Half-year Report

RNS Number : 7872J

Red Rock Resources plc

29 April 2022

 

29 April 2022

Red Rock Resources Plc

Unaudited half-yearly results for the six months ended

  31 December 2021

Red Rock Resources plc ("Red Rock" or "the Company"), the natural resources investment, exploration, and development company with interests in gold, copper and cobalt, and other minerals, announces its half-yearly results for the six months ended 31 December 2021.

Chairman's Statement

It is only a short time since we announced the final results for the year to 30 June 2021, and since then we have released two recent updates, covering the spectrum of our activities. There is little new to add in describing our operations. After completing reverse circulation drill programmes in Kenya (for gold) and Congo (for copper and cobalt) in the period under review, we have since December been able to announce encouraging results as we received reports from the laboratories and carried out our initial assessments and analysis.

In Australia, the six months to December 2021 saw most of our licence applications granted, so that in our 50.1% owned joint venture we now hold 1,501 sq km of prospective acreage around the old gold mining centre of Ballarat. Only one significant licence now awaits grant, but it is a very important one. A diamond drill programme in Victoria, Australia began in December 2021 and with significant delays at Australian laboratories, results have only been sporadically released to date.

A new development in the period under review was the beginning of legal proceedings to enforce our rights in one of our copper-cobalt joint ventures in the Congo. A partner wrongly in our view sold our assets for $20m to the parastatal from which they came. As with our litigation in Kenya some years ago, we have so far been successful in our proceedings, but in this case we have achieved rapid results in a series of favourable judgments since year end. Awards of $4.5m plus costs have not yet been enforced by us, and we also have claims to a substantial part of the unpaid consideration of $15m, which has been retained by the purchaser, pending the legal clarification we believe we have now provided. We also believe we have a legitimate interest in the on-sale of those assets at a very large mark-up, the pursuit of which we currently contemplate. However,  while the Directors are confident of a positive outcome for the Company, there remains some uncertainty over realisation and the timing. A further development has been the planned IPO in the USA of Elephant Oil Corporation, where we have just under 400,000 shares, including 35,555 subscribed for in pre-listing placements at $2.25 a share. We had hoped to have seen this happen by now and on a float there would be significant  value for us. We will update shareholders as and when there is any definite news.

Elsewhere, we have applied for or acquired gold licences in Burkina Faso and Cote d'Ivoire in separate subsidiaries, and lithium licences in Zimbabwe in a local joint venture. We will progress the exploration of these assets in partnership with other parties, with a view to creating  perceived value at minimal cost to us.

Since the summaries we have recently released, we have continued to follow a steady course, and these financial results reflect that. The most significant developments over the period under review and the succeeding months, from a financial point of view, were the geological work carried out, including drilling and associated costs in three countries, and the necessary costs of litigation incurred in the DRC.  

If our affairs have followed a steady course, much of which was advertised in advance as we released news of our exploration plans, the world in which we operate has seen dramatic change, and some of this has impacted our share performance as that of other companies in our sector.

Before the steamship, sailors were constrained in their courses and their opportunities by the winds and the tides. The mineral exploration sector can be at times similar. Global liquidity, the gold price, and economic growth are the triad that cannot be gainsaid: when one or more is running strongly, whether that is for better or for worse, the direction of the sector is usually set.

What headwinds or following winds can we expect this year? We have in recent months seen lockdowns, recovery and growth, sanctions and war, and markets have sailed on. If we look behind the headlines, we can see one phenomenon almost worldwide: a large growth in money supply during the period of Covid, the impact of which on inflation was perhaps moderated by a restrained velocity of circulation of money. This was favourable for markets, and largely mitigated other factors.

