Last checked at 4 Feb 2022 07:00
Red Rock Resources PLC
("Red Rock" or the "Company")
Asset Review and Current Developments
4 February 2022
Red Rock Resources Plc. ("Red Rock" or "the Company"), is a natural resource development company with interests in gold and base metals, principally in Africa and Australia.
Current projects and likely near-term news are summarised below.
Highlights:
Ø Drill programmes in three countries where gold, copper and cobalt exploration results now expected imminently
Ø Acquisition of new ground in Burkina Faso and Côte d'Ivoire
Ø Preparation for new exploration phase in Kenya
Ø Expected near term listing of investee company
Ø Listing process for Australian JV gold company continues
Ø Focus on strengthening of battery metal presence with lithium as well as cobalt/copper now an area of interest
Red Rock Chairman Andrew Bell comments: "We have completed drill programmes in Kenya and the Congo, already have the raw results returned from the laboratory in the case of Congo and expect them imminently in the case of Kenya. The results and analysis, which we shall announce as soon as we have them, will be key near-term milestones.
Our colleagues in Australia, where we have our joint venture with Power Metal Resources Plc, are making good progress with their drilling and once they have the full suite of results from the first target, where drilling has completed, we expect them to provide us with an early analysis.
The Company is therefore in the unusual position of expecting drilling results from six targets in three countries over the coming weeks.
We also look forward to the slightly delayed listing of Elephant Oil Corporation, a group in which we have been a longstanding shareholder, in the U.S. We anticipate this may happen in the first quarter, and if it does it will be the first of a series of planned monetisation or value crystallisation events, and a most important one.
Moving to IPO with, or seeking partners for, some of Red Rock's other assets will also form part of this strategy which will be a strong focus in 2022.
Our royalty interest in Mt Ida has had good news in that Juno Minerals Ltd in its recent quarterly report has stated its intention to complete the feasibility on Mt Ida and has stated:
"The Mount Ida Project remains the largest magnetite resource and the most technically advanced magnetite project in the Yilgarn. With magnetite concentrate being a higher grade and consistent product, commanding a premium price over DSO iron ore, it also has the advantage of a lower environmental footprint in the smelting process and is considered as the "green steel" which is becoming the preferred raw material in the steel making process".
This new emphasis by Juno's management on Mt Ida and their recognition of its potential vindicates our consistent encouragement while represented on the board of Mt Ida's previous owner Jupiter Mines Ltd, of the concept of spinning out Jupiter's iron ore assets into a separate listing. The coming into production one day of Mt Ida would be a development of the first order for Red Rock.
We shall watch developments there carefully during 2022."
PROJECT | UPDATE |
Mikei Gold Project
Western Kenya
Gold: 723,000 oz Mineral Resource Estimate at 1.49 g/t (JORC 2012)
100% economic interest
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20 Reverse Circulation (RC) holes totalling 2,093m drilled in H2 2021.
Drilling was over the Central KKM project area within and just outside the Resource envelope.
RRR announced on receipt from the laboratory of the first 950 sample results that 7 of the first 9 holes encountered gold mineralisation with intercepts including 17m at 1.02 g/t to end of hole (including 1m at 3.15 g/t).
Drill results for the next 11 holes is expected from the laboratory within 7-10 days and will be announced, with full interpretation to follow.
Elsewhere in the licences an EIA is being prepared for future drilling and ground geophysics work continues.
An injunction was obtained to prevent illegal foreign miners and those acting on their behalf from infringing on a part of RRR's licence area.
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Luanshimba Copper-Cobalt Project
Copper/Cobalt: Katanga, DRC
80% interest
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First drill programme on prospect carried out in H2 2021, with 2,469m drilled in 29 RC holes.
Cobalt Heterogenite oxide mineralisation in multiple fault gouges, as well as Copper including a pyritic zone overlying chalcopyrites, observed in Zambian Copperbelt style mineralisation.
Results from all 2,763 samples (including standards and blanks) now received from laboratory, and report undergoing peer review by consultants before release to the market.
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New Ballarat Gold Corporation Plc
Gold: Victoria, Australia
50.1% interest
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New Ballarat Gold Corporation Plc (NBGC) takes over as 100% owner of local operator Red Rock Australasia Pty Ltd.
9 granted licences totalling 1,501 sq km are held around the historic mining centre of Ballarat, with 3 licences totalling 657 sq km going through the grant process and a further licence in a competitive grant process.
A diamond drill programme to test three target areas began before Christmas with a 6 hole programme at the O'Loughlins prospect SE of Ballarat, before moving to current drilling at Pitfield SW of Ballarat. Drill results from O'Laughlins are expected within the next weeks.
It remains the intention of Red Rock and its JV partner to seek a listing for NBGC, and work on this will proceed with due regard to market timing.
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Faso Minerals Ltd
Gold: Boromo and Banfora greenstone belts, SW Burkina Faso
100% subsidiary
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Faso Minerals Ltd (FML) through its 100% subsidiary Faso Greenstone Resources SARL holds 348 sq km of highly prospective ground acquired from local holders in the SW of Burkina Faso at Bilbale and Boulon.
Applications for other areas have been prepared.
A remote sensing screening of the areas which have generally 2-5m of laterite cover, using visible near infrared (VNIR), shortwave infrared (SWIR), longwave infrared (LWIR) and ALOS-1 synthetic aperture radar (SAR) imagery, is under way, preparatory to ground geochemistry, geophysics, and drilling.
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LacGold Minerals Ltd
Gold: greenstone belts in Côte d'Ivoire
100% subsidiary
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LacGold Minerals Ltd (LGM) through its 100% subsidiary LacGold Resources SARLU has made initial applications for five prospective areas, screened from a long list, for gold exploration. The first two totalling 781.69 sq km have been approved by the Interministerial Committee (CIM) and the signed Décrets are awaited.
Official visits are planned to the next two before they go to the CIM.
An initial MMI (mobile metal ion) programme will be undertaken immediately upon grant.
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African Lithium Resources (Private) Ltd
Lithium: historical pegmatite areas in Zimbabwe
75% subsidiary
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RRR is in the process with a local partner of assembling a lithium portfolio by purchase of old mining areas and by pegging of prospective areas with evidence of lithium mineralisation.
The process is well advanced and will be reported to shareholders once critical mass is achieved and all documentation is in hand.
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Other DRC interests
Copper-Cobalt
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The Company's 100% owned subsidiary has obtained three judgments and two monetary awards through the DRC courts this year in relation to wrongful acts by a business partner.
RRR continues to pursue the matter in order to obtain compensating assets, payment of the awards, and further financial compensation.
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Other
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RRR has c397,873 shares in Elephant Oil Corporation, where an application for listing on a North American market has now been applied for. Current expectations, as reported to RRR, are for a March listing. Should the listing occur, the Company is likely to possess a liquid asset of considerable value.
The Company retains its royalty on the El Limon gold mine in Colombia (currently not paying but expected to resume payments in 2022). Other non-paying royalties include that over the Mt Ida iron ore asset in Australia, now part of Juno Minerals Ltd, and those over the Australian joint venture gold assets.
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This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
For further information, please contact:
Andrew Bell 0207 747 9990 Chairman Red Rock Resources Plc
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 0207 374 2212 Broker First Equity Limited