Nov 28 2014
Red Rock Energy Inc. announced today that it has received the results of a technical study commissioned to examine a proposed alternative mining method for hard rock environments brought forward by Red Rock's technical team.
This proposed alternative mining method would employ a varied form of in-situ recovery (ISR) technique, which currently accounts for a significant portion of world uranium production. The study area was restricted to the rock environment of Red Rock Energy's Fusion Uranium Zone Project and is contained within Red Rock's Uranium City project area and was previously discussed by NI 43-101 report (July 10 2009) prepared by Scott Wilson Mining.
The conclusions of the study were very positive and, based on the favourable findings contained in this report, the Company has requested that an industry partner submit a proposal to carry out a Preliminary Economic Assessment (PEA) of the feasibility of utilizing the Company's new technique for feasible uranium extraction from the Fusion Zone. Red Rock has also engaged a professional services firm to assist in assessing whether the significant advancements of these new applications are capable of protection under international intellectual property laws. This work is ongoing.
Finally, Red Rock's management has held ongoing discussions with its debenture holder who remains sympathetic to current market conditions and is amenable to continuing to work with the Company in order to achieve its near term goals. Further, the Company has received approval at its annual general meeting to consolidate its stock on up to a 10-1 basis and management is considering whether to take further steps in this regard.
Company president Sandy Loutitt commented: "We are extremely happy with the outcome of this first stage and are optimistic that this technique will not only work but will provide economic viability to other hard rock uranium resources that, until now, could not be economically extracted using conventional mining techniques. Fortunately, Red Rock's Uranium City properties will lend themselves very well to the testing and evaluation procedures to be employed and we expect that results will be forthcoming in the new year."
Source: http://www.redrockenergy.ca/