As the impact of recovery fed through global economies, with manpower and material shortages, inflation began to rise, which some initially saw as transitional, but is now seen by many as a longer term trend. The minutes of the US Fed this month have signalled a willingness to raise interest rates aggressively to combat any persistence of inflation, held back for the moment by nervousness about the Russian invasion of Ukraine and its influence on sentiment and activity. Perhaps more significant, to quote the Financial Times of 6 April, the minutes and comments by participants showed "the central bank could rapidly reduce its $9tn balance sheet from May".

We may question whether the US Government will persist if there is a strong reaction to tightening: it did not in 2017, and the lesson to the rest of the world was if the US could not do it, they certainly could not. But if it does not, then inflation will appear undefeatable. Either way, the trend in rates looks upward, and if that affects liquidity, it is not benign for the sector.

For the gold price, higher rates are both the best of friends and the worst of enemies. If people look short-term at the gap in yields between bonds and deposits and gold, they may feel inclined to switch out of gold. That has perhaps been the mood the market has become used to. If, however, they see inflation remaining slightly longer term, they will remember how good gold is as an inflation hedge and retain it. If they begin to lose faith in fiat currencies and the ability of democratic governments to control their loss of value, they will want to hold a great deal more gold. We may be moving towards the second and third of these situations.

As for economic growth, we seemed set fair for a period of recovery around the world earlier in the year. The war in Ukraine, and the attempts of China to enforce a zero Covid policy in the face of a rapid spread of infections, are causing a decline in confidence. With free markets around the world, the capacity of the global economy to recover rapidly from setbacks and economic shocks has been proven many times, and our base assumption may be that this will be demonstrated again.

So, of the three factors, we may judge perhaps as follows: liquidity, slightly negative and slightly concerning; gold price, positive to very positive; economic growth, cautious tinged with optimism.

The Company will continue to bear in mind the risks and constraints of operating in uncertain markets. In its current form, since 2016, Red Rock has shown stability in its performance, while broadening and advancing its asset base. One point of continuity is that it has tended to outperform in periods of high liquidity and growth, and especially in strong markets for gold. Without losing the entrepreneurial spirit that allows it to seize opportunities and engage in accretive deal making, there will be a strong focus on cash generation and creating opportunities for value crystallization.

The addition of new early-stage exploration subsidiaries in West Africa and the lithium venture in Zimbabwe, and the search for cobalt and copper in the DRC, create new opportunities for partnership and value recognition outside of just gold, these being in the battery metals space.

The coming period will have great economic and political challenges, but we are confident, having considered the range of possible outcomes, that with prudence and skill we will turn this into a period of remarkable opportunity. We will, like other explorers, operate with limited financial resources but are confident in our ability to keep the business adequately funded. Meanwhile, we thank all stakeholders for their ongoing support for the Company and its ventures.   

Andrew Bell 

Chairman

29 April 2022

Consolidated Statement of Financial Position  as at 31 December 2021

	Notes	31December 2021		31December 2020		30June 2021
		Unaudited, £'000		Unaudited, £'000		Audited, £'000
ASSETS
Non-currentassets
Investmentsinassociates andjointventures		1,699		1,584		1,585
Financialinstruments	8	748		3,195		1,755
Explorationassets	9	13,653		13,370		13,515
Mineraltenements		180		85		124
Non-currentreceivables		1,344		1,344		1,344
Totalnon-currentassets		17,624		19,578		18,323
Currentassets
Cashandcashequivalents		182		435		457
Financialassets-investmentinderivatives		-		3		-
Loansandotherreceivables		508		543		560
Totalcurrentassets		690		981		1,017
TOTALASSETS		18,314		20,559		19,340
EQUITYANDLIABILITIES
Equityattributabletoownersof theparent
Calledupsharecapital	10	2,835		2,810		2,835
Sharepremiumaccount		30,924		28,319		30,924
Otherreserves		652		3,128		1,627
Retainedearnings		(18,314)		(17,444)		(18,741)
Totalequityattributabletoownersof theparent		16,097		16,813		16,645
Non-controllinginterest		(319)		(154)		(199)
Totalequity		15,778		16,659		16,446
LIABILITIES
Non-currentliabilities
Trade andotherpayables		316		786		119
Borrowings		-		-		731
Totalnon-currentliabilities		316		786		850
Currentliabilities
Trade andotherpayables		1,231		2,466		1,075
Shorttermborrowings	11	989		648		969
Totalcurrentliabilities		2,220		3,114		2,044
TOTALEQUITYANDLIABILITIES		18,314		20,559		19,340

The accompanying notes form an integral part of these Financial Statements.

