TIDMRRR
RNS Number : 2197I
Red Rock Resources plc
10 August 2021
Red Rock Resources PLC
Kenya Exploration Update
Drill Programme Begins at Central KKM Gold Prospect
10 August 2021
Red Rock Resources Plc ("Red Rock" or "the Company"), the
natural resource development company with interests in gold,
manganese and copper announces that following the recent receipt of
all permits the Company is now beginning the reverse circulation
("RC") drill programme at the Central KKM Gold Prospect, the
central part of the Mikei Gold Project ("MGP" or the "Project") in
Kenya announced on 30 June 2021.
Elsewhere in the MGP Red Rock continues its exploration, with 54
line KM of the planned 115 line KM of IP survey covered in the
Masurura area of the Eastern license. In addition, a 300 line km
magnetic survey has started at Kurutyange, also part of the Eastern
License, following completion of an 11 Line km survey at the MK
Prospect north of Central KKM.
HIGHLIGHTS:
-- 2,000m RC drill programme begins at central KKM prospect
-- Hole depths planned to be between 60m and 220m
-- Possibility of extending drill programme
-- 54 line km of IP covered in Masurura area of the Eastern license.
-- 300 line km of Magnetics survey started in the Eastern License.
This programme follows up some of the recommendations
accompanying the announcement of a revised Mineral Resource
Estimate ("MRE") on 22 February 2021, covering the five prospects
which together currently make up the MGP.
The object of the programme is to improve the confidence and
classification of future MREs at the MGP through infill drilling,
and by targeted step-out drilling to potentially increase the size
of the Mineral Resource.
Red Rock Project Manager Joseph Komu comments: "I am extremely
excited that we finally have the necessary permits for the drilling
contractor to mobilize to site and start drilling. We have 19 drill
pads ready for the rig and the laboratory is ready to receive the
first shipment of samples for assay in the coming weeks. We are
optimistic that this initial programme will spur an extended drill
programme that will advance the Resource to the next stages of
development".
Further Details and Background
The MGP (100% owned by Red Rock) comprises two prospecting
licences which cover approximately 245 km2, namely PL/2018/0202 and
PL/2018/0203, over the Migori Greenstone Belt, and are located
along the northern margin of the Tanzanian Craton. The licences
extend 63 km along strike of the belt, which also hosts the
Kilimapesa Gold treatment plant. The North Mara Gold Mine, which is
operated by Barrick Gold, is located 30 km to the south of the MGP
in Tanzania.
Regional exploration in the project area began in the early
1930s and culminated in the identification and subsequent mining of
the Macalder volcanogenic massive sulphide (VMS) base metal
mine.
In 2010, Red Rock began the extensive task of file organisation,
data digitisation and compilation of available historical data,
following which CSA Global (UK) Ltd performed cross-checks and
validation steps prior to loading it into a Structured Query
Language (SQL) database using Datashed. During 2011 and 2012, Red
Rock undertook an infill drilling programme at all five of the lode
gold prospects; MK, Kakula-Kalange-Munyu (KKM),
Kakula-Kalange-Munyu West (KW), Nyanza (NZ), and Gori Maria (GM)
within PL/2018/0202.The Report published earlier this year
documented the results of Mineral Resource estimation work
initially conducted in 2011 and 2012 and revised in 2021 in order
to report the Mineral Resources according to JORC (2012)
guidelines.
JORC (2012) differs from earlier editions of the JORC Code in
that for a Mineral Resource to be estimated it requires the
application of "reasonable prospects of eventual economic
extraction" ("RPEEE") principles. This has resulted in the case of
the Mikei MRE in the calculation of pit shells supported by
conceptual cost and gold price forecast parameters. Any material
outside or below the reporting pit shell was updated as "Not
Classified" since it did not meet the criteria to be reported as a
Mineral Resource.
The total Mineral Resource Estimate, at both Inferred and
Indicated levels, was estimated at:
15.13 Mt @ 1.49 g/t Au with contained metal content of 723 KOz
Au
This compares with the Mineral Resource Estimate reported and
announced in 2012 under an earlier edition of the JORC Code of
29.36 Mt at 1.26 g/t Au with contained metal content of 1,192.1 KOz
Au.
Key Points of the Report:
-- MRE covered the five prospect areas covered by the 2012 MRE
-- Application of RPEEE principles required by JORC (2012) led
to the exclusion of some previously estimated Resource areas and a
consequent 39% reduction in Resource ounces of gold
-- Gold grade of the MRE for the same reason increased by 18% to 1.49 g/t
-- Some material previously stated as Indicated in the oxidised
zone was downgraded to Inferred reflecting uncertainties relating
to the terrain model and the extent of artisanal activity since
2012
-- Recommendations for a first stage step-out drilling programme
were made to potentially increase the size of the MRE
All prospects, except GM, were classified as Indicated and
Inferred Mineral Resources. GM was classified as Inferred only,
mainly due to the relatively low average RC drill recovery of
62%.
Due to the uncertain lateral extent and depth of artisanal
mining at the Mikei prospects, and the lack of topographic data to
accurately deplete the Mineral Resource, all oxidised material was
classified as Inferred Mineral Resources.
The term "reasonable prospects for eventual economic extraction"
(RPEEE) implies a realistic inventory of mineralisation which,
under assumed and justifiable technical, economic and development
conditions, might, in whole or in part, become economically
extractable. The assumption is that the Mikei prospects will be
extracted by open pit mining. The MGP block models were assessed
for RPEEE by applying conceptual benchmarked costs to calculate
reporting pit shells. The following conceptual parameters were
applied for open pit mining:
-- Mining cost: US$3/tonne
-- Processing cost: US$22/tonne ore
-- Pit slope angle: 52deg
-- Recovery: 90%
-- Royalty: 7%
-- Gold price: US$ 1,800/troy ounce.
The Mineral Resource was reported as that material within the
RPEEE pit shells, and above a cut-off grade of 0.5 g/t Au. The
Mineral Resource was reported as of 18 January 2021 (Table 1).
Table 1: Mineral Resource for the Mikei prospects reported at a
cut-off of 0.5 g/t Au, as of 18 January 2021
Area Indicated Inferred Total
Tonnage Grade Content Tonnage Grade Content Tonnage Grade Content
(Mt) (g/t (koz (Mt) (g/t (koz (Mt) (g/t (koz
Au) Au) Au) Au) Au) Au)
-------- ------ -------- -------- ------ -------- -------- ------ --------
KKM 7.88 1.10 277.8 2.63 1.11 93.5 10.51 1.10 371.3
KW 0.61 1.10 21.6 0.32 1.42 14.7 0.93 1.21 36.3
NZ 1.04 3.96 132.0 0.32 3.17 32.2 1.35 3.78 164.1
GM - - - 1.91 1.37 84.0 1.91 1.37 84.0
MK 0.28 5.48 49.0 0.15 3.83 18.2 0.43 4.91 67.1
------- -------- ------ -------- -------- ------ -------- -------- ------ --------
Total 9.81 1.52 480.4 5.32 1.42 242.6 15.13 1.49 723.0
------- -------- ------ -------- -------- ------ -------- -------- ------ --------
Note:
-- Computational errors may exist due to rounding.
-- Under JORC (2012)
-- Red Rock owns 100% and therefore figures both gross and net to Red Rock
The technical information in this release has been reviewed by
Mr Joseph Komu, a member of AusIMM and the Project Manager of the
Project. He is a member of a recognised professional organisation
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 Chairman Red Rock Resources Plc
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD
Beaumont Cornish Limited
Mark Treharne 0203 700 2500 Broker Pello Capital Limited
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