Red Crescent Resources Limited
TSX : RCB
FRANKFURT : 7RC

Red Crescent Resources Limited

March 01, 2012 09:28 ET

Red Crescent Resources Provides Update on Hakkari Zinc Project

TORONTO, ONTARIO--(Marketwire - March 1, 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 Hakkari Zinc Project exploration results from the period May to November 2011. The exploration program was designed to better understand the geology of the region, particularly to confirm the nature of the Hakkari oxides and also to confirm the existence of significant sulphide mineralization zones.

"Despite being impacted by a number of unanticipated environmental, operational and seasonal factors, we are encouraged by the progress of our overall exploration program in Hakkari," said Mr. Alan M. Clegg, Executive Chairman, President & CEO of Red Crescent Resources. "The results, which continue to validate our view that the region has the potential to become a significant producer of zinc and related base metals, pave the way for our operational plan in 2012.

"To that end, we have significantly strengthened the management team in Turkey at executive and operating levels in the past 90 days. We have also entered partnering arrangements with equipment, technology, consulting services and banking and financing service providers, each of whom has a clear understanding of our vision and strategy and have committed to supporting the operational execution to realize the objectives set."

Highlights of the Hakkari 2011 Exploration Program

  • Actual achieved drilled metres were 2,145m for 1,400m useable core @ 65% Recovery. Drilling was impacted by a number of environmental and operational issues, including seasonal flooding and related infrastructure damage in the region. Useable core recovered from licence 5, Licence 26 and the bulk on the Pentagon north area.
  • Confirmed the presence of significant disseminated Zinc sulphide mineralization across properties.
  • Confirmed the presence of significant disseminated Copper sulphide mineralization across properties.
  • The collection of copper mineralised samples from Licence 9 returned assays containing 0.5% to +1% Cu. The samples are noteworthy as they contain disseminated sulphides (chalcopyrite).
  • A significant amount of mapping and sampling of mineralised outcrops as well as some trenching was completed.
  • More than 5km of new access roads to Licences 5 South, 9, 10 and 11A were constructed. The new roads are expected to deliver a significant return in geological mapping data, information and resource definition in 2012 season.
  • Precursory small-scale mapping exercises were undertaken in License 5 south, license 9 and 10.
  • Mapping was undertaken in Pentagon north and south to outline the extent of the mineralised zone and structural model.
  • A total of 25 new map points were collected in and around the identified immediate mining area for proper planning of the 2012 open pit production operations for DSO (Direct Shippable Ore).
  • Three Pentagon area drillholes 14, 15 and 16, were planned to intersect the breccia zone and returned good results. The mineralised zone mapped out in this area shows an extent of more than 600m on strike. Folds and faults were also identified in the mining area, and have contributed to the duplication of the significant mineralised zone within this area.
  • Drilling of PENDD012 in the Pentagon area intersected two massive mineralised zones extended from known outcrop at a depth of 121m to 127m (6m) and at 131m to 134m (3m).
  • PENDD014 drilling intersected the same mineralised zones at a depth of 56m to 61m (>5m) and from 70m to 86m (16m) and PENDD016 intersected massive dolomite with alternating small bands of structurally-controlled mineralisation between 0.5m to 1.0m wide and a massive mineralised zone.
  • Alternating thinner mineralised bands were intersected from 95m to 109m (14m) with visible massive zones of smithsonite on the core. The laboratory assay results for the top bands averaged +5% Zn while the Main mineralised zone averaged +22% Zn over 3.2m.

RCR previously indicated it had planned to utilize the 2011 season's data and information for an upgrade of the existing NI43-101 resource to approximately 10Mt @ +15% Zn equivalents (Zn/Pb/Ag). However, as a result of the down-hole survey's of the 15 drilled holes not having been completed to specification by the drilling contractor these surveys will now be re-measured at the start of the new season to bring the hole data with full accuracy into the resource upgrade and updated NI43-101 report planned for early Q3/2012.

A non-compliant estimate calculated by RCR geologists for the new resource generated is 0.5Mt @ +12% Zn Equivalent on Licence 26, and 2Mt @ +20% Zn equivalent on the Pentagon north area; for an approximate season total of 2.5Mt @ +18% Zn equivalent, all potential inferred subject to the drill-hole survey completion at the start of the 2012 season. The total offers potential for an upgrade in the NI43-101 resource for Hakkari Zinc to approximately 4.5Mt @ +15% Zinc equivalent (675kt Zn equivalent). Further established but not compliant resources lies embedded in the recorded in-situ dimensionally measured and estimated volume of mineralised material from cleanly exposed outcrops in anticlinal (i.e. open on 3 sides) and other structures across the 20km contiguous and adjacent licence package, 5, 8, 9, 10 & 11 of approximately 50Mt @ +15% Zn equivalent.

The sections and logs below shows the geological units intersected within PENDD014, PENDD015 and PENDD016 boreholes.

To view FIGURE 1 - Pentagon Disseminated Sulphide Samples and Granite Intrusive, please visit the following link: http://media3.marketwire.com/docs/FIGURE1_Pentagon_Disseminated.pdf.

To view FIGURE 2 - Pentagon Massive Disseminated Sulphide Sample, please visit the following link: http://media3.marketwire.com/docs/FIGURE2_Pentagon_Massive.pdf.

To view FIGURE 3 - Pentagon Hole 12 strip log showing mineralised intersections, please visit the following link: http://media3.marketwire.com/docs/FIGURE3_Pentagon_Hole%20.pdf.

To view FIGURE 4 - Pentagon Holes 14, 15 and 16 showing mineralised intersections, please visit the following link: http://media3.marketwire.com/docs/FIGURE4_Pentagon_Hole14.pdf.

Murat Sariyildiz RCR Chief Exploration Geologist, Member of Turkish Chamber of Geological Engineers and 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

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 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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