Update on Gold Exploration in Victoria

RNS Number : 1540I

Red Rock Resources plc

12 April 2022

 

Red Rock Resources PLC

("Red Rock" or the "Company")

Update on Gold Exploration in Victoria

12 April 2022

Red Rock Resources Plc, ("Red Rock" or "the Company"), a natural resource development company with interests in gold and base metals, principally in Africa and Australia, announces an update in relation to the exploration programme being carried out by joint venture subsidiary New Ballarat Gold Corporation plc ("NBGC") in the Victoria Goldfields of Australia. Exploration is carried out by Red Rock Australasia Pty Ltd ("RRAL"), the 100% owned Australian operating subsidiary of NBGC.

Highlights

· First phase diamond drilling at Mt Linton and O'Loughlin's complete. 

· Initial results received confirm that two gold-bearing structures have been intersected at the O'Loughlin's Prospect, including 0.4 m at 12.34 g/t Au from 75.7m downhole, and 0.5m at 1.44 g/t Au from 50.6m downhole from hole OL21D002 .  (Note - As further explained below: Due to low core recovery across select areas, up to several meters or core across the main mineralised zones were not recovered. The core that was captured and available to be sampled is thought to be highly under-representing the nature and width extent of the mineralized zone.).

· To date, the O'Loughlin's prospect area extends over 2 kilometres along strike and up to 500 metres wide; a size comparable to the nearby Ballarat Gold Mine .

· Investigation of structural and geological complexities from recent core drilling underway, with additional drilling at the O'Loughlin's Prospect planned following completion of the analysis.  

· Preliminary Mo and Bi results from Mt Bute suggest that models incorporating new concepts for bigger targets of Intrusive related gold ("IRG") mineralization model may be more applicable to Victorian gold deposits than first thought. 

· Extensive soil sampling to begin over the remaining granted tenures held by RRAL in the Victoria Goldfields in order to identify further previously untested or unidentified targets.

· The Daylesford exploration licence (EL7330) covering the historical Ajax mine is a step closer to grant having successfully passed through the objection phase and Native Title assessment.  

RRAL Exploration Director Mr David Holden comments : "After drilling a combined 860m at the O'Loughlin's and Mt Bute prospects, drilling has been paused to allow for processing of samples and geological interpretation. At O'Loughlin's we continue to see geological similarities to the nearby Ballarat mine, and and we have already encountered high-grade gold from the initial assays we have received that have further validated our exploration thesis.

 At Mt Bute prospect the anomalous molybdenum and bismuth initially identified in XRF test work suggests the possibility of an intrusive-related component to the mineralization.  This implies potential for larger and deeper gold-molybdenum-tungsten targets at Mt Bute. Rock chips sampled here have returned notable gold results.

As we plan for a listing of the Victoria gold interests, these initial drilling results combined with the progress of the important Daylesford exploration license towards grant, are important steps that will enable us to list NBGC with immediately prospective projects that possess the potential grade and scale that we seek."

Overview:

RRAL has now completed diamond drilling at two of its advanced prospects, Mt Bute and O'Loughlins, which are located approximately 30km and 20km from the town of Ballarat respectively. 

Figure 1 regional location map
http://www.rns-pdf.londonstockexchange.com/rns/1540I_1-2022-4-12.pdf

The intention of the drilling was to allow detailed geological investigation of mineralized structures seen within historical narrow workings but otherwise not visible at surface.

At both prospects mineralized quartz reef structures were successfully intersected.

Whilst assays for the first two holes at O'Loughlin's have been received, the remainder are due back before the end of the second quarter 2022.  Delays have been experienced in assaying with high demand for analytical work coupled with staff shortages due to the COVID pandemic. This is resulting in high wait times for the sample assays.

