VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 18, 2011) - Redhill Resources Corp., (TSX VENTURE:RHR), ("Redhill" or the "Company"), announces that Mutiny Gold Ltd. (ASX:MYG) ("Mutiny"), operator and optionee of Redhill's wholly owned Gullewa Copper-Gold Project, has informed Redhill that results received from its recent drilling program have highlighted the potential to significantly add to the resources at the Deflector Gold-Copper Deposit, the main deposit within the Gullewa Project in Western Australia. The aim of the program was to test north and south strike extensions of the deposit's main lodes.
Deflector Extension Drill Results
The recent drilling was carried out to delineate near-surface extensions to the main mineralized lodes within the Deflector Deposit. The results are presented in Tables 2 and 3 for all intersections greater than 0.5g/t Au or 0.5% Cu. Drill-hole locations are listed in Table 5 or can be viewed on maps at the website of Mutiny Gold.
Results to the south of the existing Deflector resources include:
- 2 metres (m) @ 14.5g/t Au and 5.4% Cu in 11DRC001;
- 3m @ 7.3g/t Au and 3.20% Cu in 11DRC020;
- 1m @ 53.5g/t Au and 0.2% Cu in 11DRC021;
- 6m @ 5.1g/t Au and 2.6% Cu in 11DRC024;
- 4m @ 15.9g/t Au and 2.6% Cu in 11DRC025; and
- 2m @ 7.4g/t Au and 2.9% Cu in 11DRC026.
To the north of the Deflector Deposit, the results include:
- 3m @ 5.9g/t Au and 10.9% Cu in 11DRC029; and
- 5m @ 2.1g/t Au and 0.25% Cu.
Importantly, the recent high-grade intersections are within the depth of the planned Deflector-Pit and indicate the potential for the Company to extend the Deflector-Pit to both the north and south. Benefits of an extended pit or of multiple open-pits include:
- Longer open-pit mine life;
- Potential increase in rate of production;
- Earlier pay-back of project development costs; and
- Improvement in the overall project economics.
Spanish Galleon Prospect
Following a review of exploration by previous companies in the vicinity of the Deflector Deposit, Mutiny recognized two areas of mineralization to the west of the Deflector Deposit, named the Spanish Galleon and Pieces of Eight Prospects. Mutiny recently drilled two RC holes at the Spanish Galleon Prospect that were targeted to scissor an intersection of 34m of 1.9g/t Au and 0.44% Cu made two years previously in drill hole 9DEF013. The intersection included 3m at 6.6g/t Au and 0.37% Cu. The holes were sited to ascertain the orientation of the mineralized structure and to test ground conditions within the structure in both the weathered and the fresh zones.
Both holes intersected gold-copper mineralization, with a best assay of 1m of 20.4g/t Au and 0.3% Cu. Assay results are given in Table 4. The holes achieved their objectives and verified the presence of high-grade mineralization within the easternmost structure at Spanish Galleon.
Continuing Exploration
Mutiny will now undertake another RC drill program, planned for April this year, which will follow up recent results by drilling further north and south along the main line of the Deflector Deposit mineralization. Following this drilling, Mutiny plans to carry out a re-estimation of the openpit resources of the Deflector Deposit. Historical intersections within the Spanish Galleon and Pieces of Eight Prospects will also be followed up in a systematic staged manner.
In addition, Mutiny is preparing an infill diamond drill program in order to upgrade the existing underground resources.
Background
The Gullewa Project is located 450 kilometres north of Perth, in the Yalgoo mineral fields of Western Australia. The Gullewa Project is a 550 sq kilometre property that hosts several gold deposits of various size and grade, the most significant being the Deflector gold-copper deposit which contains resources (Table 1) as disclosed in Table 3.1 to the NI 43-101 Technical Report on the Gullewa Gold-Copper Project dated June 13, 2008 as filed on SEDAR on June 18, 2008. Mining infrastructure assets at the Gullewa Project include a 800 tonne per day CIL plant, a licensed tailings disposal facility, a 50-person camp, offices, and workshops.
