3rd Oct 2005 07:00
Red Rock Resources plc03 October 2005 Red Rock Resources plc Acquisition of uranium and iron ore properties in the Northern Territory ofAustralia Dated: 3 October 2005 Red Rock Resources plc ("Red Rock" or the "Company") the mineral exploration anddevelopment company focussed on advancing iron ore, uranium and manganeseprojects in Western Australia and in Tasmania announced today it has purchasedfive mining tenements in the Northern Territory of Australia from Tennant CreekGold Limited ("TNG") for a consideration of £475,000 satisfied in full by theissue of 19,000,000 new ordinary shares in the Company ("New Shares") at 2.5pper share. The Company has made application for the New Shares to be admitted totrading on the AIM Market of the London Stock Exchange from 6 October 2005. Highlights • Red Rock acquires a portfolio of uranium/iron ore projects in Northern Territory; • Portfolio concentrated in major uranium exploration areas, Pine Creek Geosyncline and Rum Jungle Uranium Field; • Portfolio includes Woolgni/Edith River with four uranium projects identified and explored in 1950s showing disseminated mineralisation over wide area; • High grade gold trenching and rock sampling results at different prospects at Woolgni indicating up to 31 g/t gold; • Celia and Marrakai known uranium targets in prolific Rum Jungle Uranium Field; • Licenses include some well known Northern Territory iron ore resources and targets near Stuart Highway with major tonnage potential to new Darwin port facilities; and • Uranium potential of licenses previously under explored due to State Government opposition to uranium. The properties are: Woolgni / Edith River EL 23568 474.9 sq km EL 23569 1,569 sq km (including MLA 24342 over 1.64 sq km) The Woolgni and Edith River granted exploration licenses are located some 220 kmsouth east of Darwin and 35 km south east of Pine Creek. At Edith River several uranium prospects were discovered in 1952 in an intrusionof Lower Proterozoic granite (the Cullen granite) reported to be overlain to thewest of the known prospects by Cambrian sandstones. Disseminated uraniummineralisation associated with hematite and apatites was identified at fourlocations on shear zones and was then partially mapped by Bureau of Mines andResources geologists: 1) the YMCA prospects, 1 to 3 miles SE of the Edith River siding; 2) the Tennysons prospects, 2 miles WSW of the Edith River siding; 3) the Hore and O'Connor's prospect, 5 miles WNW of the Edith River siding; and 4) the Yenberrie prospect, 5 miles N of the Edith River siding. The surface grade has been estimated as ranging from 0.1% to 0.2% uranium. Twooccurrences at the YMCA prospects were drilled in 1954, with one drill hole eachin the oxide layer and one each drilled to intersect primary mineralisation,which did not encounter significant increase in grade. United SalesInternational Pty in 1971 noted that the disseminated nature of the occurrencesdid not offer easy drill targets and recommended a study to locate areas ofintersecting shears, the carrying out of low level radiometrics with groundfollow-up, and the identification of areas of Cambrian and late Proterozoicsediments lying unconformably on the Cullen Granite and their testing forsedimentary deposits of uranium. Mining at Woolgni began in the late nineteenth century when alluvial gold beganto be extracted. In recent times, trenching has been carried out, with resultsincluding 3m Au at 2.33 g/t, 10.7m at 4.44 g/t, and 4.3m at 5.18 g/t. Anotherhighly anomalous gold prospect 1.5 km to the west of the Woolgni prospect hasproduced results in rock chip samples ranging from 0.21 g/t to 31.1 g/t Au. The licenses contain significant gold and uranium targets and furtherexploration is considered likely to identify additional prospect areas. Thetenements lie on the Pine Creek Geosyncline near the Stuart Highway, with a goldtreatment plant nearby and good infrastructure. Celia ELA 24414 13.2 sq km The Celia prospect consists of a exploration license application some 4 km eastnorth east of the town of Batchelor in the south of the Rum Jungle Uranium Fieldon the contact with the granite intrusion. Previous exploration including twodrill programmes has developed an indicated resource of 10m t of low silicaMagnesite at 45%+ grade, with potential for expansion. There is a known goldoccurrence. The area is in the heart of a major uranium mining province close to severalrecent uranium discoveries and with the presence of magnesite showing proximityto the redox boundary, is considered highly prospective for uranium. Overflights in the 1960s detected a number of uranium anomalies but no follow upwork was carried out. The property is near the old Rum Jungle Mine and theuranium properties being developed by Compass Resources NL. Hayes Creek South ELA 24432 130.1 sq km The Hayes Creek license area is situated 160 km south-south east of Darwin andabout 8 km east of the Douglas homestead. The area is a significant under explored polymetallic target centred on theHayes Creek fault and possible related splay structures forming structuralcorridors. In 1969 an iron rich bed was traced over 9.65 km with rock chipsamples assaying: Iron Manganese 44.9% 3.4% 49.0% 2.8% 56.3% 3.8% 14.5% 37.05% 48.0% 5.3% In 1987 rock chip samples gave highest readings of 15 g/t Au, 15 g/t Ag and57.28% Fe. 1990 fieldwork identified three ferruginised breccia zones parallel with thefault zones, one of which forms for several hundred metres a cliff of massivehematite. Indications of uranium mineralisation, as well as possible massive high tonnageiron ore below Quaternary cover, and manganese and gold mineralisation requirefollow up by systematic exploration of the area. The area is considered underexplored with major mineralized structural corridors hosting