Update - Production and New Tenements

RNS Number : 5787I

Red Rock Resources plc

16 June 2011

 



RED ROCK RESOURCES PLC

Update - production and new tenements

Dated: 16 June 2011

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

El Limón

At the El Limon mine in Colombia, the process of building up production at the mine and the plant continues, with improvement in several key metrics. Following a visit by management and consultants at the beginning of June, the emphasis has been on improving grade. Between 8 June 2011 and 14 June 2011 the grade of ore into the plant improved to 11.9 grams per ton ("g/t"), which compares with levels between 6.5 g/t and 8.1 g/t in the five preceding weeks.

The mine has operated a 6 day week for each of the last two weeks, and produced 54.6 tons per day ("tpd") in the week ending 14 June 2011. The mill has operated a 6.5 day week in the last two weeks, and processed at the rate of 50 tpd. Gold sold in the period from 1 June 2011 to 9 June 2011 was 3.03 kg (97.4 oz).

The Company expects significant further improvements in output capacity at both the mine and the plant.

Kenya

The Company has applied for two licenses in the Rift Valley with prospectivity for rare earths. The Ol Karia license application of 308 sq km covers the Ol Karia rhyolites, a series of fluorite-phyric rhyolite glasses. Fluorite is only rarely a magmatic phenocryst mineral and its presence is potentially significant. Here the fluorite has a relatively flat rare earth element (REE) pattern but with a maximum at Gadolinium. The Dysprosium heavy rare earth (HREE) contents of the fluorite is according to the academic literature highly elevated at  >2000x chondrite. The Kilombe license application covers 164 sq km of the Kilombe volcanic. There is evidence in rocks produced from the Kilombe volcano of a REE-rich carbonatite complex at depth. The minerals identified by researchers include RE fluorcarbonates, eudialyte (HREE), monazite (REE and P), pyrochlore (Nb, Ta, U and REE) and thorite (Th, U REE).

The occurrences were highlighted in a study carried out for the Company in 2010 on the rare earth potential of the East African Rift, and are within reasonable distance of Red Rock's operations bases in Nairobi and Migori. They have been studied by academic researchers but not explored for commercial potential. Several of Red Rock's geological staff have carried out specialist study of alkaline rocks including REE mineralization, and through its associate Resource Star Ltd (ASX:RSL) the Company is interested in the Machinga niobium-REE licenses covering much of the Chilwa Alkaline Province of southern Malawi. The Machinga licenses are held in a joint venture with Globe Metals and Mining Ltd (ASX:GBE), a subsidiary of East China Minerals Exploration and Development Bureau, a Chinese state-owned entity.  

The applications are in accordance with the Company's policy of strengthening its early stage project pipeline for future exploration in areas of existing operations and where it has technical capacity or advantage.

The geological information on Kenya in this release has been reviewed and approved for release by Helen Salmon, BSc(Hons), a geologist working for the Company, a Fellow of the Geological Society and a Member of the Mineralogical Society.

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
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.

 

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