High grade intersections from Nyanza Prospect, Mikei Gold Project, Migori, SW Kenya
26 April 2012
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 and interests in steel feed, uranium and rare earths, is pleased to announce further analytical results from its 2011 drilling programme on the Migori Project in southwest Kenya.
Drilling on greenstone-hosted gold targets reported here include 23 holes on the Nyanza Prospect, part of the Mikei Gold Project, for a total of 2,852 metres with 19 significant intersections.
Highlights - Drill Intersections
The analytical results are from infill drilling completed as part of an intensive data validation and Resource update programme for Red Rock's Mikei Gold Project. The Nyanza prospect, one of five linked deposits in the process of having their Mineral Resource Estimates updated this summer, has returned encouraging high grade intersections as follows:
2 m @ 14.7 g/t Au
2.6+ m @ 32.9 g/t Au
1 m @ 43.3 g/t Au
31 m @ 3.91 g/t Au
1.5 m @ 27.7 g/t Au
7 m @ 9.8 g/t Au
Table 1: Highlights of high grade intersections from Red Rock's 2011 validation drilling programme
The Nyanza Prospect will be the second of the five linked deposits of the Mikei Gold Project to have its Mineral Resource Estimate updated to a JORC-compliant standard by CSA Global (UK) Ltd.
The detailed reinterpretation work that is required for the updated Mineral Resource Estimate will also generate new drill targets to extend the high grade zones identified by this drilling.
The 2011 Mikei Gold Project infill drill programme was undertaken within a mineralised Archaean greenstone belt parallel to the Tanzanian border. Diamond coring (DD) and reverse circulation percussion (RC) drilling were carried out.
The Nyanza Prospect is located at the western end of the Mikei shear zone, in the south western corner of the SPL122 license area, and was the site of shallow level historical mining during the early 1960s (*production estimated as 126,000t at 23 g/t Au).
A full summary of significant intersections drilled during the programme is shown in the table in the Appendix. The following table summarises all historic and infill drilling completed at the Nyanza Prospect to date:
Red Rock 2011
Table 2: Drilling summary at the Nyanza Prospect(Diamond Coring (DD); Reverse Circulation (RC))
The samples were prepared at ALS Mwanza, Tanzania and forwarded to ALS Johannesburg, South Africa and ALS Vancouver, Canada for assaying using the fire assay with ICP (low level) / AAS (ore grade) analytical methods.
Figure 1 shows the detail of the infill drilling completed on the Mikei Gold Project, which has 5 distinct shear and vein-hosted orebodies defined at present, KKM, KKM-West, MK, Nyanza and Gori Maria, which exist within what is thought to be a single shear system of more than 7km strike length.
Work is currently prioritised on the Nyanza Prospect, which lies at the western end of the Mikei Gold Project, and is characterised by zones of higher grade mineralisation within a wider shear system. The prospect covers an area of approximately 2 sq km. The Mineral Resource Estimate update for Nyanza is currently underway and is expected to be completed during Q2 2012.
* Production at Nyanza was carried out between 1963 and 1969 by the Commonwealth Development Corporation. Production figures quoted here are estimates from a 1997 Auvista report by Tony Worth ("The Nyanza Orebody"). The original data was obtained from a 1969 CMMC paper by H.H. Bird ("Discovery and mining of the Migori-Nyanza gold deposits").
Initial interpretation of the drilling from Nyanza, which shows significant alteration and shearing, appears to be a typical greenstone sequence of interbedded meta-sediments and meta-volcanics with thin sheets of mafic and felsic intrusions. Shearing, quartz veining and traceable zones of mineralisation appear to mostly be sub-parallel to bedding.
Mineralisation at Nyanza extends from surface, where artisanal miners conduct shallow, small scale, high grade mining activities, down to the limit of current drill testing (221 metres downhole depth).
A very encouraging intersection of 31m @ 3.91g/t from a downhole depth of 39m in drill hole NZDD107, has been drilled in the currently reported program. The intersection has been extended over a number of high grade zones, and so includes low and subgrade material, but the width is such that it may be able to be mined as a single large block, rather than as a number of separate higher grade surfaces.