Consolidated Statement of Income

for the period ended 31 December 2021

	Notes	6 months to 31December 2021		6monthsto31  December2020
		Unaudited, £'000		Unaudited, £'000
Administrativeexpenses	4	(620)		(472)
Projectdevelopmentcosts	5	(411)		(187)
Explorationexpenses		(271)		(11)
Otherincome		44		28
Share oflossesofassociatesandjointventures		-		-
Foreignexchangegain/(loss)		(4)		84
Financeincome/(expenses),net	6	(206)		128
(Loss)/profitfortheperiod		(1,468)		(430)
Tax credit		-		-
(Loss)/profitfortheperiod	7	(1,468)		(430)
(Loss)/profitfortheperiodattributableto:
Equityholdersoftheparent		(1,348)		(411)
Non-controllinginterest		(120)		(19)
		(1,468)		(430)
(Loss)/profitpershare
(Loss)/profitpershare-basic,pence	3	(0.111)		(0.053)
(Loss)/profitpershare-diluted, pence	3	(0.111)		(0.053)

The accompanying notes form an integral part of these Financial Statements.

Consolidated Statement of Comprehensive Income  for the period ended 31 December 2021

	6monthsto31 December2021		6monthsto31 December2020
	Unaudited,£'000		Unaudited,£'000
(Loss)/profitfortheperiod	(1,468)		(430)
Transfertorevaluationreserveinrelationtorevaluationof FVTOCI investments	183		817
Gain on transfer of FVTOCI financial assets on disposal	1,005		-
Unrealisedforeigncurrencylossarisinguponretranslation offoreign operations	(85)		(9)
Totalcomprehensiveincome/(loss)fortheperiod	(365)		378
Total comprehensive income/(loss) for the period attributableto:
Equityholdersoftheparent	(245)		397
Non-controllinginterest	(120)		(19)
	(365)		378

The accompanying notes form an integral part of these Financial Statements.

Consolidated Statement of Changes in Equity for the period ended 31 December 2021

The movements in equity during the period were as follows:

	Sharecapital	Sharepremium account	Retainedearnings	Otherreserves	Totalattributabletoownersof theParent	Non-controlling interest	Totalequity
Unaudited	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Asat30June2021(audited)	2,835	30,924	(18,741)	1,627	16,645	(199)	16,446
Changesinequityfor thesix- monthperiodending31 December2021
Lossfortheperiod	-	-	(1,348)	-	(1,348)	(120)	(1,468)
Transfer of FVTOCI relating to disposals	-	-	-	(1,073)	(1,073)	-	(1,073)
Transfer of FVTOCI relating to revaluations	-	-	-	183	183	-	183
Gainsondisposalof FVTOCItaken directlytoreserves	-	-	1,775	-	1,775	-	1,775
Unrealised foreign currency gains on translation of foreign operations	-	-	-	(85)	(85)	-	(85)
Totalcomprehensive income/(loss)fortheperiod	2,835	30,924	(18,314)	652	16,097	(319)	15,778
Transactionswithshareholders
Totaltransactionswith shareholders	-	-	-	-	-	-	-
Asat31December2021 (unaudited)	2,835	30,924	(18,314)	652	16,097	(319)	15,778
Asat30June2020(audited)	2,783	26,909	(17,187)	1,460	13,965	(135)	13,830
Changesinequityfor thesix- monthperiodending31 December2020
Loss fortheperiod	-	-	(411)	-	(411)	(19)	(430)
Gainsonsaleof FVTOCItaken directlytoreserves	-	-	154	-	154	-	154
Othercomprehensivelossforthe period	-	-	-	651	651	-	651
Totalcomprehensive income/(loss)fortheperiod	-	-	(257)	651	394	(19)	375
Asat31December2020 (unaudited)	2,783	26,909	(17,444)	2,111	14,359	(154)	14,205

