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RNS Number : 6841A
Red Rock Resources plc
24 January 2024
Red Rock Resources PLC
("Red Rock" or the "Company")
Central and West African Assets
24 January 2024
Red Rock Resources Plc, ("Red Rock" or "the Company"), is a
natural resource development company with interests in gold,
copper, cobalt, lithium and other minerals principally in Africa
and Australia.
This release is an update in relation to the Company's assets in
Central and Western Africa.
Highlights :
o Further news on the Company's arbitration award expected
following the conclusion of elections in DRC
o Contract renewal at Bilbale (Au) and license renewal at Boulon
(Au) in Burkina Faso
o Geochemical testing of Bilbale license and mapping of key
zones has begun, with a view to semi-mechanised mining of alluvial
areas and follow up drilling of hard rock targets
o Promising rock chip results from mapped areas at Bilbale,
including 14.7 g/t and 11.2 g/t Au
o Development team arriving on site in Bilbale
o Recent grant of a second license in the group of four Au
applications around Yamoussoukro creates critical mass for
development/joint venture in Côte d'Ivoire
o Approaches by third parties in relation to Cote d'Ivoire
licenses
Flexible response in Zimbabwe to volatility in lithium price and
pre-holiday destocking in China, with first delivery to arrive at
destination port at a date to be determined after the Chinese New
Year holidays, but no earlier than end-February Red Rock Chairman
Andrew Bell comments : "We have made significant advances with
grant or renewal now achieved at three gold licenses in West
Africa, so that we currently have four licenses active, all of
which are seen by us as of very high prospectivity.
Activity to begin gold production has begun at Bilbale in
Burkina Faso, guided by our local staff and a team of experts from
South Africa, Zimbabwe and India.
In DRC, we are continuing to work to press for the release of
the arbitration award, now that the election is over. We believe
that the conclusion of this lengthy process is now near.
Award of the first two licenses in Côte d'Ivoire has also taken
up to two years, but our patience and persistence have been crowned
with success there, as we continue to believe they will be in DRC .
We are working actively on crystallising immediate added value to
Red Rock in these licenses.
In Zimbabwe, our primary emphasis on trading to the end of the
rainy season or later was a strategy designed to control risk and
enable flexible and opportunistic response to price volatility. We
do not believe lithium prices, currently below $1000/t CIF China
for all grades of ore (before discounts and commissions), are
likely to rise in the near future, but as we are able to take
advantage of this environment, we are unconcerned and can focus on
medium-term growth prospects. Deliveries into China will
provisionally be timed for late February or March, not in the
expectation of a sharp price rise, but because delivery before then
is likely to involve demurrage (storage costs) and/or discounts due
to the lack of demand as China goes into the Chinese New Year
period with high stocks of both electric cars and lithium.
Gold should therefore be a better driver of cash flow progress
in the near term, and fortunately we are well-positioned with gold
projects in this region capable of near-term production.
The prospectivity of our licenses in Côte d'Ivoire is evidenced
by the third party interest we are beginning to attract from
potential buyers and partners. We plan a management visit to
Yamoussoukro in mid-February."
PROJECT 2024 UPDATE
Litigation and Arbitration - DRC The Company's 100% owned subsidiary
in the DRC obtained in 2022 an executory
judgment for $2.5m (being 50.1% of
$5m paid to local partner by a buyer).
Arbitration hearings and negotiations
have been held in Kinshasa in order
to obtain 50.1% of the $15m still
to be paid.
A draft of the arbitration award has
been received and awaits signature
and release. This process was delayed
during the election period which has
now concluded with the re-election
of President Felix Tshisekedi.
An update will be provided as soon
as possible.
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Faso Minerals Ltd Faso Minerals Ltd (FML), through its
subsidiary Faso Greenstone Resources
Gold: Boromo and Banfora greenstone SARL, holds 348 sq km of highly prospective
belts, SW Burkina Faso ground, acquired from local holders
in the SW of Burkina Faso at Bilbale
and Boulon.
Applications for other areas have
been prepared.
A 778m Reverse Circulation drill programme
was carried out at Djikologo and the
Bilbale Artisanal Area at Bilbale.
Results announced showed gold intersections
in three of the four holes drilled
in the first target, with three relatively
high-grade intersections in the BilR22-03
drillhole, including 20m at 3.19 g/t
gold from 22m depth.
Gold mineralisation was intersected
in two of the three holes at the Bilbale
Artisanal Area.
Current work includes detailed mapping
of three out of ten identified target
areas at Bilbale. The areas mapped
total some 6 sq km (Djikologo, Koulagang
and Tampoa), and 22 rock chip samples
have now been taken at the first two
of these, where outcrop was found.
12 of these samples contained gold
(over 0.1 g/t) and the best 4 returned
laboratory results at 2.49 g/t, 3.25
g/t, 11.2 g/t and 14.7 g/t.
A team assembled by our associate
Mahendran Samuel is preparing to arrive
on site over the next two weeks to
start implementation of a scalable
trial mining programme of alluvial
gold-bearing material. A ball mill
has been ordered, and an auger drill
and other mining plant will follow,
and their delivery will determine
the start date of operations.
