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Message: Redhawk Resources Provides Update and Operational Plan for Balance of 2011
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2011) - Redhawk Resources, Inc. ("Redhawk" or the "Company") (TSX VENTURE:RDK)(OTCQX:RHWKF)(FRANKFURT:QF7) is pleased to provide an update and the operational plan for the balance of 2011. Mr. Stephen Barley, Managing Director commented: "Redhawk continues to take critical steps to move Copper Creek towards production in the shortest possible timeframe. Although we expect important developments in the continuing exploration of this expanding mining district, the primary focus over the next six months is the increase in efforts to move Copper Creek toward the completion of a pre-feasibility study. 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 this goal."
During the latter part of 2010 and the first half of 2011, the following major steps were accomplished in the development of Copper Creek and the Company:
The Company raised over $20,000,000 through a brokered private placement and is well funded with over $16,500,000 in working capital to advance its plans.
The Company has completed a number of step out holes designed to increase both the category and quantity of current resources.
The Company drilled eight exploratory holes which successfully tested the Copper Creek district for widespread copper mineralization extending the potential mineralized porphyry zone by approximately 3.5 kilometers.
The Company successfully listed and commenced trading in the US on the prestigious OTCQX, International and will continue its efforts to raise its market profile through presentations to institutional and retail investors, introducing the project to analysts covering the copper sector, and advancing discussions with key industry participants.
Key activities that are underway for the second half of 2011 to advance the Company towards its pre-feasibility and production goal include:
The Company is undertaking fundamental work this year towards commencing a Pre-Feasibility Study ("PFS") in the first quarter of 2012.
The Company has initiated a comprehensive 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 from a comprehensive Scoping Study (published in 2008 and updated in 2010) to a PFS.
An in-fill drill program based on drilling on a closer grid that has been reviewed by the Company's external resource consultant, Independent Mining Consultants (IMC), and if successful will upgrade much of the existing Inferred resource to either Measured or Indicated, the levels required to qualify for inclusion in a PFS.
The Company has now deployed two core drills with crews drilling 24 hours per day seven days per week with a third core drill expected in mid July. A rotary drill will be used in certain areas to pre-collar hole for coring.
The drilling required for resource upgrading has increased the previously announced 60,000 foot (18,288 meter) drill program to an estimated 104,000 feet (31,700 meters).
The Company plans to have IMC complete a NI 43-101 resource update once the 2011 drilling campaign is completed that will take into account the additional drilling, higher commodity prices and any changes to the mining plan. The prior NI 43-101 porphyry resource calculation published in 2008 used a 0.60% CuEq economic cutoff grade based upon a copper price of $2.25 per pound. A small reduction in the cutoff grade in the porphyry resource could potentially add a significant amount of calculated resource.
The Company will complete work with an external mine optimization engineering group, with the assistance of its recently hired VP Project Development, A. Joe Fernandez to assess whether a higher production rate is feasible with the intention of incorporating the results into the PFS in early 2012. The objective of this work is to determine if it is feasible to increased target production rates from 10,000 tons/day to a higher level given the 2008 Scoping Study was completed on a conservative scale and terms, and to also consider the optimal approach to commencing production at Copper Creek.
The Company has completed a number of the main environmental reviews necessary on Copper Creek to continue development.
The Aquifer Protection Permit (APP) granted by the State of Arizona in 2009 is the major permit required to commence the underground four by five meter decline access.
The Company anticipates obtaining the balance of local permits by the end of 2011 to allow the commencement of a development decline.
A complete environmental review for all biological and cultural aspects was completed on approximately one-third of the project encompassing the current resource and planned mining area as part of the APP. The Company is completing the same level of review on the balance of the seven square mile property to ensure full access for operations.
Right of ways to provide commercial levels of access and routes for services to Copper Creek have been completed on seven miles of the ten miles of roads and the balance of right of ways will be completed by December 2011.
"To accomplish all of this work, Redhawk is continuing to add to its technical team", added Mr. Barley. "In addition to the many world class external consultants retained for the project, we currently have six geologists and one engineer working on Copper Creek and will continue to add professionals as needed to accomplish our objectives. We have also solved our space requirements by acquiring a permanent office and core storage facility in San Manuel, Arizona that will accommodate our growth."
Incentive Stock Options
The Company has granted to new consultants a total of 550,000 incentive stock options at a price of $0.59 per share subject to normal vesting arrangements. The option grants are subject to TSX Venture Exchange approval.
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 property consists of approximately seven 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, Managing Director
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.
FOR FURTHER INFORMATION PLEASE CONTACT: J. Stephen Barley
Redhawk Resources, Inc.
ORBuick Group Corp.
314 Finance Corp.
Toll Free: 1-877-738-3882
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