- Published: 09 September 2008
- Written by Editor
Redhawk Reports 60% Increase in Resources at Copper Creek to 3.4 Billion Pounds
The following corrects and replaces the release issued earlier on behalf of Redhawk Resources, Inc. Please note that the equivalent pounds of copper in the first paragraph have been changed. Also the first paragraph after the subheading "IMC Resources Summary" has been changed.
Redhawk Resources, Inc. ("Redhawk" or the "Company") (TSX VENTURE:RDK)(FRANKFURT:QF7) has received the preliminary results of an updated independent NI 43-101 compliant mineral resource estimate for its Copper Creek property, located in Pinal County, Arizona. The new estimate has increased the total equivalent pounds of copper to 0.652 billion pounds in the combined measured and indicated categories and 2.745 billion pounds in the inferred category, representing an increase of more than 60% from previous estimates.
A NI 43-101 technical report will be completed within 45 days and filed with SEDAR. A summary breakdown of the resource estimate by category is tabulated below.
Near Surface Breccia Deposits @ 0.75% CuEq Cutoff
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Au Ag Billion lbs
ktons Cu% Mo% CuEq% opt opt CuEq
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Measured & 7,341 1.48 0.017 1.66 0.002 0.12 0.235
Indicated
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Inferred 2,272 1.35 0.025 1.63 0.007 0.06 0.069
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Opt equals troy ounces per short ton; CuEq equals
Cu + Mo x 6.67 + Au x 13.33 + Ag x 0.27
American Eagle and Keel Deposits @ 0.60% CuEq Cutoff
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ktons Cu% Mo% CuEq% Billion lbs CuEq
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Indicated 20,025 0.90 0.022 1.04 0.417
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Inferred 156,126 0.75 0.016 0.88 2.676
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Ktons equals 1,000 short tons; lbs equals pounds;
CuEq equals Cu + Mo x 6.67
Current estimates are based on metal prices of $2.25/lb Cu, $15.00/lb Mo, $600 per troy ounce Au, and $12.00 per troy ounce Ag. The estimate was prepared by industry recognized Independent Mining Consultants ("IMC") of Tucson, Arizona. Detailed tables are shown near the end of this release.
Company Chairman Douglas Good commented, "We believe the large increase in our combined porphyry and breccia resource estimate supports our strong belief in the tremendous potential of the Copper Creek project and its near-term prospect of developing into a medium scale mining operation with a significant mine life. This major growth in our resources will be a very positive factor in our upcoming Scoping Study scheduled for completion this fall. The Company believes there is tremendous additional upside potential in the Copper Creek property as the Keel and American Eagle deposits remain open in most directions, several of the breccias are open to depth, and only about 20% of the property has been adequately tested for additional resources, including nearly 400 breccia outcrops that have not been drilled. The Company believes the strong grades present in the Keel deposit and significant portions of the American Eagle deposit greatly enhance the potential for mining these deeper deposits."
Based on a Cu equivalent cutoff of 0.75% used in earlier breccia resource estimates, the near surface breccia deposits increased in tonnage by about 22.4% to a combined measured and indicated 7.341 million tons with a Cu equivalent grade of 1.66% and an inferred resource of 2.272 million tons with a Cu equivalent grade of 1.63%.
Based on a Cu equivalent cutoff of 0.60% used in the earlier porphyry resource estimate, the tonnage increased by about 60% to an indicted 20.025 million tons with a Cu equivalent grade of 1.04% and an inferred resourced of 156.126 million tons with a Cu equivalent grade of 0.88%. This increase is largely attributable to the Keel deposit but does not include gold and silver credits as previous operators only did composite assays over long intervals which could not be included in the current calculations. As shown in the tables near the end of this release, the Keel and American Eagle deposits show large increases in tons and total pounds of contained metals of 27% and 52% at Cu equivalent cutoff grades of 0.55% and 0.50%, respectively. These cutoff grades could become significant if copper prices remain high in the future.
IMC Resources Summary
The above referenced IMC resource summary utilized cutoff grades varying from 0.50% to 1.00% CuEq in the Keel and American Eagle deposits and 0.50% to 1.50% CuEq in the breccia deposits. The 0.60% cutoff is highlighted in the Keel and American Eagle as it more appropriately reflects the potential economics of large scale bulk mining and the 0.75% cutoff is highlighted in the breccia deposits. Grades and copper equivalent grades (CuEq) shown are before processing and smelting recoveries.
