Greenland Update

RNS Number : 7750P

Red Rock Resources plc

29 October 2012

 

Red Rock Resources

Extensions to structurally-thickened ironstones at Havik East

29th October 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 the further results from its maiden drill season in Melville Bugt, north west Greenland.

Highlights

Following encouraging results the initial drilling of a folded banded iron formation (BIF) at Havik East in July of this year, the Company returned to the area in order to carry out further work aimed at better defining a potential resource. As part of this program a secondary target, identified as Havik Northeast was included in the drill programme and is believed to be a fault off-set extension of the main body of magnetite-BIF at Havik East.

Key outcomes include:

·     Extension of thickened BIF hinge zone by a further 350m to the west;

·     Confirmation of 1,500m BIF strike length, with a down-dip extent of the unit 250m, to a depth of 180m below surface;

·     Delineation of a second pod of thickened BIF, in an similar fold system, only 1.5km away from the primary BIF target, with an estimated true thickness of up to 60m;

·     Average field XRF iron grades of 23.1% and 21.9% at Havik East and Northeast respectively.

Table 1: XRF results from the second phase of drilling at Havik East (HED006-012) and Havik Northeast (HED013-018) - Best Iron Intersections

	From (m DH)	Width (m DH)	Est % Fe (field XRFᵻ)	Comments
HED006	6.80	24.25	24.0%	Thrust faulted magnetite-BIF with minor haematite alteration
	42.60	41.95	27.9%
HED007	15.30	22.20	24.2%	Thrust faulted magnetite-BIF
HED008	111.30	15.20	23.6%	Magnetite-BIF
HED009	41.50	24.65	21.6%	Magnetite bearing, interbedded cherty sediment and magnetite-BIF folded into a synformal hinge
HED010	128.65	50.70	24.2%	Magnetite-BIF on south limb of Havik Synform
HED011	119.00	13.00	24.6%	Eastern extension of magnetite-BIF on south limb
HED012	114.40	22.90	22.3%	Eastern extension of magnetite-BIF
HED013	4.40	44.60	25.2%	Magnetite-BIF defining refolded fold hinge at Havik Northeast
HED016	5.60	38.40	19.4%	Magnetite-BIF interbedded with amphibolite unit defining refolded fold hinge
HED017	75.15	8.55	19.8%	Magnetite-BIF defining refolded fold hinge
HED018	37.25	63.60	21.3%	Magnetite-BIF with layers of interbedded amphibolite unit. Intersects apparent synformal fold hinge. Hole ended in BIF due to drilling constraints
	108.60	11.80+	23.0%

^ᵻIron 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.

Detailed Discussion

Drill Program Objectives

The Havik East Prospect was the first target of Red Rock's maiden drill season on the Melville Bugt Project (Figure 1). Havik Northeast lies ~1.5km to the northeast and was targeted following the definition of promising, coherent mineralisation in drilling at Havik East. Both prospects form prominent magnetite-BIF outcrops and are associated with extensive airborne magnetic anomalies with a combined strike length of ~2.5km that were identified during the Company's initial field season in 2011.

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

http://www.rns-pdf.londonstockexchange.com/rns/7750P_-2012-10-29.pdf

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

·     Delineate the sub-surface extent and continuity of the BIFs;

·     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 preliminary geochemical data from core using a handheld XRF analyser prior to full chemical and physical analysis once the samples are exported;

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

Results

The second phase of the diamond drill core programme at Havik East and Havik Northeast was designed to extend the interpreted volumes, and confirm the three-dimensional structure of the magnetite-BIF bodies.

Figure 2: Drilling location plan at Havik East and Havik Northeast

            http://www.rns-pdf.londonstockexchange.com/rns/7750P_1-2012-10-29.pdf

 

Figure 3: Drilling operations at Havik East

            http://www.rns-pdf.londonstockexchange.com/rns/7750P_2-2012-10-29.pdf

 

During this second phase seven further holes were drilled at Havik East and six at Havik Northeast, totalling 1,782m for the two prospects (1,106m and 676m respectively). The total meterage drilled at Havik East and Northeast for 2012, including holes HED001 to HED005, (released 18^th July 2012) stands at 2,447m. The drill patterns at both prospects are oriented perpendicular to the regional strike and fence lines are spaced intervals of either 200m or 400m, enabling the 3D reconstruction of geological structures.

The second phase of drilling at Havik East was designed to confirm the continuity of the BIF body away from the fold hinge defined in the initial drilling, and has successfully extended the down-dip extension of BIF ~250m from surface, to a depth of 180m, on the south limb of the Havik Synform. All holes at Havik East intercepted magnetite-BIF, returning preliminary field XRF values averaging 23.1% Fe, but locally up to 67.6% Fe in multiple ~20cm pods over a 5m interval.  