Table 1 - Deflector Deposit Resources
Mineral Resource Estimate for the Deflector Deposit | ||||||
above a 1.0 g/t AuEq Grade Cut-Off (1.0% Cu = 2.5 g/t Au) | ||||||
Category | Tonnes | Au (g/t) | Ag (g/t) | Cu (%) | AuEq (g/t) | AuEq (oz) |
Measured | 535,000 | 3.87 | 8.03 | 1.18 | 6.81 | 117,000 |
Indicated | 1,169,000 | 4.32 | 6.34 | 0.96 | 6.72 | 252,000 |
Measured and Indicated | 1,704,000 | 4.18 | 6.87 | 1.03 | 6.75 | 369,000 |
Inferred | 1,616,000 | 6.50 | 3.41 | 0.48 | 7.71 | 400,000 |
(Metallurgical recoveries and net smelter returns are assumed to be 100%)
Table 2 Drill-hole Assay Results for Southern Extension
HOLE | FROM (m) |
TO (m) |
INTERVAL (m) |
Au (g/t) |
Cu (%) |
INCLUDING | |
11DRC001 | 30 | 31 | 1 | 0.80 | 0.17 | ||
and | 36 | 39 | 3 | 0.53 | 0.52 | ||
and | 103 | 105 | 2 | 14.5 | 5.41 | 104-105m: 1m @ 25.4g/t Au, 6.6% Cu | |
and | 115 | 118 | 3 | 2.61 | 0.82 | ||
11DRC002 | 10 | 11 | 1 | 0.60 | 0.19 | ||
11DRC003 | 37 | 38 | 1 | 1.00 | 0.51 | ||
and | 97 | 98 | 1 | 0.58 | 0.31 | ||
and | 101 | 102 | 1 | 3.60 | 0.72 | ||
and | 104 | 105 | 1 | 1.42 | 1.58 | ||
11DRC004 | 25 | 26 | 1 | 0.56 | 0.06 | ||
and | 56 | 58 | 2 | 2.01 | 3.15 | ||
11DRC005 | 24 | 26 | 2 | 1.43 | 0.32 | ||
and | 83 | 86 | 3 | 1.13 | 0.68 | ||
11DRC006 | 35 | 36 | 1 | 0.67 | 0.28 | ||
and | 50 | 52 | 2 | 0.60 | 0.07 | ||
11DRC008 | 10 | 11 | 1 | 1.06 | 0.19 | ||
and | 29 | 31 | 2 | 1.18 | 0.29 | ||
and | 39 | 40 | 1 | 4.96 | 1.17 | ||
11DRC009 | 30 | 33 | 3 | 3.86 | 0.59 | 31-32m: 1m @ 10.3g/t Au, 1.1% Cu | |
and | 78 | 79 | 1 | 0.60 | 0.19 | ||
11DRC010 | 35 | 36 | 1 | 0.54 | 0.45 | ||
and | 58 | 60 | 2 | 1.76 | 1.66 | ||
11DRC011 | 14 | 15 | 1 | 2.37 | 0.45 | ||
11DRC012 | 54 | 60 | 6 | 1.11 | 0.34 | ||
11DRC013 | 34 | 38 | 4 | 0.38 | 0.83 | ||
and | 52 | 53 | 1 | 1.00 | 1.11 | ||
and | 67 | 68 | 1 | 0.85 | 0.15 | ||
and | 81 | 82 | 1 | 3.46 | 2.06 | ||
and | 106 | 107 | 1 | 0.52 | 0.30 | ||
11DRC014 | 88 | 90 | 2 | 1.82 | 0.44 | ||
11DRC015 | 12 | 13 | 1 | 8.08 | 0.62 | ||
and | 17 | 19 | 2 | 0.73 | 0.18 | ||
11DRC016 | 40 | 42 | 2 | 0.90 | 0.20 | ||
11DRC017 | 81 | 83 | 2 | 2.87 | 1.08 | ||
and | 96 | 97 | 1 | 6.59 | 3.06 | ||
11DRC018 | 25 | 26 | 1 | 1.02 | 0.06 | ||
11DRC020 | 54 | 57 | 3 | 7.28 | 3.24 | 54-56m: 2m @ 10.1g/t Au, 4.1% Cu | |
and | 68 | 70 | 2 | 4.28 | 0.08 | ||
11DRC021 | 16 | 17 | 1 | 53.5 | 0.17 | ||
and | 82 | 84 | 2 | 2.47 | 0.62 | ||
and | 87 | 88 | 1 | 8.63 | 3.01 | ||
11DRC023 | 28 | 30 | 2 | 0.73 | 0.18 | ||
and | 43 | 44 | 1 | 0.70 | 0.13 | ||
11DRC024 | 50 | 51 | 1 | 1.47 | 0.37 | ||
and | 53 | 54 | 1 | 1.66 | 0.28 | ||
and | 57 | 63 | 6 | 5.13 | 2.58 | 57-61m: 4m @ 6.5g/t Au, 3.2% Cu | |
