Asset Review and Interims Update

RNS Number : 8321F

Red Rock Resources plc

24 March 2022

 

Red Rock Resources PLC

("Red Rock" or the "Company")

Asset Review and Current Developments

Interim Results Update

24 March 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.  

A review of current projects and likely near-term news was issued on 4 February 2022, and this is an update of that review.

Highlights :

Ø Results from drill programmes in Congo and Kenya have been announced, and laboratory results awaited from  the Australian JV drill programme

Ø Pursuit of the Company's legal rights in the DRC progressing with judgments rendered in favour of the RRR group

Ø Await laboratory sampling results in Côte d'Ivoire (gold) and Zimbabwe (lithium)

Ø Planning and costing the requirements for next stage diamond drill programmes in DRC and Kenya

Ø Expected near term listing of Elephant Oil

Ø Listing planned for Australian JV gold company

Ø Continued focus on strengthening of battery metal presence with lithium as well as cobalt/copper now an area of interest

Interim Results

The Company also announces that further to the guidance published by the London Stock Exchange in respect of the temporary measures for the publication of half-yearly reports for AIM companies pursuant to AIM Rule 18 of the AIM Rules for Companies, Red Rock intends to utilise the additional one month period to prepare and notify shareholders of the Company's interim results for the six months ended 31 December 2022  (the "Interim Results") and will release its Interim Results in the second half of April 2022.

Red Rock Chairman Andrew Bell comments : "Our reverse circulation drill programmes in Kenya and the Congo, where we have recently announced results, achieved their objectives, and we are already planning and costing the diamond drill programmes to  follow up these successes.

We still have the gold drilling results from our diamond drilling programme in Victoria, Australia, to look forward to, and we also await the full results from a gold sampling programme across our Ivory Coast licenses, as well as results from lithium and tantalum sampling in Zimbabwe.

We also look forward to the listing of Elephant Oil Corporation, a group in which we have been a longstanding  shareholder (currently holding under 4%) in the U.S. The value to us of this holding upon listing is expected to be a multiple of book value and will underwrite some of our continuing activity.

We have had two groups of assets in the DRC. One we recently drilled. When we acquired our other JV interests in the DRC, the fact that we could in our internal assessments based on previous work identify a quantifiable high grade deposit exploitable from surface and within easy distance of processing facilities created in our mind a potential route through an early transaction or by mining out of the small company trap. Our success in negotiating the replacement of the original assets offered to that JV with better assets unfortunately created too great a temptation for some of our associates, and the extent of the misbehaviour became evident late last year.  We would hope to obtain returns through compensation as opposed to those we should have enjoyed through mineral extraction and sale; the pursuit of our legal rights in the DRC is progressing.

Moving to IPO or partnership with some of Red Rock's assets remains a key component of strategy, enabling us to balance risk, and fund programmes from external sources.

The Company has reviewed its financial position and expects to have sufficient working capital available to it for the foreseeable future. "

