Update and Result of Meeting
RED ROCK RESOURCES PLC
Update and Result of Meeting
Dated: 15 February 2011
Red Rock Resources plc ("Red Rock" or the "Company"), the gold mining and exploration company with projects in Kenya and Colombia, and interests in steel feed, uranium, and rare earths reports on developments.
Kenya
In October 2010, CSA Global Ltd ("CSA") and the Company finalised drilling programmes to test, validate and extend the current resource targets, and to investigate potential further targets. A drill programme to test copper-gold VMS target will also take place shortly.
Local drilling companies began drilling before the New Year, and diamond, reverse circulation, and air core drills brought into the country are expected to be coming into operation in stages from the end of this week. This will speed up the programmes in order to complete them as far as possible before the beginning of the rains.
The results from stage 2 of the metallurgical testwork on the Macalder tailings are awaited.
Colombia
Customs delays, followed by a nationwide strike by the transport industry, have caused late delivery of a small number of essential parts for the agitators for the larger flotation cell unit. This has caused a temporary halt to the scaling up of production. Once parts are delivered, production can increase. Meanwhile, the mine at El Limon is operating two shifts, and the crushers and conveyors are operating satisfactorily. The ball mill has been run at 24 hours a day, as have the jig, pumps, and other elements of the plant.
Material processed is 6 g/t, and some 450 tons of this material remains in silo. Material mined is grading 12-15 g/t and improving, but the decision was to process lower grade material until the plant is running smoothly in all respects.
The Machuca mine is now in operation, and initial production is at about 20 tpd at a grade of 6 g/t.
The Company has agreed in principle the early exercise of its option over a majority of the share capital of its partner Mineras Four Points SA ("MFP"), at a reduced initial cost, with remaining payments related to the achievement of key targets, and will make a further announcement shortly. This will enable the Company to take operational control immediately.
The Company has appointed recently a chief financial officer for MFP, and has had a consultant engineer from the United States visit the site. His full report is awaited, but his conclusion was that the mine and plant were without fundamental problems, had capable employees, were capable of expansion, but lacked proper flowsheets and planning, and that the slight delays encountered were not a cause for concern. The Company has sent him now to provide assistance to our associates in Costa Rica, and he will then return to Red Rock's Colombian operations.
A director of the Company is remaining full-time in Medellin while the ramping up of production and the organisational restructure are taking place.
The Company pays tribute to the goodwill and active co-operation of its local partners in accomplishing the often difficult task of moving from a small-scale family-oriented operation to a larger operation with external controlling shareholders. Red Rock can now look to the future at El Limon and Machuca with great confidence.
Tasmania
A previously undrilled 3 km North-South trending magnetic anomaly on the Arthur River tenement along strike north from the Savage River mine was tested by a five hole reverse circulation drill programme of 700m across the waist of the geophysical target in late 2010. Results have been received and while magnetite was encountered in all holes, these were not of sufficient grade and quality to make it likely that this will be an economic deposit.
Other
The Company is reviewing a number of new opportunities.
Result of Meeting
Further to the announcement made on 30 December 2010, Red Rock Resources plc announces that Resolution 1 from the annual general meeting was duly passed without amendment at the adjourned general meeting held today.
The technical information is this release has been reviewed and approved for release by Helen Salmon, BSc(Hons), a geologist working for the Company, a Fellow of the Geological Society and a Member of the Mineralogical Society.
Enquiries:
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Andrew Bell
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0207 402 4580 or
07766 474849
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Red Rock Resources plc
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Chairman
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Sandra Spencer
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0207 402 4580 or
07757 660 798
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Red Rock Resources plc
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Public and Investor Relations
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Peter Trevelyan-Clark/ Ben Jeynes
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020 7444 0800
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Religare Capital Markets
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Nominated Adviser
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Nick Emerson
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01483 413500
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Simple Investments Ltd
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Broker
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Enquiries:
Updates on the Company's activities are regularly posted on its website, www.rrrplc.com.
This information is provided by RNS