Red Rock Resources RRR Jupiter Mines - Mt Ida Project Update

  Red Rock Resources (RRR) - Jupiter Mines - Mt Ida Project Update

RNS Number : 6792Q
Red Rock Resources plc
08 November 2012




                              Red Rock Resources

          Jupiter Mines freezes spending on Mt Ida magnetite project

8^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  that Jupiter  Mines  Ltd 
(ASX:JMS)("Jupiter") has suspended spending on the Mt Ida magnetite project in
Western Australia.



In its announcement,  Jupiter cites increased  cost estimates, depressed  iron 
ore prices,  and  a strong  Australian  dollar.  It emphasises  that  it  will 
continue to meet spend requirements to  protect the value of the earlier  work 
for potential future development.



The full text of the announcement is available at:
http://www.asx.com.au/asxpdf/20121108/pdf/42b22hrnjtvb5s.pdf

Red Rock has a 1.5% gross production  royalty interest in the Mt Ida  project, 
half of which it has agreed to sell in stages as announced on 2 May 2012.

Red Rock Chairman Andrew Bell comments: "This announcement is negative as  far 
as our royalty interest  is concerned, although  we can be  glad that we  have 
already received $6m from  the partial sale  we made earlier  in the year.  We 
also have a direct stake of 2.64%  in Jupiter and in relation to this  holding 
the announcement may have  more positive impacts on  us. Jupiter's $100m  cash 
will not now be spent on a project which in current markets would not  provide 
a good return and in which  the market was showing little confidence.  Instead 
it is suddenly available, as is the balance sheet strength of Jupiter's  other 
shareholders, to make opportunistic investments  at the bottom of the  market. 
That is  good news  in our  view.  With iron  ore trading  near or  below  the 
replacement cost of resources, no return  may be possible from projects  which 
require the development of  new port and rail  infrastructure rather than  the 
use of existing infrastructure.  And in a depressed  sector of the market,  it 
may be cheaper to buy  into projects and companies  than to develop them  from 
new. Meanwhile Jupiter's new Tshipi manganese mine has been brought in on time
and on budget and is scheduled to make its first shipments this month."

Enquiries:



Andrew Bell     020 7099 5840 or Red Rock Resources plc Chairman

                07766 474849

                
Sandra Spencer  020 7099 5840 or Red Rock Resources plc Press Relations

                07757 660 798

                
Gerry Beaney/   020 7383 5100    Grant Thornton         Nominated Adviser

Daniela Amihood                  Corporate Finance

                                 
Nick Emerson    01483 413500     Simple Investments Ltd Broker





                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


MSCXVLFBLFFEFBD -0- Nov/08/2012 13:59 GMT
 
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