VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/24/11 -- 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 informed Redhill that new high-grade gold intersections now extend the previously defined high-grade mineralization 160m to the north of its current Measured and Indicated Resources within the West Lode of its Deflector Gold Deposit (refer to table 1).
-- Further high-grade mineralization has been intersected within the
Deflector Northern Extension
-- Increased confidence in adding significant economic mineralization
-- New results in the northern extension of the Deflector Deposit include:
-- 7m @ 12.8g/t Au and 1.1% Cu from 116m in 11DRC078;
-- 3m @ 5.7g/t Au and 1.9% Cu from 80m in 11DRC079;
-- 2m @ 10.7g/t Au and 0.0% Cu from 132m in 11DRC080;
-- 4m @ 5.3g/t Au and 0.9% Cu from 73m in 11DRC081; and
-- 6m @ 37.5g/t Au and 7.8% Cu from 102m in 11DRC083
-- Encouraging exploration results from the Spanish Galleon prospect
including:
-- 4m @ 3.3g/t Au and 0.3% Cu from 56m and
-- 29m @ 0.9g/t Au and 0.6% Cu from 34m
The latest results were received from the final 15 holes of Mutiny's recently completed RC drilling program into the Deflector Deposit extensions. These results will be incorporated into the revised resource estimate, which is expected to be released in the coming months.
Spanish Galleon Prospect
Results were also received for the 16 RC holes drilled into the Spanish Galleon Prospect. Six targets were RC drill tested at the Spanish Galleon Prospect, which is located between 400m and 700m to the west of and parallel to the Deflector mineralization. The holes were partly sited to follow-up relatively shallow gold intersections made by previous explorers.
Combined with geological logging of drill cuttings from historical shallow drilling, the first pass drill results have further refined the character of these gold-copper targets. Current interpretation of these encouraging results indicates at least four mineralized zones within an intrusive body of granodioritic to dioritic composition, a sheared ultramafic unit (9m @ 1.3g/t Au and 0.5% Cu), a basalt (previously reported 3m @ 7.8g/t Au and 0.2% Cu), and a pyrrhotitic black shale. The mineralization appears to be associated with contacts between these units and with a magnetite-sericite-quartz-biotite alteration zone within the intrusive body. Intersections within this intrusion include 4m @ 3.3g/t Au and 0.3% Cu and wider gold-copper zones (29m at 0.9g/t Au and 0.6% Cu and 18m at 1.0g/t Au and 0.5% Cu).
Important points regarding the potential of the Spanish Galleon Prospect include:
-- The lode positions are open below the current shallow drilling and are
open on strike to the NE and SW.
-- The intrusive alteration aureole related mineralization encountered so
far (e.g. 18m at 1.0g/t Au and 0.5% Cu from 39m down-hole in 11SGRC003
and 29m at 0.9g/t Au and 0.6% Cu from 34m down-hole in 11SGRC009) has
been interpreted over a zone measuring greater than 400m by 200m.
Deflector Northern Extension Drill Results
The drilling was carried out to explore both to the north and south of the main known area of mineralization at the Deflector Deposit.
Western Lode intersections to the north of the existing Deflector resources include:
-- 7m @ 12.8g/t Au and 1.1% Cu from 116m in 11DRC078; -- 3m @ 5.7g/t Au and 1.9% Cu from 80m in 11DRC079; -- 2m @ 10.7g/t Au and 0.0% Cu from 132m in 11DRC080; -- 4m @ 5.3g/t Au and 0.9% Cu from 73m in 11DRC081; and -- 6m @ 37.5g/t Au and 7.8% Cu from 102m in 11DRC083.
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)
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Au Ag Cu AuEq AuEq
Category Tonnes (g/t) (g/t) (%) (g/t) (oz)
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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
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(Metallurgical recoveries and net smelter returns are assumed to be 100%)
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
604-662-8184 or Toll Free: 1-877-662-8184
604-602-1606 (FAX)
investor@redhill-resources.com
www.redhill-resources.com
