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Red Rock Resources reports broad progress across its investments

Published: 11:38 18 Aug 2010 EDT

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Red Rock Resources (LON:RRR) provided investors with an update on the progress being made by its associates. The company highlighted that at the Colombian gold projects - owned by Mineras Four Points (MFP) - mining operations are slated to resume by 30 November 2010.

Elsewhere, a new drilling programme is expected to get underway in September at the Migori Gold project, geophysical work began at Resource Star’s (ASX:RSL) project in Malawi, and shareholders of Jupiter Mines (ASX:JMS) have just approved the transformational Tshipi manganese deal.

At MFP's El Limon gold mine Columbia, new plant equipment has been delivered and it will be installed over the next couple of weeks. The company has its foot in the door through a loan facility extended to MFP and an option to acqure up to 51% of the business.

Additionally, the first phase of underground safety and access improvements are nearing completion, and the sand blasting and plant inspection is now underway. The target date for the plant renovation to be complete and for production to recommence at 100 tons per day is now 30 November 2010.

Meanwhile, at MFP’s La Aurora mine, a new crushing plant has been delivered and will be installed shortly. La Aurora is also expected to resume operations by 30 November, at which point it will supply the El Limon processing plant with up to 20 tons per day.

At La Aurora, the license area is currently being remapped, and so far the consultant geologist has provisionally identified a new sulphide-bearing vein which runs “close to and east of the main vein”. The company said that further exploration will continue to establish the continuity and mineralisation of the vein.

Under the terms of the financing deal between Red Rock and MFP, the AIM-listed company has an option to acquire 51% of the gold projects.

At the Migori gold project in Kenya, an airborne magnetic/radiometric survey began earlier this week and is expected to be completed within seven days, and the results are expected in September.

The company noted that preliminary interpretations of just 378km have been received ahead of schedule and “although no additional targets were identified along strike of the Macalder mine, some possible base metal targets have been generated within the survey area”.

As well as the survey results, the findings from a number of other studies are expected shortly with leaching testwork results expected from Amdel Laboratories in September, and a JORC-compliant resource estimate of the Macalder tailings is due imminently.

Subsequently, Red Rock expects to finalise a drill programme in September, to cover between 5,000 and 10,000 metres.

Last week, Red Rock's 26.3% held associate, Resource Star (ASX:RSL) began an airborne New Resolution Geophysics (NRG) over the Ilomba Hill uranium/niobium/rare earth prospect in Malawi. Poor weather brought the survey to a halt, after covering approximately 20% of the survey. The company expects the survey to be resumed, and then completed, shortly.

Two separate drilling programs are being planned at Livingstonia in Malawi, and in the Northern Territory of Australia.

In relation to Jupiter Mines, Red Rock confirmed that the Tshipi manganese transaction will be completed shortly and subsequently the AIM-listed company’s stake will be diluted to 5.23%.

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