Framework For The Copper Creek Pre-Feasibility Study

 
 

VANCOUVER - Redhawk Resources, Inc. reported the framework for a NI 43-101 Pre-feasibility Study ("PFS") on its 100% owned Copper Creek, Arizona project to be led by KD Engineering of Tucson, Arizona. An updated NI 43-101 resource estimate report based upon historical drilling and the 30,000 meter infill and step out 2011 drill program is expected to be completed by Independent Mining Consultants in mid-April, 2012 and will be the basis for mine planning in the PFS. Due to the lower economic cutoff grades for open pit mining and a much larger bulk underground mining method, the updated resource report will provide a separate resource estimate for both underground and open pit mining approaches. The preliminary work on the new resource suggests a much larger mining operation than the 10,000 tons/day contemplated in the 2009 Scoping Study.

The PFS was developed in conjunction with the Company's PFS consultants and will be based on the following parameters: an initial trade off study between large scale underground block cave and open pit mining or a combination of both mining approaches; evaluating mining and milling capacity options within a target range of 50,000 to 100,000 tons/day of throughput; examining alternative methods of phasing the mine plan and development.

R. Joe Sandberg, President and CEO, said, "The work program leading to the PFS stage has been substantially completed and on a very successful basis. Information obtained during this development stage has supported both the inclusion of open pit mining as a potentially viable alternative to a large scale underground operation and the move to a substantially larger scale of operation than contemplated in the 2009 Scoping Study. Redhawk will continue to aggressively work with all of our consultants to ensure the development of Copper Creek proceeds on a socially responsible basis that is mutually beneficial to our shareholders and the State of Arizona."