Redhawk Resources, Inc.

Redhawk Resources, Inc.

October 15, 2007 09:20 ET

Redhawk Independent Consultant Estimates 1.78 Billion Pounds Copper Equivalent Resource in Copper Creek American Eagle Porphyry System

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 15, 2007) -


Redhawk Resources, Inc. ("Redhawk") (TSX VENTURE:RDK)(FRANKFURT:QF7), through its wholly owned subsidiary Redhawk Copper Inc., is pleased to announce the results of an independent NI 43-101 compliant mineral resource estimate for the American Eagle porphyry copper deposit within its Copper Creek property, located in Pinal County, Arizona. The estimate was prepared by industry recognized Independent Mining Consultants ("IMC") of Tucson, Arizona. IMC had previously developed mineral resource estimates for four other deposits on the Copper Creek property (the Mammoth, Childs-Aldwinkle and Old Reliable breccia deposits and the Keel zone) which were documented in a technical report titled "Copper Creek Property Mineral Resource, Pinal County, Arizona, USA", dated October 31, 2006.

IMC has estimated that the American Eagle deposit contains an Inferred Resource of 110 million short tons at a grade of 0.70% copper and 0.014 % molybdenum (or 0.81% copper equivalent) based on a copper equivalent cutoff grade of 0.60%. This is indicative of over 1.5 billion pounds of copper and 30 million pounds of molybdenum in-situ (or 1.78 billion pounds of copper equivalent). The resource summary will be posted on the Company's website and a NI 43-101 technical report is expected to be completed within 45 days.


The 100% owned Copper Creek property consists of approximately seven square miles of almost totally contiguous patented and unpatented mining claims, and state prospecting permits located about 70 miles northeast of Tucson, Arizona and about 15 miles east of San Manuel. The property is in the prolific southwest porphyry copper belt at the projected intersection of a major northwest belt of porphyry copper deposits or mines (Ray, Miami/Globe, Superior/Resolution, Johnson Camp) and a major east-northeast belt of porphyry deposits (San Manuel/Kalamazoo, Silver Bell, Lakeshore, Safford, Morenci). The property is within sight of the former BHP San Manuel copper smelter and mine and within 30 miles of an existing operating copper smelter. The area is a mining friendly and politically secure location with excellent and readily accessible infrastructure. The Copper Creek property has had over 342 drill holes and 468,000 feet of drilling to date. The Company has announced a 2007 - 2008 work program including an additional 77,000 feet of drilling.

IMC American Eagle Porphyry 110 Million Ton Resource Summary

The American Eagle porphyry deposit is located a short distance to the southeast of the Keel zone porphyry deposit, which lies below the Mammoth Breccia, as shown in Diagram 1 attached. To view, please click the following link: The American Eagle is described as a sheeted vein - porphyry like system and has very similar characteristics to the Keel zone. The mineralization is predominantly structurally controlled by fracture systems of several orientations, with some mineralization being disseminated. The mineralization is zoned with depth, going from predominantly pyrite near surface and transitioning to chalcopyrite and then to bornite with depth.

The American Eagle model area contains 63 drill holes totaling 160,238 feet of predominantly core drilling. The holes are generally spaced about 500 feet apart and have been downhole surveyed. There are 10,446 assay intervals, 10,241 with copper assays and 5,872 with molybdenum assays. There are a number of significant gold and silver assays over composited lengths of holes, but the current resource assigns no value for gold and silver. The 2007 -2008 drilling and work program on the American Eagle porphyry will include gold and silver assays.

The block model of the American Eagle deposit covers an area extending some 3800 feet in a north south direction, 4000 feet east-west and 3000 feet vertically. The eastern edge adjoins the Keel zone model. The model block size is 50 by 50 feet in plan and 60 feet in height. The block height is based on a preliminary concept of a large scale room and pillar mining method that would extract 60 feet vertically on each level.

The copper and molybdenum grades and an equivalent copper grade were estimated in the block model. The copper equivalent grade used a multiplier of 8 for the molybdenum grade based on the relationship of a $12.00/lb molybdenum price and a $1.50/lb copper price. No metal recovery or post property costs were included in the molybdenum multiplier. There are significantly fewer molybdenum assays than copper assays and for those intervals with no molybdenum assays, the mean molybdenum assay of 0.005% was used for the calculation versus the average assays of 0.014%. The Company's 2007 -2008 work program will include completing molybdenum assays on currently estimated areas. The assay intervals are predominately 10 feet in length and the assays were composited to 60 foot bench or level height composite averages prior to estimating grades into the block model.

The model blocks receiving grade estimates were limited to indicator defined mineralized zones based on a 0.30% copper equivalent discriminator. This defined areas of interesting mineralization which received grade estimates using only the drill hole composites that fell within the indicator zones. Copper, molybdenum and the copper equivalent grades were estimated using an inverse distance squared technique with a 500 by 500 foot search in plan and 100 ft vertical search with a flat orientation.

