Red Rock Resources plc is a minerals company focussed on the discovery and development of gold, iron ore and other minerals. The principal operational focus of the Company is gold and base metal exploration in Kenya, gold production in Colombia and early stage iron ore exploration in Greenland. The Company’s iron ore interests are also held through its strategic holding in Jupiter Mines Limited (ASX:JMS) and its royalty interest in an iron ore project. Red Rock adds value to its projects through various strategies and realises value through strategies which can include production, sale, joint venture, retention of royalty and spin offs.
18/05/12
Update on Greenland17/05/12
Price Monitoring Extension17/05/12
Second Price Monitoring Extn15/05/12
Update on Resource Star Limited02/05/12
Completion of Partial Sale of Royalty Interest
10/08/11
Red Rock’s Andrew Bell says he’s relaxed about progress in Colombia with incremental improvements starting to feed through at the El Limon gold mine. Here we speak to Bell about the group’s attempts to ramp up production in Colombia, and examine the group’s broader portfolio of gold and steel feed projects around the world.
15/06/11
Red Rock Resources chairman Andrew Bell is guarding against jumping the gun with the company’s Macalder tailings project in Kenya despite criticism from some shareholders that he has downplayed its prospects
27/12/10
Andrew Bell is chairman of Red Rock Resources and Regency Mines. Here we give Bell a grilling about the year just gone and the outlook for both companies as we head into 2011.
19/11/10
Red Rock has added another producing gold asset to its portfolio with an indirect investment in Ascot Mining’s Chassoul gold mine in Costa Rica. Ascot can now take full control of the recently expanded mine and it intends to join the AIM market as soon as possible.
05/08/10
Red Rock Resources chairman Andrew Bell tells Proactive Investors why the market has got its sums wrong and reveals the company’s Colombian gold mine could start producing in less than three months.
18/05/12
Red Rock to start mobilising Greenland project this month15/05/12
Red Rock Resources associate Resource Star takes full control of Livingstonia uranium project02/05/12
Red Rock Resources completes Mt Ida royalty stake sale27/04/12
Red Rock Resources shares advance on high grade gold results in Kenya20/04/12
Red Rock appoints lawyer to help sort out Migori ownership
15/03/2012
01/03/2012
24/01/2012
08/07/2011
20/09/2010
06/04/2011
Edison Investment Research Note - Red Rock Resources20/02/2012
Growth Equities & Company Research - 20th February 201209/02/2012
Edison Investment Research - 9th February 201231/01/2012
Edison Investment Research - 31st January 201208/12/2011
Growth Equities & Company Research - 8th December 2012
Gold interests:
KENYA
In late 2009, Red Rock announced the conditional acquisition from Kansai Mining Corporation Limited (“KMC”) of a 60% interest in the 68 km Migori greenstone belt in South West Kenya. The Mid Migori Property is approximatly 300 sq km and is located 30 km north of the operating North Mara goldmine in Tanzania. The Migori belt is an Archaean greenstone belt, relatively lightly explored over the greater part of its length, but with historic gold and base metal production including the Macalder VMS copper-zinc-gold mine. The tenements have a 43-101 Indicated Resource of 1.172 m oz gold.
Red Rock has conducted percussion drilling on the Macalder tailings and RC drilling on several locations across the licence in order to consolidate the existing resource estimate and investigate the previously underexplored areas at the eastern end of the licence. A programme of trenching of several areas of recognized potential has been carried out. Digitisation and compilation of all old data is being carried out, and an airborne geophysics programme is planned.
Some of the exploration has been with the aim of exploring Banded Iron Formation (BIF) targets. Surface exposures of BIF are indicators of possible gold endowment at depth and a UN-drilled hole in 1985 in the Migori greenstone confirm this gold associated BIF model.
Red Rock also has options over adjacent properties at Ngira-Migori, and has acquired rights over 35% of KMC.
COLOMBIA
Red Rock owns 50.5% of Colombian gold miner Mineras Four Points SA (“MFP”) and retains an option over a further 1%. Red Rock initially lent $2m to, and entered into a consultancy agreement with MFP. The loan and consultancy agreement have a 3 year life.
MFP owns and has rightsover two gold mines in Antioquia, El Limon and El Mango (La Aurora). El Limon has a history of high grade production and is over 350m deep covering 7 levels. El Mango has recently started producing ore for production at the El Limon plant. A recently completed refurbishment of the 150t/day plant at El Limon has seen the start of operations, and production building up towards rated capacity.
OTHER
Further gold prospectivity exists in the Oakover license in the East Pilbara.
Iron Ore & Manganese
Iron Ore
Greenland (Melville Bugt) Project
Highlights:
• Extensive 2011 field reconnaissance program completed on the Melville Bugt Iron Ore Project
• 1, 013 Km2 NAMA Greenland Ltd. license (plus 558Km2 under application)
• Banded to massive haematite iron formations were encountered in a number of areas
• High-grade magnetite iron formations also identified
• The most significant outcrop with a traced strike length of 800m on surface, with an estimated true thickness of 100m. The largest exposed iron formation to date was traced 2.5km along strike and had an estimated true thickness of 100m
• Positive field XRF results with values up to 69.5% Fe (wet chemical assays pending)
• Potential geological correlations with Baffinland Iron Mine’s Mary River Project, Canada
• 13,170 line kilometers of airborne magnetic and radiometric survey flown
Location
All licenses are in the north-west of Greenland, 150 km south of the town of Qaanaaq.
