Further Drilling Results from Greenland

RNS Number : 0096L

Red Rock Resources plc

29 August 2012

 



Red Rock Resources Plc

Second iron prospect defined at Melville Bugt Iron Project, Greenland

29 August 2012

Red Rock Resources plc ("Red Rock" or the "Company"), the mining and exploration company with an iron ore project in Greenland, a producing gold mine in Colombia, advanced gold and copper exploration in Kenya, and interests in steel feed, uranium and rare earths, is pleased to announce further results from its maiden drilling program in Melville Bugt, northwest Greenland.

Highlights

Drilling has been completed on the De Dødes West Prospect, the second of a number of banded iron formation (BIF) prospects to be drilled during the current program in north west Greenland (Fig 1).  Four holes have been completed for a total of 558m, and the rig has been mobilised to the Haematite Nunatak Prospect where a second drill rig has also recently commenced work.

Figure 1: Location Map of the Melville Bugt Iron Project, Greenland.

http://www.rns-pdf.londonstockexchange.com/rns/0096L_-2012-8-29.pdf

Key outcomes from De Dødes West include:

·     All holes intersected significant BIF horizons (Table 1).

·     Estimated true thickness of the BIF sequence, at this prospect, of between 60-80m with localised thickening due to sequence stacking up to a total of 156m in DWD005.

·     Magnetite (Fe₃O₄) and haematite (Fe₂O₃) zones have both been intersected, with increasing haematisation to the north-eastern end of current drilling, thought to be at least partly associated with deformation and alteration around the fault causing the sequence stacking.  

·     Zones of massive haematite with grades of 55-70% Fe from field XRF readings.

Table 1: De Dødes West preliminary drill results - best iron intersections 

	From (m DH)	Width**        (m DH)	Est % Fe (field XRF*)	Comments
DWD001	7.50	14.10	21.5%	Magnetite-dominant BIF with minor lenses of haematitic schist
	37.15	19.35	22.9%
	66.20	37.30	21.9%
DWD002	12.00	27.45	27.6%	Haematite-dominant BIF with massive haematite zone @ 24-26m
	incl	1.67	69.7%
	42.00	43.90	22.2%	Magnetite-dominated BIF
	88.70	8.35+	27.4%
DWD003	31.90	21.60	23.4%	Haematite BIF with lenses of haematitic schist
	58.35	33.40	21.7%	Magnetite BIF
DWD005	24.30	65.75	21.9%	Haematite-dominant, fault-repeated, locally brecciated and altered BIF
	132.20	21.70	28.3%
	160.05	15.05	38.9%
	incl	5.17	54.9%
	183.95	9.70	24.9%

^* Iron grades obtained from Niton field X-ray fluorescence (XRF) "spot" analyses. Chemical compositions are representative of expected grades, which will be determined by follow up assay work, however the XRF results are not considered as reliable as the full chemical analysis planned, and should be used as an indication of potential results.  A full description of the logging procedures is included below.

^** Downhole thicknesses with a '+' indicate the lower BIF contact was not reached due to drilling issues, indicating this value as the minimum thickness. Hole DWD004 was abandoned at only 25m due to drilling difficulties.

Andrew Bell, Chairman of Red Rock Resources, comments: "The continued success of the drilling program at the Melville Bugt Iron Project is encouraging. Good results have been returned in spite of difficult drilling conditions, unseasonably bad weather and complex geology, further supporting our belief that we are operating in a new iron ore province. We now have two rigs operating, and have started drilling one of our most encouraging areas. We remain optimistic that we will be able to deliver one or more Mineral Resource Estimates with the results we acquire this season."

Detailed Discussion

Drill Program Objectives

The De Dødes West Prospect is the second target of Red Rock's maiden drill season on the Melville Bugt Iron Project, following the identification of significant outcrops of BIF associated with airborne magnetic anomalies during the Company's initial field season in 2011. 

The main objectives of the 2012 diamond core drill programme are to:

·     Delineate near-surface extent and continuity of the BIFs by drilling 100m-250m holes;

·     Characterise geological structures that are key to understanding the 3D geometry of BIF occurrences in the licence area;

·     Assess the extent and the implications of secondary haematite replacement;

·     Obtain a JORC Mineral Resource Estimate for one or more BIF targets in the licence area if possible.

Results

While logistical issues, difficult drilling and poor weather conditions have continued to slow drilling progress, excellent core recoveries and data collection are being achieved, and satisfactory results have been received from the drilling completed to date.

