Operational Update

RNS Number : 1439U

Red Rock Resources plc

21 December 2012

 



Red Rock Resources plc

Operational Update

21 December 2012

Red Rock Resources plc ("Red Rock" or the "Company") is a 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.

Colombia - Four Points Mining

In relation to the planned sale of Four Points Mining in Colombia the buyer has expressed its desire to proceed but does not now expect to be able to progress the transaction until after the Christmas and New Year period.

Jupiter Mines Ltd (JMS:ASX)

Jupiter Mines Ltd announced that the Tshipi Borwa Mine, in which Jupiter Mines Limited has a 49.9% stake, has successfully shipped its first shipment of  manganese ore from Port Elizabeth.  Red Rock holds 60.2m shares in Jupiter (c2.6%) which currently have a market value of approximately A$5.96m.

Further details are available at: http://www.tshipi.co.za/borwa-project/project-development/260-tshipi-borwa-first-manganese-exported-update-22.html.

Greenland

As announced on 19 December 2012, having announced its JORC-compliant Mineral Resource Estimate, the Company intends to exercise its option in the farm-in which will bring its holding in Nama Greenland Limited (NGL) to 60%. Such exercise is subject to the relevant regulatory consents and the Company will make the relevant announcements as necessary.

Due diligence has been conducted and the transaction, concerning the offer for 51% of NGL as announced on 28 November 2012, remains on course for completion in January 2013.   

Kenya

In response to allegations that Mid Migori Mining was illegally mining gold, which are without foundation, the Speaker of the House asked the Departmental Committee for Land and Natural Resources to investigate. That Committee has produced a draft report, which recommended that a number of allegations be investigated further by the relevant administrative bodies, with a view to revoking one of the two licenses. This report has unexpectedly now been adopted earlier this week, without debate, in the last sitting of  the Kenyan Parliament for the year and a ministerial investigation on the matter will now be undertaken. No criticism was made of Red Rock, the operator of the licenses. Red Rock together with Mid Migori Mining has now submitted substantial documentation showing the allegations to be incorrect.

Chairman Andrew Bell comments: "Another impressive milestone has been reached on time by Jupiter as the Tshipi Borwa mine is brought into full production. In Kenya, the Report now passes to the Government and administrative arm for the investigation of the matters raised. We are confident in the integrity of these processes, have already produced the necessary evidential material, and Kenya remains a favourable investment environment where arbitrary dispossession on spurious grounds of assets found to have value is not the rule. We are entirely confident that Mid Migori will come out with a clean bill of health once the matters raised are properly investigated and continue to make plans for 2013."

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

 

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