th January 2011 trading in Jupiter Mines shares was halted on the Australian Stock Exchange pending imminent release of an announcement about a capital raising.

Resource Star Ltd (24.9% owned)

Resource Star Ltd has announced completion of all its programmes for 2010 (http://www.asx.com.au/asxpdf/20101231/pdf/41vzf8nzc9hlb7.pdf) and has received and will shortly announce the results of an important confirmatory drill programme at the Livingstonia uranium project in Malawi, where a JORC Resource of 4.6m lbs of U3O8 has already been declared.  

Results from the Northern Territory exploration programme are expected to be released shortly, and results are awaited from 867 soil samples taken at the Ilomba Hill uranium/niobium/rare earth target in Malawi.

Cue Resources Ltd (15.8% owned)

Cue Resources Ltd ("Cue") has announced the results of 33 hole drill programme of 3596m at the Yuty uranium project, where a NI 43-101 Resource of 9.5m lbs of U3O8 has been declared (http://www.cue-resources.com/s/NewsReleases.asp?ReportID=437190). The drilling successfully identified a modest expansion of the deposit limits to the south and west of the main zone, and has also successfully confirmed previously identified high grade mineralized zones within the deposit limits. A further 3500m is now being drilled.

A Red Rock representative has now been appointed to the Cue board.

Ascot Mining Ltd (2.78% plus convertible loan notes/warrants)

Two gold mines and plants have been brought into operation since the Company's investment in November last year, and progress continues on the operational and financial fronts (http://www.plus-sx.com/newsItem.html?newsId=1035041).

The technical information is this release has been reviewed and approved for release by Helen Salmon, BSc(Hons), a geologist working for the Company, a Fellow of the Geological Society and a Member of the Mineralogical Society.

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.

 

END

 

 

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