	FVTOCI financial assets reserve	Foreigncurrencytranslation reserve	Share-basedpayment reserve	Warrantsreserve	Totalotherreserves
Unaudited	£'000	£'000	£'000	£'000	£'000
Asat30June2021(audited)	426	158	230	813	1,627
Changesinequityforsixmonthsended 31December2021
Transferof FVTOCIreserveinrelation torevaluationof FVTOCI investments	183	-	-	-	183
DecreaseinFVTOCIreserve inrelationtodisposals	(1,073)	-	-	-	(1,073)
Unrealisedforeigncurrencylossontranslationofforeign operations	-	(85)	-	-	(85)
Totalothercomprehensiveincomeforthe period	(890)	(85)	-	-	(975)
Transactionswithshareholders
Totaltransactionswithshareholders	-	-	-	-	-
Asat31December2021(unaudited)	(464)	73	230	813	652
Asat30June2020(audited)	1,157	139	164	-	1,460
Changesinequityforsixmonthsended 31December2020
Transferof FVTOCIreserveinrelation torevaluationof FVTOCI investments	817	-	-	-	817
DecreaseinFVTOCIreserve inrelationtodisposals	(157)	-	-	-	(157)
Unrealisedforeigncurrencylossontranslationofforeign operations	-	(9)	-	-	(9)
Totalothercomprehensiveincomeforthe period	660	(9)	-	-	(651)
Transactionswithshareholders
Share-basedpayments	-	-	66	-	66
Warrants	-	-	-	951	951
Totaltransactionswithshareholders	-	-	66	951	1,017
Asat31December2020(unaudited)	1,817	130	230	951	3,128

Consolidated Statement of Cash Flows for the period ended 31 December 2021

	6monthsto31 December2021		6monthsto31 December2020
	Unaudited, £'000		Unaudited, £'000
Cashflowsfromoperating activities
(Loss)/profitbeforetax	(1,468)		(430)
Decrease/(Increase)inreceivables	51		(8)
Increase/(Decrease)inpayables	354		(294)
Share-basedpayments	-		66
Depreciation	-		4
Financeincome,net	205		(128)
Currencyadjustments	4		(84)
Netcashoutflowfromoperations	(854)		(874)
Cashflowsfrominvestingactivities
Dividendsreceived	-		74
Proceedsfromsaleofinvestments	1,808		373
Payments forcapitalisedexplorationcosts	(138)		(158)
Payments toincreaseinterestintenements	(56)		(54)
Paymentstoincreaseinterestin associate	(114)		(370)
Netcash (outflow)/inflowfrominvestingactivities	1,500		(135)
Cashflowsfromfinancingactivities
Proceedsfromissueofshares	-		1,000
Shareissuecosts	-		(50)
Interestpaid	(205)		(73)
Proceedsfromnew borrowings	100		545
Repaymentsofborrowings	(811)		(50)
Netcashinflow/(outflow)fromfinancingactivities	(916)		1,372
Netincreaseincashandcashequivalents	(270)		363
Cashandcashequivalentsatthebeginningofperiod	457		53
Exchangelosseson cashandcashequivalents	(5)		19
Cashandcashequivalentsatendof period	182		435

Half-Yearly Report Notes

for the period ended 31 December 2021

1	Company and Group

As at 31 December 2021, 30 June 2021 and 31 December 2020 the Company had one or more operating subsidiaries and has therefore prepared full and interim consolidated Financial Statements respectively.

