Red Rock Resources plc Australasia - Blue Ribbon Project Update (2567T)

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RNS Number : 2567T

Red Rock Resources plc

16 July 2020

Red Rock Resources PLC

("Red Rock" or the "Company")

Red Rock Australasia - Blue Ribbon Project Update

16 July 2020

Red Rock Resources Plc, the natural resource development company with interests in gold, manganese and minerals, announces an update on its joint venture subsidiary Red Rock Australasia Pty Ltd ("RRAL").

RRAL has commissioned historical reports and targeting assessments of its 11 license applications, and the first of these, for the Blue Ribbon license (EL007285), has been received. The license is 5 km north of the Ballarat East Mine.

In its announcement of 4(th) May the Company stated that detailed information and references for the projects would be set out, once received, on the Company's website, and the information below will shortly be posted there.

KEY POINTS FROM REPORT

-- 19(th) century records show historical production of 70,000 oz of gold over 2km of the Dead Horse Lead within the Blue Ribbon Project area;

-- Six gold nuggets between 10oz and 85 oz recorded from the workings of the Ballarat Extension Company on the Project area;

-- Only work carried out on the tenement since the 19th century has been data reviews and target generation;

-- Primary exploration target is the northern extension of the Ballarat West Goldfield, assumed to be the source of the palaeoplacer gold on the tenement;

-- Next exploration steps include include finalisation of drill targets and implementation of a three hole, 1000m drill program, subject to license grant and local approvals;

   --    Blue Ribbon now a priority target for RRAL. 

Red Rock Chairman Andrew Bell comments :

"Blue Ribbon was until this week by far the smallest of our licenses at 8 sq km. It is however a highly prospective one, lying between and contiguous to the Ballarat and Creswick goldfields, and with the prolific Dead Horse Lead running through it.

We expect to be able to define drill targets at this Project soon after grant. "

Further Information

The report runs as follows:

"EL007285- North-West of Ballarat

 
 Tenement   Local ID      Size      Mapping              Municipality   Current Status 
  ID                       (km(2)    Sheet (1:100,000) 
                           ) 
 EL007285   NW Ballarat   8         Ballarat             Ballarat       Application 
           ------------  --------  -------------------  -------------  --------------- 
 
   1.1.1.   Regional Geology 

EL007285 is located within the Bendigo - Ballarat Zone of the Lachlan Fold Belt . The Bendigo Zone has an average width of 100km and extends between the Avoca and Mt William Faults.

The basement stratigraphy of the tenement area consists of folded N-S striking (result of E-W compression) interbedded turbidite deposits of sandstone and siltstone of the Ordovician Castlemaine Group. (Taylor et al. 1996)(1) . These sediments carry a pervasive north-south foliation. (Horwood, 2011)(2) .

   1.1.2.   Local Geology 

The Ordovician rocks are mostly concealed by Newer Volcanics with minor Pliocene colluvial. The only exposure of Ordovician sediments on the tenement occurs in the far eastern portion of the tenement and are typical of those in the Ballarat field. Multiple Cainozoic basalt flows have buried deep leads.

A graphitic slate zone (Black Slate) occurs throughout the Ballarat West line and is essentially the only significant lithological unit that can be extrapolated with confidence across this line. This zone is not observed on the Ballarat East line.

The black slates of Ballarat West is a zone varying in thickness from 22m to 44m, and consists of series of graphitic, dolomitic and pyritic black slates, pyritic mineral seams, laminated quartz lodes, crushed quartz and sandstones.

The lode generally occurs close to the lowest black slate member in the zone, although two parallel lodes have been worked on laminated quartz in several mines including the South Star and New Kohinoor.

Being directly associated with the lode, the black slates have been well recorded in most historical texts and workings and also in recent drill holes where they occur, although in some mines including the Sir Henry Loch, the entire zone has not been fully exposed in development.

   1.1.3.   Mineralisation 

The northern extension to the Ballarat West Goldfield is projected to occur in the eastern portion of the tenement. The mineralisation in this field is characterised by laminated quartz reefs hosted within black slate beds containing bedding parallel shears confined to west dipping fold limbs. The thrust faults controlling this system extend locally across the fold hinges into the east-dipping limbs as dilatant jogs within which quartz-vein stockworks (tension vein arrays) were mined. (Horwood, 2011)

Several west draining deep leads occur in the central area of the tenement and are typical of those found in the Ballarat field.

