Drill Results from Mt Bute, Victoria, Australia

RNS Number : 6844O

Red Rock Resources plc

13 June 2022

 

Red Rock Resources PLC

("Red Rock" or the "Company")

 Drill Results from First Hole at Mt Bute Prospect in Victoria, Australia

Discovery of Intrusion Related Gold Mineralisation Confirmed

13 June 2022

Red Rock Resources Plc, ("Red Rock" or "the Company"), a natural resource development company with interests in gold and base-metals, principally in Africa and Australia, announces an update in relation to the exploration programme being carried out by joint-venture subsidiary New Ballarat Gold Corporation plc ("NBGC") within the Victorian Goldfields of Australia. Exploration is being carried out by Red Rock Australasia Pty Ltd ("RRAL"), the 100% owned Australian operating subsidiary of NBGC.

Laboratory results from the first hole drilled (MB22D001) at the Mt Bute prospect, one of two targets addressed in recent drilling, have now been received and are considered significant. Preliminary X-ray fluorescence (XRF) analysis of selected Mt. Bute core intervals had returned highly anomalous molybdenum (Mo) and bismuth (Bi) results, suggesting the possibility of intrusive related gold ("IRG) mineralization within the Victorian goldfields. A total of three holes were drilled at the Mt. Bute Prospect and the results from the second and third holes are still awaited.

Further results, not considered of such significance, have been received from the drilling at the other prospect, O'Loughlins.

Highlights

· Drilling results from MB22D001 have confirmed the existence of IRG mineralisation overprinting orogenic mineralisation at the Mt. Bute Prospect, a significant development within the Victorian Goldfields generally.

· Over 30% of assays between 23.1m to 117.7m returned results greater than 0.1 g/t gold (Au).

· Including intervals of 0.4m of 5.13 g/t, 0.5m of 2.5 g/t, 1.8m of 1.43 g/t, and 5.9m of 0.42 g/t Au.

· Additional drilling at the Mt. Bute Prospect is recommended to step out along strike and down dip.

Red Rock Chairman Andrew Bell comments: "This is only the first hole of our small programme on the property so to have encountered such widespread mineralization, including some good grades, was a very good outcome reflecting great credit on the RRAL technical team and their understanding of the regional geologies. Intrusion-related gold has been a theme of much discussion in Victoria, and to have confirmed that it played a role in our licence area is a validation of this new paradigm, with implications for exploration across the region."

Discussion

RRAL has received assays from the first of three holes drilled at the Mt. Bute Prospect.

Context

RRAL has been engaged in a multi-phase drill programme addressing two principal targets, O'Loughlins and Mt Bute. This announcement relates to the first drill hole on the second target, Mt Bute.

RRAL has to date completed a total of 860m of drilling during the Phase I diamond drilling programme targeting the O'Loughlin's and Mt Bute Prospects, located 30km and 20km from the town of Ballarat, Australia, respectively. Initial results from the O'Loughlins Prospect were released on 12 April 2022 and can be found at the link below:

https://www.londonstockexchange.com/news-article/RRR/update-on-gold-exploration-in-victoria/15410040

Some results of lesser significance returned from two further at O'Loughlins are included in this announcement.

Mt Bute

The drilling was intended to resolve complexities in the structural geometry and the first hole, reported on here, has intercepted several zones of IRG-type gold mineralisation. Located in close proximity to the Mt. Bute Granite (large I-type granitoid) the geology within the area is dominated by steeply dipping, folded metasediments within a hornfels alteration aureole. Results of the drilling and the discovery of IRG mineralization now suggest that the target is geologically more complex than previous interpretations - which originally suggested that the small historically mined gold reefs were solely orogenic in origin. 

Whilst minor historical workings exist on the Property, limited previous modern-day exploration has been undertaken.  In the late 1990's, a 14-hole shallow Reverse Circulation (RC) drill programme was carried out by a previous operator which concluded that gold hosted quartz vein reefs were present and possibly continuous, but insufficient in size to support production via an open pit mining operation.  In contrast, RRAL is now exploring with a view to exploit any narrow vein high-grade reefs via underground - as well are investigating the significant development of overprinting IRG-type gold mineralisation.

The reef structures within the area have generally been poorly understood, including any possible relationship to the nearby Mt. Bute granite. In addition, complexity within the regional fault structures as well as the presence of Cambrian age sediments, which are of similar age and lithology to the nearby Stawell Gold mine, precluded meaningful geological understanding of the area. To help resolve this, RRAL completed a short 3-hole diamond drilling programme within an area of limited outcrop. 

RRAL is now encouraged by the likelihood that the Mt. Bute granite may have had a greater influence on gold mineralisation than previously thought and intersecting elevated gold across broad intervals as well as in several mineralised lode structures within the first drill hole was a result above expectation.

While additional gold and multi-element assay results are still pending, the Company's technical team is confident that there is definite continuity to the main mineralised structure and the drilling result has provided increased geological understanding on the potential source of gold mineralising fluids.

Final assays are anticipated before the end of the month and a full and detailed report will be forthcoming once all results have been received and interpreted by the Company.

Mt. Bute Drill Programme Collar Table:

HoleId	Easting	Northing	RL (m)	azimuth	dip	Length	Status
MB22D001	723964	5821996	401.42	280°	-55°	119.2m	Assays received
MB22D002	723964	5821996	401.42	300°	-55°	119.3m	Assays pending
MB22D003	723964	5821996	401.42	250°	-55°	101.5m	Assays pending

Drilled as triple tube HQ core diameter. ½ sample core samples over select intervals were chosen by on-site geological staff were prepared and sent to Minanalytical's laboratory located in Perth, Western Australian. Here, the samples underwent multielement analysis using 4-acid digest with a ICP-OES finish. Gold assays were determined using fire-assay with AAS a finish.

