Update

RNS Number : 4702N

Red Rock Resources plc

09 September 2013

 

Red Rock Resources plc

("Red Rock" or the "Company")

Update

9 September 2013

Red Rock Resources Plc, the mining and exploration company with an iron ore project in Greenland, a producing gold mine in Colombia, and advanced gold and copper exploration in Kenya, announces an update on operations and developments.

Greenland

Further to the Company's announcement on 30 August 2013, in relation to an offer by a third party for a controlling interest in Nama Greenland Limited a company 60% owned by Red Rock (the "Offer"), the Company has been advised that confirmation of the offer is subject to administrative clearance which is being sought from the relevant authority. A further announcement will be made next week.

Colombia

The national work stoppage affecting the mining industry in the area of the El Limon and El Mango mines was becoming more problematic for the Company's subsidiary Four Points Mining Limited, as violent incidents increased in some parts of the area. However the stoppage has now come to an end and Ashmont Resources Corporation ("Ashmont") is preparing to visit the El Limon mine as announced on 30 August 2013. The visit, which is to update due diligence prior to their potentially making an offer for the mine is now expected to take place next week or as soon as it can be arranged.

New calculations of the Cash Cost per ounce and All-In Sustaining Costs per ounce at El Limon, calculated in line with the recently introduced guidelines by the World Gold Council, highlight the success the Company has had in controlling costs in the last year. Cost control was given priority over volume production in this period. The Cash Cost in the final quarter of the year to 30 June 2013 fell by 50% to $964 per oz., an improvement that has been sustained in July 2013 when cash costs fell to $560 per oz.

Metrics	Apr - Jun '12	Apr - Jun '13	Jun '12	Jun'13	Jul'13
Production (Oz)	820	795	268	256	336
Cash Costs ($/Oz)	$1,913	$964	$2,149	$940	$560
All-in Sustaining Costs ($/Oz)	$2,184	$1,161	$2,465	$1,124	$684

See Graphs 1 to 3

http://www.rns-pdf.londonstockexchange.com/rns/4702N_-2013-9-6.pdf

Andrew Bell, Chairman, comments: "The improvement in Colombia operations is a tribute to the work of our team over the last year in bringing costs under control at the same time as improving the plant and increasing mine development. In the recent seven week stoppage we hardly lost a shift, and we now aim to further reduce downtime by improved maintenance and inventory management. At the same time we will be conducting a Health and Safety review, and improving the work of our metallurgical laboratory. The project remains for sale, but we are aware of the advantages that might accrue from holding it at a time when gold prices seem to be recovering, provided that we can assure ourselves of a consistency in the operations of this small mine".  

Enquiries:

Andrew Bell	020 747 9990 or 07766 474849	Red Rock Resources plc	Chairman
Sandra Spencer	020 747 9990 or 07757 660 798	Red Rock Resources plc	Press Relations
Colin Aaronson/David Hignell/Ed Thomas	020 7383 5100	Grant Thornton UK LLP	Nominated Adviser
Nick Emerson	01483 413500	SI Capital Ltd	Broker

 

END

 

 

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