Last checked at 14 Nov 2023 15:03
Red Rock Resources PLC
("Red Rock" or the "Company")
Asset Review - Current Developments
14 November 2023
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.
The following is an update of key points only in relation to the Company's assets and current developments. For a more comprehensive summary of the Company's assets, the announcement of 8 March 2023 may be referred to.
Highlights:
o RRR expects the most important near-term developments to be:
o Announcement of first shipments of Lithium Ore
o Release of arbitration result in the DRC
o An update on how to progress New Ballarat Gold Corporation
o RRR expects to initiate activity this month on its lead Burkina Faso project with a view to possible short term production of alluvial Gold
PROJECT | 2023 UPDATE |
Lithium Project, Zimbabwe
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RRR has been in a continuing 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 good grade lithium mineralisation.
Sampling has been carried out over the areas of interest.
An Environmental Impact Assessment ("EIA") has been obtained over the first production area.
Beaconing and environmental work on other areas is in progress.
The Company has the first 200t of spodumene lithium ore available for shipping and expects to make a further announcement shortly.
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Former Copper-Cobalt Joint Venture, DRC
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The Company's 100% owned subsidiary obtained in 2022 an executory judgment for $2.5m (being 50.1% of $5m paid to local partner VUP by a buyer).
A further claim by the Company's subsidiary for $2m costs and damages is under appeal.
The buyer retains a further $15m unpaid consideration pending determination of an arbitration where RRR claims $7.5m gross.
The release of the arbitration result is now anticipated.
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New Ballarat Gold Corporation Plc
Gold: Victoria, Australia
50.1% interest
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15 principal granted licences targeting gold and 1 purchased licence, together totalling 2,517 sq km, are held around the historic mining centre of Ballarat.
A further copper-prospective licence of 500 sq km is now also held in South Australia.
In 2022 NBGC obtained grant of the historic Ajax Mine with recorded production of 312,789 oz at 14.8 g/t, and purchased the historic Berringa Mines, with recorded production of just under 300,000 oz at 8.3 g/t.
The acquisition of these two significant assets, among the largest producing hard rock mines in the history of the Victoria gold fields, and with significant associated exploration targets, is an important milestone for NBGC.
Three drill programmes have been carried out over target areas, and the results at the old Berringa Mine were particularly promising.
We consider that our JV in the Victoria Goldfields is adding value with each stage of exploration work, and as the drilling confirms the initial model.
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Faso Minerals Ltd
Gold: Boromo and Banfora greenstone belts, SW Burkina Faso
Subsidiary
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Faso Minerals Ltd (FML) through its 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.
This initial scout drilling programme (later extended to 778m) of seven holes across two locations in the extremely promising Bilbale licence produced, in the first phase at the Djikologo target, gold intersections in three of the four holes drilled, with three relatively high-grade intersections in the BilR22-03 drillhole including 20m at 3.19 g/t gold from 22m depth.
The Company is preparing a new exploration programme and has a team scheduled to visit in the next weeks to investigate the possibility of fast-tracking into production of the alluvial material.
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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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Results of drilling of 20 Reverse Circulation (RC) holes totalling 2,093m were announced in August 2022.
Drilling was over the Central KKM project area within and just outside the Resource envelope showing continuity along strike and down dip.
16 of 20 holes intercepted gold mineralisation, in 15 holes at or above cut-off grade.
An EIA has been obtained for drilling four of the remaining prospects.
The next stage diamond drilling programme has begun the planning process, with consultant input, the ultimate intention being a JORC Resource revision.
However the licences are due for renewal this year, in the course of which some ground has to be dropped, and pending completion of this process the only activity being carried out is work on additional EIAs, opening up new areas for drilling.
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LacGold Minerals Ltd
Gold: greenstone belts in Côte d'Ivoire
Subsidiary
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LacGold Minerals Ltd (LGM) through its 100% subsidiary LacGold Resources SARLU made initial applications for seven prospective areas, screened from a long list, for gold exploration. The first 344.5 sq km licence at Djekanou has been granted, and a further three in the same area totalling 1,060 sq km are awaited.
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Elephant Oil Corporation
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RRR has 397,873 shares in Elephant Oil Corporation, where a Form S-1/A and a presentation have been filed and are kept updated on the EDGAR website of the Securities and Exchange Commission under the stock code ELEP. The intention of Elephant is to list on a North American Exchange. It had been expected that this would have taken place early in 2023, but the process is taking longer than expected and the Company awaits definitive news. RRR has a strongly positive view of the 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