RDS - Redstone Resources

[Michael2006]

Redstone Resources Limited (RDS) As at 20/12/2006 8:19:39 AM
Real-Time
(Trading Status: TRADING_HALT)

Last Trade 0.830 Bid 0.950 Offer 0.850

2 hours before open, trading still holted & look at the bid ????

 

[Young Gun]

Annoucment is out :


REDSTONE RESOURCES LTD ABN 42090169154
20 December 2006
Manager Announcements
Company Announcements Office
Australian Stock Exchange Limited
Level 4/20 Bridge Street
SYDNEY NSW 2000
EM RESULTS ENHANCE REDSTONE HALLEYS Ni-Cu-PGE TARGET IN THE WEST MUSGRAVES
SUMMARY
• A major Ni-Cu-PGE system is defined (Araplats Trend) over 35km strike along the southwestern margin of the Saturn Complex.
• The 1.5km long Halleys target has been identified within the Araplats Trend, with extremely high Cu, Ni and PGE soil lag geochemistry (significantly higher than lag geochemistry over Nebo and Babel Ni-Cu-PGE sulphide deposits, 30 km to the west).
• Total PGE geochemistry indicates the ironstone is gossanous, with similar PGE trends to the gossan over the Voiseys Bay Ni-Cu-PGE deposit.
• A near-surface weak EM conductor is coincident with, and is interpreted to plunge away from the discovery ironstone outcrop. All results to date suggest the presence of significant sulphide mineralization.
• Further detailed work will commence along the Araplats trend to follow-up several other high order anomalies over the 35km strike.
• Other significant exploration results include:
o Definition of a large copper anomaly (10 x 4 km) with several bullseye targets, the best of which is Titan (1.4km long to 800m wide); and
o Location of an 80m x 80m outcrop containing 5 to 10% disseminated ex-sulphide and open in three directions under sand cover. The Cu-Pb anomalous sulphide system (Aladdin) is hosted in basement metamorphic rocks adjacent to a major regional structure.
• Drilling programmes for all targets, including Halleys is scheduled for March 2007.
ASX
RELEASE
20 December 2006
For further information
On this release please
contact:
Anthony Ailakis
Managing Director
Ph 08 9328 2552
Email:
anthonya@redstone.com.au
Web Site:
www.redstone.com.au
ASX Code: RDS
Head and exploration office:
Redstone Resources Ltd, level 3, 110-116 East Parade, East Perth WA 6004 , PO Box 8646, Perth Business Centre WA 6849
Telephone +61 8 9328 2552 Facsimile +61 8 9328 2660 Website www.redstone.com.au
Redstone Resources Limited (ASX:RDS) has been conducting on-ground exploration in the West Musgraves for four months since listing on the ASX in early August, 2006. This has defined several sizable geochemical targets, the best of which is a coincident soil and rock chip anomalous Ni-Cu-PGE target with coincident EM anomaly, located within a 35km long Ni-Cu-PGE anomaly on the western margin of the Saturn Complex. Definition of such targets in such a short period clearly demonstrates the potential of the West Musgraves and signals an exciting period ahead for Redstone.
1. Halleys Ni-Cu-PGE
Recent geochemical sampling defined a major regional geochemical anomaly in the Blackstone Range and Tollu Licence areas. The NW- to W-trending Araplats Ni-Cu-PGE anomaly strikes over 35km, from the west of the Saturn Complex to the Tollu Granite. This is interpreted to be a magma flow-through zone which is prospective for sulphide deposits, perhaps analogous to the famous Platreef PGE-Ni-Cu district in the Bushveld Complex of South Africa.
Regional 800m x 200m soil lag sampling by Redstone in August on the Blackstone Range JV (Joint Venture between Redstone and Resource Mining Corporation ASX:RMI) highlighted a highly anomalous zone named Halleys, within the Araplats trend, containing peak values of 1400ppm Cu, 62ppb PGE and 833ppm Ni (reported in Sept Quarterly Report to the ASX). Infill soil lag sampling has subsequently defined a 1.5km long zone of strong Cu-Ni-PGE soil geochemistry with peak values of 1900ppm Cu, 940ppm Ni and 72ppb PGE. These values are considerably higher than the reported DLag soil geochemistry values (950ppm Cu, 748ppm Ni and 12ppb PGE) over the Nebo and Babel sulphide-nickel deposit, 30km to the west.
Rock chip sampling at Halleys from an ironstone outcrop returned a peak assay of 0.54% Cu, 0.24% Ni, 249ppb PGE+Au and 0.05% Co. Recent follow-up sampling, using a handheld XRF machine, has yielded even higher rock-chip values of 0.73% Cu and 0.43% Ni from the main exposure, which is a low hill with at least four separate ironstone bands (assay results from the laboratory are pending). Analysis and plotting of the entire PGE suite (Os, Ir, Ru, Rh, Pt, Pd, Au) indicates a magmatic pattern typical of derivation from Ni-Cu sulphides and very similar to that of the discovery gossan at the large Voiseys Bay deposit in Canada. It thus appears almost certain from a scientific viewpoint that the soil anomalies and ironstones overlie Ni-Cu-PGE sulphide mineralisation at depth.
ASX
RELEASE
20 December 2006
For further information
On this release please
contact:
Anthony Ailakis
Managing Director
Ph 08 9328 2552
Email:
anthonya@redstone.com.au
Web Site:
www.redstone.com.au
ASX Code: RDS
REDSTONE RESOURCES LTD ABN 42090169154
To confirm the interpretation, 40 line kilometres of ground electromagnetic surveys (EM - 200m stations on 200m spaced lines) were completed over the Halleys area in early December. Preliminary EM data show a weak near-surface conductor (consistent with disseminated to matrix sulphides) trending NNW from the main anomalous outcrop. The near surface conductor is an extremely good target, possibly representing a NNW-plunging Cu-Ni-PGE sulphide body, given its spatial coincidence with the surface geochemical anomalies.
Once all geochemical samples are received from the laboratory, interpretation will be aimed at planning a significant angled drilling program over the Halleys anomaly.
2. Titan Cu-PGE
Regional Lag sampling has defined a broad copper anomalous zone at >120ppm Cu over an area of 10 x 4km in the southeastern portion of the Blackstone Range Project, southeast of the Saturn Complex. Two high-order (>200ppm Cu) copper anomalies with sporadic anomalous PGEs are present within this zone: Titan and Titan North. A peak result of 1064ppm Cu defines the centre of the Titan anomaly. On site assays, using a handheld XRF, define a 1.4km long Cu anomaly up to 800m wide at >200ppm Cu with numerous values greater than 500ppm Cu. This is the largest Cu anomaly thus far defined in the West Musgrave Block.
3. Aladdin Cu – Pb Sulphide Target (100% Redstone)
Exploration has commenced in the basement Proterozoic (>1350Ma) Birksgate Complex, which comprises metamorphosed volcano-sedimentary sequences prospective for Broken Hill type (BHT) base metal deposits. XRF assaying of regional soil lag geochemical samples revealed a 569ppm Pb anomaly adjacent to the regional NE-trending Lupton Hills Fault. Mapping near the anomaly in terrain dominated by sand dunes defined a disseminated sulphide body over 80m x 80m, containing at least 5% iron-oxide boxworks after sulphide in weathered and leached mafic rocks. The zone is open under sand to the north, west and south. The iron-oxide boxworks are interpreted to be either pyrrhotite or chalcopyrite, but no petrology has yet been carried out.
Peak rock-chip values from the anomaly (analysed on-site with a hand held XRF) are 670ppm Cu, 62ppm Mo, 0.13% Pb and 65 ppm As, but assays from the laboratory are still pending.
Whilst the style of mineralization is not Broken Hill type, drilling to fresh rock is required to understand the nature of this large Cu-Pb anomalous sulphide system. This will be a priority for drilling scheduled to commence in March 2007.
ASX
RELEASE
20 December 2006
For further information
On this release please
contact:
Anthony Ailakis
Managing Director
Ph 08 9328 2552
Email:
anthonya@redstone.com.au
Web Site:

OTHER RESULTS
Mt Muir
Reconnaissance exploratory work in the Mt Muir area at the northern edge of the West Musgraves has yielded positive results, but most results are pending. The area contains large (2km) low-order Cu anomalies (>120 ppm Cu using handheld XRF) associated with mafic rocks in the southwest, very high PGEs (up to 70ppb Pt+Pd) and anomalous copper in soil lag samples in the central part of the tenement, and multielement Cu-Mo-As anomalies associated with a 450m diameter circular magnetic feature in the south-central part of Mt Muir.
Baggaley Hills
A detailed 100m line-spaced aeromagnetic survey was flown over the southeastern part of the West Musgraves Project, where geophysical targets, particularly the Olympic Dam – type iron-oxide Cu-Au targets in the Baggaley Hills area, required better definition. The new high-resolution data define several outstanding targets, and an additional 639km² in two tenements has been acquired to cover several new anomalies adjacent to the Mt Agnes/Baggaley Hills targets.
Yours sincerely
Anthony Ailakis
Managing Director
The information in this report that relates to exploration results is based on information compiled by Professor David Groves, a member of the Australian Institute of Geoscientists. Professor Groves has sufficient experience relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves’. Professor Groves consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

1. ITT (.23) & ITTO (.08) Exposed to Copper, Uranium, Gold, Lead-Zinc, Nickel, $3.5mil cash in bank, 21mil! shares on issue, Both projects drilling atm results to flow Dec/Jan.
2. CYL (.27) Drilling completed 20 holes for Molybdenum now we wait results.
3. VMS (.24) Exposed to Copper, uranium, Gold, Zinc etc.. 26mil shares, $5mil in bank, soon to drill on Olympic Dam Style Target in SA for copper.

