Update on Greenland

RNS Number : 6812D

Red Rock Resources plc

18 May 2012

 

Red Rock Resources

Mobilisation for the 2012 Melville Bugt field season and

maiden drill programme

18 May 2012

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, advanced gold and copper exploration in Kenya, and interests in steel feed, uranium and rare earths, announces initial mobilisation for the 2012 exploration programme at the Melville Bugt Iron Project in north west Greenland.

Highlights

·     The aim of the 2012 programme is to define a JORC-compliant Mineral Resource Estimate for one or more of the Melville Bugt target areas

·     The field season will run from late-May until early-October, with a view to obtaining up to 5,000-6,000m of diamond drill core from a number of prospects, and to continue the detailed and reconnaissance mapping commenced during the maiden 2011 field season

·     A demountable arctic camp suitable for 35 people has been acquired

·     Arrangements have been made to provide:

o  expert iron ore Resource Estimation advice

o  two heli-portable drill rigs and drill crews (with one possible additional drill rig)

o  helicopter mobilisation throughout the field season

o  ancillary air cargo and support services

o  sea freighting of equipment and supplies to base camp

o  JORC-compliant analysis of drill core

·     A logistical and drilling strategy has been devised to maximise the length of the field season, with drilling expected to proceed from early June to end September.

Detailed Discussion

The promising mapping, assay and geophysical survey results obtained by Red Rock Resources at Melville Bugt during 2011 indicate the potential for economic quantities of both magnetite and haematite iron ore mineralisation.  Following on from these results, the aim of the 2012 exploration programme is to define a JORC-compliant Resource Estimate for one or more of the target areas identified during the initial 2011 field season and to carry our further definition of mineral potential across the 1,570km² licence area.

http://www.rns-pdf.londonstockexchange.com/rns/6812D_-2012-5-18.pdf 

SRK Exploration Services have been engaged as consultants on the Melville Bugt project to help design the program and to advise on any potential Mineral Resource Estimate (MRE).

The 2012 exploration programme is anticipated to run from late-May until early-October and will combine groundwork with an up to 5,000-6,000m-drill programme. Cartwright Drilling Inc., who have extensive experience on Arctic drill programmes in Isua and Skaergaard, have been engaged to provide drilling services to the field programme. The drill programme will use two heli-portable diamond drill rigs, initially for exploration drilling to test iron formation occurrences. This will be followed by delineation drilling in key areas of potential defined by the exploration drill phase. Core will be logged onsite by Company geologists along with preliminary geochemical analysis using a handheld XRF. Magnetic susceptibility of core will also be measured onsite using a hand held magnetic susceptibility meter. The split core will then be transported to ALS's OMAC Laboratories Ltd. in Ireland for assay and metallurgical test work including major oxide, Fe, FeO and S analysis, magnetic susceptibility and magnetic content.

Further assessment of existing targets will also be carried out by Company geologists by means of detailed geological mapping in the vicinity of drill sites. Areas of potential interest identified by the 2011 geophysical survey will also be investigated by the geological team over the course of the 2012 season with the potential to generate new prospects for ongoing work.

The field programme will be based out of a coastal camp using heli-portable diamond drill rigs on a 24-hour drill schedule. Personnel will be housed in Arctic-grade steel-framed tents supplied by Alaska Structures and the camp will also include office, catering, telecommunications and washing facilities.

Key members of the geological and logistical team are to receive training in Advanced Medicine for Remote Areas, glacier rescue and wildlife security. All other staff will receive instruction in basic first aid, drill safety and wildlife security whilst at the start of their field rotations.

Persisting sea ice typically limits boat access to the field area until mid-June. In order to take greater advantage of the available field season (24-hour daylight begins in late-April), it is necessary to use a smaller, air-mobilised base camp with single-rig set-up at the start of the season. Once the sea ice has retreated in late-June, the second drill rig and remaining base-camp facilities will be delivered by charter vessel and a larger-scale drill programme will commence until the end of September. HeliGreenland have been chartered to provide helicopter support for the duration of the field season using a EC130 helicopter.

Red Rock has an earn-in agreement with North Atlantic Mining Associates Limited ("NAMA") under which it has already earned 25% in NAMA Greenland Ltd, which holds the exploration concessions at Melville Bugt, North West Greenland. Red Rock has the right to increase this percentage to 60% by funding 2012 exploration and declaring a JORC or NI 43-101 Resource.  It is the Board's intention to fund the 2012 Greenland exploration program with resources received from the royalty sale transaction with Anglo Pacific, as well as from other liquid assets and facilities.  Further updates on anticipated expenditure will be available during the field season.     

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
Philip Davies/David Porter	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

 

 

DRLDMGMKFRKGZZM