Red Rock Resources’ Interest
The Company has an earn-in agreement with North Atlantic Mining Associates Limited ("NAMA") under which it has earned 25% in NAMA Greenland Ltd (NGL), which owns exploration concessions at Melville Bugt, Greenland. The company has the right to increase this percentage to 60% by funding 2012 exploration and declaring a mineral resource.
History
The area covered by the concessions, and additional areas now applied for by the joint venture, constitute a potentially major and undrilled iron ore province, though one with limited detailed mapping and structural information, and therefore uncertain economic significance.
Geology
The Melville Bugt Iron Ore Project covers an extensive area of Archaean- Palaeoproterozic crystalline shield, which correlate with the iron-rich rocks hosting the Mary River Iron Ore project of northern Baffin Island, Canada. Based on key geological events, the Melville Bugt area is interpreted to form part of the north east trending late Archaean Committee Belt, which extends from northern Baffin Island, Canada.
The Melville Bugt area has received limited mineral exploration to date; regional mapping carried out by the Greenland Geological Survey between 1971-1980 identified numerous iron occurrences, principally occuring as Algoma type banded iron formations hosted within the 2.7 billion year old Lauge Koch Kyst supracrustal complex.
Work to–date
The 2011 exploration programme confirmed the existence of a significant iron ore province at Melville Bugt, identifying a number of early targets for the delineation of economic mineralization, and identifying further work required.
The 2011 arctic field season included geological traversing, sampling, prospect scale mapping and geophysical surveys over a wider area. Work was performed from remote fly camps, with three teams of geologists. Eight targets for future exploration and delineation were established.
Banded to massive haematite iron was encountered in a number of areas, the most promising of which is the De Dødes Fjord area, with the most extensive mineralization identified to date a series of four linked occurrences with a potential strike length of 7.5 km. Perhaps the most significant discovery has an exposed strike length of 800m on surface, with an estimated true thickness of 100m.
A number of linked occurrences of high-grade magnetite iron were also identified in the Havik area, but not fully explored due to limited surface exposure. The largest exposed iron formation to date was traced 2.5km along strike and had an estimated true thickness of 100m.
Results from the field XRF analyzer have been very encouraging, with sample results up to 69.5% Fe (wet chemical results pending).
13,170 line kilometers of airborne magnetic and radiometric survey were flown over the license area by Aeroquest Airborne Ltd, on line spacings between 200m and 1.6km. with encouraging initial results. Full processing and interpretation is underway.
Future Programme
Following analysis of samples and geophysical results, a full report will be released and the 2012 programme, currently expected to include drilling to resource status of the main targets, will be confirmed.
MANGANESE (Mn)
Over 90% of Manganese production goes into the manufacturing of steel, and in this application there is no known substitute for Manganese. High, or metallurgical, grade Manganese substantially comes from three areas currently: Australia, now the number 1 producer, South Africa, and Gabon. Manganese demand is therefore directly influenced by the industrial revolution affecting China and India, some 40% of the world’s population, and the growing demand for steel it has caused. India, a large producer of iron ore, does not enjoy the same position in metallurgical grade Manganese. The Manganese price, currently upto $12.00 per unit (so c. $600 fob for 50% Manganese), is expected to remain relatively stable while demand will increase.
The company’s extensive tenements at Oakover are north and north west of the Consolidated Minerals mine at Woodie Woodie, now one of the major world producers of metallurgical grade manganese, in what is currently the major emerging province for incremental production. They surround that company’s Ripon Hills manganese discoveries and adjacent areas. Limited test work on the licenses has encountered manganese grades generally in excess of 25% and sometimes exceeding 50%. The company is the major tenement owner in the area after Consolidated Minerals.
The first phase of the company’s exploration programme at Chiwefwe in Zambia has established an Indicated Resource of 2.36 m tons of high grade Manganese at c.46%+ grade on a 550 m strike length with a further 6 km of strike extension showing continuous mineralization. Further exploration and drilling are under way to bring further resources to Measured and Indicated status and test depth of mineralization.
The company’s aspiration is to become a significant producer in world terms in both the short and the long term and from more than one location.
Zambia
A permit is held in the Chiwefwe area in central Zambia. The license contains manganese, and Red Rock has been frustrated in its attempts to develop the area by persistent interference with its license and its rights. The company obtained an injunction against illegal occupants of its land, and is now pursuing the matter of attempted falsification of records. There can be no doubt of the company's rights and Red Rock will patiently pursue matters to a conclusion.
Australia
Oakover, Western Australia (WA):- Four tenements are held in the East Pilbara manganese province covering 695 sq km. Limited test work has encountered manganese grades generally in excess of 25% and sometimes exceeding 50%.
