Update - Migori Project

RNS Number : 4655S

Red Rock Resources plc

21 November 2011

 



Red Rock Resources plc

Update - Migori Project

Drill Results for the Mikei Gold Project confirm the potential of the Resource

21 November 2011

Red Rock Resources plc ("Red Rock" or the "Company"), the mining and exploration company with an iron ore project in Greenland, a producing gold mine in Colombia and interests in steel feed, uranium and rare earths, is pleased to announce analytical results from its 2011 drilling programme on the Migori Project in southwest Kenya. Drilling on greenstone-hosted gold targets reported here include 50 holes for a total of 5,656 metres and 118 significant intersections. Further results are still to be received.

Highlights - Drill Intersections

The majority of analytical results are from infill drilling completed as part of an intensive 2011 data validation and Resource update programme for Red Rock's Mikei Gold Project. The KKM prospect, the first of five linked deposits due to have their Mineral Resource Estimates updated to a JORC-compliant standard by CSA Global (UK) Ltd, has returned encouraging results such as:

KKDD027:	41.9m @ 1.65g/t Au	including	5.0m @ 8.36g/t Au
KKDD030:	5.5m @ 7.05g/t Au	including	1.0m @ 34.9g/t Au
KKDD033:	11.0m @ 2.36g/t Au	including	1.0m @ 19.5g/t Au
KKDD054:	4.0m @ 11.7g/t Au
KKDD077:	29.0m @ 1.83g/t Au	including	14.0m @ 2.79g/t Au
KKRC052:	47.0m @ 1.61g/t Au	including	13.0m @ 3.97g/t Au, itself including 3.0m @ 12.6g/t Au
KKRC069:	12.0m @ 2.05g/t Au
	16.0m @ 1.30g/t Au

Part of the same system are the Gori Maria and KKM West Prospects, also due for upcoming Resource updates, which generated the following significant intersections:

GMDD003:	5.5m @ 3.92g/t Au and 11.0m @ 4.08g/t Au
GMDD004:	2.0m @ 12.3g/t Au
GMDD009:	4.0m @ 4.18g/t Au
KWRC066:	2.0m @ 4.46g/t Au
KWDD084:	3.0m @ 2.49g/t Au

In regional exploration in the western licence (SPL202) a new prospect, Kehancha 5, has delivered a good first ore-grade intersection of:

KH5DD001:             12.9m @ 3.72g/t Au

Work Planned

The results of the drilling on the Mikei Gold Project will be included in a series of JORC-compliant Resource updates for each prospect to be progressively completed and reported in coming months. The positive results from regional exploration drilling elsewhere in the Migori Project, where a range of greenstone-hosted target styles are being explored for, will be followed up during the 2012 drilling program currently being planned.

Detailed Discussion

Drill Program

The Mikei Gold Project infill drill programme commenced in November 2010 on a mineralised Archaean greenstone belt parallel to the Tanzanian border, and drilling has continued throughout 2011. Both diamond core and reverse circulation percussion drilling were undertaken, with up to five rigs on site.  The following table shows the distribution of Red Rock's drilling of the five Mikei Gold Project Resource areas:

Prospect	No. Holes	DDH (m)	RC (m)
KKM Main	21	2,417	1,405
KKM-West	33	3,789	966
Gori Maria	17	622	1,160
Nyanza	4	568	300
MK	20	2,226	621
Total	95	9,621	4,452

The samples were prepared at ALS Mwanza, Tanzania and forwarded to ALS Johannesburg, South Africa and ALS Vancouver, Canada for assaying using the fire assay with ICP (low level) / AAS (ore grade) analytical methods.  Delivery of samples from the early stages of this programme to the sample prep laboratory in Mwanza was delayed due to export issues now resolved. Figure 1 shows all Red Rock drilling to date on the Migori Project.

http://www.rns-pdf.londonstockexchange.com/rns/4655S_-2011-11-21.pdf

Figure 2 shows the detail of the infill drilling completed on the Mikei Gold Project, which has 5 distinct shear and vein-hosted orebodies defined at present, KKM, KKM-West, MK, Nyanza and Gori Maria, which exist within what is thought to be a single shear system of more than 7km strike length.

http://www.rns-pdf.londonstockexchange.com/rns/4655S_1-2011-11-21.pdf

Work has been prioritised on the KKM Prospect, which makes up the central core of the Mikei Gold Project, and extends for more than 2km. KKM is currently being put through a Mineral Resource Estimate update.

