Red Rock Resources (RRR) - Update
RNS Number : 1148R
Red Rock Resources plc
14 November 2012
Red Rock Resources
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.
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
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
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.
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.
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
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.
Andrew Bell 020 7099 5840 or Red Rock Resources plc Chairman
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
MSCLLFIFLRLSLIF -0- Nov/14/2012 12:09 GMT
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