Holes drilled at Havik Northeast are on two lines 400m apart, with a NW-SE orientation, so as to be perpendicular to stratigraphy. All but one lie on one cross section, drilled in detail to understand the structural controls of the BIF. The final hole of the program was drilled 400m to the east in order to confirm continuity. All holes which reached the target depth intersected magnetite-BIF, returning grades up to 51.6% Fe in multiple ~20cm high grade pods over >10m intervals.

Highlights of preliminary field XRF geochemical intersections from the second phase of drilling are presented in Table 1 and in full with estimated true thicknesses in Appendix 1. Results confirm the presence of magnetite-dominated BIF, returning average grades of approximately 23.1% Fe at Havik East and 21.9% Fe at Havik Northeast.

Geological Interpretation

The ironstone at Havik East and Havik Northeast is predominantly coarse-grained, magnetite-quartz rock with locally up to 15% secondary haematite enrichment and is typically banded but contains localised massive, quartz-depleted high grade intervals containing up to 67.6% Fe.

Havik East

Analysis of drill core and interpretation of cross sections from Havik East confirms the presence of a tight, overturned shallowly east-plunging folded body of magnetite BIF (Figure 4). The hinge zone of the fold structure termed the Havik Synform can be traced on the surface for approximately 400m (Figure 3). Cross section interpretation predicts that the fold hinge of the Havik Synform plunges below surface to the east as far as section 505 200mE, some 400m away (Figure 5).  The additional drilling at Havik East has confirmed a magnetite-BIF strike length of approximately 1,500m and has extended the known down-dip extension of the BIF unit to 250m.

The fold is disrupted by at least two phases of faulting, which in fact potentially increase the near-surface tonnage of iron mineralisation. An early phase of low angle E-W striking faults has caused stacking of the stratigraphy on the south limb of the Havik Synform (Figure 5), and so has increased the thickness of the BIF here. All structures are cut by a set of late, sub-vertical dominantly NW-SE faults, which are also thought to have separated the originally contiguous BIF sequences at Havik East and Havik Northeast.

Figure 4: Phase 1 drilling of hinge zone at Havik East 505 000mE. (Revised cross section from 18^th July 2012 RNS)

            http://www.rns-pdf.londonstockexchange.com/rns/7750P_3-2012-10-29.pdf

 

Figure 5: Cross section of down-plunge antiform-synform pair with thrust faulting of south limb of synform at Havik East 505 200mE

http://www.rns-pdf.londonstockexchange.com/rns/7750P_4-2012-10-29.pdf

Havik Northeast

Mapping of the parasitic folding across the wide surface outcrop of magnetite-BIF at Havik Northeast shows that there is a thickened synformal hinge zone similar to that seen at Havik East. Drilling however has shown that the BIF has been locally thinned by erosion (Figure 6) at the top of an arch in the synclinal fold hinge, where the fold has been dragged down by a fault (Figure 7, location 'b').

In a single drill hole 400m to the east more than 63m of magnetite-BIF was intersected (Figure 8) where the fold hinge has plunged back below the surface (Figure 7, location 'a'), confirming the subsurface potential still to be defined in future drilling programmes.

Figure 6: Cross section 506 550mE at Havik Northeast

http://www.rns-pdf.londonstockexchange.com/rns/7750P_5-2012-10-29.pdf

Figure 7: Structural model from Havik Northeast

http://www.rns-pdf.londonstockexchange.com/rns/7750P_6-2012-10-29.pdf

Figure 8: Cross section 506 550mE +400m at Havik Northeast

 http://www.rns-pdf.londonstockexchange.com/rns/7750P_7-2012-10-29.pdf

Work Planned

Samples for a comprehensive analytical program have been received by ALS Minerals Laboratories and full assay results are due in the coming weeks. Assessment will focus on the grade and metallurgy of the magnetite-BIF in both Havik East and Havik Northeast, however fire assays and trace element analysis will be undertaken on selected intersections from the volcanic suite to investigate gold potential.

SRK Consulting (UK) Ltd has been engaged to supply a JORC Mineral Resource Estimate, which is intended for release late 2012.

Analytical procedures

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

All geological and structural core logging, core photography and sampling was carried out on-site. Sampling procedures, quality assurance and control (QAQC) and rock quality (RQD) assessments were carried out commensurate with the Company's Standard Operating Procedures, which have been approved by the project consultants, SRK Consulting. Core was halved on site, with blanks, duplicates and standards inserted at systematic intervals. One half of the core was kept for reference and the other sent to the ISO17025 accredited ALS Minerals Laboratory in Ireland for assay. Analytical work will include 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 used a Niton XL3t GOLDD handheld XRF analyser to obtain first-pass chemical compositions from the core. This analysis enabled the geological team to obtain field results of the core, allowing construction of a working model of the composition of iron formation as drilling progressed. The geologists operated the handheld XRF as a standard part of the core logging process, with one spot analysis per lab sample. Analysing core at the midpoint of every sample eliminates selective sampling and acted 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 Havik East 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.

