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Red Rock Resources hails Havik assay results

Red Rock Resources hails Havik assay results

Red Rock Resources (LON:RRR) said assay results from the Havik area of its Melville Bugt asset in Greenland are highly encouraging.

Positive results from new assays confirm the majority of iron (Fe) grades are between 28-38% Fe across the prospect, with six of 10 holes returning average grades of more than 30% Fe, with a number of intersections exceeding 35%.

Iron concentrations from chemical tests show a marked and consistently higher grade than the field-based handheld X-ray fluorescent (XRF) estimates released in July 2012.

Red Rock said the increases range from between 3.1% and 14.0%.

Banded iron formation samples to date indicate overall low harmful or deleterious elements values, the company added.

"Havik was our main magnetite target this year. The results confirm the presence of high quality magnetite at Melville Bugt and are an encouraging indication of the prospectivity of the licence area as a whole," said Andrew Bell, chairman of Red Rock Resources.

"From the first batches of lab results we can see that the iron grades are of uniform distribution, related to a coarse grained magnetite with a high Davis Tube mass recovery,” Bell added.

The banded iron formations in the Havik area tend to be coarse grained magnetite crystals of one to two millimetres in diameter. These are favourable to beneficiation (enrichment) and magnetite liberation, Red Rock asserted.

Initial Davis Tube recovery from six samples shows an average mass recovery of 46% from a head grade of 35% Fe.

At the end of November, Red Rock Resources revealed an unnamed industrial company has made an offer worth US$17.8mln for 51% of the owner of the Melville Bugt project, NAMA Greenland (NGL), through a British Virgin Islands registered vehicle, International Media Projects.

Conditions of the offer are that the current exploration work is completed and the resource estimate published, and that Red Rock exercises its option in NGL to take its holding up to 60%.

Dependent on acceptances from other shareholders, Red Rock will then transfer between 31% and 49% to the new investor for up to US$16.1mln in cash.

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