Ruby Red Resources Inc.
TSX VENTURE : RRX

Ruby Red Resources Inc.

November 21, 2007 23:59 ET

Ruby Red Resources Acquires Copper-Cobalt Property in Southeast British Columbia

CALGARY, ALBERTA--(MARKETWIRE - Nov. 21) - Ruby Red Resources Inc. ("Ruby Red" or the "Corporation") (TSX VENTURE: RRX) is pleased to announce that it has signed a letter of intent with certain vendors to option a sedimentary copper property (the "Robocop Property") in southeast British Columbia. The Robocop Property is located on the west flank of the Rocky Mountains immediately north of the United States border at Roosville, Montana. The Robocop Property is 3,812 hectares in size and is comprised of ten mineral tenures (claims). Southeast British Columbia and the adjacent part of Alberta are recognized as having geology favourable for large tonnage sedimentary copper deposits such as Spar Lake at Troy, Montana (58Mt grading 0.76% Cu and 54 g/t Ag; Lefebvre, D.V., Alldrick, D.J., 1996). These deposits typically also have a significant cobalt association.

Subject to the approval of the TSX Venture Exchange, Ruby Red will acquire a 100% undivided interest in and to the Robocop Property in consideration for a cash payment of $3,000 and the issuance of up to an aggregate of 350,000 common shares of Ruby Red. In addition, pursuant to the terms of the letter of intent, Ruby Red will incur minimum exploration expenditures on the Robocop Property of $1,000,000 over a period of four years from the date of signing of the formal agreement in respect of this acquisition. If Ruby Red does not issue any or all of the common shares or incur any or all of the exploration expenditures specified above, it shall be in default and all rights and title to the Robocop Property shall be promptly returned to the vendors.

The area surrounding the Robocop Property and adjacent ground have previously been explored by Cominco Ltd., Teck Exploration Ltd. and by Noranda Ltd. Historical work focused on an area of copper mineralization where trenching and some diamond drilling were completed by Teck in 1990. Trench results returned up to 1.93% copper over 6 metres and drilling intersected up to 1.35% copper over 5.48 metres. This drill intersection included 271 ppm (0.027%) cobalt. Cobalt is commonly associated with copper on the property.

Disseminated copper mineralization as chalcopyrite and chalcocite is hosted by a coarse arkosic sandstone of the Roosville Formation which overlies the Nicol Creek Volcanics and is in turn overlain by a stromatolitic domolite unit. Nicol Creek volcanics on the property locally have a lahar breccia texture supporting the presence of a proximal volcanic vent which may have a bearing on the copper mineralization. The mineralization has been traced along the strike of the Roosville sandstone unit for 1600 metres.

Recent work by Ruby Red has identified additional copper mineralization in two areas not drilled by previous operators and geologic work supports the existence of a nearby growth fault which may be a mineralizing control.

Ruby Red intends to drill test the Robocop Property including the areas of newly discovered copper mineralization as soon as permitting is approved.

Acquisition of the Robocop Property with its demonstrated favourable copper and cobalt grades provides Ruby Red with additional exposure to copper in the district.

Ruby Red was formed to participate in the acquisition, exploration and development of mineral claims in the Fort Steele Mining Division of British Columbia for the purpose of exploring for precious and base metals. In addition to the properties Ruby Red has recently acquired, the Corporation holds 100% working interest in 135 mineral claims (approximately 40,000 hectares), all located within 35 kilometres of Cranbrook, B.C. in the Purcell and Rocky Mountains. Ruby Red is currently awaiting assay results from its recent drilling program on its 100% owned Zeus, Jacleg and Loose Leg properties.

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, which include but are not limited to risks inherent in the mining industry, regulatory and economic risks, and risks associated with the Company's ability to implement its business plan. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements.

Contact Information

  • Ruby Red
    Randall Tronsgard
    Vice-President, Corporate Development
    (403) 770-1346 or 1-866-257-4337