The significant intercepts from the drilling of assays above 0.1g/t are tabled below.  All widths are apparent.

Hole MB22D001 Assay Table:

Depth (m) from	Interval (m)	Gold in g/t
23.1	0.3	0.12
27.6	1	0.52
30.7	0.5	0.56
32.7	0.5	0.29
34.20	0.5	0.36
35.2	0.5	0.23
43.8	0.9	0.11
45.7	1.5	0.18
47.9	1	0.21
49.4	5.9	0.42
59	0.4	5.13
67.1	0.3	0.27
67.4	0.5	2.50
69.6	1.8	1.43
77.7	0.3	1.08
79.4	1	0.14
82.7	0.5	0.10
88.5	1	0.16
95.3	0.5	0.39
97.7	0.5	0.14
99.7	0.5	0.26
103.2	0.4	1.44
111.4	0.5	0.39
117.45	0.25	0.14

Fig 1 location plan

http://www.rns-pdf.londonstockexchange.com/rns/6844O_1-2022-6-13.pdf

Fig 2 Cross section

http://www.rns-pdf.londonstockexchange.com/rns/6844O_2-2022-6-13.pdf

The company now awaits the return of assays from the remaining two holes and is now looking to conduct further drilling at the Mt. Bute Prospect before the end of the year.

O' Loughlin's - further results

A total of 5 holes were drilled within the O'Loughlins Prospect. The results from the first two holes, which included highlight intercepts of 0.4m of 12.34g/t from 75.7m downhole, and 0.5m at 1.44g/t Au from 50.6m downhole were presented in the 12 April 2022 RNS. Drilling results have now been received for an additional 2 holes at the O'Loughlin's Prospect. Results from one final hole, OL22D003, are still outstanding.  

Results have now been received from two further holes (OL22D001 & OL22D002). These holes have successfully intersected a mineralised lode structure, and whilst the tenor of downhole gold grades differs from surface samples collected at the historical workings, the results highlight the continuity of the zone of interest.

The technical team is completing a detailed structural interpretation of the geology derived from the core drilling and surface mapping, and it is anticipated that the results of this work will lead to a future drilling programme at the O' Loughlins Prospect.  

O'Loughlins Drill Programme Collar Table:

HoleID	Length	Azimuth	dip	Easting(m)	Northing(m)	RL (m)	Status
OL21D001	80.2m	280 °	-70 °	755592	5819620	352.8	Assays received
OL21D002	88.7m	278 °	-85 °	755593	5819620	352.8	Assays received
OL22D001	122.1m	88 °	-74 °	755539	5819638	354	Assays received
OL22D002	143.5m	71 °	-60 °	755539	5819638	354	Assays received
OL22D003	91.5m	300 °	-65 °	755623	5819692	349	Assays pending

HoleID	From (m)	To (m)	Interval (m)	Au (g/t)
OL22D001	51.7	52.2	0.5	0.17
OL22D002	16.1	17.2	1.1	0.76
OL22D002	24	25	1	0.11
OL22D002	113	114.6	1.8	0.16
OL22D002	117.05	118	0.95	0.27
OL22D002	130.5	131.2	0.7	0.72

O'Loughlins Drillhole Assay Table:

New Ballarat Gold Corporation

NBGC is a joint venture company, owned as to 50.1% by Red Rock and as to 49.9% by Power Metals Resources PLC (AIM:POW), which wholly owns Red Rock Australasia Pty Ltd , holder of the  Victorian Tenements.

NBGC holds through its wholly owned subsidiary RRAL a land position comprising 14 granted licenses of in total 1,832 sq km in the rich gold fields of Victoria, Australia, principally around the mining centre of Ballarat.

Five licences covering 493 km2 await grant. The company has assembled its portfolio of properties comprising a broad range from exploration targets to near-term resource potential, all of which remain largely undeveloped by modern explorers.

With the first tenements granted only in 2021, NBGC has already conducted initial exploration of selected targets, including a diamond drill test of two prospects starting in December 2021.

520m of drilling has been carried out at the O'Loughlin's target within EL 007271and 340m has been carried out at Mt Bute, with samples sent to MinAnalytical Laboratory Services in Perth, WA, for laboratory assay testing.

Granted Licences

The fourteen granted licences cover high priority areas covering 1,832km² as outlined below.

Licence Number	Project Name	Area (km2)
EL007271	Buninyong (renamed)	133
EL007281	Blue Chip	74
EL007282	Blue Sky	489
EL007285	Blue Ribbon	8
EL007327	Dereel	60
EL007385	Sardinia	4
EL007329	Kilmore	484
EL007301	Pitfield/Mt Bute	85
EL007328	Blue Yonder	164
State land within EL007271 EL007505	-	[9]
State land within EL007271 EL007506	-	[9]
State land within EL007271 EL007507	-	[8]
EL007330	Daylesford (renamed)	202
EL 007294	Talbot (renamed)	129
Total		1,832

Licence Applications

RRAL has applications in process for five other new gold exploration licence areas covering 493 km² in the Victoria Goldfields of Australia including:

License Application Number	Project Name	Area (km2)
EL007540* (3 competing applications)	Outer Ballarat	142
EL007756	Monmouth	22
State land within EL007327 EL007799	Dereel (2)	[3]
EL007826	Ballarat East	4
EL007460	Kilmore West	325
TOTAL		493

* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.

The following applications have been made in Western Australia, covering largely areas previously held by the Company at the time of its original listing.

EL45/5859	Paterson	227
EL45/5885	Pilbara/Paterson	70

The technical information relating to exploration in this report is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists and a director of NBGC, and the Exploration Director of RRAL. He is a member of a recognized professional organization and has sufficient relevant experience to qualify as a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies published by AIM.

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   

 

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