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Red Rock Resources shares surge on final resource estimate at Mikei gold project

Red Rock Resources shares surge on final resource estimate at Mikei gold project


Shares in Red Rock Resources (LON:RRR) surged this afternoon as it reached a milestone - the final resource estimate for the final prospect on the Mikei gold project in Kenya.

The total resource estimate now stands at 29.4mln tonnes at 1.26 grams per tonne (g/t) gold with a contained metal content of 1.193 million ounces of the yellow metal.

The project consists of five prospects - KKM, KKM-West, Nyanza, Gori Maria and MK - and today's announcement follows the completion of the MK estimate, which came in at 1.35mln tonnes at 3.06 g/t gold containing 133, 000 ounces.

Highlights of the resource include 66% that are contained in the indicated category.

Also, metallurgical work on the MK prospect shows that gold recoveries of more than 90% may be achievable.

Importantly, mineralisation at all prospects remains potentially open at depth (including down plunge) and along strike of key higher grade zones.

Initial work on pit optimisation work has begun, the firm said, and will be completed on all prospects within the project, Red Rock said.

The aim is to get an idea on the best areas for economic development and to focus resource development activities, including the position of drill holes.

Chairman Andrew Bell told investors: "With this declaration of a new mineral resource figure for MK we have completed the rigorous programme of drilling and revalidation that have enabled us to integrate the information from decades of earlier exploration at Mikei into our data and models.

"As one phase ends, another begins. On these more secure foundations, and with additional metallurgical and geological work completed, we are developing a better structural understanding and are able to target high grade shoots, areas of coherent higher grade, and directions in which mineralisation appears to be open.

"We can now also start work on pit optimisation and mine planning. This is a milestone achieved, and opens the way to more rapid progress."

Shares rose more than 15% to stand at 1.21 pence.


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