Update - Colombia

RNS Number : 2078G

Red Rock Resources plc

02 May 2014

 



Red Rock Resources Plc

("Red Rock" or the "Company")

Update - Colombia

2 May 2014

Red Rock Resources plc, the mining and exploration company with gold interests in Colombia, Kenya, and Ivory Coast, announces a quarterly update for the three months to 31 March 2014 on operations at its El Limon mine in Colombia.

Four Points Mining SAS (50.002% owned by the Company) reports gold sales of 718oz in the first quarter of 2014.  This corresponds to sales over the same period last year (Q1 2013) of 363oz, a 97.7% increase year on year. Q1 2014 sales of 718oz fell from Q4 2013 figures of 909oz, a decline of 21%, however in line with the two year quarterly average of 732oz.    

As of 31 March 2014 total gold sales for FY14 sat at 2,607oz as compared to 1,723oz at this point in FY13.  The average realized gold price was $1,259/oz during the quarter.    

FY 14	Month	Gold (oz)
Q1	Jul-13	343.36
	Aug-13	292.76
	Sep-13	343.99
Q2	Oct-13	276.64
	Nov-13	226.57
	Dec-13	405.97
Q3	Jan-14	230.12
	Feb-14	259.85
	Mar-14	228.14

http://www.rns-pdf.londonstockexchange.com/rns/2078G_-2014-5-2.pdf

Company Chairman Andrew Bell comments:

"Gold sales for the latest quarter at El Limon show a continuation of the recent stable and profitable production trend. In the three months to March, sales were lower than in the previous quarter despite a higher tonnage of ore milled. This is because mining operations passed through a lower grade zone, part of the natural variability of vein grades. Operational results have improved significantly over last year's figures however, and we are hopeful that this gradual improvement will continue.

We continue to focus our efforts on maximizing output levels and reducing our cash costs at the mine, while exploring both further mine developments and potential disposal options as appropriate. 

With multiple initiatives underway involving El Limon we look forward to the remainder of 2014 with optimism as we seek to unlock value for Red Rock shareholders."   

For further information contact:

Andrew Bell0207 747 9990 or 0776 647 4849                Chairman Red Rock Resources plc

Colin Aaronson / David Hignell 0207 383 5100            NOMAD Grant Thornton UK LLP

Nick Emerson01483 413500                                            Broker SI Capital Ltd.

Saif Janjua 0207 382 8416                                               Joint Broker Beaufort Securities Ltd

Rupert Trefgarne0203 128 8817                                      Media Relations MHP Communications

 

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