Update - Kenya

RNS Number : 2743N

Red Rock Resources plc

30 August 2011

 



RED ROCK RESOURCES PLC

Update - Kenya

Dated: 30 August 2011

Red Rock Resources plc ("Red Rock" or the "Company"), the gold mining and exploration company with projects in Kenya, Greenland  and Colombia,  and interests in steel feed, uranium, and rare earths, reports on progress in Kenya.

Kenya

All rigs other than the Tandrill universal rig have been or are being released from the site, as the infill drill programme on the areas of the existing NI 43-101 Indicated Resource winds down.

Further regional diamond drill exploration, and further aircore rig exploration, will be carried out following a review once all sample results have been received and analysed. In the case of the aircore rig, this is expected to be in approximately two months.

On the KKM prospect, which accounted for 680,000 oz Au of the 1,172,000 oz Au of the  NI 43-101 compliant Indicated Resource, a programme of diamond and reverse circulation drilling has been successfully completed. Due to an earlier customs delay, the samples are being paid for as a 'priority ' job at the test laboratory. Results are expected shortly, and CSA Global Pty Ltd ("CSA") will conduct a recalculation of the resource.

Recalculations by CSA of the resource at the other prospects forming part of the Indicated Resource, namely MK, Nyanza, and Gori Maria, are expected to follow as soon as samples have been tested and the results received.

At the Macalder Tailings Project, Red Rock is working with CSA, who previously produced a JORC compliant Indicated Resource of 75,084 oz Au, to generate a Measured Resource, and expects to make an early announcement on this and on its intentions with regard to the processing of the Macalder tailings. 

A purported order of the Migori County Council dated 5^th August 2011 was served on Mid-Migori Mining Ltd ("MMM"), the holder of the Kenyan licenses, at the Mikei camp on 15^th August 2011, requiring MMM to cease gold exploration in the Council's area of authority. This area covers part of the license   and includes land owned by the Council. Red Rock is advised that the rights to exploration, issued by the Ministry of Environment and Mineral Resources, are validly held by MMM and the Ministry confirm that the appropriate landowner consent from the Council's predecessor council was obtained at the time of the grant of the original license and remains valid.

Neither reason nor authority is cited in a four line letter from  the Clerk to the Council, and Red Rock regards the purported order from the Migori County Council as dealing with matters entirely outside the authority of the Council, and entirely defective both legally and procedurally. However, as a precautionary measure MMM has sought and obtained from the High Court in Nairobi leave to apply for an order of certiorari and prohibition, and a stay on any action by the Council until determination.

Red Rock has in recent days been given heartening evidences of support by the communities in which it operates in Kenya, who have been vocal and articulate in making their views known and complaining about manipulation by other selfish interests. Red Rock is also now active at all levels of Government and media in ensuring that no misrepresentations are made. Red Rock has received courteous, correct and professional treatment by all Ministries with which it has dealt, and considers Kenya to offer a good and law-abiding investment environment 

Red Rock confirms that it complies, and will rigorously continue to comply, with the Bribery Act and all other relevant UK and Kenyan legislation.

Enquiries:

Andrew Bell	0207 402 4580 or 07766 474849	Red Rock Resources plc	Chairman
Sandra Spencer	0207 402 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.

 

END

 

 

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