 

[Absolutely]

Anyone able to interpret this announcement technically?

After the initial hype, stock is up 8% on relatively thin volume.

I think we will have to wait for the drill results in March for this stock to really prove it's worth.

 

[Lert]

I guess you need to be a geologist to understand the implications of all that. There is a lot of information on the RDS web site. The prospectus gives a pretty good insight, including maps etc etc..

 

[Geo78]

Well what a beauty to be in or get into. A major Ni/Cu/PGE system over a 35km strike. This thing has the potential to be another
Nebo and Babel deposit, can not wait to see drill results. This thing has true potential to be a billion dollar+ deposit, the big miners must be circling. Once this announcement is dissected there's going to be a lot of interest worldwide.

 

[krisbarry]

Joint venture with RMI, watch RMI's share price spike when announcement released today

 

[Stinger]

And not LVL also??

 

[krisbarry]

And not LVL also??

lol, no... just plenty of sackings going on over in the LVL camp.

The hiring and firing department must be going into melt-down

 

[nuwave]

This announcement is huge. I'm no geologist, though a 35km strike seems pretty substantial. (Agree with you Geo78)

Started well this morning and has dropped back to around where it was suspended yesterday. Suspect has got to drive upward again soon with these findings.

AGM tomorrow - should be interesting?

 

[Michael2006]

Agreed Nuwave, its really not the type of announcement for the Mum & Dad investor. I'd think we will see some action in the next few days as the announcement is interpreted.

Surely if we're taking about a deposit as big as this, the growth potential for these individual shares is huge.

 

[Michael2006]

Well what a beauty to be in or get into. A major Ni/Cu/PGE system over a 35km strike. This thing has the potential to be another
Nebo and Babel deposit, can not wait to see drill results. This thing has true potential to be a billion dollar+ deposit, the big miners must be circling. Once this announcement is dissected there's going to be a lot of interest worldwide.

You heard it from me first, if this strike is proved up with drilling (as has the samples to date) these share will go vertical very fast.

 

[Bluebeard]

Whats peoples take on the price position of RDS compared to RMI and these projects. Currently RDS is at about 87c and RMI is at about 5c. People have said that RMI owns 25% of this project if thats right wouldnt it be better to get set in RMI rather than RDS...Im just asking thats all...Im no expert lol...anyone want to provide a view.

 

[Michael2006]

Whats peoples take on the price position of RDS compared to RMI and these projects. Currently RDS is at about 87c and RMI is at about 5c. People have said that RMI owns 25% of this project if thats right wouldnt it be better to get set in RMI rather than RDS...Im just asking thats all...Im no expert lol...anyone want to provide a view.

Point understood, however you need to consider volume of share of RDS compared to that of RMI. You also need to consider RDS has a number of other highly prospective prospects.

 

[Bluebeard]

Thanks for the answer...greatly appreciated.

 

[nuwave]

RDS closed 88c up 0.05 from yesterday. Surprised there wasn't more activity, definately thought they would have gone well over $1 given the announcement.

I can't complain, I bought a few at the IPO at 25c and have since purchased more between 67c & 90c.

I'm going to sit and hold for now. Tomorrow is a new day!

 

[Michael2006]

Dont people watch the market, this morning there was a buyer a 1.05 and sellers at 0.90 from the day before. So the seller got taken out a 0.90 when they could have got 0.95 & 1.05.

 

[nuwave]

I'm surprised there isn't much stock moving, considering the announcement. All the major shareholders are obviously holding on, knowing these things could go to $10 in the next 12 months. It is a pity the small holders aren't sitting a bit more firm on their prices to push these things up!

AGM today, see if that has any impact?

 

[Geo78]

I'm surprised there isn't much stock moving, considering the announcement. All the major shareholders are obviously holding on, knowing these things could go to $10 in the next 12 months. It is a pity the small holders aren't sitting a bit more firm on their prices to push these things up!

AGM today, see if that has any impact?

Agreed, if this 35km strike is proven up it will have a value far of that of Neo Babel (35 billion 4 yrs ago). You do the math on that and see what the shares are worth. Neway I think it will continue to climb over the next mth or so as the market pick up the news of what they have found.

I am all guns blazing in.

 

[Lert]

The Chairmans address and AGM presentation is now available.. makes interesting reading.

 

[nuwave]

Unfortunately i didn't get to the AGM, though have read the report.
Very positive initial results. Look forward to drilling results!