Red Rock Resources PLC (AIM: RRR), the mining exploration and mineral investment company with interests in iron ore and manganese in Australia and Zambia, and uranium investments in Africa and Australia, has made a cash investment of C$989,800, or £565,000, in Cue Resources Ltd (TSX-V: CUE).
Cue is incorporated in Canada. Its principal asset is 100 percent of the 230,000 hectare Yuty uranium project in Paraguay.
Red Rock has subscribed for 9,898,000 units in Cue Resources at C$0.10 per unit, with each unit consisting of one common share and one warrant entitling the holder to subscribe for one additional Share at C$0.15 for two years from November 1 2009.
Following the subscription, and an earlier subscription by third party investors, which together have raised C$2.38 million before expenses, Cue will have 62,732,105 shares in issue, and Red Rock will hold 15.78 per cent of the enlarged capital.
The Yuty license is interpreted to contain 130 kilometres of a regional redox front with multiple uranium targets. One of these, San Antonio, has seen significant exploration, first by the Anschutz/Korea Electric Power/Taiwan Electric Power joint venture in 1976 to 1983, when 266 holes were drilled regionally, and latterly by the Cue/Cameco joint venture who drilled 234 holes between 2007 and 2009.
Cue has NI 43-101 compliant resources at San Antonio, comprising an indicated resource of 8.3 million pounds at 420 parts per million triuranium octoxide and an inferred resource of 1.2 million lbs at 500 ppm U3O8. Further drilling, to expand the resource base at San Antonio and to define new prospects at other identified zones, is planned.
Initial leaching, permeability and porosity testwork indicates that the deposit is suitable for in situ recovery. Last month, Red Rock‘s 27 percent-held Australia-based associate company Resource Star Ltd (ASX: RSL), focused on uranium exploration in Australia and Malawi, announced plans to raise up to A$5.6 million and re-list on the Australian Stock Exchange.
In August, it entered into an agreement with Kansai Mining Corp Ltd allowing it to acquire up to 60 percent of Kansai unit Mid-Migori Mining Co Ltd, a Kenyan group which owns the beneficial title and mining rights to the Migori gold project in the country.
The Migori project has an indicated resource of 1,172,000 ounces gold, with an expectation that this figure may be raised significantly on resumption of the incomplete 2007 drill programme.