Uranium & Rare Earths
The Company considers the long term prospects for uranium and rare earth elements (REEs) to be strong, and there is a need for a greater geographical diversity of source.
Red Rock Resources Plc remains in the pursuit of uranium through their 26.9% stake in Australian exploration company, Resource Star Ltd (ASX:RSL). RSL ‘s main projects are the Joint Ventures with Globe Metals and Mining (ASX : GBE) on the Livingstonia Uranium Project and Machinga Rare Earths Project in Malawi, the 100%-owned Edith River Uranium Project in the Northern Territory and the Spinifex Joint Venture with Thundelarra Resources (ASX : THX) in Western Australia.
The exploration at Livingstonia is managed by Resource Star, while Globe is running the Machinga program. Resource Star has a right to earn-in to 80% of the Livingstonia Project, which has been the subject of over 12,000m drilling and has a JORC compliant Inferred Resource of 7.7 million tonnes averaging 270 ppm U3O8 at a cut-off of 150ppm U3O8. Lastly the intended acquisition of a shareholding in Cue Resources, conditional on shareholder approval, will give Resource Star a stake in an Indicated & Inferred Resource of 10.1Mt at 430 ppm U3O8.
Andrew Bell, MA, LLB, FGS - Executive Chairman
Andrew Bell began his career as a natural resources analyst at Morgan Grenfell & Co. in the 1970s. His business experience encompasses periods in fund management and advisory work at leading financial institutions, international corporate finance work, and private equity. Andrew Bell’s listed company directorships are Regency Mines Plc (chairman), Greatland Gold Plc (chairman), Jupiter Mines Limited (director), Resource Star Ltd (chairman) and Cue Resources Inc.
Manoli Yannaghas, BA - Executive Director
Manoli Yannaghas is a former financial analyst working with international financial consultancy. Experienced with small companies including operations and corporate finance, for over ten years he has worked in various operational capacities within small and medium sized businesses. Manoli has experience with management and fund raising as well as other areas of corporate finance. He currently sits as non-executive director on a number of small fast growth companies. He is a former director of ASX-listed Resource Star Ltd.
John Watkins, FCA - Non-executive Director
John Watkins is a chartered accountant and a former partner of Ernst & Young and Neville Russell. He is a director of Starvest plc, a substantial shareholder of Regency Mines Plc, the Company’s controlling shareholder. In addition, he is a director of Regency Mines Plc and Greatland Gold Plc. Starvest Plc, Regency Mines Plc and Greatland Gold Plc are listed on AIM. He is chairman of Equity Resources Plc and Rare Earths and Metals Plc.
Michael Nott, BSc, MSc, DIC, FIMMM, FMES, FIQ, C. Eng. - Non-executive Director
Mike Nott is a geologist and mining engineer by profession and has 35 years’ experience in the mining, minerals and quarrying industries. His early career was based in Zambia including nine years with Roan Consolidated Mines Ltd. He was a regional manager for Pioneer Aggregates (UK) Ltd then an Australian Company and later a director of Jay Minerals Services Ltd, Hills Aggregates Ltd, becoming trading director of ARC (Southern) Ltd and production director of C White Ltd. He is currently chairman and managing director of Alba Mineral Resources Plc and a director and CEO of Magyar Mining Ltd.
James Ladner, lic. oec. HSG - Non-executive Director
James Ladner, a Swiss citizen, has over 40 years’ experience in the finance industry. After 28 years at Coutts Bank (Switzerland) Ltd, where he was an executive vice-president, he was for nine years chairman of Bank Austria (Switzerland) Ltd. He has also served as a director of The Royal Bank of Scotland AG, Interallianz Bank AG, Asahi Bank AG, F. Van Lanschot Bankiers (Switzerland) Ltd, Atlantic Finanz AG, Immofonds, Verit Immobilien and Ahold Finance Group. He was a member of the Swiss Admissions Commission for listing on the Swiss Stock Exchanges and of the Swiss Capital Market Commission of the Swiss National Bank. Outside Switzerland, he has served as director of a number of companies, including StrataGold Corporation, Pan Pacific Aggregates Plc, Colombia Gold Plc and Nevoro Inc. He is currently a director of Oracle Energy Corp., Colt Resources Inc., Royal Coal Corp., Ardent Mines Inc. and Guerrero Exploration Inc.
Nomad: Religare Capital Markets Ltd
Solicitor: Ronaldsons Solicitors
Broker: Simple Investments
Transfer Agent: Share Registrars Ltd
Registered Office:
3/F, 55 Gower Street
London
WC1E 6HQ
Business Address:
115 Eastbourne Mews
London W2 6LQ
Telephone: +44 20 70995840
Website: http://www.rrrplc.com
Significant Shareholders:
Regency Mines Plc 20.1337%
TD Waterhouse Nominees (Europe) Ltd 11.6583%
Barclayshare Nominees Ltd 8.6395%
HSDL Nominees Ltd 6.0633%
L R Nominees Ltd 5.4881%
HSDL Nominees Limited 4.7105%
James Capel (Nominees) Ltd 4.4441%
CLICK HERE for further investor information
(Updated 14th November 2011)
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