Red Rock Resources (LON:RRR) told investors that drilling is now underway at the Migori gold project in Kenya.
The stock hit a new high of 14.75 pence on London’s AIM market this morning after they climbed 2.25 pence, or 16 percent.
Red Rock has had an extraordinary run in recent weeks, rocketing almost 500 percent from 2.5 pence in mid-September.
The company reported that drilling has started in the Western license of the Migori prospect Kenya, late in Wednesday’s trading session.
Initially Red Rock is infill drilling the areas which hosts the existing resource. The first hole is exploring the Gori Maria prospect, and the program will also cover the Kakula-Kalanga-Munya (KKM) as well as a number of other prospects.
With the programme Red Rock aims to increase confidence levels and revise size and grade of the current resource. It also hopes the programme will validate existing data as well as providing new structural information.
The initial 2,000 metre drill programme can be extended to 5,000 metres.
Exploration drilling is planned in areas where a resource has yet to be defined. A reverse circulation rig will join the campaign in January 2011 to drill between 5,000 and 10,000 metres.
Separately Red Rock also intends to contract an aircore drilling over the nearby Nyarongi prospect, also in January.
The company plans to update investors on its drilling plans in the Eastern license shortly.
Elsewhere Red Rock is ready to start drilling at the Arthur River iron project in Tasmania, Australia.
The company intends to drill 3 or 4 holes to test a significant iron ore target (magnetite-IOCG), which is located along strike from Grange Resource’s Savage River magnetite mine.
Savage River is Australia’s most productive magnetite mine, in 2009/10 it produced 2.4 million tonnes of iron ore and it has ore reserves of around 120 million tonnes grading 51 percent iron – enough to keep it going until at least 2023.
Red Rock said that its acreage has only been lightly explored to date, partly as a result of rugged terrain and inaccessibility.