All of the breccia models used the outlines of the breccia bodies as limits to the grade estimates. There is isolated mineralization to the exterior of the breccia bodies and the estimate of grade of this mineralization was made using a polygonal estimation with a limited search distance. The Childs and Mammoth grade models were estimated using indicator kriging and the Old Reliable, Globe and Copper Prince grade models used ordinary kriging. Block size in the breccias is 15' x 15' x 15' based upon the assumption of the potential for blast-hole cut and fill mining methods. The Childs and Old Reliable models were created in October 2006. The Mammoth model was updated in August 2008 with additional drill information. The Globe and Copper Prince models were created in August 2008. IMC had previously developed mineral resource estimates for several deposits on the Copper Creek property (the Mammoth, Childs-Aldwinkle and Old Reliable breccia deposits, the Keel zone, and the American Eagle porphyry) which were documented in technical reports titled "Copper Creek Property Mineral Resource, Pinal County, Arizona, USA", dated October 31, 2006 and "American Eagle Deposit Mineral Resource Copper Creek Property Pinal County, Arizona, USA", dated November 26, 2007.
The American Eagle and Keel Zone models were updated in August 2008 with additional drill information. The mineralization was zoned using indicators at 0.30% copper equivalent in the American Eagle and 0.50% copper in the Keel Zone. The grades within each mineralization zone were estimated using inverse distance squared. The block size used was 50' x 50' x 60' based upon the assumption of the potential for room and pillar/post and pillar with or without back fill as a mining method.
The assessment above is preliminary in nature. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary assessment will be realized.
R. Joe Sandberg, CPG President of Redhawk Resources is the qualified person within the meaning of NI 43-101 who supervised the preparation of the information that forms the basis of this news release and the IMC summary. Additional details including the IMC summary tables are contained on our website at www.redhawkresources.com.
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Resource Summary at Various Cutoffs
Near Surface Breccia Deposits
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Cutoff Au Ag Billion lbs
CuEq% ktons Cu% Mo% CuEq% opt opt CuEq
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Meas & Ind 1.0 5,515 1.71 0.021 1.92 0.002 0.14 0.205
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Inferred 1.0 1,522 1.69 0.029 2.02 0.009 0.08 0.057
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Meas & Ind 0.75 7,341 1.48 0.017 1.66 0.002 0.12 0.235
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Inferred 0.75 2,272 1.35 0.025 1.63 0.007 0.06 0.069
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Meas & Ind 0.50 10,148 1.22 0.014 1.37 0.002 0.11 0.267
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Inferred 0.50 4,364 0.93 0.021 1.14 0.005 0.04 0.094
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Resource Summary at Various Cutoffs
American Eagle and Keel Deposits
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Cutoff Billion lbs
CuEq% ktons Cu% Mo% CuEq% CuEq
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Indicated 0.75 15,275 0.98 0.025 1.15 0.352
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Inferred 0.75 78,400 0.90 0.022 1.07 1.640
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Indicated 0.60 20,025 0.90 0.022 1.04 0.417
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Inferred 0.60 156,126 0.75 0.016 0.88 2.676
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Indicated 0.55 20,263 0.89 0.021 1.04 0.420
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Inferred 0.55 203,788 0.69 0.015 0.81 3.225
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Indicated 0.50 20,313 0.89 0.021 1.03 0.420
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Inferred 0.50 267,776 0.64 0.013 0.74 3.887
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opt/t equals troy ounces per ton; lbs equals pounds; in breccia
resources CuEq equals copper + molybdenum x 6.67 + Au x 13.33
+ Ag x 0.27; all tons are short tons; ktons equals 1,000 tons
Scoping Study
KD Engineering of Tucson, AZ has been commissioned to prepare a detailed scoping study report examining the viability of underground mining using various extraction techniques for the Copper Creek project with contribution from Redhawk's other consultants, IMC (resources), Milne & Associates (mining costs and engineering), Golder Associates (hydrology and engineering), METCON (metallurgy), and WestLand Resources (permitting and environmental). Preparation of the scoping study began in late May and is targeted for completion in the fourth quarter of 2008.
About Redhawk
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 Company also has two gold/silver properties of merit in Nevada.
The 100% owned Copper Creek property consists of approximately seven square miles of almost totally 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 or 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 smelter. The area is a mining friendly and politically secure location with excellent and readily accessible infrastructure. The Copper Creek property has had over 446 drill holes and 510,469 feet of drilling to date.
ON BEHALF OF THE BOARD
R. Joe Sandberg, President
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.
SOURCE: Redhawk Resources, Inc.
Redhawk Resources, Inc. Douglas F. Good Executive Chairman (604) 633-5088 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Website: www.redhawkresources.com
