Red Crescent Resources Limited

Red Crescent Resources Limited

August 25, 2011 14:38 ET

Red Crescent Provides Progress Update on Development of Its Hakkari Zinc Project

-Confirms Presence of Multiple-Phase Zinc Mineralization Containing Oxides and Suphides-

TORONTO, ONTARIO--(Marketwire - Aug. 25, 2011) -


Red Crescent Resources Limited (TSX:RCB), a mineral exploration and development company focused on base metals in Turkey, today provided an update on the progress of its Hakkari Zinc Project, including the implementation of a new strategy designed for improved capital efficiency and exploration activities.

"Following a formal review of our Hakkari operations, we are deploying a revised strategy that will focus on underground exploration and development activities," said Alan Clegg, Chairman and CEO of Red Crescent Resources. "These efforts, which will incorporate full mining development, mineral processing and exploration for resource generation, will allow us to better utilize our cash position and accelerate the development of our Hakkari Zinc Project."

The Company expects that some surface based diamond core drilling will continue, but only in areas where the terrain offers efficient access and sufficient resource generative capacity, including its Licence No.5 where a road building program to access the mapped higher grade (determined by laboratory assays on grab samples) outcropping and steeply dipping mineralised zones to the south is approximately 90% complete. Red Crescent expects that results from trenching and drilling of these areas will be forthcoming in the fourth quarter of 2011.

The Company also reported that recently completed drill holes on its Licence No.8 and Pentagon area have delivered the expected potential mineralisation both in terms of thickness and measured grade, with over 10m oxide mineralisation in core (approximately 8m true thickness) at a depth of 121m and core surface spot grades measured using handheld InnovX Delta (Ultra High Resolution unit with Silicon Drift Detector) XRF spectrometer of between 20% and 34% Zinc. These grades are to be confirmed by the usual laboratory assays. See attached photographs 'A' and 'B' showing example of the core spot surface grades measured. (NB: InnovX units are Fundamental Parameter based calibrated and certified units by the manufacturer for in-situ mineralisation, broken ore, and percent level analysis of process bulk samples.)

Trenching and drilling operations on its Licence No.26 have delivered a zone of oxide with sulphide mineralisation of average 4.5m thickness over a clear and extensive strike and with a handheld InnovX Delta XRF spectrometer measured in-situ surface spot grades between 17% and 49% Zinc. These grades are to be confirmed by the usual laboratory assays. See attached photographs 'C' to 'F' showing examples of the trench spot surface grades measured. Due to the terrain control at Licence No.26 further exploration will continue using outcrop trenching along strike, establishment of underground decline shaft development in the mineralised zone with establishment of underground drill stations for resource drilling.

The Company has also opened and is rehabilitating old underground workings on its License 8 of significant extent believed to encompass over 500 metres of tunnel and additional small hand-got room & pillar stopes, all of which are within the approximately 6m to 8m thick mineralised zone. See attached photograph 'G'. A channel sampling program within the workings, as well as establishment of several underground diamond drill stations, is due to begin as soon as the workings are made fully safe with established ventilation and lighting.

While cleaning out these old workings, Red Crescent extracted in excess of 1,000 tonnes of mineralized material grading an apparent average from handheld InnovX Delta XRF spectrometer measurement of +17% Zinc which, provides ideal feed material for the Hakkari Gravity Concentrator due to be commissioned in October, 2011. Consistent with its established off-take agreement, Red Crescent fully expects to make its first positive cashflow from both DSO (Direct Shipping Ore) and concentrate sales in the fourth quarter of 2011 as planned.

Red Crescent has now completed the outstanding detailed topographic survey required to confirm the resource drilled at Licence No.8 area during last season and reported on in the February 2011 NI43-101 report as non-compliant pending this survey. This is expected to add a compliant inferred resource per the February 2011 report of approximately 200kt at a grade of 10.5% Zn. The Company remains focused on increasing its compliant resource post the current drilling season and after resource modelling of all assay results continues to target an inferred resource of 10Mt at +15% Zinc equivalents.

Clarity on conflict in the region neighboring Hakkari

Red Crescent also provided clarity on the effects on the Company's day-to-day operations of the publicly- reported conflict and operations by Turkish Armed Forces occurring in N. Iraq near the Hakkari region against insurgent attacks on military resources of the Turkish state.

Mr. Clegg commented, "Red Crescent has an intimate understanding of the local environment with strong stakeholder management and relationships in place. These have resulted in fully effective and harmonious relations within a predictable and manageable operating environment for our projects, which enjoy the highest level of support across the entire stakeholder spectrum. As a result, our operations are unaffected by recent developments and our efforts to advance our project in Hakkari are very much in effect. The same holds true for our projects at Sivas and Tufanbeyli, which are situated in the north-east and south-central part of Turkey. We shall keep our investors apprised of developments as appropriate."

To view "Photograph 'A' - XRF Grade Measurement 25.8% Zn ON Licence No.8 Core", please visit the following link:

To view "Photograph 'B' - XRF Grade Measurement 34.1% Zn ON Licence No.8 Core", please visit the following link:

To view "Photograph 'C' - XRF Grade Measurement 16.9% Zn ON Licence No.26 Trenching", please visit the following link:

To view "Photograph 'D' - XRF Grade Measurement 24.8% Zn ON Licence No.26 Trenching", please visit the following link:

To view "Photograph 'E' - XRF Grade Measurement 39.1% Zn ON Licence No.26 Trenching", please visit the following link:

To view "Photograph 'F' - XRF Grade Measurement 49.3% Zn ON Licence No.26 Trenching", please visit the following link:

Mike Robertson, a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information contained in this release.

Forward-looking statements

The statements made in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

About Red Crescent Resources

Red Crescent Resources (TSX:RCB) is a Turkey-based junior mining company targeting historically inaccessible areas where no modern application of exploration techniques or technology has been applied, with high potential for discovery of significant base metal deposits. For more information, please visit:

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