11DRC025 | 58 | 59 | 1 | 3.53 | 0.02 | ||
and | 82 | 86 | 4 | 15.9 | 2.62 | 84-85m: 1m @ 59.9g/t Au, 4.5% Cu | |
11DRC026 | 92 | 93 | 1 | 1.77 | 0.91 | ||
and | 107 | 109 | 2 | 7.44 | 2.87 | 107-108m: 1m @ 14.1g/t Au, 5.2% Cu |
Table 3 Drill-hole Assay Results for Northern Extension
HOLE | FROM (m) |
TO (m) |
INTERVAL (m) |
Au (g/t) |
Cu (%) |
INCLUDING | |
11DRC028 | 16 | 18 | 2 | 1.27 | 0.29 | ||
and | 21 | 22 | 1 | 0.90 | 0.63 | ||
and | 46 | 47 | 1 | 0.50 | 0.01 | ||
11DRC029 | 56 | 59 | 3 | 5.88 | 10.9 | 56-58m: 2m @ 7.90g/t Au, 15.1% Cu | |
11DRC030 | 27 | 28 | 1 | 0.72 | 0.31 | ||
11DRC031 | 43 | 48 | 5 | 2.11 | 0.25 |
Table 4 Drill-hole Assay Results for Pieces of Eight Prospect
HOLE | FROM (m) |
TO (m) |
INTERVAL (m) |
Au (g/t) |
Cu (%) |
INCLUDING |
11PERC001 | 63 | 66 | 3 | 7.80 | 0.17 | 63-64m: 1m @ 20.4g/t Au, 0.3% Cu |
11PERC002 | 85 | 91 | 6 | 0.81 | 0.47 |
Table 5 Drill-hole Details
HOLE | EAST (LOCAL) |
NORTH (LOCAL) |
EAST (GDA94) |
NORTH (GDA94) |
RL (m) |
DEPTH (m) |
DIP (°) |
AZIMUTH (LOCAL)1 |
11DRC001 | 9820 | 19021 | 439152 | 6828341 | 279 | 132 | -56 | 271 |
11DRC002 | 9800 | 19001 | 439124 | 6828338 | 279 | 36 | -60 | 271 |
11DRC003 | 9815 | 19001 | 439136 | 6828328 | 279 | 126 | -59 | 270 |
11DRC004 | 9830 | 19001 | 439148 | 6828319 | 279 | 72 | -60 | 270 |
11DRC005 | 9806 | 18981 | 439116 | 6828318 | 279 | 102 | -59 | 273 |
11DRC006 | 9821 | 18981 | 439128 | 6828309 | 279 | 66 | -60 | 269 |
11DRC007 | 9835 | 18981 | 439139 | 6828300 | 279 | 84 | -59 | 271 |
11DRC008 | 9790 | 18960 | 439091 | 6828311 | 279 | 78 | -59 | 270 |
11DRC009 | 9804 | 18960 | 439102 | 6828302 | 279 | 102 | -59 | 270 |
11DRC010 | 9820 | 18960 | 439114 | 6828293 | 279 | 90 | -59 | 270 |
11DRC011 | 9786 | 18939 | 439075 | 6828298 | 279 | 36 | -60 | 273 |
11DRC012 | 9801 | 18939 | 439087 | 6828288 | 279 | 72 | -61 | 271 |
11DRC013 | 9816 | 18939 | 439099 | 6828279 | 279 | 132 | -61 | 271.5 |
11DRC014 | 9846 | 18939 | 439122 | 6828261 | 279 | 132 | -60 | 270 |
11DRC015 | 9775 | 18920 | 439055 | 6828289 | 279 | 48 | -60 | 270 |
11DRC016 | 9795 | 18920 | 439071 | 6828277 | 279 | 84 | -60 | 270 |
11DRC017 | 9834 | 18920 | 439102 | 6828253 | 279 | 114 | -60 | 273 |
11DRC018 | 9784 | 18900 | 439049 | 6828268 | 279 | 60 | -60 | 268 |
11DRC019 | 9768 | 18900 | 439037 | 6828278 | 279 | 42 | -60 | 267 |
11DRC020 | 9814 | 18900 | 439073 | 6828249 | 279 | 90 | -60 | 270.5 |
11DRC021 | 9829 | 18900 | 439085 | 6828240 | 279 | 120 | -60 | 270 |
11DRC022 | 8790 | 18880 | 439042 | 6828249 | 279 | 42 | -60 | 269.5 |
11DRC023 | 9791 | 18859 | 439030 | 6828231 | 279 | 60 | -60 | 268 |
