Lithium Subsidiary Established, Assets Acquired

RNS Number : 7609G

Red Rock Resources plc

31 March 2022

 

Red Rock Resources PLC

("Red Rock" or the "Company")

Establishment of Lithium Subsidiary

Acquisition of first Lithium Assets

31 March 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 to the announcement of 24 March 2022, in relation to its interests in lithium in Zimbabwe.  

Highlights :

Ø African Lithium Resources Pvt Ltd ("ALR") has been established as a 75% owned subsidiary in Zimbabwe with a local partner.

Ø ALR has acquired 51 ha of lithium claims 29 km NW of Bikita in SE Zimbabwe at Tin Hill, and is in the process of transferring title.

Ø Spodumene and petalite lithium mineralisation identified in 10m thick exposures averaging 1.43% Li₂O (Geological Survey of Rhodesia 1975).

Ø ALR has taken 7 samples in one area of the licence, with best grades received from an accredited laboratory at 2.07% Li₂O, 1.082% Li₂O, 0.87% Li₂O, 0.62% Li₂O

Ø Consideration of $25,000, has been paid, with a further $10,000 retained by ALR until completion of transfer.

Ø A new 125 ha application near Arcturus, a mining site 32km E of Harare in Zimbabwe has been approved for grant  with a further application nearby in process

Ø A 107 ha application near Bikita has been made and another property with high grades from our sampling has been identified for purchase.

Red Rock Chairman Andrew Bell comments : "Zimbabwe has long been the biggest lithium producer in Africa, and one of the largest in the world. Its pegmatites have a mineral endowment that has considerable expansion potential, and international investors have shown themselves willing to invest in lithium exploration and development in this traditional mining country that has been in disfavour for decades.

Two key centres are Bikita, the site of the best known Zimbabwe producer, the Bikita mine, which is now 74% controlled by Sinomine group, and Arcturus, where Australian miner Prospect Resources Ltd (PSC:AX) announced the sale of its 87% interest in the Arcadia project for $389m to Zhejiang Huayou Cobalt on 22^nd December 2021.

ALR has acquired one licence near Bikita and several applications and a further potential purchase in the Bikita and Arcturus areas are at different stages of negotiation and grant.

Sample results for a number of properties and their environs have been received from the laboratory and will be announced as the acquisition of the relevant properties progresses.

Red Rock's has existing battery metal interests through its copper/cobalt exploration in the Congo.

The Company set up African Lithium Resources after discussion with its local partner and others with a view to seeking further investment and developing a significant presence in lithium, leading potentially to listing."

Further Information

The property at Tin Hill is a 51 ha claim named Houghton C on Plot No 5 Rippling Waters Farm, 2.2 km SSE of Marah Hill Trig beacon 132/5, in the Bikita District of Masvingo Province in SE Zimbabwe, and is acquired from Thebe Resources Pvt Ltd, a Zimbabwean company.

The nearby Bikita Mine is the largest lithium mine in Zimbabwe and has been in production for over 60 years, and is one of the world's largest petalite deposits.

The technical information in this release has been reviewed by Mr Bakhile Batakathi, a geologist registered as a Professional Scientist with the Engineering Institute of Zambia, and a member of the Geological Society of Zimbabwe. 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     

GLOSSARY

Lithium:   Lithium is the lightest of the metals and has become important as an anode material in batteries due to its high electrochemical potential; this use now accounting for three quarters of demand

Petalite:  an important and high value ore of lithium

Spodumene:   the most important lithium ore found in pegmatite deposits

 

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