Red Crescent Resources Limited

Red Crescent Resources Limited

February 21, 2012 12:25 ET

Red Crescent Resources Announces Detail on 2012 Business Targets

TORONTO, ONTARIO--(Marketwire - Feb. 21, 2012) - Red Crescent Resources Limited ("RCR") (TSX:RCB)(FRANKFURT:7RC), a mineral exploration and development company focused on base metals in Turkey, today announced that following a full review by the board, it has approved the Company's overall strategic business plan and its alignment with the specific detailed business targets established for 2012 project operations aimed at generating the ability for the corporation to be self-funding by the end of the annual reporting period.

RCR's primary assets capable of delivering the targeted self funding include; the Hakkari zinc and manganese projects, which are located in far south-east Turkey; the Tufanbeyli/Kayseri regional hub zinc project, in south central Turkey; while the potential for the Sivas copper project, located in north-east central Turkey, to deliver early production through leveraging with application of the proprietary oxide (AmmLeach®) and sulphide (HyperLeachtm) technologies of Alexander Mining Plc for further enablement is also under review via a technical cooperation.

Selected targets for 2012:

  • The Hakkari operations are expected to generate approximately US$4 to US$5 million in net cash earnings before interest, corporate tax, depreciation, amortization (EBITDA) resulting from the sale of 40 to 50 thousand tonnes of high grade zinc oxide direct shipping ore (DSO) and 10 to 15 thousand tonnes of Zinc/Lead concentrate priced in the plan at US$1900/t Zn equivalent; and the sale of 5 to 10 thousand tonnes of manganese DSO priced in the plan at US$2.6/DMTU Manganese contained. The proceeds will be used to continue to build internal capacity and capability while sustaining the Company's operational development and enable self funded ongoing resource development of its projects at sustainable base minimum levels.
  • An update of the existing NI43-101 technical and resource for Hakkari Zinc including the works completed in the 2011 exploration season and further oxide and sulphide metallurgical testwork results can be expected by early Q3/2012; The 2012 drilling program will consist of deployment of RCR owned and operated surface and underground drill rigs with in-house employed professional crews following the 2011 human & equipment resource capital building project. Two surface rigs will operate in the Zinc/Lead mineralised properties Licence 5 and 11A areas targeting 6000m of diamond core drilling. One surface rig will operate in the Manganese properties at Şemdimli area targeting 3000m of diamond core drilling.

Additionally a total of 5 RCR underground diamond drill rigs will be targeting 6000m to 8000m of core drilling for resource development from within the mineralised zones on the Pentagon North & South and the Licence 26 underground mine portal and access tunnel development areas.

  • A full feasibility study on an optimized process engineering solution utilizing the Alexander Mining plc proprietary technology AmmLeach® for Hakkari's primary zinc and lead metal production is expected to be completed by end Q4/2012 for reporting in Q1/2013. Further RCR has identified secondary potential believed to be in excess of 1.5 million tonnes of lower grade 'non-DSO' mined reject material dumped in a number of areas regionally in Hakkari over the past 10 years by small miners, including RCR's joint venture partners in the years pre-2008, and which it believes presents a potentially significant opportunity for low cost AmmLeach® processing delivering metal in solution for sale to refiners. An early concept engineering study for the gathering and processing of this mineralised material will begin in March 2012.
  • A surface infill diamond core drilling program, targetting at least 1500 metres, is expected to be completed at the Company's Tufanbeyli zinc project for the purpose of confirming the assumed strike continuity of the mineralised zones between the currently identified mineralised areas and updating the NI43-101 technical and resource report by Q4/2012 as well as providing further input to the current concept open pit(s) mine design.
  • The production of further saleable zinc contained from the concentration of mined ores 'bought-in' from small miners for toll treatment, and mined 'non-DSO' reject dump recovered mineralised material from the Tufanbeyli/Kayseri regional hub project area is expected to generate opportunity for further net cash earnings and studies are underway. Like Hakkari potential exists for gathering and processing of regionally dumped non-DSO reject mineralised material and this will be evaluated also in 2012.
  • At the Sivas Project a detailed structural geology study, further geochemical studies with rock, soil & trench sampling will be undertaken in Q2/2012. This will be followed by further geophysical studies and an at least 3,000 meter diamond core drilling program is expected to be completed at the South East Zone of the project in the Q3/2012 period. An additional 7,000m diamond core drilling is planned to follow in Q4/2012 based on the results from the Q2/Q3 works. An inaugural NI43-101 technical and resource report from exploration results up to early December 2012 for the project is planned for publication in Q1/2013.

"Generating cashflow and expanding our resource estimates on all active projects throughout the year will give us the flexibility to invest further in our existing significant asset base and project pipeline while constantly expanding and facilitating RCR access to add to our asset base with quality prospects," added Mr. Clegg. "Whether by acquiring new contiguous and adjacent mining rights or implementing appropriate new mining and processing technology specifically for our oxide mineralised zones, we will explore opportunities where we can leverage all our stakeholder relationships to accelerate our vision of developing Red Crescent Resources as the major mining and base metals production company in the Republic of Turkey."

Alan M. Clegg Pr.Eng FSAIMM, 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)(FRANKFURT:7RC) is a Turkey-based junior mining company targeting historically inaccessible areas where no modern application of exploration techniques 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:

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