Kenya Exploration Update

Red Rock Resources PLC

Kenya Exploration Update

Drill Programme Begins at Central KKM Gold Prospect

10 August 2021

Red Rock Resources Plc ("Red Rock" or "the Company"), the natural resource development company with interests in gold, manganese and copper announces that following the recent receipt of all permits the Company is now beginning the reverse circulation ("RC") drill programme at the Central KKM Gold Prospect, the central part of the Mikei Gold Project ("MGP" or the "Project") in Kenya announced on 30 June 2021.

Elsewhere in the MGP Red Rock continues its exploration, with 54 line KM of the planned 115 line KM of IP survey covered in the Masurura area of the Eastern license.  In addition, a 300 line km magnetic survey has started at Kurutyange, also part of the Eastern License, following completion of an 11 Line km survey at the MK Prospect north of Central KKM.  

HIGHLIGHTS:

·    2,000m RC drill programme begins at central KKM prospect

·    Hole depths planned to be between 60m and 220m

·    Possibility of extending drill programme

·    54 line km of IP covered in Masurura area of the Eastern license.

·    300 line km of Magnetics survey started in the Eastern License.

This programme follows up some of the recommendations accompanying the announcement of a revised Mineral Resource Estimate ("MRE") on 22 February 2021, covering the five prospects which together currently make up the MGP.

The object of the programme is to improve the confidence and classification of future MREs at the MGP through infill drilling, and by targeted step-out drilling to potentially increase the size of the Mineral Resource.

Red Rock Project Manager Joseph Komu comments: "I am extremely excited that we finally have the necessary permits for the drilling contractor to mobilize to site and start drilling. We have 19 drill pads ready for the rig and the laboratory is ready to receive the first shipment of samples for assay in the coming weeks. We are optimistic that this initial programme will spur an extended drill programme that will advance the Resource to the next stages of development".

Further Details and Background

The MGP (100% owned by Red Rock) comprises two prospecting licences which cover approximately 245 km2, namely PL/2018/0202 and PL/2018/0203, over the Migori Greenstone Belt, and are located along the northern margin of the Tanzanian Craton. The licences extend 63 km along strike of the belt, which also hosts the Kilimapesa Gold treatment plant. The North Mara Gold Mine, which is operated by Barrick Gold, is located 30 km to the south of the MGP in Tanzania.

Regional exploration in the project area began in the early 1930s and culminated in the identification and subsequent mining of the Macalder volcanogenic massive sulphide (VMS) base metal mine.

In 2010, Red Rock began the extensive task of file organisation, data digitisation and compilation of available historical data, following which CSA Global (UK) Ltd performed cross-checks and validation steps prior to loading it into a Structured Query Language (SQL) database using Datashed. During 2011 and 2012, Red Rock undertook an infill drilling programme  at all five of the lode gold prospects; MK, Kakula-Kalange-Munyu (KKM), Kakula-Kalange-Munyu West (KW), Nyanza (NZ), and Gori Maria (GM) within PL/2018/0202.The Report published earlier this year documented the results of Mineral Resource estimation work initially conducted in 2011 and 2012 and revised in 2021 in order to report the Mineral Resources according to JORC (2012) guidelines.   

JORC (2012) differs from earlier editions of the JORC Code in that for a Mineral Resource to be estimated it requires the application of "reasonable prospects of eventual economic extraction" ("RPEEE") principles. This has resulted in the case of the Mikei MRE in the calculation of pit shells supported by conceptual cost and gold price forecast parameters. Any material outside or below the reporting pit shell was updated as "Not Classified" since it did not meet the criteria to be reported as a Mineral Resource.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

The total Mineral Resource Estimate, at both Inferred and Indicated levels, was estimated at:

15.13 Mt @ 1.49 g/t Au with contained metal content of 723 KOz Au

This compares with the Mineral Resource Estimate reported and announced in 2012 under an earlier edition of the JORC Code of 29.36 Mt at 1.26 g/t Au with contained metal content of 1,192.1 KOz Au.

Key Points of the Report:

·    MRE covered the five prospect areas covered by the 2012 MRE

·    Application of RPEEE principles required by JORC (2012) led to the exclusion of some previously estimated Resource areas and a consequent 39% reduction in Resource ounces of gold

·    Gold grade of the MRE for the same reason increased by 18% to 1.49 g/t

·    Some material previously stated as Indicated in the oxidised zone was downgraded to Inferred reflecting uncertainties relating to the terrain model and the extent of artisanal activity since 2012

·    Recommendations for a first stage step-out drilling programme were made to potentially increase the size of the MRE 

All prospects, except GM, were classified as Indicated and Inferred Mineral Resources. GM was classified as Inferred only, mainly due to the relatively low average RC drill recovery of 62%.

Due to the uncertain lateral extent and depth of artisanal mining at the Mikei prospects, and the lack of topographic data to accurately deplete the Mineral Resource, all oxidised material was classified as Inferred Mineral Resources.

The term "reasonable prospects for eventual economic extraction" (RPEEE) implies a realistic inventory of mineralisation which, under assumed and justifiable technical, economic and development conditions, might, in whole or in part, become economically extractable. The assumption is that the Mikei prospects will be extracted by open pit mining. The MGP block models were assessed for RPEEE by applying conceptual benchmarked costs to calculate reporting pit shells. The following conceptual parameters were applied for open pit mining:

·    Mining cost: US$3/tonne

·    Processing cost: US$22/tonne ore

·    Pit slope angle: 52°

·    Recovery: 90%

·    Royalty: 7%

·    Gold price: US$ 1,800/troy ounce.

The Mineral Resource was reported as that material within the RPEEE pit shells, and above a cut-off grade of 0.5 g/t Au. The Mineral Resource was reported as of 18 January 2021 (Table 1).

Table 1:   Mineral Resource for the Mikei prospects reported at a cut-off of 0.5 g/t Au, as of 18 January 2021

Note:

·    Computational errors may exist due to rounding.

·    Under JORC (2012)

·    Red  Rock owns 100% and therefore figures both gross and net to Red Rock

The technical information in this release has been reviewed by Mr Joseph Komu, a member of AusIMM and the Project Manager of the Project. He is a member of a recognised professional organisation and has sufficient relevant experience to qualify as a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies published by AIM .

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

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                                                                        Broker Pello Capital Limited