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

Competent Person's Statement

The information in this report that relates to Exploration Results is based on information reviewed by Mr Gary Hurst (MSc), who is a Fellow of The Geological Society of London and Member of The Society of Economic Geologists. Mr Hurst is an employee of Red Rock Resources plc and has sufficient experience which is relevant to the style of mineralisation under consideration, and to the activities being undertaken. Mr Hurst has reviewed the information in this announcement and consents to the inclusion of the information in the form and context in which it appears.

Forward Looking Statements

This report contains 'forward-looking information' that is based on the Company's expectations, estimates and projections as of the date on which the statements were made. This forward-looking information might include, among other things, statements with respect to the Company's business strategy, plans, objectives, performance, outlook, growth, shareholder value, projections, targets and expectations, Mineral Reserves and Resources, results of exploration and related expenses, property acquisitions, mine development, mine operations, drilling activity, sampling and other data, grade and recovery levels, future production, capital costs, expenditures for environmental matters, life of mine, completion dates, commodity prices, demand for commodities, and currency exchange rates. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as 'outlook', 'anticipate', 'project', 'target', 'likely', 'believe', 'estimate', 'expect', 'intend', 'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan', 'forecast' and similar expressions. Persons reading this report are cautioned that such statements are only predictions, and that the Company's actual future results or performance may be materially different.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to the risk factors set out in the Company's Annual Report. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. The Company disclaims any intent or obligations to update or revise any forward-looking statements whether as a result of new information, estimates or options, future events or results.

Appendix 1:  Havik East and Northeast drilling information

Drillhole	UTM (mE)	UTM (mE)	End of Hole Depth (m)	Dip	Azimuth (True)	From (m)	BIF DH Width (m)	Est'd True Thickness (m)	Est'd Fe%*	Max Fe%	Comments
HED006 Havik E	505 151	8 467 345	141.3	-55	212	6.80	24.25	23.5	24.0	34.4	Thrust faulted magnetite-BIF
						42.60	41.95	40.7	27.9	67.6	Magnetite-BIF with minor haematite alteration, containing multiple 20cm-wide nodules of massive magnetite over a ~5m interval
HED007 Havik E	505 580	8 467 217	154.5	-55	193	15.30	22.20	21.4	24.2	33.7	Thrust- faulted magnetite-BIF
HED008 Havik E	506 243	8 467 434	141.7	-60	179	111.30	15.20	14.7	23.6	40.9	Magnetite-BIF
HED009 Havik E	504 670	8 467 454	114.0	-50	180	14.65	10.30	8.9	12.7	24.9	Magnetite bearing meta-sedimentary unit
						35.30	6.20	6.0	20.4	32.7	Magnetite bearing meta-sedimentary unit
						41.50	24.65	22.8	21.6	34.9	Magnetite-BIF on Havik Synform nose
						64.15	15.30	15.1	14.6	26.9	Magnetite bearing meta-sedimentary unit
HED010 Havik E	505 195	8 467 479	201.0	-50	191	83.40	6.60	6.5	19.2	35.0	Magnetite-BIF  on north limb of Havik Synform
						128.65	50.70	49.9	24.2	47.6	Faulted magnetite-BIF with localised magnetite concentration and minor secondary haematite alteration. South limb of Havik Synform
HED011 Havik E	505 592	8 467 303	132.0	-75	188	119.00	13.00	11.8	24.6	39.7	Eastern extension of magnetite-BIF on south limb of Havik Synform
HED012 Havik E	505 592	8 467 303	222.0	-68	188	114.40	22.90	20.8	22.3	42.5	Eastern extension of magnetite-BIF on south limb of Havik Synform
HED013 Havik NE	506 503	8 468 003	122.0	-50	153	4.40	44.60	40.4	25.2	51.6	Magnetite-BIF defining refolded fold hinge
HED014 Havik NE	506 503	8 468 008	144.0	-54	329	2.50	1.50	-	-	-	Partial magnetite-BIF intersection at surface. No XRF readings available
HED015 Havik NE	506 565	8 467 782	45.7	-44	326	-	-	-	-	-	Hole abandoned while drilling casing. Redrilled in same location with HED016
HED016 Havik NE	506 564	8 467 963	99.0	-43	340	5.60	38.40	37.1	19.4	38.6	Magnetite-BIF interbedded with amphibolite unit defining refolded fold hinge
						68.15	7.50	7.4	24.0	37.7	Magnetite-BIF
HED017 Havik NE	506 563	8 467 784	145.4	-48	317	75.15	8.55	5.5	19.8	41.1	Magnetite-BIF defining refolded fold hinge
HED018 Havik NE	506 964	8 468 154	120.4	-82	164	15.00	4.20	2.7	23.9	32.3	Magnetite BIF with layers of interbedded amphibolite unit. BIF Intersects apparent synformal fold hinge.
						32.00	2.00	0.8	13.6	14.1	Magnetite-
						37.25	63.60	52.1	21.3	51.6	Magnetite-BIF
						108.60	11.80	7.6	23.0	39.0	Hole ended in BIF as drill season came to a close

 

END

 

 

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