RRR.GB Red Rock Resources

TIDMRRR

RNS Number : 6325Y

Red Rock Resources plc

05 May 2023

5 May 2023

Red Rock Resources PLC

("Red Rock" or the "Company")

Victoria Goldfields Australia - Berringa Drilling Results

Assay Results Return Gold from all Drillholes; Confirms Down-Dip and Along-Strike Extension of Mineralised Quartz Reefs

Red Rock Resources Plc, a natural resource development company with interests in gold and base metals, principally in Africa, announces an exploration update from the Company's Berringa Gold Mine Project ("Berringa" or the "Project"), which forms part of the Victorian Goldfields joint-venture with Power Metals Resources Plc ("JV") in Victoria, Australia.

On 15 March 2023 the Company issued an update following completion of the 2022/2023 drilling campaign at Berringa. The link to this announcement can be found below:

https://www.londonstockexchange.com/news-article/RRR/victoria-goldfields-australia-drilling-update/15877023

HIGHLIGHTS:

 
 Programme Highlights       Explanation 
 
 Drilling Overview          The Diamond Drilling programme consisted 
                             of 988 metres in six drillholes, four of 
                             which encountered visible gold mineralisation. 
                           ---------------------------------------------------- 
 Extensive Gold Confirmed   All drillholes returning gold mineralisation 
                             in laboratory assay test results. 
                             Multiple gold (Au) mineralised intersections 
                             were encountered including drillhole BE23D002 
                             which returned 5.2m at 2.38g/t Au including 
                             0.2m at 34.76g/t Au, and BE23D006 which 
                             returned 3.5m at 5.43g/t Au including 0.7m 
                             at 23.9g/t Au. 
                           ---------------------------------------------------- 
 The "Nugget Effect"        Variability in grade was experienced due 
                             to "nugget effect" typical of the area, 
                             and this led to changes in the sampling 
                             protocol. Additional drilling will be needed 
                             to determine a representative grade. 
                           ---------------------------------------------------- 
 Key Objectives Met         Key objectives of this drill programme 
                             have been met with drilling successfully 
                             intersecting the down dip and along strike 
                             extensions of previously mined Berringa 
                             gold mineralised quartz reefs. As the gold 
                             is hosted in the quartz reef the identification 
                             of a larger volumes of quartz reef is a 
                             positive development. 
                           ---------------------------------------------------- 
 Extensive Quartz           The final drillhole BE23D006 intersected 
  Reef Confirmed in          a more than 30-metre-wide quartz reef intersection 
  Final Hole                 approximately 100 metres east of the main 
                             Berringa line of workings. The hole was 
                             ended while still in mineralisation and 
                             so is open at depth. 
                           ---------------------------------------------------- 
 Next Steps                 The programme has enabled the partners 
                             to gain a better understanding of the structure 
                             of the historic Berringa gold mine and 
                             this work will be further advanced as the 
                             results continue to be analysed and related 
                             to historical data. The partners will then 
                             announce the next phase of exploration. 
                           ---------------------------------------------------- 
 

Red Rock CEO Andrew Bell commented:

"The work of our team, who are all experienced in the area and have worked in the nearby Ballarat Mine, was so precise that this very small drill programme was able to achieve successful results in almost every hole. This is an exceptional achievement. Our structural understanding has been advanced, and our assessment of the prospectivity of the Berringa area has been confirmed and enhanced.

A key takeaway was that any intersection over 0.1 g/t is evidence that one is in the mineralised system, and that any fire assay result (on typically a 50 gm split of a 500 gm sample) at 0.1 g/t or above should lead to the whole sample being subjected to a KCN bottle roll test. This protocol compensates to the extent practicable for the variability produced by the nugget effect.