SUMMMARY OF DRILLING TO DATE

HOLEID	No of samples	Total Depth(m)	Azimuth	dip	Easting(m)	Northing(m)	Elevation(m)	Lab status
OL21D001	79	80.2	280	-70	755592	5819620	352.8	returned
OL21D002	112	88.7	278	-85	755593	5819620	352.8	returned
OL22D001	88	122.1	88	-74	755539	5819638	354	In progress
OL22D002	77	143.5	71	-60	755539	5819638	354	In progress
OL22D003	34	91.5	300	-65	755623	5819692	349	In progress
MB22D001	149	119.2	284	-55	723996	5821769	389	In progress
MB22D002	187	119.3	300	-55	723996	5821769	389	In progress
MB22D003	150	101.5	265	-55	723996	5821769	389	In progress

Note datum is MGA2020 Zone 54 and azimuth is magnetic north

SUMMARY OF RESULTS TO DATE

HOLEID	FROM	TO	ASSAY NOTES
OL21D001	30.55m	31.00m	0.45m@0.38g/t  core loss 31.0m - 31.8m (0.8m)
OL21D002	50.65m	52.00m	1.35m@0.62g/t incl.  0.5m@1.44g/t  core loss 52.0m - 53.1m (1.1m)
OL21D002	70.40m	70.80m	0.4m@0.21g/t.  core loss 70.8m - 75.7m (4.9m)
OL21D002	75.70m	76.10m	0.4m@12.32 g/t

All intervals and widths are as apparent widths as measured in the drill core.  Where possible core has been oriented using Boart Longyear TruShot TM V7R7 downhole orientation tool.

All HQ diameter drilling was completed by Trimac Drilling of Buninyong, Victoria. Assaying was completed on half-core samples which were selected based on geological observations made by on-site geological staff.

All half-core samples were sent to MinAnalytical Laboratory Services Australia in Western Australia.  Gold determinations used photon assay for gold (OL22D001) and traditional fire assay for the remaining holes. In addition a 34 element suite assay has been requested on all samples utilising a four-acid digest with an ICP-OES finish which will give further insights into the geochemical signature of the mineralised zones intersected. .

Comparison of photon assay vs fire assay will be completed once all assays are returned. Standards were submitted at the time of sampling at a rate of 1 in approximately 30 samples and repeat assaying by an alternate laboratory will be done on selected samples once all initial assays are returned to further assist the QA/QC validation process.

Comparison of gold results determined using photon assay vs fire assay will be completed once all assays have been received. Standards were submitted at a rate of 1 in approximately 30 samples and duplicate assaying via an alternate laboratory will be done on selected samples once initial assays are returned to further assist in the QA/QC validation process.

Given the soft nature of the shale/slate/sandstone wall rock, in contrast to the hard quartz comprising the veins within the main mineralized lodes at the O'Loughlin's Prospect, core recovery has been low; and across select areas up to several meters of the main mineralised zone were not recovered. The core that was captured and available to be sampled is thought to be highly underrepresenting the nature and width extent of the mineralized zone. A link to core photos highlighting the core loss through select mineralised zones can be viewed at the link below.

Figure 2 selected core photos
http://www.rns-pdf.londonstockexchange.com/rns/1540I_2-2022-4-12.pdf

Assays that have been returned to date do confirm that coarse nuggety gold is present with good continuity of mineralization within the structure.  Discussion with drilling contractors as to suitable modifications of method to increase core recovery are in progress prior to any further drilling.

Mt Bute Prospect

At Mt Bute, a similar genesis model to the O'Loughlin's Prospect was originally targeted, however the results from the recent diamond drilling now suggest the possibility of intrusive related mineralisation which may be of a more recent age than previously thought.

Preliminary X-ray Fluorescence results of selected core intervals returned highly anomalous molybdenum and bismuth results. This suggests a possible relationship to the nearby Mt Bute I-type granite and opens the possibility for additional types of mineralisation at the prospect. 

Considering the differing geological model now seen as potentially applicable, RRAL is conducting further investigations before additional drilling, as the recent results demonstrate the possibility that a more substantial target may be present. These include additional mineralogical studies, as well as reinvestigation of induced polarisation (IP), aeromagnetic and gravity data over Mt Bute.

The O'Loughlin's prospect

Drilling at the O'Loughlin's Prospect is targeting 'Ballarat-style' gold hosted quartz veins hosted within high-angle shear zones. The north-south oriented zone encountered in the drilling completed there to date has similarities to mineralised structures observed underground at the nearby Ballarat Gold Mine. Once all assays are received, NBGC will undertake further geological interpretations integrating the assay results and geological core observations, with the intention of identifying further structurally hosted targets at the prospect.