The mineralization shows general continuity between drill holes, but with the present drill hole spacing and preliminary nature of the estimate, IMC has classified this as an Inferred Resource. The additional drilling planned by Redhawk in the announced 2007-2008 work program (both in fill and step out) will allow for better definition of the resource and potential expansion and upgrade of the resource classification. The Inferred Resource summary is tabulated below at cutoff grades varying from 0.55% to 0.75% CuEq. The 0.60% cutoff is highlighted as it more appropriately reflects the economics of large scale bulk mining, based on metal prices of $1.50/lb Cu and $12.00/lb Mo. At this cutoff the Inferred Resource is 110.02 million tons grading 0.70% copper and 0.014% molybdenum with a 0.81% copper equivalent grade.

The assessment above is preliminary in nature. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary assessment will be realized.

Table 1-1
American Eagle Inferred Resource

CuEq Cutoff, % Short Tons Copper, % Molybdenum CuEq, %
(Millions) % (Note 1)
0.75 50.76 0.85 0.018 0.99
0.70 65.10 0.81 0.016 0.93
0.65 83.81 0.75 0.015 0.87
0.60 110.02 0.70 0.014 0.81
0.55 150.90 0.64 0.014 0.75
Note 1: Copper Equivalent (CuEq) equals copper + 8.0 x molybdenum

Copper Creek Resources

IMC previously estimated resources for three breccia deposits and the Keel zone "porphyry like" deposit which were documented in a technical report titled "Copper Creek Property Mineral Resource, Pinal County, Arizona, USA", dated October 31, 2006. The results from both studies are listed in the table below.

CA, OR, Mammoth, & Keel @ 0.75% Cu cutoff

Measured and Indicated

Tons % Cu % Mo Au OPT Ag OPT % CuEq

6,387,000 1.51 0.019 0.003 0.10 1.71

Tons lbs Cu lbs Mo oz Au oz Ag

6,387,000 192,887,000 2,427,000 19,200 638,700


Tons % Cu % Mo Au OPT Ag OPT % CuEq

3,572,000 1.40 0.034 0.005 0.05 1.73

Tons lbs Cu lbs Mo oz Au oz Ag

3,572,000 100,016,000 2,429,000 17,900 178,600

OPT equals troy ounces per ton; lbs equals pounds; CuEq equals copper +
molybdenum x 7.86 + gold x 8.36 + silver x 0.36

American Eagle @ 0.60% CuEq cutoff


Tons % Cu % Mo Au OPT Ag OPT % CuEq

110,016,000 0.70 0.014 (i) (i) 0.81

Tons lbs Cu lbs Mo oz Au oz Ag

110,016,000 1,540,224,000 30,804,000 (i) (i)

(i) not estimated; OPT equals troy ounces per ton; lbs equals pounds; Cu eq
equals copper + molybdenum x 7.86

The total estimated contained copper equivalent in the Measured and Indicated categories is 212,354,000 pounds. The total estimated contained copper equivalent in the Inferred category is 1,901,665,000 pounds.

American Eagle Porphyry System 2007 - 2008 Development Program

The American Eagle Inferred Resource estimate provided by IMC supports the development program on the Copper Creek property as disclosed in the Redhawk September 11, 2007 press release. Redhawk, in conjunction with IMC, is developing an estimated 77,000 foot drilling program commencing in late October with the objective of increasing the confidence level and expanding the current 110 million ton American Eagle Inferred Resource. The success of this drilling program would then lead to further studies to evaluate the bulk mining potential of the deposit and the overall development of the Copper Creek mining district. The American Eagle deposit is open in at least three directions and has not been adequately tested to depth. A portion of the anticipated drilling program will be to step out from the existing known mineralized areas with the view to expanding the resources and also to explore for potential deeper deposits as evidenced in other deposits in the geological region. One of the logical areas for expansion is between the Keel and American Eagle zones as set out in the attached map (To view, please click the following link:, for which drilling is currently underway. The Company believes the vast majority of the Copper Creek property has not yet been adequately tested.

Herbert E. Welhener is the qualified person, within the meaning of NI 43-101, who is responsible for the IMC work on the Copper Creek resource estimate. R. Joe Sandberg, CPG is the qualified person within the meaning of N1 43-101 who supervised the preparation of the information that forms the basis of this news release.

Additional details including the IMC summary in its entirety and a more complete strategic plan are contained on our website at .

Certain statements in this press release constitute forward-looking statements under applicable securities legislation. Such statements are generally identifiable by the terminology used, such as "anticipate", "believe", "intend", "expect", "plan", "estimate", "budget", "outlook", "may", "will", "should", "could" or other similar wording. Forward-looking information includes, but is not limited to, reference to business strategy and goals, future capital and other expenditures, resource estimates, drilling plans, mining techniques and repair activities, the submission of application permits, production levels and the sources of growth thereof, project development schedules and results, results of exploration activities and dates by which certain areas may be developed or may come on-stream, royalties payable, financing and capital activities, contingent liabilities, and environmental matters. By its very nature, such forward-looking information requires Redhawk to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information.

The forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law, Redhawk does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.

About Redhawk

Redhawk is a Canadian-based resource exploration and development company with an operations office located in San Manuel, Arizona. Redhawk's primary focus is on the accelerated development of its advanced stage Copper Creek copper-molybdenum project near San Manuel, Arizona. Redhawk also has two gold projects in Nevada.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and many not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable states securities laws.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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