Red Rock reports progress in Burkina Faso, DRC

5th Apr 2024 11:49

(Sharecast News) - Natural resources developer Red Rock Resources updated the market on two key areas on Friday, being the ongoing arbitration in the Democratic Republic of the Congo (DRC) related to the VUP copper-cobalt joint venture, and developments regarding its gold assets in Burkina Faso.

The AIM-traded firm said that regarding the arbitration in the DRC, on 5 February it had noted the pending finalisation of the arbitration award concerning its claim for proceeds from a joint venture asset sale.

Following interruptions caused by presidential elections and administrative changes, the company said it had continued pursuing a resolution.

Recent discussions with former joint venture partners had led to potential consensus on Red Rock's position, raising optimism for a swift resolution.

In Burkina Faso, building on previous announcements, Red Rock confirmed ongoing progress with its gold assets.

A team, including technical partners, was currently on-site at Bilbale.

Their assessment reaffirmed earlier findings regarding grade and potential, aligning with the company's strategic direction outlined in previous communications.

Notably, the imminent arrival of the first gold wash plant, expected via air transport, signified the start of operations, with plans for expansion to multiple locations in the near future.

"The first team on site will be preparing a report giving further detail that we will hope to be able to share with the market as early as next week, whereupon Mr Samuel and myself will relocate to Burkina Faso to be on site for the whole period of transition into stable gold production and to prepare for larger scale mechanised mining," said chairman Andrew Bell.

"This reflects the importance to us, and the potential scale, of this first project at the Bilbale gold mining camp.

"The presentation on the Burkina Faso project remains available on the company's website, broadly unchanged, with conceptual parameters reflecting our expectation of the range of possible outcomes."

At 1107 BST, shares in Red Rock Resources were up 4.17% at 0.06p.

Reporting by Josh White for Sharecast.com.