Monday saw Red Rock Resources (LSE:RRR) add an option over former gold and silver mining and exploration assets in eastern Slovakia to its global project portfolio.
Red Rock has already paid vendor Mr Lubomir Konkil and his associated parties €10,000 for a due diligence period ending 21 September 2020 over the assets.
The firm has also paid €23,000 for a 50% stake in the Zlata Bana licence, which covers around 12km2.
Like many porphyries and other gold deposits in Eastern Europe, Zlata Bana has not undergone systematic modern exploration despite historical success.
Red Rock's chairman Andrew Bell said that this presents the company with an opportunity to create considerable value with a shortened path to production:
"This is an exciting potential addition to Red Rock's silver/gold pipeline and balances the portfolio in terms of risk and geographic spread.
We consider that applying modern geochemical and geophysical techniques to this historic asset will open up new exploration possibilities."
Should Red Rock exercise its option, then it would acquire a 50% interest in land and buildings, vehicles, mining equipment, a permit over a mineral stockpile, and mining information and data.
In exchange for this, the company would establish a joint venture with Konkil and issue €250,000 of new Red Rock shares to the vendor alongside a further €100,000 of shares upon completion of the asset transfer.
It would also be responsible for a portion of the joint venture's expenditures, a sum that is expected to amount to "not less than €100,000" in 2020.
Monday's development follows the news at the end of August that Red Rock has secured the long-awaited renewal of its licence areas covering the Mikei and Macalder gold projects in south-west Kenya.
The projects were 75% beneficially owned by Red Rock until a renegotiation with its partners in 2018 that will see ownership interest rise to 100%. They cover 245km2 in the under-explored Migori gold belt near Barrick's North Mara gold operations in Tanzania.
Migori's greater Mikei area already boasts a 1.2Moz JORC gold resource, while tailings on the property from the Macalder VMS present another 68,000 ounces of the precious metal ready for early production. The latter are in the most valuable Measured category.
The projects offer a great deal of upside potential, with a key component of Red Rock's regional activities focusing on identifying new potentially economic areas of mineralization and expanding the project's existing resource base.
Author: Daniel Flynn
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