Redhawk Resources, Inc.
TSX VENTURE : RDK
FRANKFURT : QF7

Redhawk Resources, Inc.

June 01, 2011 09:25 ET

Redhawk Resources Announces Results of 2010 Exploration Drilling and 2011 Resource Expansion Drilling at Copper Creek

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 1, 2011) - Redhawk Resources, Inc. (TSX VENTURE:RDK)(FRANKFURT:QF7) -

  • 2010 drill program completed totaling 24,776 feet (7,552m)
  • 2010 drilling program extends high potential porphyry system from 1.5km to 4.5kms in length
  • two drill holes for 2011 drill program completed and two holes in progress
  • first hole of the 2011 drill program RAE-07-16 encounters 2,049 feet (624m) of continuous porphyry style mineralization with three zones above resource grade cutoffs

Redhawk Resources, Inc. ("Redhawk" or the "Company") is pleased to announce the results from three of the 2010 district exploration holes at Copper Creek and results of the first completed drill hole of the 2011 resource expansion and definition program. (To see a map of drill hole locations, please visit the following link: http://media3.marketwire.com/docs/rdk601i.pdf)

2011 Drill Program

The 60,000 foot (18,290m) 2011 drill program will have approximately 20,000 feet (7,000m) allocated to continuing the 2010 district expansion program. The balance of 40,000 feet (11,290m) is being directed towards shorter step out holes and in fill holes in and around the existing American Eagle and Keel porphyry systems to increase both the amount and category of resources.

The first hole was drill hole RAE-07-016 located to increase the size of the area connecting the American Eagle and Keel porphyry resource areas, and was completed to a depth of 4,396 feet (1,340m). The core drill hole intercepted 2,049 feet (~624m) of strong continuous porphyry style mineralization from 2,286 feet to 4,335 feet (~697 to ~1,321m) that averages 0.34% copper, 0.011% molybdenum, and 1.10 ppm silver. The strongly mineralized interval contains numerous intervals of higher grade mineralization as shown in the table below, including 105 feet (32 m) of 0.79% copper, 0.013% molybdenum, and 2.96 ppm silver; 90 feet (27.4m) of 0.70% copper, 0.003% molybdenum and 2.31 ppm silver; and 58 feet (17.7m) of 0.64% copper, 0.003% molybdenum and 1.80 ppm silver. Drill hole RAE-07-017 located south of RAE-07-016 has also been completed and assays are pending. Drill hole RAE-07-018 is in progress. These three holes will increase size of the area connecting the two resource areas and increase the total resources.

RAE-07-016
Start intervalend intervalthicknessCu%Mo%Ag ppm
2286 ft4335 ft2049 ft0.340.0111.10
Including:
2286 ft2980 ft694 ft0.430.0031.12
Incl
2507 ft2565 ft58 ft0.640.0031.80
2650 ft2740 ft90 ft0.700.0032.31
3170 ft3300 ft130 ft0.350.0061.05
3360 ft3465 ft105 ft0.790.0132.96
3493 ft3510 ft17 ft0.620.0141.99
3580 ft3630 ft50 ft0.360.0241.49
3644 ft3664 ft20 ft0.72tr.0.38
3705 ft3740 ft35 ft0.230.1010.74
3830 ft3945 ft115 ft0.240.0271.04
4000 ft4260 ft260 ft0.280.0211.29
Incl
4166 ft4260 ft94 ft0.410.0051.78
(ft = feet, % = percentage, ppm = parts per million, tr = trace, Cu = copper, Mo = molybdenum, Ag = silver)

2010 Drill Program Completed

The 2010 six hole drill program totaling 24,776 feet (7,552m) has been completed with assays received on all but one hole. The results from the first two district exploration holes, REX-10-046 and REX-10-048, were announced in early 2011 and contained high grade narrow intercepts. The final district exploration hole to be completed, REX-10-047, was drilled 1,600 feet (488m) west of the current porphyry resource area to a depth of 4,007 feet (1,221m). The hole encountered significant intervals of strong copper mineralization identical in style to that in the Keel and American Eagle porphyry resource area. Assays are pending. The drill hole was started vertically but drifted to the NW a few hundred feet. Due to the significant visual mineralization, Redhawk is now drilling an angle hole, REX-10-052, from the same drill site directed to the NE at a steep angle meant to offset hole REX-10-047 towards the Keel Zone porphyry resource area to the east.

