What will RRR do with their New Gold & Established Manganese assets?
Gold
On the 17th of August 2009, Red Rock announced the conditional acquisition of a 60% interest in the 68km Migori greenstone belt in South West Kenya. The Migori belt is an Archaean greenstone belt, relatively lightly explored over the greater part of its length, but with historic gold and base metal production including the well known Mcalder VMS copper-zinc mine. The tenements have a 43-101 indicated resource of 1.72m oz gold.
Manganese
Over 90% of Manganese production goes into the manufacturing of steel, and in this application there is no known substitute for Manganese. High, or metallurgical, grade Manganese substantially comes from three areas currently: Australia, now the number 1 producer, South Africa, and Gabon. Manganese demand is therefore directly influenced by the industrial revolution affecting China and India, some 40% of the world’s population, and the growing demand for steel it has caused. India, a large producer of iron ore, does not enjoy the same position in metallurgical grade Manganese. The Manganese price, currently upto $12.00 per unit (so c. $600 fob for 50% Manganese), is expected to remain relatively stable while demand will increase.
The company’s extensive tenements at Oakover are north and north west of the Consolidated Minerals mine at Woodie Woodie, now one of the major world producers of metallurgical grade manganese, in what is currently the major emerging province for incremental production. They surround that company’s Ripon Hills manganese discoveries and adjacent areas. Limited test work on the licenses has encountered manganese grades generally in excess of 25% and sometimes exceeding 50%. The company is the major tenement owner in the area after Consolidated Minerals.
The first phase of the company’s exploration programme at Chiwefwe in Zambia has established an Indicated Resource of 2.36m tons of high grade Manganese at c.46%+ grade on a 550m strike length with a further 6 km of strike extension showing continuous mineralization. Further exploration and drilling are under way to bring further resources to Measured and Indicated status and test depth of mineralization.
The company’s aspiration is to become a significant producer in world terms in both the short and the long term and from more than one location.
Zambia *Chiwefwe :- The Mkushi permit covers an area of 400 hectares that straddles the Great North Road adjacent to the Tazara railway in central Zambia. Preliminary geological assessment has indicated the presence of a “significant deposit” with the potential to contain “a substantial tonnage of around 50 p.c. manganese”.
Australia *Oakover, Western Australia (WA):- Four tenements are held in the East Pilbara manganese province covering 695 sq km. Limited test work has encountered manganese grades generally in excess of 25% and sometimes exceeding 50%.
SRT Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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