Last checked at 18 Aug 2010 15:51
RED ROCK RESOURCES PLC
Update
Dated: 18 August 2010
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 and uranium, reports on progress at its operations.
Mineras Four Points SA ("MFP")/Colombia gold project (Loan advance, options to acquire 51%):
The new jaw and cone crushers, engine, and other plant have been delivered to the El Limon mine and will be installed within two weeks, and other equipment is being delivered shortly. Sand blasting and inspection for corrosion of existing conveyers and outdoor plant, and a programme of electrical works at the plant, have begun. The first phase of safety and access improvements underground are near completion. The target date for the plant renovation to be complete and for production to recommence at 100 tons per day is now 30th November 2010.
At La Aurora a new crushing plant with conveyors has been delivered and is being installed this week. La Aurora is targeted to be operational and to supply the El Limon processing plant with up to 20 tons per day by the 30th November 2009.
30% of staff have already been transferred to the new contracts as part of the process of reorganization and modernization, and the environmental plan has been delivered to the authorities.
The license area is being remapped, and the first stage of this remapping is expected to be concluded in the next week. The Company's consultant geologist has provisionally identified a new sulphide-bearing vein running close to and east of the main vein, and 20 cm wide at surface, and further exploration continues to establish its continuity and mineralisation.
US$ 1 million has to date been advanced under the Funding and Co-operation Agreement with MFP with a second tranche drawdown of US$ 500,000 expected during September. Scheduled production commencement at 30 November should enable payment of the Company's first consultancy fee of US$200,000 in arrears for the quarter ending 31 December 2010.
Mid-Migori Mining Company/Migori gold project (15% interest with option to increase to 60%):
The fixed wing magnetic/radiometric survey comprising 3,117 line kilometers flown at 30m height, with 2,295 line kilometers flown at a 200m spacing and 822 infill kilometers flown at a 50m spacing, began on schedule on 16 August, and is expected to be completed within seven days. Initial results are expected by mid-September.
Preliminary interpretation of the 378 line kilometer VTEM programme flown at 50m height on lines at 100m intervals in the vicinity of the Macalder VMS mine has been received ahead of the expected schedule, and although no additional targets were identified along strike of the Macalder mine, some possible base metal targets have been generated within the survey area.
Leaching testwork has begun on the Macalder tailings samples at Amdel Laboratories, and the full testwork results should be available by late September.
CSA Global Ltd are completing a JORC Resource estimate of the Macalder tailings, the results of which are expected imminently.
Red Rock expects to finalise a drill programme of 5,000 metres to 10,000 metres during September.
Jupiter Mines Ltd (ASX:JMS)(22.6/5.23% held):
The Extraordinary General Meeting of Jupiter Mines Ltd shareholders to approve the acquisition of the Tshipi manganese mine in South Africa took place on 12 August and approved all resolutions. Completion is expected shortly, at which stage the Company's interest will be diluted to 5.23%.
Resource Star Ltd (ASX:RSL)(26.3% held):
The RC drill programme at the Machinga Rare Earth Project in Malawi, where the company's farm-in partners Globe Metals and Mining Ltd are operators, continues.
New Resolution Geophysics (NRG) began to fly 270 line kilometers of helicopter magnetics/radiometrics, at 20-30m height and on a 50m line spacing, over the Ilomba Hill uranium/niobium/rare earth prospect in N Malawi last week. This programme was 20% complete when it had to be abandoned due to bad weather, and NRG will return shortly to complete it.
Planning continues for the drill programmes at Livingstonia in Malawi, and in the Northern Territory of Australia, each of which needs to be completed by mid-November to avoid the rains.
On 9 August RSL announced the results so far of its Edith River uranium project in Australia's Northern Territory. First pass sampling confirmed the presence of significant levels of uranium in outcrop at the Tennysons Prospect in the Edith River Project and strongly-localised ground radiometric responses were mapped at both Hayes Ck South and O'Shea Hill along structural features associated with potential host rocks. RSL reported that exploration programs were being developed to test potential and that drilling is planned during 2010 at Hayes Ck South and Edith River -Tennysons.
Enquiries:
| Andrew Bell
Sandra Spencer | 0207 402 4580 or 07766 474849
0207 402 4580 or 07757 660 798 | Red Rock Resources plc
Red Rock Resources plc
| Chairman
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.