Redhawk Resources Reports On 2011 Pre-Feasibility Work Program
VANCOUVER, BC - Redhawk Resources, Inc. reported 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:
The Company has completed more than 60% of the 100,000feet (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.
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.
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.
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.
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 andappropriate mining method.
Stephen Barley, Executive Chairman, said, "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.