Information on all significant intersections received to date from the 2011 programme is included in the Appendix. Results are still to be received from Nyanza and selected zones of follow-up assaying adjacent to results reported here; and, drilling continues with one rig and approximately 1,500 metres remains to be drilled at the Gori Maria prospect and approximately 600 metres at MK.

Geological Interpretation

Initial interpretation of the drilling from KKM, while showing significant alteration and shearing, appears to be a typical greenstone sequence of interbedded metasediments and metavolcanics with thin sheets of mafic and felsic intrusions. Shearing, and traceable zones of mineralisation appear to mostly be sub-parallel to bedding.

Mineralisation extends from surface, where artisanal miners conduct shallow, small scale, high grade mining activities; down to a depth of more than 150m. The mineralisation remains open at depth, and many of the better intersections are towards the base of current drill testing.

Within the broader shear system there are stacked zones of mineralisation, with shoots of high grade mineralisation within larger lower grade haloes (Figure 3) and indications of a potential sub-parallel, en echelon arrangement of these higher grade shoots. There is a strongly developed northern zone of up to four to five stacked surfaces, and a lesser developed southern zone of mineralisation, but also showing indications in places of up to three en echelon surfaces (Figure 4).

http://www.rns-pdf.londonstockexchange.com/rns/4655S_2-2011-11-21.pdf

http://www.rns-pdf.londonstockexchange.com/rns/4655S_3-2011-11-21.pdf

Validation of Mikei Gold Project Resource Estimate

Resource estimation of the five deposits will be completed sequentially with validation of the resource database and interpretation done in line with the Australian JORC standard of Resource reporting. The existing Indicated Resource (Kansai 2006, 1.17 million ounces Au) was determined against the Canadian National Instrument 43-101 standard at a cut-off grade of 0.25 g/t Au. Limited structural information, and concerns about the downhole survey data and grid location issues reduced confidence in the quality of this estimate. The aim of Red Rock's infill drill programme throughout has been to validate the existing Resource database with additional high quality data.

The Mineral Resource Estimate for KKM is underway with the interpretation of structural, lithological, mineralogical, alteration and assay data to define the ore blocks. Final results for some KKM samples are still awaited since additional sampling was completed based on initial assay results and preliminary interpretations.

The Mineral Resource Estimate updates for the other four deposits in the Mikei Gold Project will be completed sequentially after the completion of the KKM Resource Estimate, and should be released progressively early in 2012.

Regional Exploration

In addition to the infill and validation programme at the Mikei Gold Project, some drill results are available for other, 'Anomaly Testing' prospects elsewhere in Red Rock's larger Migori Project.

The drilling at Karutiange Prospect was targeted on the basis of reconnaissance mapping and soil sampling, and found narrow zones of low grade mineralisation were intersected, and will provide the basis for follow-up during 2012.

The Kehancha 5 Prospect is an area of earlier small-scale mining, and some limited historical drilling which failed to intersect significant mineralisation. The intersection of a strong zone of quartz veining (in association with sulphidic graphitic schists) and very encouraging analytical results in one zone near surface promotes this prospect to the level of 'Ore Definition', and work will continue during 2012 to understand the geological controls on mineralisation and define the orientation of the ore shoot.

For further information contact:

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.

Competent Person Statements

The information in this announcement that relates to Exploration Results is based on information compiled by Mr Richard Evans, BSc(Hons), who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Evans is a consultant to the Company and an employee of its associate Resource Star Limited, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and as a "Qualified Person" as defined in the Note for Mining and Oil & Gas Companies, June 2009, of the London Stock Exchange. Mr Evans has reviewed this announcement and consents to the inclusion herein of the matters based on his information in the form and context in which they appear.

