Update - Colombia (Replacement)

RNS Number : 2243U

Red Rock Resources plc

19 December 2011

 



RED ROCK RESOURCES PLC

Update - mine planning

Dated: 19 December 2011

Red Rock Resources plc ("Red Rock" or the "Company"), a mining and exploration company with a producing gold mine in Colombia; Kenyan gold and Greenland iron ore exploration projects; and interests in steel feed, uranium and rare earths, reports on short and medium term mine planning at the El Limon mine in Antioquia, Colombia.

El Limon Mine Plan

Short-term Mine Planning

Recent level mapping and sampling has been used to generate a working estimate of the amount of potentially mineable material at the EL Limon Mine. This material is in two areas, that defined between Levels 6 and 7, which is fully developed and is the main source of current production; and, a new development area south of the main production shaft on Level 6 South (see Figs 1 to 3).

Figure 1

Figure 2

Figure 3

The Company's in-house estimates have been completed without independent verification and without the use of modern tonnage estimating methodologies. Rather, tonnage estimates have been completed by defining simple geometric volumes based on surveyed areas and projected dips of the ore zone, using mining parameters of a minimum 40cm mining dilution on each side of the vein, up to a mining width of 1.2m, and an estimated density of 2.76 tcm. The Level 6-7 mine block extends over a strike length of some 200m, has a height of nearly 50m and an average horizontal projection of between 35-60m. The Level 6 South block is projected to be 40-50m long, with a similar profile to that of the Level 6-7 block.

Estimates indicate that these blocks potentially contain some 29,000 to 35,000 tonnes of in situ mineralised material remaining as of the end of November 2011 (Table 1 below). Current production from these areas is running at a mining-diluted production grade in the range of 9-10g/t Au, and the objective will be to maintain the production grade at this level or higher.  

Support for the projected production grade comes from current production grades from these areas, combined with systematic sampling and vein measurements completed at 2-5m intervals along the development drives.  

However, there is as yet limited understanding of gold grade variation within the vein. Pods of high grade mineralisation of up to ~150g/t Au have been found within the Level 6-7 panels, but their orientation and continuity is not yet completely understood, and the vein grades in these areas have been cut to 40g/t in internal production forecasts.

It should be noted that this calculation process is not JORC-compliant, so it is not possible to assign the usual confidence categories to the estimates, or to state them as resources. Therefore although access has been established into most panels which has confirmed the continuity of mineralisation, there can be no assurance that the predicted production can be realised. The estimates described herein have been prepared by the recently appointed mine management team for the purpose of developing a production schedule to form the basis of a comprehensive mine plan which the Company hopes will provide profitable production over the next six months.

During this six-month period, the management team will work to extend the expected operational life of El Limon by defining new ore blocks through development and in-mine exploration. The mine team will also present detailed plans for operating costs, maintenance, and capital expenditure requirements.

Medium-Term Mine Planning

The new mine team is optimistic that the exploration and development planned over the next six months will define ore extensions to allow as much as a further 18 months of operations before production is required from below the already established Level 7.

Once the character of the newly-defined ore is established the next phase of mine planning will commence to optimise extraction from these areas by considering new mining techniques and determining the right degree of mechanisation.

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

 Updates on the Company's activities are regularly posted on its website, www.rrrplc.com.

Table 1:

Estimated tonnage contained within each block at the EL Limon Mine, Colombia, net of production to date, referenced in Figures 2 & 3 

Block Number	Estimated Tonnage
1	248
2	1,460
3	375
4	1,268
5	2,204
6	3,851
7	2,090
8	207
9	906
10	397
11	1,686
12	336
13	1,809
14	152
15	1,094
16	317
17	1,385
18	161
19	1,241
20	154
21	646
22	994
23	2,830
24	1,641
25	2,108
26	2,659
Raw Total	32,219
Confidence	+/- 10%
Estimate	29-35kt

 

END

 

 

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