Overall this was a successful, disciplined, and cost-effective programme. Further analysis of the data will determine the next steps."

http://www.rns-pdf.londonstockexchange.com/rns/6325Y_1-2023-5-5.pdf Fig 1: Location Plan

FURTHER INFORMATION

Highlight Assay Results

 
 Hole ID    Length   Interval (Au)                 Incl. 
             (m) 
 BE23D001            1.4m @ 0.25g/t from 381m 
---------  -------  ----------------------------  ----------------- 
                     0.3m @ 0.83g/t from 389.45m 
---------           ----------------------------  ----------------- 
           431.5     0.2m @ 3.61g/t from 421m 
---------  -------  ----------------------------  ----------------- 
 BE23D002   107.4    5.2m @ 2.38g/t from           0.25m @ 34.76g/t 
                      88.9m 
           -------  ----------------------------  ----------------- 
 BE23D003  119.5     1.7m @ 1.89g/t from 105m      0.25m @ 8.74g/t 
---------  -------  ----------------------------  ----------------- 
                     1.65m @ 0.88g/t from 
                      111m 
---------  -------  ----------------------------  ----------------- 
 BE23D004  77.4      0.9m @ 0.86g/t from 2m 
---------  -------  ----------------------------  ----------------- 
                     1m @ 0.54g/t from 39.4m 
---------  -------  ----------------------------  ----------------- 
 BE23D005   94.8     0.4m @ 0.62g/t from 73.6m 
           -------  ----------------------------  ----------------- 
 BE23D006            0.7m @ 1.5g/t from 130.4m 
           -------  ----------------------------  ----------------- 
                     3.5m @ 5.43g/t from           0.7m @ 23.9g/t 
                      133m 
                    ----------------------------  ----------------- 
                     4.9m @ 1.09g/t from 
                      140m 
                    ----------------------------  ----------------- 
                     3.9m @ 1.62g/t from           0.7m @ 7.49g/t 
           158.1      153.6m 
           -------  ----------------------------  ----------------- 
 

Programme Overview

Drill programme assay results from the Company's inaugural diamond drilling campaign at its historical Berringa mine Project located in Victoria, Australia, have confirmed extensions of gold mineralised lodes within the main reef systems.

The limited programme was specifically designed to test three potential sites for further evaluation and has exceeded expectations with visible gold identified in 4 of the 6 holes drilled.

All targets tested have proved the mineralised quartz lode systems are continuous and open down plunge and along strike. All zones require further diamond drilling to build on the early success and work towards possible Resource definition.

Gaining access to the mine through an historical adit has also become an high priority to enable bulk sampling of the Berringa syndicate lode for preliminary metallurgical test work. This will accelerate the process to recommence gold mining at the historical mine site. This work is continuing, subject to regulatory requirements and approvals from the State Government regulator.

Geological Interpretations

South Birthday Zone - Drillhole BE23D001

A single long drillhole, BE23D001, was completed targeting a possible extension of the west-dipping lode in the South Birthday Zone, and investigating possible similarities with the reef system currently mined at Ballarat 20km to the east. BE23D001 successfully intersected a fault structure of approximately 9 metres in width which extends the west dipping lode over 50 meters further down plunge from the last known stope.

Geological logging of the core identified predominantly massive quartz veining with sphalerite, galena, pyrite and minor arsenopyrite. The quartz reef has a hanging wall contact marked by a laminated quartz vein and overall the lode closely resembles the Ballarat mine reef system.

The hole ended in sandstone and not the expected black shale, and computer modelling based upon detailed lithological core logging will assist in determining where and at what depth the historically gold rich intersections typically found within black shales may sit in the South Birthday Zone.

Berringa Syndicate Zone - Drillholes BE23002 & BE23003

Near the centre of the licence area, located approximately 1.5km north of BE23D001, drilling at the Berringa Syndicate Zone, which historically produced at 7-8 g/t, returned positive results including minor fine visible gold within a well-defined lode structure.

This unmined zone was identified in the late 1980s from sampling in underground drives and adits with BE23002 and BE23003 being the first drillholes to test this zone. Downhole quartz vein intersections included intervals of 9m and 14m with abundant quartz near the footwall and hanging wall contact.

Kangaroo Zone - BE23004, BE23005 & BE23006

Located due east of the Berringa Syndicate Zone, the Kangaroo Zone was tested by drillholes BE23D004,005 and 006. This underexplored lode system has no surface expression.