   1.1.4.   Mining History/Production 

The Deadhorse Lead produced 70,000 ounces over 2 km (Chintock, 2008)(3) of strike length downstream from the where the lead crosses the projected northerly extension of the Ballarat West goldfield.

Figure 1 - Ballarat West Goldfield and target position

Individual deep lead mine production from the major mines on the tenement is listed in Table 1. Numerous small mines located on the tenement are lacking individual production records.

Table 1- Major mine production from EL007285

 
 Mine                       Production (Oz) 
 Ballarat Extension         21,396 
                           ---------------- 
 Rose Hill GM               17,137 
                           ---------------- 
 Great Northern Junction    6,233 
                           ---------------- 
 Nil Desperandum Co         3,595 
                           ---------------- 
 

There is no record of primary gold production on the tenement.

The quartz mines of the Ballarat West goldfield have produced a recorded 800,000 ounces of gold at an average grade of approximately 14 grams per tonne. A further 6 million ounces of gold is estimated to have been won from the ancient river channels which cross the field. (D'Auvergne, 1998)(4) .

   1.1.4.1.      Nearby Mining Activity 

The Ballarat Gold Mine is currently mining the Ballarat East line, 5 km's south of the tenement.

   1.1.5.   Exploration History 

No exploration has been completed on the tenement since the 19(th) century short of data collation and target generation.

   1.1.6.   Exploration Strategy 

The primary target on this tenement is the northern extension of the Ballarat West Goldfield, assumed to be the source of the palaeoplacer gold on the tenement.

This target is only 4 km north of the main Ballarat West field and 2 km north of its northernmost mined quartz reef - the projected Ballarat West field would fall within the tenement over the zone considered to be the main target area based on palaeoplacer gold occurrences.

In order to define this target, the following processes should be considered:

-- Investigate drainage channel directions to narrow the zone where the the gold originated from.

-- Review and interpret magnetic images to potentially interpret structures masked by the basalt.

Other information to note:

-- Six gold nuggets between 10 and 85 ounces were recorded from the workings of the Ballarat Extension Company and are unlikely to have travelled far from their source. (Chintock 2008)

   --    Quartz veining was been recorded in several palaeoplacer mines on the tenement. 

It is recommended that diamond drilling be used once the base of the basalt has been reached to allow the position within the fold sequence of the Ballarat field to be determined. The lodes of Ballarat West and for some-part Ballarat East are lithologically controlled.

This area remains relatively undeveloped in regard to residential development, allowing the potential to establish multiple drill platforms.

Budget

Drilling- Once target is finalised, a 1000m drill program consisting of 3 individual holes would cost approximately $150,000 including mobilisation and associated drilling costs."

(1) Taylor D.H., Whitehead M.L., Olshira A and Leonard J.G. 1996. Ballarat 1:100,000 map geological report 101, Geological Survey of Vistoria

(2) Horwood D.J., 2011. Oroya Mining Ltd EL 4943, Ballarat North Project, Annual Report for the period ending 31 December 2011.

(3) G. Chintock, 2008. Annual Report to Dept of Primary Industries, VIC for EL 4943.

(4) D'Auvergne P, 1996. Ballarat Goldfields Pty Ltd. EL 3018, Ballart Gold Project, Annual Report for the period ending 31 December 1998.

Competent Person Statement

The technical and related information in this report relates to exploration results based on information from third parties and data compiled by David Sharp, BAppSci, MAIG, who is a member of the Australian Institute of Geoscientists. Mr Sharp has sufficient experience in the style of mineralisation and type of deposit under consideration. Mr. Sharp consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Mr Sharp is a Senior Geological Consultant at Oreteck Mining Solutions, Melbourne.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

For further information, please contact:

Andrew Bell 0207 747 9990 Chairman Red Rock Resources Plc

Scott Kaintz 0207 747 9990 Director Red Rock Resources Plc

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

Mark Treharne 0203 700 2500 Broker Pello Capital Limited

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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July 16, 2020 09:12 ET (13:12 GMT)