One drill hole, NZDD103, in the north-eastern portion of the prospect close to old workings on the main lode, intercepted high grade mineralisation adjacent to historic mining; a weighted average grade of 32.9 g/t Au was drilled over 2.6m metres immediately before breaking through into a stope, which indicates that there is high grade mineralisation potential, even in shallow "mined out" areas.
The interpretation of the controls over these high grade zones within the broader, more weakly mineralised shear zone is a key part of the Resource Estimation process currently underway
Validation of Mikei Gold Project-Nyanza Prospect Resource Estimate
The Mineral Resource Estimate for Nyanza is currently underway with the detailed interpretation of structural, lithological, mineralogical, alteration and assay data to define the ore blocks.
The historical NI43-101 Resource (estimated at 1.17 million ounces Au by Ddraig Mineral Resources in 2006) for the Mikei Gold Project was determined using a cut-off grade of 0.25 g/t Au, used limited structural control and there were concerns about downhole survey data and grid location issues.
Red Rock is in the process of updating the Resource Estimate for the whole of the Mikei Gold Project on a sequential basis, and the 2011 Mineral Resource Estimate update for the KKM Prospect (completed by CSA global (UK) Ltd) identified the following:
· An Indicated and Inferred JORC-compliant Resource of 17.8Mt @ 1.01 g/t Au (cut-off 0.5 g/t Au) for a total of 577,000 oz Au, with more than 90% in the Indicated category
· An estimated 5-10% increase in contained metal (with no like-for-like comparison until KKM-West is updated) over the previous NI 43-101 Resource
· Mineralisation remains potentially open at depth
Resource estimation of the four remaining Mikei Gold Project deposits will be completed with integration of 2011 drill results and validation of the resource database and interpretation done in line with the JORC standard of Resource reporting in conjunction with CSA Global (UK) Ltd. Samples from selected zones have been sent to Wardell-Armstrong in Cornwall for metallurgical test work to support resource classification. The aim of Red Rock's infill drill programme throughout has been to validate the existing information with additional high quality data, and to provide a robust geological interpretation to target extensions and high grade material.
For further information contact: Andrew Bell
020 7099 5840 or
Red Rock Resources plc
020 7099 5840 or
07757 660 798
Red Rock Resources plc
Public and Investor Relations
Philip Davies/David Porter
020 7444 0800
Religare Capital Markets
Simple Investments Ltd
Updates on the Company's activities are regularly posted on its website, www.rrrplc.com.
Competent Person Statements
The information in this report that relates to Exploration Results is based on information reviewed by Mr Richard Evans, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Evans is an employee of the Red Rock Group of Companies and has sufficient experience which is relevant to 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". Mr Evans has reviewed the information in this announcement and consents to the inclusion of the information in the form and context in which it appears.
Forward Looking Statements
This report contains 'forward-looking information' that is based on the Company's expectations, estimates and projections as of the date on which the statements were made. This forward-looking information might include, among other things, statements with respect to the Company's business strategy, plans, objectives, performance, outlook, growth, shareholder value, projections, targets and expectations, Mineral Reserves and Resources, results of exploration and related expenses, property acquisitions, mine development, mine operations, drilling activity, sampling and other data, grade and recovery levels, future production, capital costs, expenditures for environmental matters, life of mine, completion dates, uranium prices, demand for uranium, and currency exchange rates. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as 'outlook', 'anticipate', 'project', 'target', 'likely', 'believe', 'estimate', 'expect', 'intend', 'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan', 'forecast' and similar expressions. Persons reading this report are cautioned that such statements are only predictions, and that the Company's actual future results or performance may be materially different.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to the risk factors set out in the Company's Annual Report. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. The Company disclaims any intent or obligations to update or revise any forward-looking statements whether as a result of new information, estimates or options, future events or results.
1. "Significant intersections" are based on composites in excess of 0.5g/t Au, including up to 2m of internal waste, where the intersection is greater than the equivalent of 1m @ 1g/t Au.
2. All drill holes were drilled on an azimuth of 025 degrees, and a dip of -60 degrees.
3. Coordinates are SUTM ARC1960
4. Sample preparation at ALS Mwanza, Tanzania and forwarded to ALS Johannesburg, South Africa and ALS Vancouver, Canada for assaying using the fire assay with ICP (low level) / AAS (ore grade) analytical methods
5. All intersections down-hole widths
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