Last checked at 15 Mar 2010 07:00
RED ROCK RESOURCES PLC
Migori: Exploration Update and Sample Results
Dated: 15 March 2010
Red Rock Resources plc ('Red Rock' or the 'Company') the mining exploration and mineral investment company with interests in steel feed, uranium, and gold, announces exploration progress at its Migori gold project in Kenya.
A percussion drilling programme was carried out in late 2009 in order to test the remnant mineralisation of the Macalder tailings. Thirty-two holes (totalling 358m) were drilled on a 25x25 metre grid in December 2009, followed by approximately 100m of infill drilling (six holes) in January 2010. Samples from these holes were dried out at the base camp (in preparation for the laboratory test work) and logged in order to determine the spatial distribution of the calcine and sulphide zones. At the end of February 2010, the samples were transported to the laboratory in Mwanza and are currently being prepped for ICP analysis and gold and base metal assaying. Some samples will be subsequently sent to Perth for metallurgical analysis and leach tests.
In late 2009 and early 2010, 507m of reverse circulation ('RC') drilling was completed on the Migori licences. The eleven holes were drilled over the period December 2009-January 2010 at four main targets across both licence areas, SPL122 and SPL202. In the western licence (SPL122) four holes were drilled at the Macalder gossan and two at Gori Maria; and in the eastern licence (SPL202), four holes were drilled at Carlos Far West (Mwiro) and one at Nyabisawa. Since the drilling, the samples have been logged at the Mikei base camp and are being prepared for transportation to the laboratory in Mwanza, Tanzania. The samples will then be assayed for gold and base metals.
Migori Project - Simplified geology map:
http://www.rns-pdf.londonstockexchange.com/rns/5351I_1-2010-3-12.pdf
In the eastern licence, the Nyabisawa locality hosts intensely sheared banded iron formations ('BIFs') whilst at Mwiro the target rock type consists of graphitic schists. The main finding during the logging exercise was the presence of hydrothermal material in the vicinity of the sulphidic BIF unit intersected in the hole at Nyabisawa.
Regional prospecting has been simultaneously underway, focusing on other BIF related targets at Karutiange, Francis 2 and North of Lake Bush (all in the eastern licence). A more rigorous and systematic RC (and eventually diamond) drilling programme is anticipated in the near future in order to fully test these (and other similar) targets. Also evaluated and readied for drilling were the Nyatworo vein body and the Nyarongi prospects (both in the western licence).
During the December 2009-January 2010 exploration phase, the last five cores (MD32-MD36), from the diamond drilling campaign by Kansai in 2007, were logged and sampled. Samples were sent for analysis in Mwanza in mid-January 2010 and the results received in mid-February. The following table shows a summary of the results from all eleven drill holes that were drilled in 2007.
| Location | Hole ID | Mineralisation Depth | Thickness and Average Grade | Range | |
| Gori Maria | MD26 | 54-62m | 8m@0.91g/t Au | 0.02-4.00g/t | |
| MD27 | 97-118m 138-151m | 21m@0.86g/t Au 13m@1.69g/t Au | 0.04-4.15g/t 0.02-5.10g/t | ||
| MD28 | 80-82m 85-87m 95-118m | 2m@1.11g/t Au 2m@2.42g/t Au 23m@0.79g/t Au | 0.92-1.26g/t 1.28-3.60g/t 0.03-2.50g/t | ||
| Macalder Gossan | MD29 | 46-55m 81-88m | 9m@1.13g/t Au 7m@1.00g/t Au | 0.00-3.50g/t 0.01-3.80g/t | |
| MD30 | 66-67m 66-70m 72-76m | 1m@39.33g/t Au 4m@6.38g/t Au 4m@1.08g/t Au | 35.25-42.00g/t 0.01-42.00g/t 0.14-3.25g/t | ||
| MD31 | Short hole (drill hit stope) - few samples - no significant intersections | ||||
| MD32 | 107-111m 121-125m | 4m@1.06g/t Au 4m@1.03g/t Au | 0.22-3.45g/t 0.15-1.67g/t | ||
| Nyanza | MD33 | 26-31m | 5m@0.98g/t Au | 0.02-4.15g/t | |
| MD34 | 28-29m 60-62m 79-83m | 1m@1.05g/t Au 2m@0.85g/t Au 4m@0.86g/t Au | 0.97-1.12g/t 0.18-1.57g/t | ||
| MD35 | 95-101m | 6m@0.92g/t Au | 0.07-3.23g/t | ||
| MD36 | 24-27m 72-73m | 3m@0.85g/t Au 1m@1.09g/t Au | 0.37-1.56g/t 1.08-1.10g/t | ||
These results were found by first taking the weighted average of the Au grades at each metre (i.e. the mean value of the Au assay result and the results from repeat tests), then finding the average grade over the entire thickness of the mineralised intersection. Maximum and minimum grades in the 'Range' column are actual, measured values. The cut-off grade is 0.25g/t, however lower values were incorporated into the averages where mineralised intersections were disseminated and intersected by minor intervals of lower grade mineralisation (i.e. anomalous, low values). Reported averages over mineralised intersections contain an Au grade greater than, or equal to, 0.85g/t (except in the case of MD28 95-118m where the column of mineralisation is so long).
These holes were drilled as part of a broader infill diamond drilling programme which began in 2004, with the aim of augmenting the historic resource estimates at the four main mineralised targets: Gori Maria, KKM, MK and Nyanza. Following initial exploration at the four targets in 2004, results from drilling were used to formulate a NI43-101 compliant indicated resource estimate, reported in a 2006 technical review. Diamond drilling continued in 2006 and 2007 however, due to civil commotion following the election, Kansai were unable to complete testing of the 2007 drill core and so this was deemed a priority when exploration re-commenced in 2009.
With all sample results from previous exploration now available, the data is being processed and will be reviewed and analysed by an independent resource analyst. The data will be combined with those from the current exploration programme with the intention of generating an up-to-date NI43-101 compliant revision of the resource estimate.
The end of February 2010 saw the commencement of a trenching programme at the Mirema prospect. This was designed to locate the source of the gold in the rich artisanal deposits downstream. The programme is currently ongoing and so far two channels have been completed, both cutting substantial quartz bodies. The trenching is continuing along the trend of the quartz in order to delineate its full extent. Following this phase of trenching, another one will commence at Makuru hill (a large BIF exposure in the western licence).
The technical information in this announcement has been prepared by Kamini Manick, MSc and approved for release by Helen Salmon, BSc, FGS, who is a qualified person as defined in the Note for Mining and Oil & Gas Companies, June 2009, of the London Stock Exchange.
The Company also announces that Blomfield Corporate Finance Limited, the Company's Nominated Adviser has changed its name to Religare Capital Markets (UK) Limited - trading as Religare Capital Markets.
For further information contact:
| Red Rock Resources plc |
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| Andrew Bell, Chairman | 0207 402 4580/07766 474849 |
| John Watkins | 07768 512404 |
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| Nominated Adviser |
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| Religare Capital Markets |
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| Peter Trevelyan-Clark/Ben Jeynes | 020 7444 0800 |
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| Broker |
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| Simple Investments Ltd |
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| Nick Emerson, Renato Rufus | 01483 413500 |
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| Public Relations |
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| Lothbury Financial Limited |
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| Ron Marshman | 020 7011 9411 |
Updates on the Company's activities are regularly posted on its website www.rrrplc.com.