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Uranium

Uranium represents the only major long-term energy source that can replace or compete with fossil fuels and that can enable industrialized countries to meet their Kyoto obligations. The long term prospects for uranium are strong, and there is a need for a greater geographical diversity of source.

In August 2007 Red Rock signed a deal with Retail Star Ltd (RSL) the company believes will create significant shareholder value. In return for transferring all the Red Rock Uranium licences to RSL, Red Rock received up to 29% of RSL’s issued share capital, two seats on the board of directors, which with the appointment of a Red Rock appointed Managing Director, gives Red Rock board and management control.
Ian Scott was appointed as MD of RSL at the time of the deal. Ian has spent his career working in the exploration and mining of Uranium, he was previously chief geologist at Olympic Dam. Ian’s experience and the Au$2m RSL has in cash will be used to further explore Red Rock’s Uranium assets. An exploration programme is now underway.

The company’s assets include uranium occurrences and prospects at Chintheche and Machinga in Malawi and at Woolgni, Celia, and Marrakai in the prospective belts of the Northern Territory of Australia. The Northern Territory is the historic location for several uranium mines, but until recently opposition to uranium mining by the Territory Government was an obstacle to exploration. Malawi is the location of a major uranium project, discovered by the Central Electricity Generating Board of the U.K. and now being developed by Paladin Resources of Australia.

Previous exploration by Uranerz at the company’s Mt Alfred iron ore tenement in WA has also identified uranium.