Ruby Red Resources Inc.

Ruby Red Resources Inc.

August 18, 2010 13:11 ET

Ruby Red Resources Enters Into Option Agreement on the LOV Property

CALGARY, ALBERTA--(Marketwire - Aug. 18, 2010) - Ruby Red Resources Inc. (TSX VENTURE:RRX) ("Ruby Red" or the "Company") is pleased to announce that it has entered into an Option Agreement with Bearclaw Capital Corp. ("Bearclaw") (TSX-V) pursuant to which Ruby Red has granted Bearclaw the option to earn a 65% interest in the Company's LOV property, a 197 claim unit located 30 km west of Cranbrook, British Columbia. To earn the 65% interest in the property, during a 38 1/2 month period Bearclaw must (i) complete $1,190,000 in exploration expenditures on the property; (ii) make $90,000 in cash payments to Ruby Red and (iii) issue 800,000 common shares of Bearclaw to Ruby Red. The Option Agreement also provides that Bearclaw may increase its interest in the LOV property to 80% by (i) delivering a positive Pre-Feasibility study; (ii) making an additional cash payment of $50,000 to Ruby Red; and (iii) issuing an additional 200,000 common shares of Bearclaw to Ruby Red. 

The Lov Property covers Lower Cambrian sediments intruded by cretaceous granite intrusions. Prior work identified a 2.5 kilometer long molybdenum copper soil anomaly within which is a tungsten, arsenic, bismuth anomaly in addition, a more linear gold soil anomaly crosses the property. The geology and geochemistry are indicative of skarn type potential. Bearclaw is planning an aggressive exploration program for this year.

Bearclaw is pleased to have acquired these prospective claims in this area. Phase One will comprise follow-up geochemistry and mapping to better determine mode and extent of mineralization, and will include airborne or ground EM and MAG surveying of further geological mapping in order to define drill targets for diamond drilling.

Mr. Doug Anderson, P. Eng., is a qualified person as defined by National Instrument 43-101 and supervised the preparation of the technical information in this news release.

The Company also wishes to announce that Thomas G. Smillie has resigned as Chief Financial Officer of Ruby Red effective August 31, 2010. The Board of Directors and the management of Ruby Red wish to thank Mr. Smillie for all his efforts on behalf of the Company.

About Ruby Red Resources Inc.

Ruby Red is a small company with a large land position: approximately 50,644 hectares (125, 141 acres) in southeastern British Columbia, Canada. The Company's mission is: to define quality mineral exploration opportunities that can be developed in a sustainable and environmentally responsible manner and that can contribute to the economic and social well-being of local communities.

In recent years the Company has concentrated its efforts on the Kimberley Gold Trend ("KAT"), which blankets a large portion of the Company's properties. The KAT is a metal-rich boomerang-shaped region roughly 30 km wide and 100 km long, extending from the Purcell Mountains in the west, across the Rocky Mountain Trench where it bends north to occupy a swath of the western Rocky Mountains.

Certain statements contained in this press release constitute forward-looking statements (the "forward-looking statements"). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "potential", "target", "intend", "could", "might", "should", "believe" and similar expressions. 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. Although we believe that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, level of activity, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking statements and information.

Some of the risks and other factors could cause results to differ materially from those expressed in the forward-looking statements include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, including fluctuations in commodity prices; governmental regulation of the mining industry, including environmental regulation; geological, technical and drilling problems; unanticipated operating events; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for commodities; liabilities inherent in mining operations; changes in tax laws and incentive programs relating to the mining industry; and the other factors described in our public filings available at Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking statements to conform such statements to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. The reader is cautioned not to place undue reliance on forward-looking statements.


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