Redhawk Resources, Inc.

Redhawk Resources, Inc.

September 11, 2007 12:17 ET

Redhawk Provides Update and Strategic Plan to Significantly Increase Size and Scope of Copper Creek Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 11, 2007) -


Redhawk Resources, Inc. (TSX VENTURE:RDK) (FRANKFURT:QF7) ("Redhawk") is pleased to provide an update on progress at its Copper Creek copper molybdenum project near San Manuel, Arizona and announce a strategic plan for the significant expansion in both size and scope of the project over the next 12 month period. Mr. Bruce Briggs, President, stated; "We believe Copper Creek has the potential to become a significant US based copper producing asset over the next five year period. Redhawk's objective over the next 12 months is to add substantial, independently verified tonnage to our resource base, primarily in the American Eagle and Keel porphyry zones through the use of historical drilling data and an aggressive definition and expansion drilling program in known mineralized areas. We intend to demonstrate that Copper Creek is capable of supporting a full and larger scale viable mining operation."


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 Kalamazoo 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 a significant amount of exploration conducted on it, with over 342 drill holes and 468,000 feet of drilling to date.

American Eagle Porphyry Copper System

Redhawk has successfully completed the necessary and time intensive background work on the property to now prepare for an estimated 10 to 12 month 77,000 foot definition and expansion drilling program, planned to commence in the fall of 2007. The focus of this program will be the American Eagle and Keel Zone porphyry systems. The American Eagle deposit hosts historical resources of 73,488,000 tons grading 0.76% copper, as indicated in a Summary Report on the Copper Creek property, prepared by R. Somerville, P. Eng. in September, 2005. The molybdenum grade of the deposit was not estimated at that time. This resource estimate was categorized as measured and indicated but is not compliant with NI 43-101. No qualified person has done sufficient work to classify this historical resource as a current mineral resource and Redhawk is not treating the historical resource as a current mineral resource. Therefore this historical resource should not be relied upon.

The objective of the proposed drilling program is to confirm the historical resources in the American Eagle and to pursue untested potential extensions of the deposit. Historically the drill data included very limited molybdenum values, however available pulps were recently assayed for molybdenum, which indicated the potential for an increase in the copper equivalent grade.

The Copper Creek property is located at the intersection of two prolific copper porphyry belts with a number of large and deep porphyry copper deposits. The American Eagle and Keel porphyry deposits have historically had over 161,000 feet of drilling conducted in 51 holes. The data and core from this work have been reviewed internally by Redhawk and are now being reviewed by an independent consultant for completion of a NI 43-101 compliant resource estimation on the American Eagle porphyry deposit. Redhawk, in conjunction with the independent consultant, is developing an estimated 77,000 foot drilling program, with the objective of confirming and expanding the 73.488 million ton historical 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 project. 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 Diagram 1, see the following link:, for which drilling is currently underway.

Current Breccia Deposits

An update is currently being performed on the previously announced breccia hosted NI 43-101 compliant resources, compiled by Independent Mining Consultants Inc. and released in September 2006, using data from the recently completed 8,600 foot infill drilling program on the Mammoth Breccia deposit. The September 2006 estimate for the three main breccias (Mammoth, CA, Old Reliable) and the Keel Zone porphyry deposit below the Mammoth comprises a measured and indicated resource of 6,387,000 tons grading 1.75% copper equivalent and an inferred resource of 3,572,000 tons grading 1.76% copper equivalent, using a 0.75% copper cutoff. This is indicative of approximately 350,000,000 pounds of in-situ copper equivalent (including approximately 4,900,000 pounds of in-situ molybdenum).

Successfully Completed Work to Date

Redhawk acquired the Copper Creek property in 2005 and initially focused on three breccia occurrences with historical resources as this was viewed as being the most logical approach to achieving an earlier production scenario. All of the historic drilling and assay data were reviewed, corrected or verified and entered into a comprehensive database which was delivered to an independent consultant for completion of a NI 43-101 compliant resource update. Concurrent with the resource update, an internal scoping study was prepared using top-level consultants in the mining, metallurgical, milling, geotechnical, waste management, environmental, permitting and construction disciplines. Results of the resource update and internal scoping study suggested additional drilling on certain of the breccias and commencement of an underground exploration and development program on the major breccias via an exploration decline. Additional property was also acquired from Phelps Dodge and D&G Mining and additional mining claims staked to consolidate the land position.

Key portions of the property were surveyed for cultural and biological clearance; ground water monitoring wells were installed; baseline water quality testing is underway; waste rock characterization studies were completed; waste rock disposal and containment has been designed, and all other steps were completed for submission of an Aquifer Protection Permit application with the State of Arizona. The application is scheduled for submission in September 2007 and is expected to be approved in mid-2008, allowing the commencement of the exploration decline, which will be of sufficient size to be utilized later as a production decline.

In November 2006 core drilling was started on the Mammoth Breccia to infill and expand the resource. The Mammoth breccia drilling was completed with very encouraging results. Currently drilling is in progress on the Globe Breccias (acquired with the Phelps Dodge property) together with the expansion of the Keel zone towards the American Eagle porphyry deposit. These results will be incorporated into an updated resource estimate.

Conceptual Development Plan

Under the current concept, the Copper Creek project would be developed in two stages. The first stage would be to develop the current resources in the three main breccia deposits, while the second stage would focus on the much larger American Eagle porphyry deposit. The higher grade breccias would be developed from the planned exploration decline, and could provide early cash flow for the project while the large lower grade American Eagle and Keel Zone deposits are being developed. Based on preliminary studies, mining of the breccias would be carried out by selective mining methods in order to maximize the ore recovery and minimize grade dilution, whereas the American Eagle deposit would be exploited by bulk mining methods such as post pillar room and pillar or blasthole stoping in order to achieve the higher production rates needed to economically mine the lower grade mineralization. All mining operations would utilize mill tailings for underground backfill as much as possible in order to limit the amount of surface tailings deposition.

A main hoisting and service shaft would be developed for mining the American Eagle deposit. A process plant would be constructed on surface to handle both the breccia ore in the initial production phase and then would be enlarged for the American Eagle production. Copper and molybdenum concentrates would be treated off-site.

It is expected the breccia deposits could be in production approximately three years after the exploration decline development starts in 2008, with the American Eagle taking a further one to two years to bring on stream. Assuming no other resources are discovered, the American Eagle mine production would ramp up to full plant capacity as the breccia resources decline, creating a phased development for sustained long term production.

This discussion is intended only to outline the current development strategy which Redhawk intends to pursue. No feasibility study or preliminary assessment has been conducted on the Copper Creek property. There is no assurance that the planned program will confirm or expand historical resources estimates or that these resources can ultimately be mined economically from the property. This news release was prepared under the supervision of Bruce Briggs P. Eng., who is a Qualified Person within the meaning of the National Policy 43-101. The technical reports referred to in this summary are available for review at

Additional details including 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 and copper projects in Arizona and gold projects in Nevada. Redhawk's primary focus is on the accelerated development of its advanced stage Copper Creek copper-molybdenum project near San Manuel, Arizona.

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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