Forward Looking Statements

This report contains 'forward-looking information' that is based on the Company's expectations, estimates and projections as of the date on which the statements were made. This forward-looking information might include, among other things, statements with respect to the Company's business strategy, plans, objectives, performance, outlook, growth, shareholder value, projections, targets and expectations, Mineral Reserves and Resources, results of exploration and related expenses, property acquisitions, mine development, mine operations, drilling activity, sampling and other data, grade and recovery levels, future production, capital costs, expenditures for environmental matters, life of mine, completion dates, uranium prices, demand for uranium, and currency exchange rates. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as 'outlook', 'anticipate', 'project', 'target', 'likely', 'believe', 'estimate', 'expect', 'intend', 'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan', 'forecast' and similar expressions. Persons reading this report are cautioned that such statements are only predictions, and that the Company's actual future results or performance may be materially different.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to the risk factors set out in the Company's Annual Report. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. The Company disclaims any intent or obligations to update or revise any forward-looking statements whether as a result of new information, estimates or options, future events or results.

Appendix - Significant Intersections - 2011 Migori Project Drill Results

Prospect	Hole ID	mE	mN	EOH (m)	No. Mineralised Zones	From depth (m)	Intersection Width (m)	Grade (g/t Au)
KKM Main	KKDD022	645331	9888771	56.0	2	65.0	0.8	2.98
						83.0	9.3	1.16
	KKDD023	645343	9888805	71.4	2	27.0	2.5	2.76
						42.0	3.0	1.51
	KKDD027	644247	9889285	158.8	4	44.0	1.0	5.31
						78.0	6.0	0.96
						88.0	3.0	0.79
						107.0	41.9	1.65
					incl'g	127.0	5.0	2.25
					&	139.0	5.0	8.36
	KKDD028	645238	9888809	135.0	2	89.0	2.0	0.85
						118.0	2.0	3.79
	KKDD030	645253	9888851	91.3	1	64.0	5.5	7.05
					incl'g	64.0	1.0	34.90
	KKDD033	645262	9888875	64.8	2	34.0	3.0	3.80
						42.0	11.0	2.36
					incl'g	47.0	1.0	19.45
	KKDD034	645153	9888849	152.3	2	84.0	1.0	1.38
						124.0	2.0	0.60
	KKRC041	645177	9888922	79.0	4	32.0	5.0	0.75
						41.0	2.0	0.55
						49.0	4.0	1.20
						61.0	2.0	0.80
	KKDD042	645164	9888884	119.8	2	59.0	2.0	3.64
						80.0	1.0	1.24
	KKDD050	644257	9889325	103.6	4	51.0	16.6	0.63
					incl'g	65.0	3.0	1.52
						74.0	5.0	1.50
						84.0	1.0	4.94
						94.0	3.0	0.64
	KKDD054	644346	9889268	119.9	4	24.0	2.0	0.74
						49.0	1.0	4.64
						67.0	4.0	11.72
						80.0	6.0	1.21
	KKDD071	644566	9889156	152.9	3	57.0	3.0	1.32
						87.0	3.0	1.32
						98.0	10.0	0.59
	KKDD072	644557	9889122	206.8	4	99.0	1.4	4.78
						135.0	8.6	0.78
						153.0	7.0	0.87
						164.0	1.0	1.09
	KKDD076	644333	9889237	158.8	5	65.0	4.0	0.88
						91.0	4.5	1.20
						103.0	1.0	1.45