The Company will report again for the year ending 30 June 2022.

The financial information contained in this half yearly report does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The financial information for the year ended 30 June 2021 has been extracted from 

the statutory accounts for the Group for that year. Statutory accounts for the year ended 30 June 2021, upon which the auditors gave an 

unqualified audit report, which did not contain a statement under Section 498(2) or (3) of the Companies Act 2006, have been filed with 

the Registrar of Companies.

2	AccountingPolices

Basisof Preparation
The consolidated interim financial information hasbeenpreparedinaccordancewithIAS34'InterimFinancialReporting.'The accounting policies applied by the Group in these condensed Consolidated Interim Financial Statements are the sameas those applied by the Group in its Consolidated Financial Statements as at and for the year ended 30 June 2021, whichhavebeenpreparedinaccordancewith IFRS.
3	Earnings Per Share
	Thefollowingreflectsthelossandnumberofsharesdatausedinthebasicanddilutedlosspersharecomputations:
				6 monthsto 31December2021			6monthsto 31December2020
				Unaudited				Unaudited
	Profit/(loss) attributable to equity holders of the parentcompany,ThousandpoundsSterling			(1,348)				(411)
	WeightedaveragenumberofOrdinarysharesof£0.0001inissue,usedforbasicEPS			1,216,708,801				771,664,895
	Effect of all dilutive potential ordinary shares from potentialordinary shares that would have to be issued, if all loan notesconvertible at the discretionofthe noteholderconvertedat the beginningoftheperiod			-				-
	WeightedaveragenumberofOrdinarysharesof£0.0001inissue,includingpotentialordinaryshares,usedfordilutedEPS			1,216,708,801				771,664,895
	Profit/(loss)pershare-basic,pence			(0.111)				(0.053)
	Profit/(loss)pershare-diluted,pence			(0.111)				(0.053)

Half-Yearly Report Notes fortheperiodended31December2021,continued 3  EarningsPerShare,continued At31December2021and31December2020,theeffectofthefollowingtheinstruments isanti-dilutive,therefore,theywerenotincludedintothedilutedearningspersharecalculation.
	6 monthsto 31December2021		6monthsto 31December2020
	Unaudited			Unaudited
Shareoptionsgrantedtoemployees-notvestedand/oroutof themoney	62,820,000			62,820,000
Numberofwarrantsgiventoshareholdersasapartofplacing equityinstruments-outofthemoney	380,197,618			290,106,266
Totalnumber   of   contingentlyissuableshares   that   could potentially dilutebasicearnings pershareinfuture	443,017,618			352,926,266
Numberofwarrants-vestedandinthemoneyatyearendbut notincludedintodilutedEPScalculationduetotheireffectbeinganti-dilutive	-			36,562,500
Number of share options granted to employees - vested and inthemoneyatyearendbutnotincludedintodilutedEPScalculationduetotheireffectbeinganti-dilutive	-			-
Total number ofcontingently issuable shares that couldpotentiallydilutebasicearningspershareinfutureandanti-dilutivepotentialordinarysharesthatwerenotincludedintothefullydilutedEPScalculation	443,017,618			389,488,766
Therewerenoordinarysharetransactionsafter31December2021,thatthatcouldhavechangedtheEPScalculationssignificantlyifthosetransactionshadoccurredbeforetheendof thereportingperiod.

4    Administrative Expenses

	6 monthsto 31December 2021		6monthsto 31December2020
	Unaudited £'000		Unaudited £'000
StaffCosts:
Payroll	273		240
Pension	22		9
Consultants	8		8
HMRC/PAYE	21		20
Depreciation	-		4
ProfessionalServices:
Accounting	36		32
Legal	15		5
Marketing	25		31
Other	-		3
RegulatoryCompliance	58		62
Travel	47		15
OfficeandAdmin:
General	43		20
ITcosts	6		2
Rent	46		17
Insurance	20		4
Totaladministrativeexpenses	620		472

Included in the above admin costs for the year are £174,000 in costs related to the administration of subsidiary project undertakings.

