Wednesday saw Red Rock Resources (LSE:RRR) provide an update on its recently renewed and highly prospective gold project in Kenya.
After a prolonged dispute with the Kenyan authorities, the firm finally returned to the Migori project in August after many years.
Specifically, it was able to renew the two licenses that make up make up the property, which sits on a gold-rich greenstone belt lying between North Mara over the border to the south and Shanta Gold’s (LSE:SHG) growing project to the north.
Red Rock is now ready to forge ahead in its quest to build on the 1.2 million ounce (“Moz”) ‘starter’ resource it previously defined at Migori and realise this project’s enormous potential. And having raised £1 million at the end of September, the company is fully funded, and its stock looks primed to make a sharp move higher as news is rolled out.
On Wednesday, Red Rock announced that it has now satisfied all of the conditions associated with taking a 100% interest in Migori, as laid out back in June 2018. Namely, it has paid previous owner Kansai £25,000 in shares at 0.7p each as well as issuing it a $1 million promissory note, and granting it £500,000 worth of 30-month warrants exercisable at 0.7p each.
Meanwhile, the company also announced that it has appointed CSA Global to provide an updated mineral resource report for the project.
The purpose of the update is to bring the historic 1.2 million ounce mineral resource estimate into compliance with the JORC 2012 code. This will enable it to be reported as a code-compliant mineral resource estimate in accordance with an AIM standard.
Red Rock chairman Andrew Bell said: "Obtaining a 100% interest in 2018 was an important step forward in adding value to the Project and enables us now to deal in respect of the Project with a free hand. Red Rock has come a very long way since its first modest involvement in Kenya, which was on a farm-in basis, has overcome all vicissitudes, and now controls what we believe to be a significant and potentially expandable deposit.
“Our consultants will immediately begin the work to enable us to declare a compliant resource which we will notify as soon as it is completed. This is an important step in our planning process for the next phases of exploration which will be aiming to build on the existing resource ounces and grade.”
To read our recent, in-depth look into the Migori project, please click here.
Author: Daniel Flynn
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