Red Rock drills confirm Mexican project reserves (January 27, 1992)

Australia company Walhalla Mining and 62% owned Red Rock Mining (VSE) say reverse circulation drilling on the Amelia gold property in Mexico has confirmed reserves established by the property’s previous owners.

In December, when Redrock agreed to earn 100% interest in the Amelias from Chutine Resources (VSE), proven reserves on the Amelia mine property stood at 695,000 tonnes of grade 4.36 grams gold per tonne.

Results from a 1,500-metre drill program confirm that reserve figure and further extend the mineralization down to 130 metres where the zone remains open at depth, says Redrock, which owns 50% of the 7,348-hectare project. The remaining 50% is held by Walhalla, subject to a 1.5% net smelter royalty to Chutine and option payments of US$950,000 to the landowner over the next several months.

Highlights from 12 holes drilled to a maximum depth of 142 metres include a 12-metre intercept averaging 2.72 grams (including 4 metres of 11.17 grams) and 10 metres of 3.9 grams.

The property also remains open to the east where probable reserves of 225,000 tonnes of 5.3 grams have been established.

Walhalla and Redrock, both controlled by Australian entrepreneur Chris Kyriakou, plan to continue exploration on the Amelia properties this year. When exploration resumes, crews will attempt to develop existing reserves, and examine the potential at depth and along the 13 km of strike length. Red Rock emerged when the former Giant Pacific Petroleum changed its name and consolidated its shares on a 1-for-10 basis.