Drilling has been completed at De Dødes West for this season, utilising a 200m fence pattern to help define the shape of, and correlate internal structures within the BIF units, to determine likely structural controls of the unit, and map secondary haematisation.  A total of 4 holes have been completed and analysed using field XRF, totalling 558m (Fig 2).

Figure 2: Drilling location plan, De Dødes West 

 http://www.rns-pdf.londonstockexchange.com/rns/0096L_1-2012-8-29.pdf

Figure 3: Diamond core drill rig at De Dødes West 

 http://www.rns-pdf.londonstockexchange.com/rns/0096L_2-2012-8-29.pdf

Preliminary field XRF geochemical results from holes drilled to date along the strike extent of the unit are presented in the Appendix 1, in addition to true widths of the intersections based on the geological interpretation below. Intersections of up to 96m of haematitic and magnetitic BIF have been drilled with average grades of 22.6% Fe and intersections of massive haematite at 70% Fe. Grades from magnetite dominated intersections show preliminary average grades of 22.6% Fe through intersections of up to 95m.

Geological Interpretation

Plotting the results and preliminary logs onto cross sections (Fig 4), it is possible to see the distribution of haematite alteration within the BIF horizon: Traversing NE along the strike extent of the BIF the haematite content intersected increases, from magnetite-dominated in the southerly holes (DWD001), through reasonably well segregated magnetite- and haematite-dominant layers in the central holes (DWD002, DWD003) to haematite-dominated in the northerly holes (DWD005). In addition, DWD005 shows evidence of structurally-controlled sequence repetition and thickening. This is thought to cause the strong degree of haematisation and alteration of the BIF seen there.

The presence of such thick haematite mineralisation extends exploration potential beyond the defined airborne magnetic anomalies initially highlighted during the 2011 field season, resulting in the prospect to increase the size and grade of this prospect, and encourages the targeting of exploration away from magnetic anomalies.

Figure 4(a) Cross section of DWD002 & DWD003 from De Dødes West Prospect.

 http://www.rns-pdf.londonstockexchange.com/rns/0096L_3-2012-8-29.pdf

Figure 4(b) Cross section of DWD005 from De Dødes West Prospect.

http://www.rns-pdf.londonstockexchange.com/rns/0096L_4-2012-8-29.pdf

Work Planned

Drilling at De Dødes West has been complicated due to the slow drilling rates associated with extreme permafrost, high degrees of alteration, broken ground and deep scree development in the area. The drilled BIF unit remains open both along strike to the north east and down dip. Present indications and airborne geophysics suggest that the mineralised system is at least 1.2km in length, and similar haematite rich bodies lie further to the east, which are unlikely to be drilled this season due to time and logistical constraints.

Now that the initial delineation of the Havik East (reported in July 2012) and De Dødes West targets has taken place, the focus of the program will move to the Haematite Nunatak prospect, where thick haematite-rich BIF outcrops were located in 2011. Work on this area will commence with the aim of similarly delineating the extent of the haematisation seen at surface, and the size of the unit at depth. Two drill rigs are now operating at Haematite Nunatak, and have intersected haematite-rich BIFs with estimated true thicknesses of 40m.

Based on ongoing results, follow-up and reconnaissance drilling will be completed as circumstances allow.

The first of three shipments of samples for a comprehensive analytical program have already been dispatched, with the second to leave shortly, and work on Resource Estimation is expected to commence later this year. SRK Consulting (UK) Ltd has been engaged to complete this work, and their representative Competent Person, Principal Consultant Howard Baker, has recently completed a site visit. 

Analytical procedures

All diamond drilling is being carried out by Cartwright Drilling Inc, using two heliportable CDI 500 diamond drill rigs drilling with a BTW core size. Downhole deviation surveys are conducted at the end of the hole using an Icefield Tools Gyroshot survey tool.  Orientated core measurements are taken systematically through the entire length of the hole using a Devico Devicore DC core orientation tool to allow for structural information to be obtained from the heavily magnetic ground.  Precision collar surveys are taken using a Reflex Northfinder APS system.

