Red Rock Resources PLC highlights extensive gold exposure across multiple jurisdictions, and updates on activities in the DRC
The company set out details of its overall portfolio to the market on Tuesday morning, listing in order:
- The Western licence, containing a JORC indicated and inferred Resource of 15.13mln tonnes at 1.49 grams per tonne gold for contained metal content of 723,000 ounces
- New exploration targets identified by recent work in Eastern license, Kenya
- A significant new target zone identified in Western license, Kenya
- A tailings deposit containing 68,000 ounces grading 1.7 grams in Kenya
- A gold royalty over the producing El Limon mine in Colombia
- A 50.01% stake in Red Rock Australasia Pty Ltd, which is preparing to list its Victoria gold assets
- A new gold exploration subsidiary in the greenstone belt of the Côte d’Ivoire
- A new gold exploration subsidiary in the greenstone belt of Burkina Faso
“After reaching highs above $2000/oz in late Summer 2020, gold has underperformed most other asset classes since, as it came back to consolidate around its breakout levels,” said Red Rock chairman Andrew Bell.
“There are now signs, with the better performance in the last month, that it is breaking this downtrend, in which case it may reach or exceed last year’s highs in the next months. We have some confidence that fundamentals can support it at or around current levels.”
He noted further that with Cluff no longer present, Red Rock is the only listed British exploration company with a permanent presence in Burkina Faso and Côte d’Ivoire.
“We remain more a gold company than anything else, and as gold rises again through $1850 an ounce, and hits new highs in some currencies, we want to be positioned to take advantage,” he added.
Separately, Red Rock updated on a legal tussle has broken out in relation to its VUP project in the Democratic Republic of Congo.
Proceedings have been instituted by the company’s local partner, VUP SA.
Red Rock has served an Ordonnance de Saisie Conservatoire (precautionary attachment) order on VUP and taken other measures locally to protect its interests.
As at the 30 June 2020 balance sheet date, Red Rock was carrying the Project in its books at £583,000.
Meanwhile, the company continues to work on the Galaxy project in the DRC, as well as on lithium opportunities, and to assist the administrators of Vector Resources Ltd in regard to its Congolese gold assets.