Red Rock Resources Regulatory News (RRR)

7 Nov 2006 07:01

Red Rock Resources plc07 November 2006 RED ROCK RESOURCES PLC Preliminary results for the year ended 30 June 2006 Dated: 7 November 2006 Red Rock Resources plc ("Red Rock" or the "Company") the mineral exploration anddevelopment company focussed on advancing iron ore, uranium and manganeseprojects in Australia and in East Africa announced today its preliminary resultsfor the period ended 30 June 2006. Chairman's statement The year to 30th June 2006 was the first full year of the company's existence,and was marked by a series of milestones, some of which have been previouslyreported, but which I shall briefly recapitulate. Corporate events - Half Year to 31st December 2005 On 29th July 2005 the company's shares were admitted to trading on AIM, and on14th October 2005 the company obtained a secondary listing on the Frankfurtexchange. In October the company acquired for shares a portfolio of mineral properties inthe Northern Territory of Australia, predominantly prospective for uranium andiron ore, but also for a variety of minerals, including manganese, gold, otherbase metals, and containing an established magnesite resource. In December thecompany issued 800,000 new ordinary shares in the Company at 2.6p per share and2,500,000 ordinary shares of 0.1p in Zeus Energy Ltd, a subsidiary of Red Rockto acquire two uranium properties in Malawi. Corporate events - Half Year to 30th June 2006 and post-balance sheet period In January Robert Weicker joined the board. He has an Honours Degree in EarthScience from the University of Waterloo, Waterloo, Canada, and is a ProfessionalGeoscientist of the Association of Professional Engineers and Geoscientists ofBritish Columbia. With over 25 years in the mineral exploration and miningindustry, from greenfield exploration to production operations, including aperiod as Chief Geologist at the Williams mine, Robert Weicker brings a greatand varied experience to our counsels. In April 2006 the company acquired for cash the rights to a 400 hectare tenementat Mkushi in Zambia, containing what appeared to be a manganese deposit with aknown production history. On 22nd May 2006 the company entered into an option and royalty agreement withJupiter Mines Ltd of Australia, in relation to the company's Mt Ida and Mt Hopeiron licenses in the Central Yilgarn of Western Australia, under the terms ofwhich Jupiter is obligated to carry out exploration on the properties. On 28th June the company announced a placement of 5,018,750 shares at 2p pershare, together with an expected further placing of a similar amount on the sameterms. 4,018,750 of the shares were placed with Sunvest Corporation Limited, acompany incorporated in Australia and listed on the Australian Stock Exchangeand 1,000,000 of the Shares were placed at 2p per Share pursuant to asubscription by Regency Mines plc. The second tranche of 5,018,750 shares wascompleted on 3rd August 2006. We welcomed to the board in September a new director, with a lifetime of miningengineering and geological experience, including ten years in Zambia. MichaelNott's advice, will be invaluable to us, and he has the skills we need if we areto move from being a mineral explorer to becoming a mineral producer. Exploration At the Woolgni/Edith River licenses in the Northern Territory of Australia,preliminary sampling was carried out in October 2005 on the YMCA No 2 uraniumprospect which was discovered in 1952 and was the subject of limited drilling in1954. Sampling was also carried out on the dumps of an old shallow uranium shaftsituated on the north bank of the Fergusson River and outlined uranium anomalismranging from 78.29 to 237.96 ppm uranium. A reconnaissance over the Woolgni goldfield with its many adits, old mines andhistorical costeaning and drilling was conducted. It is now planned to collateall historical data before determining the most appropriate exploration path forthis project. To the east of Woolgni next to the sealed Stuart Highway the Tower gold prospectwas investigated. This is a large gold anomaly that recorded gold from rock chipsamples up to 31.1 g/t. There is evidence of considerable costeaning and pittingon the anomaly but no drilling is recorded. The Tower prospect is a promisinggold target for further exploration in 2006/2007. Acquisition and processing of government airborne radiometric data was alsocarried out for the Mt Alfred iron ore project area located in the southernYilgarn region of Western Australia. Review of the imaged data revealed a stronguranium anomaly within the central portion of the tenement measuringapproximately 3km x 3km. At the Savage River North and Arthur River licenses in Tasmania a detailedreview with recommendations was commissioned and delivered in June 2006. A fieldtrip to the Keith River gossan at Arthur River produced one float sample ofsignificant massive magnetite. Following the May option agreement with Jupiter Mines on two of the company'siron ore prospects in Western Australia, Mt Ida and Mt Hope, Jupiter has beenactive in exploring the area. Drilling results on Jupiter's own small Mt Masonlicense, adjacent to Mt Ida, produced promising intervals of haematite ore froma nine hole drill programme including 29m at 63.3% iron and 18m at 61.44% iron.At Mt Ida Jupiter's recent mapping has discovered a haematite zone assaying66.25% in rock chips, and a haematite lens some 500m east of Mt Mason that iscontinuous over all 13km to Mt Ida, with samples averaging 54.3% Fe to 63.6% Fe,and an overall iron assay of 60.2% Fe. Drilling of Mt Hope is shortly to begin.On the nearby larger 205 sq km Mt Alfred tenement, excluded by the company fromthe option agreement, similar outcrop and mineralisation will shortly be testedby our own exploration programme. At Mkushi in Zambia, our initial mapping and exploration has identified aNorth-East trending cross-faulted structure 7 km long, in parts over 50m wide,containing where visible at surface and explored, a high grade hydrothermalreplacement manganese. There is also evidence of secondary supergene enrichmentin the area. In the western 550m of this zone, we have an indicated resource of2.36m tons of manganese, and exploration continues. 