17th Jan 2014 12:52
LONDON (Alliance News) - Red Rock Resources PLC Friday said it has signed a preliminary technical and economic assessment agreement for its Nyanza gold deposit in Kenya with Applied Geology and Mining Ltd.
The mineral exploration company said the agreement constitutes the first stage of a feasibility study for the site, which is part of the wider Mikei gold project in south west Kenya.
The Mikei site has a JORC compliant indicated and inferred mineral resource of 1.2 million ounces of gold at 1.26 grams a tonne of gold. When a bankable feasibility study at the site is completed, Red Rock will hold over 75% interest in the Mikei project.
The technical and economic study will include a detailed techno-economic valuation; environmental and social impact assessment; mine and plant design; and engineering and procurement studies.
The company also said its 50.1% owned Four Points Mining SA has told the company that the El Limon mine in Colombia has made sales of 406 ounces of gold in December and 111 ounces of gold on January 5, representing an improving trend in its gold sales.
Red Rock said it continues discussions with parties who have expressed interest in purchasing its Colombian assets.
Finally, the company said it awaits an update on progress regarding the sale of a portion of its Greenland interests.
Red rock shares were up 0.9% to 0.570 pence Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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