Red Rock Resources plc Australian Gold Joint Venture Update (5609E)

TIDMRRR

RNS Number : 5609E

Red Rock Resources plc

06 November 2020

Red Rock Resources PLC

("Red Rock" or the "Company")

Australian Gold Joint Venture Update

6 November 2020

Red Rock Resources Plc, the natural resource development company with interests in gold, manganese and base metals, announces an update in respect of Red Rock Australasia Pty Ltd ("RRAL") a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Gold Fields of Victoria. Red Rock owns 50.1% of RRAL, with 49.9% being owned by Power Metal Resources plc (AIM:POW).

Key points

-- RRAL has applied for an additional 148 sq km of ground (EL007540) that forms a close-fitting inner ring around the Ballarat mine and which became available on Monday. [See Fig 1]

-- The new application covers ground surrounded on all sides by RRAL's existing licence applications.

-- Three other parties have also applied for licenses covering the ground demonstrating the strategic significance of this area.

   --    In total RRAL now has c 2,336 sq km of ground under application in the Victoria Gold Fields. 

-- RRAL has received several approaches from third parties to acquire interests in, joint venture or earn-in to the RRAL license package, in whole or part. Alongside the intention to list some or all of RRAL on a North American stock exchange RRAL is working with potential partners to assess external proposals.

-- RRAL continues work on equipping and staffing its headquarters office in Ballarat, and on technical planning for anticipated exploration and drilling programmes.

Red Rock Chairman Andrew Bell commented :

"As a Ballarat-based company with its focus on Ballarat, we consider that this ground would be a logical fit with our holdings in the area and enable us to further our mission of becoming a Ballarat specialist.

We anticipate further updates to the market in respect of RRAL in the near term."

FIGURE ONE http://www.rns-pdf.londonstockexchange.com/rns/5609E_1-2020-11-6.pdf

FURTHER INFORMATION

Joint Venture Company - RRAL

RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc ("POW"). Paul Johnson, CEO of POW and Andrew Bell are directors of RRAL.

Applications

RRAL has lodged applications for sixteen new gold exploration license areas covering approximately 2,336 km(2) in the Victoria Goldfields of Australia as follows:

 
License Application   Project Name     Area (km(2) 
 Number                                 ) 
EL007271              Blue Whale       133 
EL007281              Blue Chip        74 
EL007282              Blue Sky         489 
EL007285              Blue Ribbon      8 
EL007294              Red Queen        130 
EL007301              Mt Bute          85 
EL007327              Blue Stocking    60 
EL007328              Blue Yonder      168 
EL007329              Evergreen        486 
EL007330              Blue Angel       202 
EL007385              Sardinia                           4 
EL007460              Kilmore West     349 
State land 
 within EL007271 
 
 EL007505 
 EL007506                               [9 
 EL007507                                9 
                                         8] 
EL007540              Outer Ballarat   148 
 (3 competing 
  applications)* 
Total                                  c 2,336 
 

-- Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.

For further information, please contact:

Andrew Bell 0207 747 9990 Chairman Red Rock Resources Plc

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

Mark Treharne 0203 700 2500 Joint Broker Pello Capital Limited

Jason Robertson/David Cockbill 0 20 7330 1883 Joint Broker First Equity Limited

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END

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November 06, 2020 13:41 ET (18:41 GMT)