15 RAB holes have beendrilled, and we await sampling results. We expect to see some increase inresource. CSA Consultants are completing a study of the project and althoughthis is still in draft the indications are positive. The favourable location ofthis high grade deposit in relation to local infrastructure, including theTazara railway, and its expression at surface, make it possible that economicpotential can be evidenced within a relatively short time frame. Outlook In the interim report released in March I stated that we expected 2006 to be ayear of major developments for the company. With the year not yet over, the acquisition and exploration of the Zambianmanganese license, and the joint venture over Mt Ida and Mt Hope and subsequentexploration, have been major steps forward. We have defined a manganese resourcethat in composition, grade, extent, and supporting infrastructure alreadyappears to meet many of the threshold requirements for a viable project, andthat has further exploration potential. We have confirmed the potential forsubstantial bodies of high grade haematite iron mineralisation in our area ofinterest in the Central Yilgarn. It is possible that what has been identified in these areas will form thenucleus of high grade mining operations in both manganese and iron, capable ofbeing brought into production within a relatively short time, that in Zambiamight be measured in months rather than years. We shall continue to develop the Zambian project through scoping study and afeasibility study towards development. We shall shortly begin a mapping and sampling programme directed at identifyinghigh grade iron on our retained license at Mt Alfred in the Central Yilgarn. We shall shortly begin exploration on our Malawi uranium properties. We continue to work on developing opportunities for the gold and uraniumprospects within the portfolio. We are presented with a wealth of opportunities unusual in a company of oursize, and will pursue them with vigour. Andrew R. McM. Bell Chairman 6 November 2006 The Company's unaudited results for the year ended 30 June 2006 are as follows. Profit and loss account for the year ended 30 June 2006 Year ended Period ended 30 June 30 June 2005 2006 £ £Turnover -Exploration costs 58,455 -Administrative expenses 133,652 20,379Currency losses 5,100 -Operating loss (197,207) (20,379)Interest receivable 4,224 -Loss on ordinary activities before taxation (192,983) (20,379)Tax on loss on ordinary activities - -Loss on ordinary activities after taxation (192,983) (20,379) Retained loss for the period (192,932) (20,379) Loss per share (0.13) p (0.1) p All of the operations are considered to be continuing. Consolidated balance sheet As at 30 June 2006 30 June 2006 30 June 2005 £ £Fixed assets Intangible fixed assets 972,290 348,932Investment in associate 26,250 998,540Current assetsDebtors 26,416 -Cash at bank 101,021 -Current asset investments 15,491 142,928 -Creditors - amounts due within one year (38,417) (143,751)Net current assets/ (liabilities) 104,511 (143,751)Total assets less current liabilities 1,103,051 205,181 Share capital and reservesCalled-up share capital 166,679 113,560Share premium account 1,141,988 112,000Profit and loss account (205,616) (20,379) Equity shareholders' funds 1,103,051 205,181 Company balance sheet As at 30 June 2006 30 June 2006 30 June 2005 £ £Fixed assetsIntangible fixed assets 971,888 348,932Investments 26,251 - 998,139 348,932Current assetsDebtors 141,002 -Cash at bank 79,106 -Current asset investments 15,491 - 235,599 -Creditors - amounts due within oneyear (40,543) (143,751)Net current assets/ (liabilities) 195,056 (143,751)Total assets less current liabilities 1,193,195 205,181 Share capital and reservesCalled-up share capital 166,679 113,560Share premium account 1,141,988 112,000Profit and loss account (115,472) (20,379) Equity shareholders' funds 1,193,195 205,181 Consolidated cash flow statement for the year ended 30 June 2006 Notes Year ended 30 June 2006 £ Net cash outflow from operating activities (340,224)Capital expenditure and investment (120,557)Cash outflow before financing (460,781)Financing 561,802Increase in cash in the year 101,021 There were no cash transactions during the period ended 30 June 2005. Notes to the Financial Statements for the year ended 30 June 2006 1. The Directors are not recommending the payment of anordinary share dividend. 2. Loss per share on the net basis is calculated on a loss onordinary activities after taxation of 192,983 (2005: £20,379) and on 154,319,058(2005: 20,178,528) ordinary shares being the weighted average number of sharesin issue and ranking for dividend during the period. No diluted loss per shareis presented as the effect of exercise of outstanding options is to decrease theloss per share. 3. The financial information set out in this Preliminaryannouncement does not constitute statutory accounts as defined in section 240 ofthe Companies Act 1985. Results for the year ended 30 June 2006 are abridged from the 2006 Annual Reportand Accounts, which received an unqualified auditor's report and will be filedwith the Registrar of Companies following the Annual General Meeting. 4. The Annual Report will be posted to shareholders week commencing on13 November 2006. Further copies will be available from the Company's registeredoffice: 3rd Floor, 55 Gower Street, London WC1E 6HQ. 5. The Annual General Meeting of the Company will be held at theCompany's offices at 115 Eastbourne Mews, Paddington, London W2 6LQ, on Tuesday12 December 2006 at 11.00 a.m. Enquiries: Andrew Bell 07766 474849 Red Rock Resources plc ChairmanJohn Simpson 020 7512 0191 ARM Corporate Finance Ltd Nominated AdviserRon Marshman / John 020 7628 5518 City of London PR Limited Public RelationsGreenhalgh Updates on the Company's activities are regularly posted on Red Rock's website,www.rrrplc.com. This information is provided by RNS The company news service from the London Stock Exchange