Red Rock Resources (LSE:RRR) will push forward in the Democratic Republic of Congo (“DRC”) with a second round of work at its Luanshimba copper/cobalt project. The natural resources development player was trading at 0.3p on Tuesday after revealing that the work will enable it to “test hypotheses and step up activity quickly if justified” at the asset.
Red Rock will begin by carrying out pitting in two areas identified as being strongly anomalous for both copper and cobalt in a successful initial round of work completed in 2018. It will then follow up with trenching in any areas where mineralisation is encountered.
The organisation will also carry out geophysics over the as-yet-untested north-west sector of the property, carrying out pitting once these results have been interpreted.
To avoid the risk of artisanal miners exploiting the project, Red Rock will begin to seek out quotes for its next round of work immediately if significant copper mineralisation is encountered. The company said this would likely take the form of reverse circulation drilling.
Chairman Andrew Bell said Red Rock was working to build on “very promising” results from its first round of work that suggested the presence of mineralisation at depth.
“As the wet season ends, we want to take the opportunity to follow up these earlier results and find out more about the mineralisation and the lithological units in which it is contained,” he added.
The director also hailed the DRC as “one of the world’s most prospective environments for the minerals we seek”.
Red Rock’s work at Luanshimba forms just one arm of its ongoing operations, which span sectors such as steel, and oil & gas, and countries like South Africa and Benin.
Of particular interest is the firm’s Migori gold project in Kenya, which contains a 1.2-million-ounce gold resource. The company, alongside its investors, is currently appealing the termination of the licences covering Migori back in 2015.
If it is successful in upending this decision, then the project could potentially provide a great deal of upside in a market that is presently booming due to fears surrounding coronavirus. Indeed, Migori presents project life of mine revenues from gold sales of $95 million against capital costs of just $3 million at $1,200 an ounce gold – the precious metal currently sits much higher than this at $1.651 an ounce.
With Red Rock’s market cap currently sitting at just £2.2 million, removing the legal block at the asset could be a real game-changer.
Author: Daniel Flynn
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