Highlights
- El Limon and El Mango gold mines owned through 50.002% subsidiary Four Points Mining SAS (“FPM”)
- Prime location 6km south of Zaragoza on the Frontino Gold Belt
- Appointment of highly qualified Mine Manager
- The Company has received an offer for its holding in FPM
Location
Both mines are located in northern Colombia, in the region of Antioquia, between Zaragoza and Segovia, along a series of north–south trending structures collectively and loosely known as the Frontino Gold Belt.
Assets
- El Limon
- El Mango
Red Rock Resources’ interest
Red Rock owns just over 50% of local operator FPM and also has an outstanding loan of US$2.25 million to FPM.
Geology
The north-east of Antioquia is mainly composed of rocks of Pre-Cambrian, Palaeozoic and Jurassic origin. The region is dominated by the Otu-Bagre fault system, a series of crustal scale structures striking broadly north–south. These structures date from the Pre-Cambrian but were reactivated in the Triassic, during the Andean Orogeny, allowing magmatic emplacement, the circulation of hydrothermal fluids and mineral deposition.
The Frontino Gold Belt is a major mesothermal gold field stretching for over 60km from Remedios in the south to Zaragoza in the north. It has historically provided up to 45% of Colombia’s gold production and is characterised by depth and continuity of mineralisation. The El Limon and El Mango mines are located within the Belt to the west of the Otu Fault.
History
El Limon has a production history spanning 60 years. More than 350m deep and over seven levels, the mine has a history of producing high grade ore through the exploitation of the narrow high grade vein deposits prevalent in the area. Production was restarted in 2011 after a ten year gap. The El Mango mine has no history of production.
The area has a known mining history going back to the Spanish conquistadors. It hosts some of Colombia’s best known mines and a number of interesting exploration projects.
Work to date
The mine has been in production throughout the second half of 2011 and the first half of 2012 after its restart of the mine following the 2011 refurbishment. A further programme of improvements at the mine focussed on the mine transportation system and improved working practices has resulted in an increase of ore volumes extracted from underground.
Improvements at the plant have also continued with investment in upgrading process components and metallurgical test work. Recovery grades at the plant have increased from less than 70% to being consistently over 85% over the year.
Development work has been delayed as a result of management changes. Level 8 has now resumed and is expected to be completed in the fourth quarter of 2012.
In 2012 FPM became the subject of an offer by a private institution. The offering party is currently working on deal documentation.