significant ironore mineralisation that has never been drill-tested. Daly River ELA 24391 20.04 sq km The project is among the best known iron ore prospects in the NorthernTerritory, where infrastructural constraints and low iron ore prices have untilrecently discouraged active exploration. A large portion of this area situatednear the western edge of the Pine Creek Geosyncline close to the old StuartHighway consists of outcropping hematitic iron ore, with ironstone lenses nearthe base of a highly lateralized sequence of Cretaceous claystone porcellanite,siltstone and sandstone capped by remnants of nodular laterite. The iron oreoccurs at surface as dark red boulders of varying size and outcrops. In 1967-8 10 percussion holes were drilled for iron ore, with phosphorus contentgenerally under 0.1%, and resources were estimated at 126m tons. A follow-updesktop survey by the Northern Territory Mines Department concluded that theprospect potential could be 15-20m tons. Kratos Uranium NL later carried outwork in the area, including drilling 15 short percussion holes totaling 225mwith assays from 28.9% to 55.4% soluble iron and other assays up to 52.9% totaliron. October 2004 rock chip samples taken by Tennant Creek Gold Ltd and theSenior Exploration Geologist of the Northern Territory Geological Survey overthe central part of the prospect gave an average of 52% Fe. Most of the areas of potential within the prospect are barely explored, andnumerous magnetic anomalies in the north of the license detected by regionalwide-spaced aeromagnetics have not been systematically tested. Where thewide-spaced and shallow drilling carried out to date has intersected iron oremineralisation, no follow-up work has been completed. Very little geologicalmapping or geochemical sampling has been carried out. The likelihood thatfurther exploration would enable further substantial high grade iron oreresources to be delineated is considered to be considerable. Marrakai ELA 24614 20.3 sq km The Marrakai license lies 75 km south-east of Darwin on the eastern side of theArchaean Rum Jungle Uranium Field. In 1963 several limonitic ironstone replacement deposits in brecciated zonesalong limbs and crestal parts of a large NE trending anticline were identified.Limited rock chip sampling gave results at 31% and 35% Fe. A theoretical modelbased on the Frances Creek iron ore deposits has been posited, indicating thepossibility of massive super gene ore bodies with little surface expression. Noiron ore exploration has been carried out since the 1960s, but the area has seenexploration in the 1980s and 1990s directed at gold, base metals and uranium. Independent Appraisal The Company commissioned Al Maynard Associates, consulting geologists, toprepare an independent geological report and valuation of these mineralexploration assets. The valuation has been provided by way of a study oftechnical information provided by TNG, the Company and other relevant sourcesand prepared in accordance with the requirements of the Valmin Code (1999) asadopted by the Australian Institute of Geologists (AIG") and the AustralianInstitute of Mining and Metallurgy ("AusIMM"). The report was prepared Allen J.Maynard who holds the appropriate qualifications, experience and independence toqualify as an independent "Expert" under the definitions of the Valmin Code. Under the guidelines for assessment and valuation of mineral assets and mineralsecurities as adopted by the AusIMM Mineral Valuation Committee Al MaynardAssociates estimates the current technical value of the mineral explorationassets to be between AUS$1.63 million and AUS$1.96 million. The directors believe that these properties are of value for two principalreasons: 1. Several of the properties have identified uranium mineralisation or uranium anomalies, or are in a mineral field chiefly known for its uranium occurrences. Others lie along the Pine Creek Geosyncline, which is associated with uranium mineralisation in many places, and contain iron ore mineralisation indicating that they lie near the redox boundary in areas where the basement rock is known to carry uranium. The uranium potential of these licenses justifies active exploration following the recent decision of the Federal Government to take control of uranium policy in the Territory from the Northern Territory government. 2. The properties lie on or nearby the Stuart Highway and railroad leading north to Darwin, and the Darwin port expansion enabling handling of bulk cargoes is anticipated to be completed within the next year. High grade deposits of iron ore near the Highway, even if of moderate size, will become economic for transport and shipping from Darwin at that point, and the acquired tenements include recognised deposits that may fall in this category and have capacity for resource expansion through exploration. These tenements will become more valuable upon completion of the port facilities. Additionally, some attractive gold targets lie within the tenements and meritexploration. The directors believe that the mineral potential of the Northern Territory isunder explored, primarily because of lack of infrastructure, but that theinfrastructure improvements, the simplicity of the Native Title system withinthe Territory, and the opening up of the uranium exploration market, offersignificant opportunities both within the existing iron ore and manganese focusof the company, and for economic discoveries of gold and especially uranium. Enquiries: Andrew Bell 07766 474849 Red Rock Resources plc Chairman John Simpson 020 7512 0191 ARM Corporate Finance Ltd Nominated Adviser Ron Marshman / John 020 7628 5518 City of London PR Limited Public RelationsGreenhalgh This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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