Redhill Resources Corp.: Mutiny to Increase Ownership in Gullewa to 100%
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/24/11 -- Redhill Resources Corp., (TSX VENTURE: RHR), and its wholly owned subsidiary, ATW Gold Corp Australia Pty Ltd., ('Redhill' or the 'Company'), report that Mutiny Gold Ltd. (ASX: MYG) ('Mutiny'), 70% owner and operator of the Gullewa Copper-Gold Project, has advised that in accordance with the farm-in and joint venture letter agreement between the Company and Mutiny dated 20 July 2010 (the 'Letter Agreement'), Mutiny has elected to earn the remaining 30% interest in the Gullewa project, currently held by Redhill, by completing the following:
i. Completing a positive Feasibility Study on the Gullewa Project;
ii. Solely funding all expenditures through to production;
iii. Paying $4 million (AUD) to the Company; and
iv. Agreeing to grant the Company a 10% net profits interest in Gullewa
Copper-Gold Project.
The period for completing the 30% earn-in expires on December 31, 2013.
Overview
In February 2011, Mutiny completed a scoping study on the Deflector Deposit, located within the Gullewa Gold Project. The scoping study highlighted Deflector's potential as a profitable low cost Gold-Copper producer.
Currently, the Mutiny team is continuing work on a feasibility study. GR Engineering Services is engaged to head up the mechanical engineering and plant design works. Xstract Group is conducting the mine studies and Mutiny's in-house project manager and metallurgist, Kevin Reynolds is managing the feasibility study process as well as overseeing the metallurgical test work. The feasibility study is expected to be completed in early 2012.
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 square 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