 

Half-Yearly Report Notes

for the period ended 31 December 2021, continued

5  Project Development Expenses

Project development expenses include costs, incurred during the assessment and due diligence phases of a project, when material uncertainties exist regarding whether the project meets the Company's investment and development criteria and whether as a result the project will be advanced further.

	6 monthsto 31December 2021		6monthsto 31December2020
	Unaudited £'000		Unaudited £'000
Projectdevelopmentexpenses
VUP (Congo)	35		41
Zlata Bana (Slovakia)	-		70
Galaxy (Congo)	31		-
Luanshimba (Congo)	106		-
Kinsevere (Congo)	3		-
MidMigoriMines(Kenya)	10		14
Greenland	69		62
Others	157		-
Totalprojectdevelopmentexpenses	411		187

6  Finance Income/(Expenses), Net

	6 monthsto 31December 2021		6monthsto 31December2020
	Unaudited £'000		Unaudited £'000
Interestincome	-		152
Dividendincome	-		74
Interestexpense	(206)		(98)
TotalFinanceincome/(expenses),net	206		128

 

Half-Yearly Report Notes

for the period ended 31 December 2021, continued

7	Segmental Analysis

Kenyanexploration		Australianexploration		DRC exploration		Other exploration		Corporate andunallocated		Total
Forthesix-month period to 31December2021	£'000		£'000		£'000		£'000		£'000		£'000
Revenue
Totalsegmentexternalrevenue	-		-		-		-		-		-
Result
Segmentresults	(271)		(163)		(174)		(241)		(413)		(1,262)
Lossbeforetaxandfinancecosts											(1,262)
Interestincome											-
Interestexpense											(206)
Lossbeforetax											(1,468)
Tax											-
Lossfortheperiod											(1,468)

Kenyanexploration		Australianexploration		DRC exploration		JupiterMinesLimited		Corporate andunallocated		Total
Forthesix-monthperiodto 31December2020	£'000		£'000		£'000		£'000		£'000		£'000
Revenue
Totalsegmentexternalrevenue	-		-		-		-		-		-
Result
Segmentresults	(30)		(45)		(70)		74		(413)		(484)
Lossbeforetaxandfinancecosts											(484)
Interestincome											152
Interestexpense											(98)
Lossbeforetax											(430)
Tax											-
Profitfortheperiod											(430)
Ameasureoftotalassetsandliabilitiesforeachsegmentisnotreadilyavailableandsothisinformationhasnotbeenpresented.

Half-Yearly Report Notes

for the period ended 31 December 2021, continued

8	Financial Instruments-Fair Value Through Other Comprehensive Income
		31December 2021 Unaudited £'000	31December 2020 Unaudited £'000	30June 2021 Audited £'000
	Atthe beginningofthe period	1,755	2,755	2,755
	Additions	223	-	143
	Disposals	(1,413)	(376)	(401)
	Changeinfairvalue	183	816	(742)
	Attheendof the period	748	3,195	1,755

9	Exploration Assets
		31December 2021 Unaudited £'000	31December 2020 Unaudited £'000		30June 2021 Audited £'000
	Atthe beginningofthe period	13,515	11,858		11,858
	Additions	138	176		1,657
	Amountspayableunderearn-inagreement	-	1,231		-
	Reclassificationfromnon-currentfinancialassets	-	105		-
	Attheendof the period	13,653	13,370		13,515
10	ShareCapitalof the Company
			Number		Nominal, £'000
	Deferredsharesof£0.0009each		2,371,116,172		2,134
	Adeferredsharesof£0.000096each		6,033,861,125		579
	Ordinarysharesof£0.0001each		1,216,708,801		122
	Asat31December2021				2,835

