-- Balance of right of ways completed to provide commercial access to Copper Creek -- 100,000 foot (30,000 meter) drilling program 60% completed with assays pending -- Three core drills working 24/7 -- Initial metallurgical work confirming previous high rates of mineral recovery -- Environmental surveys completed on entire original Copper Creek property -- Hydrology studies for water supply underway -- Mine optimization work continuing -- Copper Creek North land holdings expanding
Redhawk Resources, Inc. is pleased to announce the amended Right of Way (ROW) through State of Arizona lands has been granted. The three miles represented by the amended ROW combined with the previously granted seven miles of ROW, provides the Company with excellent all weather access for vehicles and services from the paved public road to the expected mine site. The amended ROW was one of the six key advancements necessary to commence the Pre-Feasibility Study (PFS) in early 2012.
The Company announced all fundamental work efforts necessary to commence the PFS are on schedule and with positive results received to date. There were a total of six major initiatives required to be accomplished and the ROW was one of those goals. The key initiatives and updates include:
-- Resource Update: The Company has completed more than 60% of the 100,000 feet (approx. 30,000 meters) drilling program to upgrade a significant portion of the porphyry resource currently in the 'Inferred' category to the 'Measured and Indicated' category in order to advance to a PFS. There are three core drills working at Copper Creek. The Company will complete a NI 43-101 resource update once the 2011 drilling campaign is completed that will take into account the additional in-fill and step- out drilling, higher commodity prices and any changes to the mining plan. The 2008 porphyry resource calculation used a 0.60% CuEq economic cutoff grade based upon a copper price of $2.25 per pound. A small reduction in the economic cutoff grade in the porphyry resource warranted by higher copper prices and larger scale mining techniques could potentially add a significant amount of additional calculated resource. -- Metallurgical: Metcon Engineering is completing metallurgical testing of core sample material from the current drilling representative of the various areas of the resources, the different mineral assemblages, and various grades of mineralization. Initial results are consistent with the high recovery stated (Cu 90%+) in the Scoping Study. -- Environmental: A complete environmental review for all biological and cultural aspects was completed on approximately one-third of the Copper Creek property encompassing the current resource and planned mining area as part of the Aquifer Protection Permit (APP) granted in 2009. Field work at the same level of detail on the balance of the original seven square mile property is finished and reports are being prepared with no environmental issues anticipated. -- Hydrology: Hydrologic work is in progress by Golder Associates to confirm water sources are available for any level of production determined to be optimal under the upcoming PFS. The water sources being tested are immediately adjacent to the ROW and were previously used for mining activities. -- Mine Optimization: With the goal of increasing daily throughput above the 10,000 tons/day level presented in the Scoping Study, the Company in conjunction with external consultants, is continuing efforts to determine optimal mine operation size as well the most efficient and appropriate mining method.
Mr. Stephen Barley, Executive Chairman commented: "Redhawk continues to take critical steps to move Copper Creek towards production in the shortest possible timeframe. The current resource is open in most directions and there is significant upside potential in the original Copper Creek property where 75% of the property remains under explored. In addition the Company continues to add additional land holdings to the approximately 22 square miles in the contiguous Copper Creek North property which remains unexplored and has very encouraging indicators of mineralization. However, the primary focus over the next five months is to advance Copper Creek toward the completion of a PFS and to continue to add confidence to this project. Results to date on all key elements have been extremely positive and Redhawk is well funded to complete the PFS. We believe Copper Creek will be the cornerstone of significant new copper production operations in this part of Arizona and our plans are directed towards achieving this goal."
Redhawk is a Canadian-based resource exploration and development company with primary focus on the accelerated development of its advanced stage Copper Creek copper-molybdenum project in San Manuel, Arizona. The 100% owned Copper Creek and Copper Creek North properties consist of approximately twenty eight square miles of contiguous patented and unpatented mining claims and state prospecting permits, located about 70 miles northeast of Tucson, Arizona and about 15 miles east of San Manuel. The property is in the prolific southwest US porphyry copper belt at the projected intersection of a major northwest belt of porphyry copper deposits and mines (Ray, Miami/Globe, Superior/Resolution, Johnson Camp) and a major east-northeast belt of porphyry deposits (San Manuel/Kalamazoo, Silver Bell, Lakeshore, Safford, Morenci). The property is within sight of the former BHP Kalamazoo/San Manuel copper smelter and mine and within 30 miles of an existing operating copper mill and smelter. The area is a mining friendly and politically secure location with excellent and readily accessible infrastructure including power, rail, water, roads and qualified consultants.
ON BEHALF OF THE BOARD
J. Stephen Barley, Executive Chairman
The forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law, Redhawk does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. By its very nature, such forward-looking information requires Redhawk to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information.
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