Update

RNS Number : 1148R

Red Rock Resources plc

14 November 2012

 

Red Rock Resources

Update

14^th November 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 an update on its projects.

Kenya

The Mineral Resource Estimate for the MK area of the Mikei Project near Migori is expected to be released in Q4 2012. This will complete the series of recalculated Mineral Resource Estimates following the Company's programme of redrilling and other geological work.

The Environmental Impact Assessment for the Macalder Tailings Mining Lease application is in its final stages.

Work continues on cross and long sections and interpretation of the geological information on the Mikei projects, which is expected to lead to proposals for follow up drilling, including exploration of possible extensions of high grade zones at Nyanza. A proposal will also be submitted for exploration of the three most promising targets for regional exploration identified by the aircore drilling.

The main focus of geological work over the next six months is expected to be assessment and interpretation of the large amount of data accumulated and response to the recommendations and suggestions made by CSA.  No major drill programme is anticipated.

In the period leading up to the Elections in Kenya in March 2013 there will be heightened sensitivity on political matters, and the Company has retained advisers to help it deal with local, national, and policy issues that may arise. Red Rock welcomes the decision by the Government that 35% local participation is to become a condition of existing and new licenses, and will work constructively with the Government to bring in good partners who can strengthen the project. The Company believes that the creation of a mining or similar board on the Nairobi Stock Exchange would facilitate this process for the industry by making local listings possible, and is encouraged to see this being discussed.

The Company continues to pursue additional license applications in Kenya, including in areas in the Rift Valley prospective for rare earth mineralisation, one of which has been granted.

Ariel Partners LLP continues to work with Red Rock on a rationalisation of its interests and those of others in Mid Migori Mining Ltd and Kansai Mining Corporation. Progress in this regard is being made and Ariel expects to put an indicative proposal before Red Rock within the next few days.

Colombia

The sale process continues. Although progress has been slow, the Company continues to work with the prospective purchaser and has no reason to believe that the sale will not proceed. In the meantime the El Limon mine operated profitably in the latest quarter to September 2012 and continues to produce, with the shaft now taken down 53m from Level 7 to Level 8, and horizontal development of the new level now beginning. Production from Level 8 could begin within weeks but is expected by end-December. The emphasis has been on achieving stability and streamlining operations rather than expansion since the sale process began, and different decisions are therefore being made from those that might have been taken otherwise. The Company does not consider it would be useful, therefore, or assist the sale process, to release production figures and updates while the sale process proceeds.

Greenland

A JORC or equivalent Mineral Resource Estimate is being worked on, and the aim is to have it completed within December.

With the expected accomplishment of this important target, the Company does not currently expect that any geological work in 2013 will include further drilling.   

Red Rock continues to explore partnership opportunities in relation to its interests in Greenland, and has received indications of interest. A further announcement will be made when appropriate.

Enquiries:

Andrew Bell	020 7099 5840 or 07766 474849	Red Rock Resources plc	Chairman
Sandra Spencer	020 7099 5840 or 07757 660 798	Red Rock Resources plc	Press Relations
Gerry Beaney/ Daniela Amihood	020 7383 5100	Grant Thornton Corporate Finance	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker

 

END

 

 

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