11	Short-Term Borrowings
		31December 2021 Unaudited £'000	31December 2020 Unaudited £'000	30June 2021 Audited £'000
	Loanfrominstitutionalinvestors	248	648	969
	Project acquisitionloannotes	741	-	-
	Attheendof the period	989	648	969

Reconciliation of Liabilities Arising from Financing Activities

Group	30June 2021	Cash flow loansreceived	Cash flow principal re-payment	Cash flow Interest re-payment	Non-cash flowReclassification	Non-cash flow Forexmovement	31Dec 2021
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Loanfrominstitutional investors	969	100	(811)	(10)	-	-	248
Project acquisition notes	-	-	-		731	10	741
Total	969	100	(811)	(10)	731	10	989

Half-Yearly Report Notes fortheperiodended31December2021,continued

12  CapitalManagement

ManagementcontrolsthecapitaloftheGroupinordertocontrolrisks,providetheshareholderswithadequatereturnsandensurethattheGroupcan funditsoperationsandcontinueasagoingconcern. The Group's debt and capital includes ordinary share capital and financial liabilities, supported by financial assets.Therearenoexternallyimposedcapitalrequirements. Management effectively manages the Group's capital by assessing the Group's financial risks and adjusting its capital structurein response to changes in these risks and in the market. These responses include the management of debt levels, distributionsto shareholdersandshareissues. Therehavebeennochangesin thestrategyadoptedbymanagementto controlthecapitalof theGroupsincethepriorperiod.

13    Subsequent Events

VUP Project

On 6 January 2022, the Company announced that it had obtained a court order from the Commercial Court in Lubumbashi for the payment of the principal amount of $2.5m, relating to the appropriation of the Group's interests in the VUP joint venture.  On 19 January 2022, the Court issued a further award of $2m in damages to the Group, with costs. The matter currently remains in the enforcement phase.

As at the reporting date, the Group held £0.7m in "Investments in joint ventures" and £0.4m in "Exploration assets," associated with the VUP project.  The Directors believe the carrying value of these assets are supported by the awards of principal and damages post reporting date and that recognition of the disposal of the asset and corresponding proceeds will take place at the conclusion of the legal process in the courts.

Burkina Faso Projects

On 6 January 2022, the Company announced that it had acquired two gold and base metal exploration projects in Burkina Faso via its 100% owned subsidiary Faso Greenstone SARLU (FGS).  FGS acquired a 100% interest in the Boulon licence area and an 80% interest in the Bilbale licence area, with a work program on both licences for 2022 to include prospect mapping and auger drilling. 

Kenyan Drilling Results

On 7 January 2022, the Company announced the results of its first batch of sample drilling in the Mikei gold project in Kenya, providing encouraging indications of gold formations in the licence area.  Further results of the drilling program were announced on 22 March 2022.  The Group remains in the process of planning the next stage of drilling activity on this licence area, following analysis of these results.

Copper and Cobalt drilling, DRC

On 15 February 2022, the Company announced the results of an early-stage drilling program at the Luanshimba copper/cobalt project in DRC, in which the Group holds an interest via its 80% subsidiary Red Rock Galaxy SA.  The results of the drilling program were encouraging with various copper and cobalt structures having been intersected.  Additional drilling is planned to take place to further delineate the structures and to ultimately pursue a formal resource.

Zimbabwe Lithium Project

On 31 March 2022, the Company announced the establishment of its 75% owned subsidiary, African Lithium Resources Pvt Ltd (ALR), and its acquisition of Lithium exploration licences and licence applications in Zimbabwe.  Early sample results have been encouraging with the Group expecting to announce more comprehensive analysis and results in the near future.

Australian Gold Drilling

On 12 April 2022, the Company announced that the first phase of drilling on its Australian gold project, held via its New Ballarat Gold Corporation joint venture. Initial results confirmed the intersection of two gold bearing structures, with full analysis of the drilling results and samples currently taking place and to subsequently be reported in more detail.

 

END

 

 

IR FFFVISEITFIF