Red Rock Resources (LON:RRR) shares were lifted today after it unveiled positive test results from the Mikei gold project in Kenya.
The metallurgical tests were from four prospects within the project, which has five linked deposits, and the tests were considered "positive" in terms of economic resources.
The four areas, from which samples were taken, were Nyanza (NZ), KKM, KKM-West (KW) and Gori Maria (GM).
Wardell Armstrong International carried out the tests on 27 samples at labs in Cornwall, UK.
The results from all prospects, indicated "good" gold recoveries, and support the potential for using cyanide leaching for mining.
At NZ gold recoveries of 90 per cent are achievable, 80 per cent is achievable at KKM and KW.
At GM, 90 per cent was found to be achievable on the oxidised type of ore, while 50 per cent recovery is possible on the fresh material, Red Rock said.
The firm added today that a mineral resource estimate was underway for the NZ, KW, GM and MK prospects with first results expected shortly.
In December last year, it was reported that the KKM prospect hosted an indicated and inferred JORC Resource of 17.8 Mt at 1.01g/t gold for 577,000 ounces gold.
And the whole Mikei project was estimated, by a previous operator, in 2006, to contain 1.17 million ounces of gold.
However, Red Rock has said that estimate used limited structural control and there were concerns about certain aspects of the estimate.
Red Rock has an iron ore project in Greenland, a gold Resource in Kenya, a producing gold mine in Colombia and interests in steel feed, uranium and rare earths.
In a separate statement, the company announced today the beginning of drilling at the Melville Bugt iron project in Greenland.
After successful sampling results last year, the first drill target is at the Havik East prospect, which is testing banded iron formations outcropping over a 2.5km strike length. A heliportable diamond drill rig is being used, operating 24 hours a day.
The firm aims to compile a maiden JORC-compliant resource estimate.
Red Rock added that once conditions allow, likely to be next month, two further drills with equipment, additional camp structures, and other supplies will be mobilised.
Drilling will then start on a second phase on drill targets at De Dødes Fjord some 40km to the east of base camp, with the aim of getting another JORC resource estimate.
Red Rock 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 to 60 per cent by funding 2012 exploration and declaring a JORC resource.
Shares were up five per cent, to trade at 2.10 pence each.