						107.0	6.9	0.64
						133.0	1.0	1.14
	KKDD077	644322	9889208	200.8	5	103.0	2.0	1.07
						111.0	5.0	0.67
						133.0	29.0	1.83
					incl'g	140.0	14.0	2.79
						183.0	2.0	0.59
						192.0	3.0	0.71
	KKDD079	644167	9889161	119.8	3	84.0	3.0	0.60
						97.0	6.0	2.37
						111.0	5.0	1.11
	KKRC047	644937	9888988	115.0	1	45.0	1.0	1.46
	KKRC048	644272	9889356	75.0	5	16.0	6.0	0.79
						25.0	2.0	1.15
						31.0	1.0	1.24
						40.0	6.0	1.55
						55.0	1.0	1.13
	KKRC052	644367	9889311	67.0	1	6.0	47.0	1.61
					incl'g	36.0	13.0	3.97
					incl'g	46.0	3.0	12.57
	KKRC069	644584	9889191	96.0	3	10.0	12.0	2.05
						39.0	16.0	1.30
						60.0	6.0	1.77
	KKRC074	644301	9889168	75.0	1	2.0	4.0	0.56
	KKRC075	644288	9889133	100.0	2	44.0	2.0	0.59
						54.0	2.0	0.59
	KKRC080	644203	9889207	87.0	1	26.0	10.0	1.16
MK	MKRC057	644829	9889563	137.0	3	6.0	1.0	3.39
						39.0	3.0	1.28
						57.0	1.0	2.48
	MKRC059	644786	9889707	152.0	1	11.0	2.0	0.87
Gori Maria	GMDD003	647041	9888237	124.1	4	17.5	5.5	3.92
						91.0	4.0	0.89
						106.0	3.5	1.18
						113.0	11.0	4.08
	GMDD004	647068	9888197	110.6	6	33.0	1.0	0.99
						41.0	2.0	12.32
						77.0	2.0	2.02
						84.0	2.0	0.78
						92.0	1.0	1.24
						106.0	1.0	1.64
	GMDD007	646941	9888284	146.0	3	3.5	1.5	1.25
						16.0	2.0	0.61
						87.0	1.0	1.24
	GMDD008	646966	9888324	150.0	3	58.0	4.0	1.08
						130.0	2.0	0.50
						142.0	4.0	2.08
	GMRC006	646935	9888250	150.0	1	121.0	4.0	0.62
	GMRC009	646972	9888365	90.0	1	0.0	4.0	4.18
	GMRC016	647153	9888148	85.0	1	78.0	7.0	0.98
	GMRC017	647096	9888138	115.0	4	0.0	4.0	0.59
						76.0	4.0	1.56
						92.0	1.0	3.42
						107.0	3.0	0.82
	GMRC018	647053	9888169	75.0	1	0.0	4.0	1.55
KKM West	KWDD036	643467	9889711	197.9	3	140.0	0.7	2.02
						157.0	0.7	2.11
						170.0	4.3	0.72
	KWRC064	643299	9889608	106.0	2	87.0	6.0	0.98
						97.0	2.0	1.10
	KWRC067	643223	9889910	85.0	3	42.0	1.0	1.13
						51.0	1.0	1.24
						65.0	1.0	3.25
	KWDD031	643488	9889782	101.0	1	99.0	2.6	0.75
	KWDD053	643067	9890048	101.4	2	52.0	2.0	1.96
						71.0	1.5	0.74
	KWDD063	643322	9889648	110.9	2	20.0	8.0	0.76
						33.0	1.0	1.03
	KWDD084	643220	9889665	123.1	1	58.0	3.0	2.49
	KWDD086	643238	9889701	113.9	2	12.0	2.0	2.12
						51.0	1.0	1.89
	KWRC029	643500	9889818	59.0	2	43.0	2.0	0.77
						54.0	3.0	0.66
	KWRC066	643237	9889942	46.0	1	30.0	2.0	4.46
	KWRC068	643125	9889937	81.0	1	74.0	2.0	0.63
	KWRC082	643205	9889629	111.0	1	102.0	6.0	0.76
Kehancha5	KH5DD001	681380	9870518	121.0	3	21.0	12.9	3.72
						38.0	2.6	1.36
						54.0	1.0	2.29
	KH5DD002	681484	9870517	121.4	1	27.0	1.0	0.97
Karutiange	KTDD001	676917	9874151	115.5	1	42.0	1.7	1.09
	KTDD002	677348	9874139	121.5	1	98.0	1.3	1.95

Notes:

1.     "Significant intersections" are based on composites in excess of 0.5g/t Au, including up to 2m of internal waste, where the intersection is greater than the equivalent of 1m @ 1g/t Au.

2.     All drill holes were drilled on an azimuth of 025 degrees, and a dip of -60 degrees.

3.     Coordinates are SUTM ARC1960.

 

END

 

 

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