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LacGold Minerals Ltd LacGold Minerals Ltd (LGM), through
its 100% subsidiary LacGold Resources
Gold: greenstone belts in Côte SARLU, made initial applications for
d'Ivoire five prospective areas, screened from
a long list, for gold exploration.
Subsidiary Signed Décrets have now been
issued granting the first two, totalling
745.67 sq km after adjustments, at
Yamoussoukro and Djekanou.
Official site inspection visits have
been conducted to the next four applications
by the Mining Department, and these
are in progress: Tienko, Korhogo,
Molonou and Kokoumbo. With Molonou
and Kokoumbo, the Company took over
existing interests of high prospectivity
near or adjoining the city of Yamoussoukro.
http://www.rns-pdf.londonstockexchange.com/rns/6841A_1-2024-1-23.pdf
Fig 1: licenses around Yamoussoukro
Two stages of sampling have been carried
out in accessible areas along strike
from known occurrences at the Yamoussoukro
and Djekanou licenses. An initial
rock chip sampling programme produced
50 samples, tested by bottle roll
test and by Atomic Absorption Spectrometry.
Results include 54.25 g/t Au at Yamoussoukro
and 5.93 g/t, 2.65 g/t, 2.24 g/t and
1.16 g/t at Djekanou. The samples
from Djekanou are located in the north
of the Djekanou permit on sites of
semi-industrial activities. The samples
come from N-S oriented structures
which crossed the Djekanou permit
and the artisanal mining authorization.
These zones were later confirmed as
anomalous by soil sampling.
http://www.rns-pdf.londonstockexchange.com/rns/6841A_2-2024-1-23.pdf
Fig 2: Yamoussoukro: rock chips
http://www.rns-pdf.londonstockexchange.com/rns/6841A_3-2024-1-23.pdf
Fig 3: Djekanou: rock chips
The proximity to a number of important
existing mines and works on neighbouring
licenses held by Koulou Gold (to North)
and Kobo Resources (to South) provide
additional evidence of prospectivity.
A further 80 termite mound samples
and 38 rock chip samples have recently
been collected and results await testing.
The Company has received two approaches
for sale or co-operation and has more
general discussions with other companies
active in the area. One company will
be conducting some sampling and mapping
at the Yamoussoukro license in mid-February
with a view to further co-operation
discussions.
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Lithium - Zimbabwe RRR, through African Lithium Resources
(Private) Ltd (ALR), has been in a
Lithium: historical pegmatite areas process with a local partner of assembling
in Zimbabwe a lithium portfolio by purchase of
old mining areas and by pegging of
c.50% owned prospective areas with evidence of
good grade lithium mineralisation.
Sampling has been carried out over
areas of interest.
ALR has funded development to date
from its own resources and by raising
$320,000 of external funding.
The first location fully permitted
is ALR's Tin Hill property, 29 km
North-West of Bikita in South-East
Zimbabwe.
During the course of 2023, there were
a number of regulatory and practise
changes in Zimbabwe to which RRR has
adapted.
RRR has begun exports of 3% plus lithium
ore and has a further stockpile of
royalty-paid material ready for export.
To avoid storage and demurrage charges
at a time when destocking is occurring
in advance of the Chinese holidays
and demand is absent, RRR plans to
delay arrival of material at destination
port to sometime after the Chinese
New Year when demand resumes.
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Elephant Oil Corporation RRR has c397,873 shares in Elephant
Oil Corporation, where a Form S-1/A
and a presentation have been filed
and are kept updated on the EDGAR
website of the Securities and Exchange
Commission under the stock code ELEP.
The intention of Elephant continues
to be to list on a North American
Exchange. It had been expected that
this would have taken place early
in 2023, but clearly the process is
taking longer and RRR will report
further when it has further news.
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Royalties Royalties are held over the Zimbabwean,
Ivory Coast, and Burkina Faso assets.
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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
Bob Roberts 0203 8696081 Broker Clear Capital Corporate
Broking
The technical information in this announcement has been compiled
by the Company's consultants in Côte d'Ivoire and Burkina Faso, and
by Mr Ali Barro in London. M. Koffi Gbamele, who approves this
release, is a Member of the E-SGA and an Associate of the
Australasian Institute of Mining and Metallurgy (AusIMM) and 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.
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's
Nominated Adviser and is authorised and regulated by the FCA.
Beaumont Cornish's responsibilities as the Company's Nominated
Adviser, including a responsibility to advise and guide the Company
on its responsibilities under the AIM Rules for Companies and AIM
Rules for Nominated Advisers, are owed solely to the London Stock
Exchange. Beaumont Cornish is not acting for and will not be
responsible to any other persons for providing protections afforded
to customers of Beaumont Cornish nor for advising them in relation
to the proposed arrangements described in this announcement or any
matter referred to in it.
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END
MSCEAEFDAFXLEAA
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January 24, 2024 02:00 ET (07:00 GMT)
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