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Red Rock Resources cuts costs at El Limon

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Red Rock Resources (LON:RRR) has revealed it has slashed cash costs at the El Limon gold mine in Colombia.

The company decided to focus on cost control rather than volume production last year and managed to bring the cash cost in the final quarter down by a half from US$1,913 an ounce to US$964 an ounce.

It comes as the company revealed violent incidents, which brought mining activity to a halt, have now subsided and the stoppage has now come to an end.

Ashmont Resources is preparing to visit El Limon ahead of making a potential offer for the mine.

Chairman Andrew Bell said: “The improvement in Colombia operations is a tribute to the work of our team over the last year in bringing costs under control at the same time as improving the plant and increasing mine development.

“In the recent seven week stoppage we hardly lost a shift, and we now aim to further reduce downtime by improved maintenance and inventory management.

“At the same time we will be conducting a health and safety review, and improving the work of our metallurgical laboratory.

“The project remains for sale, but we are aware of the advantages that might accrue from holding it at a time when gold prices seem to be recovering, provided that we can assure ourselves of a consistency in the operations of this small mine.”

Red Rock also said that confirmation of an offer for its 60% stake in Nama Greenland is “subject to administrative clearance which is being sought from the relevant authority”.

Quick facts: Red Rock Resources PLC

Price: 0.34 GBX

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