Daylesford Exploration Licence (Ajax Mine) - EL7330

With confirmation that the exploration licence application has progressed through the Native Title assessment and is back to Earth Resource Regulation Licensing for final approval, it is expected that this licence will progress by mid-2022.  The progress so far does not guarantee that RRAL will be granted the licence, which remains a decision for the regulator acting in accordance with the relevant legislation.  The Ajax mine is on the western margin of the extensive Daylesford gold camp and falls within exploration licence application EL007330 .

The Ajax mine comprises numerous shafts and workings over a strike of several kilometres, which was historically mined to over 400m vertically. Historical production continued up in to the 1930's producing over 300,000 ounces Au at an average grade of approximately 12-15 g/t Au.  The down dip and along strike extensions to the main ore zones remains untested.  Minor diamond drilling completed in the 1990s intersected multiple lode structures with results up to 5.3m of 15.2g/t Au, demonstrating the continuity in lode structure and associated gold grades.  The mine shaft itself has been backfilled and is currently not accessible. 

Work is currently under way to digitise the old workings, stope and geology into a 3D computer model, in advance of a planned diamond drilling campaign which is expected to commence following grant of the license application. 

New Ballarat Gold Corporation

NBGC is a joint venture company, owned as to 50.1% by Red Rock and as to 49.9% by Power Metals Resources PLC (AIM:POW), which wholly owns Red Rock Australasia Pty Ltd , holder of the  Victorian Tenements.

NBGC holds a strong land position comprising 11 granted licenses of in total over 1,501 sq km in the rich gold fields of Victoria, Australia, principally around the mining centre of Ballarat.

Eight (8) licences covering 827 km2 await grant. The company has carefully assembled its portfolio of properties comprising a broad range from robust exploration targets to near term resource potential, all of which remain largely undeveloped by modern explorers.

With the first tenements granted only in 2021, NBGC has already conducted detailed exploration of its initial targets, including a diamond drill test of two prospects starting in December 2021.

520m of drilling has been carried out at O'Loughlin's and 340m has been carried out at Mt Bute, with samples sent to MinAnalytical Laboratory Services in Perth, WA, for laboratory assay testing.

Granted Licences

The eleven (11) granted licences cover high priority areas covering 1,519 km² as outlined below.

Licence Number	Project Name	Area (km2)
EL007271	Buninyong (renamed)	133
EL007281	Blue Chip	74
EL007282	Blue Sky	489
EL007285	Blue Ribbon	8
EL007327	Dereel	60
EL007385	Sardinia	4
EL007329	Kilmore	484
EL007301	Pitfield/Mt Bute	85
EL007328	Blue Yonder (Announced today)	164
State land within EL007271 EL007505	-	[9]
State land within EL007271 EL007506	-	[9]
Total		c 1,501

Licence Applications

RRAL has applications in process for eight other new gold exploration licence areas covering approximately 827km² in the Victoria Goldfields of Australia including:

License Application Number	Project Name	Area (km2)
EL007294	Red Queen	129
EL007330	Daylesford (renamed)	202
EL007460	Kilmore West	325
State land within EL007271 EL007507		[8]
EL007540* (3 competing applications)	Outer Ballarat	142
EL007756	Monmouth	22
EL007799	Dereel (2)	3
EL007826	Ballarat East	4
Total		c 827

* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.

The following applications have been made in Western Australia, covering largely areas previously held by the Company at the time of its original listing.

EL45/5859	Paterson	227
EL45/5885	Pilbara/Paterson	70

The technical information relating to exploration in this report is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists and a director of NBGC, and  the Exploration Director of RRAL. He is a member of a recognized professional organization and has sufficient relevant experience to qualify as a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies published by AIM.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

For further information, please contact:

Andrew Bell 0207 747 9990  Chairman Red Rock Resources Plc

Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited

Jason Robertson 0207 374 2212                                                      Broker First Equity Limited       

 

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