11DRC024 | 9806 | 18859 | 439042 | 6828222 | 279 | 66 | -60 | 269 |
11DRC025 | 9821 | 18859 | 439054 | 6828213 | 279 | 90 | -60 | 269 |
11DRC026 | 9836 | 18859 | 439065 | 6828203 | 279 | 114 | -60 | 269.5 |
11DRC027 | 9852 | 18859 | 439078 | 6828194 | 279 | 138 | -60 | 271 |
11DRC028 | 9800 | 19601 | 439493 | 6828811 | 279 | 60 | -60 | 91 |
11DRC029 | 9780 | 19601 | 439478 | 6828823 | 279 | 102 | -60 | 88 |
11DRC030 | 9798 | 19580 | 439478 | 6828795 | 279 | 66 | -60 | 90 |
11DRC031 | 9782 | 19580 | 439466 | 6828804 | 279 | 75 | -60 | 91 |
11PERC001 | 9407 | 18600 | 438568 | 6828264 | 279 | 102 | -60 | 269 |
11PERC002 | 9431 | 18600 | 438587 | 6828249 | 279 | 156 | -60 | 270.5 |
1: Local azimuth is 38° less than UTM azimuth
The full text of Mutiny's news release can be found at its website: www.mutinygold.com.au. As an ASX issuer, Mutiny does not file on SEDAR.
The terms of the Mutiny Agreement, dated July 20, 2010, call for Mutiny to earn a 70% interest in and to the Gullewa project by making exploration expenditures and paying to Redhill's subsidiary (ATW Australia) a total of AUD$9,000,000 as follows:
1. By making the following cash payments:
(i) payment to ATW Australia of AUD$1.5 million on or before September 24, 2010; and
(ii) payment to ATW Australia of AUD$1.5million (plus applicable interest payable under clause 2 of the Underlying Agreement) to ATW Australia on or before January 24, 2011; and
(iii) payment to ATW Australia of AUD$4.0million on or before July 24, 2011; and
(iv) payment to ATW Australia of AUD$2.0 million on or before October 31, 2011; and
2. By paying all exploration and development expenditures on the Gullewa Project until October 31, 2011.
To date, Mutiny has paid AUD$3.0 million to the Company under the terms of the Mutiny Agreement.
Upon earning a 70% interest in the Gullewa Project, Mutiny may elect to enter into a 70/30 joint venture agreement with the Company or it may acquire a further 30% interest by completing a positive feasibility study on the Gullewa Project and by paying to ATW Australia an additional AUD$4,000,000. If it so elects, then it will have acquired the Gullewa Project 100% save and except that ATW Australia will retain a 10% net profit interest.
This news release has been reviewed by Brent Butler, a Qualified Person as that term is defined in NI 43-101.
Graham Harris, Chairman
"This news release may contain forward–looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements."
Contact Information: Redhill Resources Corp.
Investor Relations
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604-602-1606 (FAX)
investor@redhill-resources.com
www.redhill-resources.com