PROJECT	UPDATE
Mikei Gold Project Western Kenya Gold: 723,000 oz Mineral Resource Estimate at 1.49 g/t (JORC 2012) 100% economic interest	Results of drilling of 20 Reverse Circulation (RC) holes totalling 2,093m announced in March 2022. Drilling was over the Central KKM project area within and just outside the Resource envelope. 16 of 20 holes intercepted gold mineralisation, in 15 holes at or above cut-off grade, including: · 37m @ 0.73 g/t Au from 120m to 157m in KKRC095 (including 5m @ 2.05 g/t Au from 135m, 1m @ 1.59g/t Au from 145m, 2m @ 2.18g/t Au from 150m) · 19m @ 0.54 g/t Au from 81m to 100m in KKRC087 (including 3m @ 1.07 g/t Au from 90m, 1m @ 2.55g/t Au from 95m) · 10m @ 1.5g/t Au from 61m to 71m in KKRC103 (including 3m @ 1.02 g/t Au from 61m, 5m @ 2.23 g/t Au from 67m) · 8m @ 1.23g/t Au from 87m to 95 m in KKRC189 (including 4m @ 1.81 g/t Au from 87m, 2m @ 1.07 g/t Au from 92m) · 17m @ 1.02 g/t Au from 116m to 133m in KKRC102 (including 1m @ 3.15 g/t Au) · 6m @ 1.17 g/t Au from 8m to 13m in KKRC082 (including 1m @ 3.75 g/t Au) · 4m @ 1.37 g/t Au from 83m to 87m in  KKRC101 (including 1m @ 2.7 g/t Au) EIA already obtained for four of the remaining prospects. Next stage diamond drilling programme being planned with consultant input, with intention of following this with a JORC Resource revision. IP programmes completed on four prospects, and mapping and sampling planned at Masurura.
Luanshimba Copper-Cobalt Project Copper/Cobalt: Katanga, DRC 80% interest	Results of first 2,469m, 29 hole, RC drill programme on prospect announced in February 2022. Copper intersections of significance included: · 6 metres at 0.61% (including 1 metre at 1.45%) towards the bottom of hole DRC014 at Kilembwe · 3 metres at 0.7% and 3m at 1.14% encountered towards the bottom of holes DRC019 and DRC021 at Luanshimba North. Extensive Cobalt encountered including: · 43m at 0.13% including 11m at 0.2% at Kilembwe in DRC015 in a brecciated argillaceous arenite · 3m at 0.37% related to a fault gouge, overlying 13m at 0.10% in a brecciated argillaceous arenite at Kilembwe in DRC008 · 5m at 0.78% including 2m at 1.4% at DRC023 in Luanshimba East. Several holes ended as they were entering pyrite and chalcopyrite mineralisation, and the next step will be diamond drilling to test for Copper and Cobalt ores deeper in the sequence,
New Ballarat Gold Corporation Plc Gold: Victoria, Australia 50.1% interest	9 granted licences totalling 1,501 sq km are held around the historic mining centre of Ballarat. A further 3 licences totalling 657 sq km (one of which produced over 300,000 oz in mid-19th century mining)  are completing the grant process and a further licence is 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 drilling at Pitfield SW of Ballarat. Drill results from O'Laughlins are expected from the busy Perth labs shortly. Red Rock and its JV partner are seeking a listing for NBGC, and work on this is progressing in what is now a better gold environment.
Faso Minerals Ltd Gold: Boromo and Banfora greenstone belts, SW Burkina Faso 100% subsidiary	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 using visible near infrared (VNIR), shortwave infrared (SWIR), longwave infrared (LWIR) and ALOS-1 synthetic aperture radar (SAR) imagery, was undertaken. A sampling and mapping programme covering artisanal and other areas with evidence of surface or near surface gold is about to be undertaken at Bilbale.
LacGold Minerals Ltd Gold: greenstone belts in Côte d'Ivoire 100% subsidiary	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 745.67 sq km after adjustments have been approved by the Interministerial Committee (CIM) and the signed Décrets are awaited. Official visits have been conducted to the next 2, Tienko and Korhogo. Some initial sampling has been carried out and most results are still awaited:   Yama  Djekanou  Tienko  Korhogo Termite    3  0    0    0 Soil         10  9    0    0 Rocks    17  21    37    1 Stream 4  10    0    0 An extension area to one of the licences has been identified. An initial MMI (mobile metal ion) programme will be undertaken immediately upon grant.
African Lithium Resources (Private) Ltd Lithium: historical pegmatite areas in Zimbabwe 75% subsidiary	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 reporting awaits the imminent receipt of definitive documentation. 75 samples covering the areas of interest have been submitted for assay.
Other DRC interests Copper-Cobalt	The Company's 100% owned subsidiary has obtained judgments for $2.5m (being 50.1% of $5m paid to local partner VUP by a buyer) and $2m damages, plus costs, in relation to its joint venture with VUP. An opposition filed to the judgment by VUP was rejected by the Court. VUP seeks a further $15m in relation to its contract with a third party, and RRR has notified the buyer of its interest in 50.1% of that, if paid, or assets in lieu. RRR is moving to enforce the judgments, and further damages, against VUP and other parties that have enabled its conduct. This may require later proceedings in other jurisdictions, but the substantive law to be applied in any claim will likely be that of the DRC.
Other	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  an early April listing following submission of an updated quarterly report. Should the listing occur on the terms indicated to us, the Company is likely to possess a liquid asset with a market value in the millions of dollars. 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 the 0.75% (fully diluted) NSR royalty over the Mt Ida iron ore asset in Australia, now part of Juno Minerals Ltd, and those over the Australian joint venture gold assets. RRR notes the statement by Juno, which listed in 2021, in its interim results announced in March 2022 that "with a renewed interest magnetite iron ore, Juno commenced a review on the Mount Ida Project. The Project in on a granted Mining Lease, has significant tenure for infrastructure, and expansive water exploration licences over areas prospective for good quality water. The Mount Ida Project remains the largest magnetite resource and most technically advanced magnetite project in the Yilgarn. Juno intends to progress the completion of the Feasibility Study on the Mount Ida Project, with the objective of developing a long-life magnetite mine". The Company no longer holds a material investment in Jupiter Mines.

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     

 

END

 

 

TSTJJMBTMTBTTAT