All geological and structural core logging, core photography, Magnetic Susceptibility measurements and sampling is carried out on-site. Magnetic Susceptibility measurements are taken 3 times each metre using a Terraplus KT-10 Magnetic Susceptibility Meter. Sampling procedures, quality assurance and control (QAQC) and Rock Quality Designation (RQD) assessments are carried out commensurate with the Company's Standard Operating Procedures, which have been approved by the project consultants, SRK Consulting (UK) Ltd. Core is halved on site, with blanks, duplicates and standards inserted at systematic intervals. One half of the core is kept for reference and the other sent to the ISO17025 accredited ALS Minerals Laboratory in Ireland for assay. Analytical work includes XRF spectroscopy on homogeneous fused glass disks, Magnetic Susceptibility, Davis Tube Recovery, with selected exploration samples being tested by Fire Assay and Inductively Coupled Plasma Mass Spectrometry.

Ahead of obtaining laboratory assays, the Company is using a Niton XL3t GOLDD handheld XRF analyser to obtain first-pass chemical compositions from the core. This analysis, alongside Magnetic Susceptibility measurements, enables the geological team to obtain field results from the core, allowing construction of a working model of the composition of iron formation as drilling progresses. The geologists operate the handheld XRF as a standard part of the core logging process, with one spot analysis every meter. Analysing core at strict metre intervals eliminates selective sampling and acts as an internal QAQC safeguard against sample bias. It should be noted that although the handheld XRF is a good indicator of bulk composition, data can be misrepresented as a result of factors, such as grain size, weathering/alteration and sample heterogeneity.  Consequently, the XRF data presented in Table 1 and the Appendix provides representative profile of the distribution of grades in iron formation at De Dødes West but should be considered an indicative result pending assay data.

Background

Red Rock currently operates under a Joint Venture agreement with North Atlantic Mining Associates Limited ("NAMA") under which it has already earned 25% in NAMA Greenland Ltd, which holds the exploration concessions at Melville Bugt.  Red Rock has the right to increase this percentage to 60% by funding 2012 exploration and defining a JORC Mineral Resource Estimate.

The information in this announcement that relates to Exploration Results has been reviewed by Mr Richard Evans, BSc(Hons), who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Evans is a consultant to the Company and an employee of its associate Resource Star Limited, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and as a "Qualified Person" as defined in the Note for Mining and Oil & Gas Companies, June 2009, of the London Stock Exchange. Mr Evans has reviewed this announcement and consents to the inclusion herein of the matters based on his information in the form and context in which they appear.

Enquiries:

Andrew Bell	020 7402 4580 or 07766 474849	Red Rock Resources plc	Chairman
Sandra Spencer	020 7402 4580 or 07757 660 798	Red Rock Resources plc	Press Relations
Gerry Beaney /  Daniela Amihood	020 7383 5100	Grant Thornton Corporate Finance	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker

Appendix 1: De Dødes West drill information and total thicknesses of BIF sequence 

Drillhole	UTM  (mE)	UTM   (mN)	End of Hole Depth (m)	Dip	Azimuth True	From (m)	BIF DH width** (m)	Est'd True Thickness (m)	Est'd Fe%*	Comments	Max Fe%*
DWD001	546 766	8 466 151	125.4	-59°	141°	7.5	96.0	87.0	18.2%	Magnetite-dominant BIF minor lenses of haematitic schist Note - Estimated true width here based on only one hole on this section	35.6%
DWD002	546 856	8 466 440	97.0	-57°	141°	12.0	85.0+	79.9	23.4%	Haematite-dominant BIF with local massive haematite veins @ 24-26m, transition to magnetite dominated	70.3%
DWD003	546 856	8 466 440	134.1	-83°	132°	21.7	70.0	63.4	19.6%	Haematite BIF with lenses of haematitic schist, transition to magnetite dominated.	40.7%
DWD004	547 026	8 466 738	24.9	-58°	150°	21.1	3.8+	N/A	N/A	Hole collapsed and abandoned.	N/A
DWD005	547 026	8 466 738	201.0	-80°	152°	21.0	172.7	156.3	21.9%	Haematite BIF with lenses of haematitic schist.	66.9%

^* Iron grades obtained from Niton field XRF "spot" analyses. Chemical compositions are representative of expected grades, which will be determined by follow up assay work, however the XRF results are not considered as reliable as the full chemical analysis planned, and should be used as an indication of potential results.  A full description of the logging procedures is included in the text.

^** Thicknesses with a '+' indicate the lower BIF contact was not reached due to drilling issues, indicating this value as the minimum thickness.

 

END

 

 

DRLKMGZRMLGGZZM