Co-operation in Next Phase at Bilbale

Red Rock Resources plc

27 February 2024

 

Red Rock Resources PLC

("Red Rock" or the "Company")

West African Gold Update

Co-operation in Next Phase at Bilbale

27 February 2024

Red Rock Resources Plc, (AIM:RRR) ("Red Rock" or "the Company"), is a natural resource development company with interests in gold, base metals, battery metals, and hydrocarbons principally in Africa and Australia.

This release is an update, further to the announcement of 23 January 2024, in relation to the Company's gold operations at Bilbale and Boulon in Burkina Faso.

Our planned February visit to join our colleagues at Riverstone Resources Ltd, a Hong Kong company owned by Mr Mahendran Samuel ("Riverstone") on site at Bilbale has now been scheduled for the first week of March, as a separate due diligence trip involving key team members had to be conducted at short notice   

The team will include experienced geologists and engineers from India and Africa with experience of mine development, including in Burkina Faso, as well as our local staff. Initial work will consist of locating and setting up areas for initial trials, some trenching and benching, drilling of two bore holes, and civil works including ponds and preparation of areas for administration, fuel storage, laboratory, furnace, and security.

In parallel, Riverstone will deliver the machinery and equipment needed for exploration, much of which is held by them in stock, and which will be imported by air and sea with a transport time of 6-8 weeks. This equipment should arrive at a prepared site ready to start alluvial exploration operations with the minimum of delay.

Red Rock and Riverstone will implement a test programme processing alluvial material from different parts of the license, on a scale sufficient to establish gold grade, including high grade zones. Red Rock will operate initially on a trial basis, but expects to initiate the process of permitting for bulk production and processing. Initial activities will be those permitted by the exploration license.

Over the implementation period the parties will discuss the terms of future co-operation, taking into account the results of the phase of work now beginning. The license remains owned by Red Rock subsidiary Faso Greenstone Resources SARL.

Chairman Andrew Bell comments:

"Our partners in this new venture are committed to building a long term relationship with Red Rock and have extensive experience of gold production and gold project implementation in Africa.

Our expectation is that when we leave site, there will remain behind a core team that will work together in order to move the project through the steps towards production.

This alluvial project reflects our stated intention to move into cash flow at any of our projects where we can identify this potential. We and Riverstone believe it has potential to scale rapidly, and will be looking to prove that in the current phase of exploration. The experience of their personnel in working with alluvial deposits will we expect complement our capabilities. We will report as equipment is delivered and installed, and as other milestones pass. Both parties will be making contributions, and our further potential commitment in this phase is limited to £150,000 to £200,000. We consider that our current resources and facilities, and indications of support we have received, will enable us to meet this spend. In the event of discouraging results at any stage, work on the alluvial potential will cease and Riverstone will move equipment to another project. Red Rock will update the market as work proceeds.

We are now working with a group that is deeply committed to our success whose advice and help on other matters we have found invaluable."

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

Bob Roberts 0203 8696081                                                        Broker Clear Capital Corporate Broking

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.

 

END