Redhill Resources Corp.: Deflector Deposit Strike Length Extended to 800 Meters
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/01/11 -- 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 provided results from the first 15 holes of its ongoing drilling program.
The results, from holes drilled on three lines immediately to the south of the known West Lode mineralization, have extended the known length of the mineralization by 60m, bringing the total Deflector strike length to at least 800m. These results will be incorporated into a revised resource estimate to be carried out at the conclusion of the current RC and diamond drill programs.
Deflector Extension Drill Results
Mutiny has received the assay results from the first 15 holes of its Deflector Southern Extensions Reverse Circulation (RC) program which commenced on May 6, 2011. The drilling was carried out to delineate near-surface extensions to the main West Lode to the south of the Deflector Deposit.
Results to the south of the existing Deflector resources include:
-- 6m @ 2.7g/t Au and 0.7% Cu in 11DRC035;
-- 3m @ 5.7g/t Au and 0.4% Cu in 11DRC036;
-- 8m @ 3.0g/t Au and 0.9% Cu in 11DRC038;
-- 3m @ 6.7g/t Au and 1.0% Cu in 11DRC040;
-- 7m @ 2.7g/t Au and 0.1% Cu in 11DRC041; and
-- 1m @ 3.6g/t Au and 5.8% Cu in 11DRC042.
Supporting Field Work
A surface geochemical mapping and interpretation program is being conducted in the Deflector area. This information will be used to improve the targeting of the drilling programs.
A regional mobile metal ion (MMI) program, which will be 'calibrated' against the known mineralization in the area, will be used to assist in the identification of new exploration targets.
The mobile metal ion technique is a sophisticated geochemical sampling technique which is often used to identify new exploration targets. Mutiny is using the MMI survey over areas where exploration drilling will soon commence to gain a better understanding of the geology of the Deflector environs.
Over the years, numerous owners and operators of the Gullewa leases produced many drill cores and RC chip samples. Mutiny geologists have commenced re-logging these samples as there has not previously been a consistent method used to log these valuable sources of information. When this is accomplished, Mutiny expects to produce a much better geological model of the area.
Further drilling is planned to focus on the historical end-of-hole data as the program is targeting geological anomalies in fresh rock rather than supergene anomalies.
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 an 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)
------------------------------------------------------------------------
Au Ag Cu AuEq AuEq
Category Tonnes (g/t) (g/t) (%) (g/t) (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%)
The Company also reports that as of May 29, 2011 Redhill's subsidiary ATW Gold Corp Australia Pty Ltd. ('ATW Australia') has terminated the farm-in agreement ('the Cobra Agreement') dated October 5, 2010 with James Arthur Millar owner of the Cobra Gold Project. Pursuant to the terms of the Agreement, Redhill had the option to earn an 80% interest in the Cobra Gold Project located in the Gascoyne region of Western Australia.
Additionally, ATW Australia has terminated the farm-in agreement (the 'Kempton Agreement') dated dated November 9, 2010 with Eric John Kempton. Under the terms of the Kempton agreement, ATW Australia held an option to acquire up to 100% interest in the Mt. Phillips Gold Project also located in the Gascoyne region of Western Australia.
The termination of the Cobra Agreement and the Kempton Agreement were based on the analysis of the recently completed mapping and sampling programs.
This news release has been reviewed by Brent Butler, a Qualified Person as that term is defined in NI 43-101.
REDHILL RESOURCES CORP.
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.'
'The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.'
Contacts:
Redhill Resources Corp.
Investor Relations
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www.redhill-resources.com