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Red Rock to start mobilising Greenland project this month

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Miner Red Rock Resources (LON:RRR) is to start mobilising for its iron ore exploration project in north-west Greenland as the area moves into its period of twenty-four hour sunshine.

The project is aiming to define a JORC-compliant mineral resource estimate for one or more of the Melville Bugt iron ore target areas by gathering up to between five and six thousand metres of diamond drill core.

It will also continue the detailed reconnaissance mapping it started during its maiden field season last year.

“The promising mapping, assay and geophysical survey results obtained by Red Rock Resources at Melville Bugt during 2011 indicate the potential for economic quantities of both magnetite and haematite iron ore mineralisation,” it said.

The field season will run from late May until early October with drilling expected to proceed from early June and end in September.

Twenty-four hour daylight begins in late April but sea ice limits boat access until June, so Red Rock will initially set up an air-mobilised base camp, with two heli-portable diamond drill rigs for exploration drilling.

Once the sea ice subsides in late June, it will be able to carry over a larger drill rig by charter vessel to commence a larger-scale drill programme.

It said is funding the 2012 Greenland exploration programme with resources received from the royalty sale transaction with Anglo Pacific, as well as from other liquid assets and facilities. 

Red Rock, which also has a Colombian gold-producing mine and a Kenyan gold and copper project, has an earn-in agreement with North Atlantic Mining Associates (NAMA) under which it has already earned 25 per cent in Melville Bugt.

It has the right to increase this percentage by 60 per cent by funding 2012 exploration and declaring a JORC or NI 43-101 resource.

The share price rose 11 per cent to 1.94 pence.


 

 

Quick facts: Red Rock Resources PLC

Price: 0.34 GBX

AIM:RRR
Market: AIM
Market Cap: £2.37 m
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