Re Jupiter Mines Limited

RNS Number : 1796J

Red Rock Resources plc

27 June 2011

 



RED ROCK RESOURCES PLC

("Red Rock" or the "Company")

Announcement re Jupiter Mines Limited and Further re Issue of Equity

27 June 2011 

Jupiter Mines Limited - Mount Ida Feasibility Study Commences

Red Rock notes the announcement made by its 4.24 per cent. owned associate Jupiter Mines Limited (ASX:JMS) ("JMS") today, in which JMS announced that it had commenced a feasibility study on its Mount Ida Magnetite Project in the Central Yilgarn region of Western Australia. As announced by JMS, Mount Ida is a key part of JMS' strategy to become a global supplier of raw materials to the steel industry. Red Rock maintains a 1.5% gross production royalty in Mount Ida.

The feasibility study will be based on annual production of ten million tonnes of magnetite concentrate grading 68+ per cent. Fe and it is proposed that the concentrate will be transported along the existing railway from Menzies to the Port of Esperance on Western Australia's south coast. A scoping study completed in March 2011 found that Mount Ida would be a financially and technically robust project with a project NPV of A$1.685 billion*. The full text of the JMS announcement is available at:

http://www.asx.com.au/asxpdf/20110627/pdf/41zffhfj2zm8cw.pdf 

*based on a 20 year mine life at 25 Mtpa producing 10 Mtpa of magnetite concentrate, a waste to ore strip ration of 1.5 to 1, inclusive of a royalty of 5%, equity funding and ignoring taxation and a concentrate price of A$110 per tonne.

Further re Issue of Equity

Further to the Company's 'Issue of Equity' announcement of 23 June 2011, in which Red Rock announced that it had placed 16,666,666 new ordinary shares of 0.1p at a price of 6p per ordinary share to raise gross proceeds of £1 million, the Company confirms that application has been made for the new ordinary shares to be admitted to trading on AIM, but that admission of the new ordinary shares to trading on AIM is expected to occur on 30 June 2011, and not on 29 June 2011 - as had previously been announced.

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	Public and Investor Relations
Peter Trevelyan-Clark/ Ben Jeynes	020 7444 0800	Religare Capital Markets	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker

 

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