Victoria Gold JV - Key Licence granted

RNS Number : 5205M

Red Rock Resources plc

24 May 2022

 

Red Rock Resources PLC

("Red Rock" or the "Company")

Victoria Gold Joint Venture - Grant of Key Licence

24 May 2022

Red Rock Resources Plc, ("Red Rock" or "the Company"), a natural resource development company with interests in gold and base metals, principally in Africa and Australia, announces an update in relation to the gold exploration programme being carried out by joint venture subsidiary New Ballarat Gold Corporation plc ("NBGC") in the Victoria Goldfields of Australia. Exploration is carried out by Red Rock Australasia Pty Ltd ("RRAL"), the 100% owned Australian operating subsidiary of NBGC.

Highlights

· Three further exploration licences have been granted, bringing RRAL's footprint in the Victoria Goldfields to over 1,800 sq km.

· Grants now include the 202 sq km licence (EL 007330) North-East of Ballarat which includes the historical Ajax mine where in the 1920s the Ajax line recorded production of 312,789 ounces at 14.8 g/t.

Red Rock Chairman Andrew Bell comments: "The grants of EL 007330, EL 007294 and EL 007507 bring our total ground position in prospective areas north, south and east of Ballarat up to 1,832 sq km, covering the sites of a number of old mines and workings as well as fresh geological targets. The latest grant covering the old Ajax mine (EL7330) is a significant milestone for RRAL, as it includes the site of a former high grade near-surface mine that was mined a century ago at 14.8 g/t.

In our view, this exploration asset enhances our exploration portfolio and makes our goal of achieving a listing of the RRAL business less sensitive to market conditions.

Further detailed announcements, both on the Ajax project and on progress towards listing, will follow."

EL 007330 Exploration Licence (including Ajax Mine)  

The Ajax mine comprise numerous former shafts and workings over a strike of several kilometres, which was historically mined to a vertical depth of approximately 400m. The possible down dip and along strike extensions to the main ore zones remain virtually untested.  Minor diamond drilling completed in the 1990s by Continent Resources intersected multiple lode structures with the best intersection showing 5.3m at 15.2g/t Au from 120.9m downhole, demonstrating the continuity in lode structure and associated gold grades.  The mine shaft itself has been backfilled and is currently not accessible. 

A more detailed description including a table of the 1990s drilling is contained in the paper previously published on and accessible through the Company's website in the Project section labelled "Licence Report: EL007330" with the title "Tenement Review and Exploration Strategy- EL007330".

Work is currently under way to digitise the old workings, stopes and geology into a 3D computer model, in advance of a planned diamond drilling campaign which is expected to commence in late 2022.

http://www.rns-pdf.londonstockexchange.com/rns/5205M_1-2022-5-23.pdf

Fig 1: Long Section of Ajax Mine workings

New Ballarat Gold Corporation

NBGC is a joint venture company, owned as to 50.1% by Red Rock and as to 49.9% by Power Metals Resources PLC (AIM:POW), which wholly owns Red Rock Australasia Pty Ltd , holder of the  Victorian Tenements.

NBGC holds a land position comprising 14 granted licenses of in total 1,832 sq km in the rich gold fields of Victoria, Australia, principally around the mining centre of Ballarat.

Five licences covering 493 km2 await grant. The company has assembled its portfolio of properties comprising a broad range from exploration targets to near-term resource potential, all of which remain largely undeveloped by modern explorers.

With the first tenements granted only in 2021, NBGC has already conducted initial exploration of selected targets, including a diamond drill test of two prospects starting in December 2021.

520m of drilling has been carried out at the O'Loughlin's target within EL 007271and 340m has been carried out at Mt Bute, with samples sent to MinAnalytical Laboratory Services in Perth, WA, for laboratory assay testing.

Granted Licences

The fourteen granted licences cover high priority areas covering 1,832km² as outlined below.

Licence Number	Project Name	Area (km2)
EL007271	Buninyong (renamed)	133
EL007281	Blue Chip	74
EL007282	Blue Sky	489
EL007285	Blue Ribbon	8
EL007327	Dereel	60
EL007385	Sardinia	4
EL007329	Kilmore	484
EL007301	Pitfield/Mt Bute	85
EL007328	Blue Yonder	164
State land within EL007271 EL007505	-	[9]
State land within EL007271 EL007506	-	[9]
State land within EL007271 EL007507	- (Announced today)	[8]
EL007330	Daylesford (renamed) (Announced today)	202
EL 007294	Talbot (renamed) (Announced today)	129
Total		1,832

Licence Applications

RRAL has applications in process for five other new gold exploration licence areas covering 493 km² in the Victoria Goldfields of Australia including:

License Application Number	Project Name	Area (km2)
EL007540* (3 competing applications)	Outer Ballarat	142
EL007756	Monmouth	22
State land within EL007327 EL007799	Dereel (2)	[3]
EL007826	Ballarat East	4
EL007460	Kilmore West	325
TOTAL		493

* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.

The following applications have been made in Western Australia, covering largely areas previously held by the Company at the time of its original listing.

EL45/5859	Paterson	227
EL45/5885	Pilbara/Paterson	70

The technical information relating to exploration in this report is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists and a director of NBGC, and  the Exploration Director of RRAL. He is a member of a recognized professional organization and has sufficient relevant experience to qualify as a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies published by AIM.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

For further information, please contact:

Andrew Bell 0207 747 9990  ChairmanRed Rock Resources Plc

Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396  NOMAD Beaumont Cornish Limited

Jason Robertson 0207 374 2212                                                       Broker First Equity Limited     

 

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