Identification of a potential mineralised reef was made from an old plan map of underground workings. Only a single crosscut pushed from the historical Kangaroo mine towards the east which successfully intersected a mineralized structure. It is unclear if any stoping took place.

BE23004 and BE23005 drill tested the northern extension of the possible structure with BE23004 potentially intersecting a cross-course fault which appeared to have offset mineralisation. BE23005 also pierced the cross course in a different position but has struck part of a lode structure on the north side of the fault. It is possible that the estimated location of the underground workings was not yet exact so that drilling may have passed over the top of the lode. Further geological work on the lithological core logging will help to refine the positioning and identify optimal locations on the east lode for future drilling.

Drillhole BE23006 exceeded expectations, intersecting a broad (over 30m apparent width) mineralised quartz reef structure that had not been known containing minor arsenopyrite, galena, sphalerite. Visible gold was also identified in the hanging wall contact. Initial interpretation suggests the mineralised zone may be closer to the west than previously considered, and the drilling may have intersected a saddle reef not previously mined.

This supports the inference of a second (parallel) line of mineralization to the east of the main Berringa line and has substantially increased the prospectivity of the Berringa property overall.

Next steps

The technical team is completing a detailed review of the drillhole data including inputting all geological and structural data into 3D modelling software. Next steps will be determined in due course and the market will then be updated.

JOINT VENTURE STRUCTURE

The New Ballarat Gold Corp Plc ("NBGC") JV is between Red Rock (50.1%) and its partner, London-listed Power Metal Resources Plc (49.9%) (together the "JV Partners").

NBGC has a wholly owned Australian operating subsidiary Red Rock Australasia Pty Ltd ("RRAL") which holds a strong land position comprising seventeen granted exploration licences and one purchased licence for a total area of 1,867km(2) within the prolific Victorian Goldfields of Victoria, Australia, principally surrounding the mining centre of Ballarat, Australia.

In addition, 2 licences covering 467km(2) await grant. The JV has carefully assembled its portfolio of properties comprising a broad range from robust exploration targets to near term resource potential, all of which remain largely underexplored by modern explorers.

The JV Partners have the intention of listing the JV company NBGC and will make further announcements as appropriate.

GLOSSARY

Arsenopyrite: iron arsenic sulphide (FeAsS), a sulphide mineral found in hydrothermal veins and often an indicator of gold presence

Fire assay: the industry standard method of obtaining gold data from high grade ores by heating a sample in a furnace to separate the gold from other materials present

Galena: the natural mineral form of lead sulphide (PbS) typically found in hydrothermal veins

KCN bottle roll: an industry standard test for assessing gold recovery possible by cyanide leaching using potassium cyanide (KCN)

Lode : a deposit of metalliferous ore that fills or is embedded in a fissure in a rock formation or a vein of ore that is deposited or embedded between layers of rock, generally formed by deposition from hydrothermal solutions

Pyrite : iron disulphide (FeS2), the primary iron sulphide and most abundant sulphide mineral, generally found in association with other sulphides and found in hydrothermal quartz veins and other environments

Sphalerite : the primary zinc sulphide ((Zn, Fe)S) found in association with other sulphides in a variety of deposit types

QUALIFIED PERSON STATEMENT

The technical information in this report is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists and the Executive Officer and Exploration Manager of RRAL. He is a member of a recognised professional organisation and has sufficient relevant experience to qualify as a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, published by AIM.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

   For further information please visit   www.rrrplc.com  or contact: 

Andrew Bell 0207 747 9990 Chairman Red Rock Resources Plc

Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited

Jason Robertson 0207 374 2212 Broker First Equity Limited

NOTES TO EDITORS

Red Rock Resources Plc - Background

Red Rock Resources plc (LON:RRR) is an AIM listed metals exploration company focused on gold, copper and battery metals and principally active in Africa and Australia. It has historically been involved with production as well as exploration, having brought a historic gold mine back into production in Colombia and participated in the development to production of a major open pit manganese mine in South Africa.

The Company currently has gold exploration projects in Kenya, West Africa and Australia, copper/cobalt exploration in Congo, and a near-production lithium asset in Zimbabwe.

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May 05, 2023 10:45 ET (14:45 GMT)