Update

RNS Number : 0473F

Red Rock Resources plc

15 April 2011

 



RED ROCK RESOURCES PLC

Update

Dated: 15 April 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.

Colombia

The mine and plant at El Limon are running smoothly. In the week from 5^th to 12^th April 2011 the plant processed ore at a rate varying between 20.8 and 37.8 tons per shift, and is currently working at two shifts per day.

The Company continues to aim at a rate of 150 tons per day ('tpd'), and expects this to be achieved as further operating efficiencies and plant improvements are implemented.

Grades have been inconsistent and lower than planned, partly but not wholly due to selection of low grade and waste material during periods of trial operation, but improvements of underground operations and opening of new areas are expected to lead to processing of higher grade material.

Limited quantities of gold have been sold. A new furnace is now being brought into operation, and accumulated gold concentrate will now be smelted and poured. Certain minor equipment upgrades are still required and will be completed upon delivery of equipment.

The Machuca mine has been producing at test rates up to 20 tpd and 700 tons of crushed material has been transported to El Limon.

Since Red Rock took control of the local operator, Mineras Four Points SA, the management team at the mine and at head office in Columbia has been restructured. An internationally experienced mine manager is being sought to put in place further changes.

Red Rock sees scope for continuing expansion at the plant. The Company also sees scope for improved volumes and grades from mining operations, with lower dilution, particularly at the recently opened levels of the mine.

Kenya

The drill programme continues, with nearly 5,000m of diamond, reverse circulation, and aircore drilling completed to date. Four drilling companies are now active on the site and on the last three reported days drilling has been progressing at between 163m and 171m a day.

The results of the second stage of metallurgical testwork on the Macalder tailings are expected to be received this month, and an environmental baseline study has begun on the tailings. A Community Liaison Committee has been established.

Red Rock is informed that the offer for its partner Kansai Mining Corporation, in which it holds an interest of approximately 30%, is likely to proceed. 

Greenland

The Company proceeds with its due diligence on the farm-in opportunity to the Greenland iron/base metal project. A JV Operating Committee has been set up and contingency planning for exploration and drilling in the summer season is under way.

Investments 

Jupiter Mines Ltd (ASX:JMS) continues to progress rapidly its three main projects, the Tshipi manganese mine in South Africa (under development), the Mt Mason haematite mine in Western Australia, and the planned major magnetite iron ore mine at Mt Ida in Western Australia (Red Rock 1.5% royalty interest).

As announced by the Company on 28 January 2011, Resource Star Ltd's (ASX:RSL) drilling programme at its Livingstonia uranium project in Malawi encountered results which matched the highest grades encountered in previous drilling and may have appreciably increased the tonnage potential, and that an intersection at more than double the width found so far, with a grade above the JORC Resource defined to date, provides encouragement. The extension to the mineralisation has started to be explored by RSL's neighbour Paladin Resources Ltd. RSL's partner in the Livingstonia project and the Machinga rare earth project has now become a subsidiary of Chinese state-owned enterprise East China Non-Ferrous Metals, giving RSL a strong exploration partner.

Ascot Mining plc (PLUS:ASMP) continues in its preparations for an AIM listing. Production of gold at the Chassoul Mine in Costa Rica began in late 2010 and Ascot Mining has been debugging and improving the operations of the plant throughout the first quarter.  

The technical information is 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:

Red Rock Resources plc

Andrew Bell, Chairman                                                   020 7402 4580/07766 474849

Sandra Spencer, Public and Investor Relations                 020 7402 4580

Nominated Adviser

Religare Capital Markets

Peter Trevelyan-Clark/Ben Jeynes                                   020 7444 0800

Broker

Simple Investments Ltd

Nick Emerson                                                                01483 413500

Updates on the Company's activities are regularly posted on its website, www.rrrplc.com.

 

END

 

 

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