Red Crescent Resources Limited
TSX : RCB
FRANKFURT : 7RC

Red Crescent Resources Limited

March 08, 2012 10:05 ET

Red Crescent Resources Announces A Summary on Plans for Processing of Zinc Oxide and Sulphide Mineralised Materials at the Hakkari Project

TORONTO, ONTARIO--(Marketwire - March 8, 2012) - Red Crescent Resources Limited ("RCR") (TSX:RCB)(FRANKFURT:7RC), a mineral exploration and development company focused on base metals in Turkey, today announced a summary of its plans for processing of zinc oxide and sulphide mineralised materials mined at the Hakkari Zinc Project.

RCR reports that following from the results of the 2011 field exploration work on its properties and a regional review of remnant mineralised materials dumped from historical mining activities, at least four distinct streams of are available for processing. These Zinc mineralised materials will be categorised as follows:

  1. Materials newly mined with an assayed Zinc grade of +24% Zn (Direct Shippable Ore ("DSO"));
  2. Materials newly mined with an assayed Zinc grade of +12% Zn and <24% Zn (Dense Media Separation ("DMS") concentrator feed);
  3. Materials historically mined and rejected as non-DSO with Zinc grade of +5% Zn to <20% Zn; and
  4. DMS tailings from RCR semi-mobile gravity concentrator plant(s)

RCR has over the last 18 months conducted a significant number of metallurgical tests both in-house and independently on its mineralised materials using both mechanical & hydrometallurgical methods and processes to get a preliminary view on the their amenability and ability for economic extraction. RCR has also consulted many experienced extractive metallurgists and metallurgical design experts on scalability of likely process routes, such that it now has a clear picture of the way forward for full process feasibility studies to be executed.

While such feasibility and design engineering studies are being executed, RCR reports it will be selling all Group A. +24% ROM material as DSO. It is expected that typical Group A. DSO materials will be independently sample certificated at +24% to 27% Zn and at $1900/tonne LME market price are expected to generate approximately US$167/dmt (Dry Metric Tonne) CIW (Cash in warehouse) Mersin port.

All the medium grade Group B materials from all sources and potentially some Group C materials at +12% Zn will pass through the pre-concentration process in the Gravity Concentrator(s) and this is expected to generate saleable concentrate of up to 38% Zn with mass yield from the feed of 32% to 38% directly saleable and a 62% to 68% in Group D materials of circa +5% to 8% Zinc mainly embedded within the Iron and other Hydroxides. The saleable concentrates at $1900/tonne LME Zn market price are expected to generate approximately US$290/dmt (Dry Metric Tonne) CIW (Cash in warehouse) Mersin port.

Most of the zinc is present in carbonate form and most iron in oxide form [goethite], and leaching of zinc from its concentrate has been shown to be rapid with weak leachants and limited co-leaching of iron. RCR concentrates can also be calcined to yield high grade zinc oxide and lead oxide products and this potential will be investigated more fully in the feasibility studies as another potential intermediary product route.

Further, RCR is planning for the load, haul and dump of the Group D materials onto a leach pad or 'dam' blended and/or layered with Group C materials dumped informally over the last 10 years which RCR intends to re-load and leach the metal content. The leach pad design and engineering concept under review is to construct 'dams' that will use the aggressive steep and closed topography innovatively and advantageously as no adequate flat areas for traditional leach pads exist adjacent to the mine sites and with economically logistical access.

RCR believes that with application for primary leaching of Alexander Mining Plc's AmmLeach® technology for the oxides, noting that it selectively and positively rejects Fe content, a potential problem for economic optimisation in the Group B and Group C materials; and secondary leaching with HyperLeach® technology for the sulphides in multi-stage leaching of the same 'dam' material to extract maximum metals into the pregnant solution will deliver optimal recoveries in an environmentally neutral design maximising project lifetime economics.

Further, dependant on the precious metal recovery profile from feasibility study testwork planned in 2012 and the associated economic value vs. environmental impact consideration may then be given to the completion of a tertiary leach phase of the same 'dam' to extract the precious and/or other metals.

"We continue to make good progress on our Hakkari project," said Mr. Alan M. Clegg, Executive Chairman, President & CEO of Red Crescent Resources. "We are near a final business design that will allow us to produce three saleable Zinc products, namely a direct shippable ore, concentrates for smelting or leaching by customers and a base metal pregnant solution for direct solvent extraction - electrowinning (SX-EW) refining." Mr. Clegg added, "Longer term, we have completed the architecture for a major base metals refining plant to be established in Turkey within the next 6 to 8 years and in any event before 2020 and has a clear stated intent to be the major supplier to that facility of concentrates and/or zinc and copper rich base metal pregnant solutions for home market refining and production of LME grade base metals into the economy."

Mike Plaskitt, Independent Metallurgical Process Consultant; Dr. Can Ozer, Senior Process Engineer AME Consulting; Garry Johnston, Technical Director MetaLeach Ltd; Alan M. Clegg Pr.Eng FSAIMM, a Qualified Person as defined by National Instrument 43-101, have reviewed and verified the technical information contained in this release.

Forward-looking statements

This press release contains certain "forward-looking statements". All statements that are not historical facts, including, among others, statements regarding plans for processing of zinc oxide and sulphide mineralised materials mined at the Hakkari Zinc Project, expected prices of metals and minerals, expected application and results of leaching technology, and other statements regarding future estimates, plans, objectives and performance are forward-looking statements. There can be no assurance that such forward-looking statements will prove to be accurate. Such statements are based on certain assumptions, including, among others, pricing assumptions regarding mineral commodities and there being no significant disruptions affecting operations on our properties or other material adverse changes. Such statements involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated by such statements. Such risks and uncertainties include, among others, the actual prices of metals and minerals, the actual results of current exploration and mining activities, changes in project parameters as plans are evaluated, as well as those assumptions, risks and other factors identified and reported in our public filings with Canadian securities regulators (including our annual information form), which can be accessed at www.sedar.com. The forward-looking information contained in this press release is made as of the date hereof. Other than as specifically required by law, we undertake no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on forward-looking statements.

About Red Crescent Resources

Red Crescent Resources (TSX:RCB)(FRANKFURT:7RC) is a Turkey-based junior mining company targeting historically inaccessible areas where generally no modern application of exploration techniques, mineralogical and metallurgical assessment or technology has been applied, with potentially significant base metal deposits under development.

RCR's strategic and operational focus is fundamentally under-written by virtue of its situational geography, i.e. within Turkey as one of the fastest growing industrial economies. The sustainability of this growth is dependent upon Turkey's ability to fund the growing balance of payment deficit caused by its continued and accelerating growth in consumption of the main industrial base metal & other mineral commodities; four of the top six are Copper, Zinc, Lead, and Ferro-metals. RCR is the leader in the drive for Turkey to be as far as possible self sufficient by virtue of its ability to produce the key industrial base metal commodities required by 2023. For more information, please visit: www.redcrescentresources.com.

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