- JORC resource estimates completed at 0.5 g/t Au cut-off: 29.4 mt @ 1.26 g/t Au with contained metal content of 1.193 MOz Au
- Commencement of feasibility study on Nyanza gold deposit
- Mining Lease Application ("MLA") submitted to the Kenyan Department of Mines and Geology for the reprocessing of the Macalder Tailings
- Planning for regional exploration in 2014 underway to discover new anomalous targets and resource extensions with a view to expanding the existing resource base and classification
- Stage one of Bankable Feasibility Study currently underway
- Migori Project
Red Rock holds a 15% direct interest in Mid Migori Mining Company Ltd (“MMM”) and 32.27% indirectly through its 37.96% investment in Kansai Mining Corporation Ltd. MMM is the holder of SPL122 and SPL202. Upon completion of a Bankable Feasibility Study (“BFS”), Red Rock will be entitled to a 60% direct interest, bringing its total to over 75%.
SPLSs 122 and 202 are located 20–30km north of the operating North Mara gold mine in Tanzania and immediately east of Lake Victoria in SW Kenya.
The licences cover the strike length of the Migori Greenstone belt which hosts felsic and mafic intrusives, banded iron formations ("BIFs") and metasediments. Red Rock focusses on the exploration of gold and base metal mineralisation. The deposit at Macalder is a Volcanogenic Massive Sulphide ("VMS") base metal system of copper and zinc with accessory gold, silver and lead mineralisation. The tailings dump at Macalder is the remnant of colonial era mining of the Macalder deposit.
Mikei Gold Project ("MGP")
Validation of the historic resource estimate was finalised in Q4 2012 with the JORC resource estimation carried out by CSA Global (UK) Ltd. The resource lies over five major zones within the Mikei Shear zone. The first resource to be validated was the KKM prospect at the end of 2011 followed by Nyanza (NZ), Gori Maria (GM) and KKM-West (KW) in July 2012 and MK in December 2012.
|Mikei Gold Project: 2012 JORC indicated and inferred resource estimate (0.5g/t Au cut-off)|
|mt||g/t Au||mt||g/t Au||mt||g/t Au||Metal KOz|
|Gori Maria (GM)||0||0||3.8||1.16||3.8||1.16||141|
NB. Apparent errors may occur due to rounding
A pit optimisation on the MGP was carried out in Q2 2013 with the NZ prospect followed by the MK prospect showing the best potential as starter pits due to lower metal price sensitivity and favourable conversion from Mineral Resources to diluted pit shell metal inventories (NZ ~77%).
The Company has signed an agreement with South African-based consultancy, Applied Geology and Mining (Pty) Ltd (AG&M), to commence a preliminary technical and economic assessment which constitutes the first stage of a feasibility study on the NZ gold deposit. Upon completion of a Bankable Feasibility Study (BFS), Red Rock will hold over 75% attributable interest in the MGP.
This technical and economic study of the NZ deposit will inform the parameters and requirements for the next stages of the feasibility work. This will include a detailed techno-economic valuation; environmental and social impact assessment (ESIA); mine and plant design; and engineering and procurement studies.
Nyanza Block Model at 0.5 g/t Au cut-off
Nyanza Block Model at 1.5 g/t Au cut-off (highlighting the high grade zone)
Migori regional exploration
Following the 8,000 m regional aircore drilling programme in 2011, interpretation work has been ongoing including planning of advanced exploration work over potential high grade targets based on significant aircore results (1.0 g/t Au or more as announced in April 2012).
The next phase of work will involve re-processing of the geophysics data to identify any previously unknown structure that may be controlling mineralisation and assessment of the aircore drilling technique for early stage exploration over other grassroots areas.
Scout drilling was also carried out at regional targets in 2011. The next phase of work is currently being planned to follow up positive/anomalous results (e.g. at Kehancha in SPL202, an intersection of 12.9m at 3.72 g/t Au was drilled) with a view to identifying new, potentially economic targets and expanding the existing resource base.
The Macalder deposit was discovered in the mid-1930s and mined for copper and gold. The tailings produced from the mining were deposited adjacent to the mining area near Macalder town. To this day, the tailings still contain economic levels of residual gold mineralisation. In August 2012, Mining Lease Application (MLA) was lodged at the Kenyan Ministry of Mining to allow the company to start investigating mine planning and construction options.
|Macalder Tailings: 2011 JORC Measured Resource Estimate|
|Prospect||JORC Classification||mt||kOz Au||g/t Au||Cut-off g/t Au|
|Macalder Tailings||Measured||1.3||68||1.65||No Cut-Off|
3D view of Macalder Tailings measured resource block model
Historic leach tank at Macalder
Bankable Feasibility Study
In January 2014, the Company has signed an agreement with South African-based consultancy, Applied Geology and Mining (Pty) Ltd ("AG&M"), to commence a preliminary technical and economic assessment which constitutes the first stage of a feasibility study on the Nyanza ("NZ") gold deposit.
This technical and economic study of the Nyanza deposit will inform the parameters and requirements for the next stages of the feasibility work. This will include a detailed techno-economic valuation; environmental and social impact assessment (ESIA); mine and plant design; and engineering and procurement studies.
Upon completion of a Bankable Feasibility Study ("BFS"), Red Rock will hold over 75% attributable interest in the Migori Gold Project.