Exploration hole REX-10-049 was drilled 3,200 feet (nearly one km) NW of the current porphyry deposit resource boundary and intersected disseminated and veinlet style mineralization in a "crowded porphyry" intrusion before being lost at 3,772 feet (1150 m) ( see results below). Redhawk plans to wedge from the lost hole to further evaluate the encouraging mineralization.

Exploration hole REX-10-050 was drilled to a depth of 3,967 feet (1,209m), a distance of 3,100 feet (945m) SE from the current porphyry resource boundary targeting potential mafic host rocks (diabase intrusions and andesitic volcanics). The drill hole encountered nearly 3,000 feet of altered and strongly pyritic andesitic volcanics and diabase. The hole contained anomalous copper, molybdenum, silver, and other metals over large intervals but no grades approaching ore values. Exploration hole REX-10-051 was drilled to 5,057 feet (1,541m), a distance of 3,000 feet (914m) SSE from the current porphyry resource boundary. Similar to hole REX-10-050, REX-10-051 encountered long intervals of andesitic volcanics and some diabase with strong "porphyry style" alteration and sulfide mineralization. Two thin zones of intrusives with disseminated copper sulfides were found in the hole. Redhawk intends to drill an exploration hole as part of the 2011 drill program between hole REX-10-50 and the southeastern side of the American Eagle resource to determine whether the thick andesitic volcanic and diabase are mineralized by the fluids causing the formation of the American Eagle system. Significant assay results are listed below.

REX-10-049
Start intervalend intervalthicknessCu%Mo%Ag ppm
3610 ft3705 ft95 ft0.220.0030.49
Incl
3615 ft3635 ft20 ft0.330.0030.74
REX-10-050
No significant values
REX-10-051
Start intervalend intervalthicknessCu%Mo%Ag ppm
2980 ft3080 ft100 ft0.15tr1.88
4685 ft4689 ft4 ft7.500.00254.9
(ft = feet, % = percentage, ppm = parts per million, tr = trace, Cu = copper, Mo = molybdenum, Ag = silver)

Based upon the results of the six district exploration drill holes now completed, Redhawk geologists and consulting geologists now believe that a very large porphyry copper/molybdenum mineralization system is present in the Copper Creek District. The horizontal footprint of the current porphyry resource is approximately 5,000 feet (1,524 m) in a NW-SE direction. Holes REX-10-048, the most northwest exploration drill hole, and REX-10-051, the most southeast exploration drill hole, are 14,600 feet (4,450 m) apart. Both drill holes contained classic porphyry copper deposit style alteration and mineralization.

R. Joe Sandberg, Redhawk's President & CEO, stated, "Our geologic group is very pleased with the 2010 district exploration drill program. We believe that the area of high potential for discovery of additional porphyry copper/molybdenum deposits within our property holdings is now at least 5 km by 3 km and continuing work may further increase this area. Redhawk's 2011 drilling program has had a very successful beginning and will continue to explore the high potential areas of the property and continue with the resource upgrade and expansion announced earlier this year."

R. Joe Sandberg, CPG, Redhawk's President & CEO and a Qualified Person under the meaning of NI 43-101, is responsible for the technical content of this news release.

All core samples are picked up on site by Redhawk geologists or delivered by the drillers to Redhawk personnel. All samples are delivered by Redhawk personnel to ALS Laboratory Group ISO 9001:2000 & ISO 17025 in Elko, NV or Reno, NV for assay or to Jacobs Assay Office Registered Assayers in Tucson, AZ for sample preparation to pulps and shipped by Jacobs using UPS to ALS in Reno, NV. Check assay standards are submitted with each assay job, and reviewed for accuracy.

About Redhawk

Redhawk is a Canadian-based resource exploration and development company with primary focus on the accelerated development of its advanced stage Copper Creek copper-molybdenum project in San Manuel, Arizona. 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 US 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/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.

ON BEHALF OF THE BOARD

R. Joe Sandberg, President & CEO

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. 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.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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