Red Rock Resources Plc, the natural resource development company with interests in gold, manganese and copper, announces an updating summary on the three key interests that are expected to be value drivers going forward.
· In the last six months Red Rock has:
o obtained the restoration of licenses containing an initial 1.2m oz gold Resource in an underexplored greenstone belt in Kenya; and
o created a significant new 2,188 sq km joint venture in the Victoria Goldfields of Australia that is being prepared for listing; and
o worked to strengthen the position of its local subsidiary and create a new force in the copper and cobalt industry in the copperbelt of the DRC.
· Up to the time that flights closed down as a result of the Covid virus, and right from the time that they resumed, Red Rock has been visiting its African locations in order to restart exploration and development as quickly as possible;
· A corporate office has been opened for Red Rock Australasia Pty Ltd (RRAL) in Ballarat, Victoria and a new website and presentation are being prepared to enhance RRAL’s local presence;
· Red Rock’s camp and vehicles in Kenya are being readied for resumption of work by the exploration team, with electrical, plumbing and repair work under way, and options for an initial programme are being prepared and the data room and presentation material being upgraded;
· Red Rock Resources Congo SAU’s lawyer has been resolving longstanding issues that had arisen in relation to partnership matters, as well as documentation and registration, and the Company is now in a position to appoint an in-country manager and establish a physical office;
· Mineral Exploration Associates SARL has been engaged to follow up earlier geochemical work at the Luanshimba copper JV in the DRC and is mobilising for a 71 Kml ground magnetics survey and a 12 Kml induced polarisation survey over the anomalous zones before the rainy season;
· The Company has reviewed a gold opportunity in Slovakia but given the pace of developments elsewhere has not exercised the option to proceed within the option period.
Red Rock Chairman Andrew Bell comments: “ It was a common trope a few months ago that Red Rock looked cheap, given its listed assets and the potential of its projects. If this was accurate, it was not a position different from many other companies. The value was in posse rather than in esse, and the future fortunes of the Company appeared to hang largely on one asset, with the expected restoration of its Kenyan licenses.
The situation now is different. The Company rests on a powerful tripod of interests whose value is becoming less speculative and more real. Kenya is restored since August and granted, an NI 43-101 report has been produced for the Australian assets which leaves no doubt as to their potential, and in the Congo we have defended and even advanced our position with apparent success, and so are now in a position to deploy funds into the country with confidence.
Two of these three businesses – Australia and Congo – are new, in the sense that RRAL has acquired its interests since lockdown began, and that the outcome in Congo looked uncertain and even perilous just weeks ago, so that we were unable to speak of it with any confidence.
The Company now has substantial gold and copper interests in three large projects, ranging from exploration to near production, and this has come about just as the price outlook for these commodities improves.
We will continue to update the market as we focus our recently augmented financial resources on strengthening the three legs of our tripod and building the value of the business.
Given the speed of developments and the scale of our key projects, the Company has put to one side the review of opportunities in Eastern Europe.”
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