Redhill Resources Corp.
TSX VENTURE : RHR

Redhill Resources Corp.

June 22, 2011 09:00 ET

Redhill Resources Corp.: Mutiny Extends Deflector Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 22, 2011) -Redhill Resources Corp., (TSX VENTURE:RHR) ("Redhill" or the "Company") announces that Mutiny Gold Ltd. (ASX:MYG) ("Mutiny"), operator and optionee of Redhill's wholly owned Gullewa Copper-Gold Project, has informed Redhill that results from its ongoing exploration program has delivered significant new higher grade gold intersections to the North and South of existing resources at the Company's Deflector Gold Deposit.

  • Selected higher grade RC results to the north of the existing Deflector resource include:

    • 12m @ 11.6g/t Au and 2.2% Cu from 84m in 11DRC048;
    • 4m @ 8.0g/t Au and 3.3% Cu from 81m in 11DRC050;
    • 3m @ 42.1g/t Au and 2.3% Cu from 120m in 11DRC053;
    • 3m @ 12.9g/t Au and 2.5% Cu from 91m in 11DRC054;
    • 3m @ 8.8g/t Au and 0.3% Cu from 20m in 11DRC066;
    • 5m @ 8.4g/t Au and 0.3% Cu from 13m in 11DRC067;
    • 4m @ 17.0g/t Au and 0.7% Cu from 60m in 11DRC068.

  • Following these results, Mutiny has commenced further RC drilling in the area.

  • Drilling down plunge in the south of existing Deflector resource has extended the known depth of the high grade mineralisation and include:

    • 1m@72.2g/tAu and 1.2%Cu from 126m in DRC074

  • A revised resource estimate is to be updated at the end of R.C. and Diamond Drill programs by Mutiny

The most northerly hole drilled as part of the current program, drill hole 11DRC063, which was located 140 meters north of the new high grade discoveries and 270 meters to the north of the current resource boundary, delivered an encouraging result of 3m at 9.9 g/t highlighting the potential that remains along strike at Deflector.

The high grade intersections located in the Northern Deflector shear structure, and down-plunge of the Southern portion of the resource, substantiate management's belief in the exploration potential of the Deflector Corridor and provides confidence that the existing 590,000oz gold resource can be significantly increased with ongoing drilling.

Commenting on the recent exploration success, the Muntiny's Managing Director, John Greeve said, "It is particularly encouraging that there are high grade intercepts being achieved in multiple locations. The results indicate likely extensions to the planned open pit and, also, importantly, confirm the down plunge continuity with depth of high grade shoots, these will be included in underground mine planning. It is management's belief that the recent exploration success will lead to a meaningful lift in the Deflector resource which will justify an expanded mining case to be considered as part of the feasibility study, currently in progress."

The results received from the first 26 holes of Mutiny's ongoing drilling program, which recommenced in early May, have again added strike length to the Deflector Deposit mineralization which now extends at least over 850m. These results will be incorporated into the revised resource estimation to be carried out by Muntiny at the conclusion of the current RC and diamond drill programs.

Mutiny has already begun preparing for further RC drilling to follow up the high-grade intersections with a second diamond drill rig being sent to site to accelerate the Deflector central underground drill program.

Deflector Northern Extension Drill Results

Drilling to the North of the existing Deflector Deposit was carried out to assess the potential for northern extensions to the current known resources.

Western Lode

Western Lode intersections to the north of the existing Deflector resources include:

  • 12m @ 11.6g/t Au and 2.2% Cu from 84m in 11DRC048;
  • 4m @ 8.0g/t Au and 3.3% Cu from 81m in 11DRC050;
  • 3m @ 42.1g/t Au and 2.3% Cu from 120m in 11DRC053; and
  • 3m @ 12.9g/t Au and 2.5% Cu from 91m in 11DRC054.

North Contact Lode

To the east, the Contact Lode position returned high grade intersections as detailed below.

  • 3m @ 8.8g/t Au and 0.3% Cu from 20m in 11DRC066;
  • 5m @ 8.4g/t Au and 0.3% Cu from 13m in 11DRC067; and
  • 4m @ 17.0g/t Au and 0.7% Cu from 60m in 11DRC068.

The Contact Lodes are located on the eastern boundary of the basalt unit that contains the West and Central Lodes, at its contact with a sedimentary unit. The northern position of both the Central and Contact Lodes is very much underexplored and will be vigorously tested as part of the Company's ongoing exploration program.

Deflector Southern Extension Drill Results

Mutiny has received the assay results from two additional RC holes drilled down-plunge of the southern portion of the existing Deflector resources. The very successful drilling was designed to test the interpreted down-plunge extension of a high-grade shoot within the Deflector West Lode. The results are interpreted as proving the southern plunge is open at previously untested depth and open along strike. This is a very significant result and will assist planning the next stage of testing the southern extension of the Deflector:

1m @ 72.2g/t Au and 1.2% Cu from 126m in 11DR.

Background

The Gullewa Project is located 450 kilometres north of Perth, in the Yalgoo mineral fields of Western Australia. The Gullewa Project is a 550 sq kilometre property that hosts several gold deposits of various size and grade, the most significant being the Deflector gold-copper deposit which contains resources (Table 1) as disclosed in Table 3.1 to the NI 43-101 Technical Report on the Gullewa Gold-Copper Project dated June 13, 2008 as filed on SEDAR on June 18, 2008. Mining infrastructure assets at the Gullewa Project include a 800 tonne per day CIL plant, a licensed tailings disposal facility, a 50-person camp, offices, and workshops.

Table 1 - Deflector Deposit Resources

Mineral Resource Estimate for the Deflector Deposit
above a 1.0 g/t AuEq Grade Cut-Off (1.0% Cu = 2.5 g/t Au)
CategoryTonnesAu
(g/t)
Ag
(g/t)
Cu
(%)
AuEq
(g/t)
AuEq
(oz)
Measured535,0003.878.031.186.81117,000
Indicated1,169,0004.326.340.966.72252,000
Measured and
Indicated1,704,0004.186.871.036.75369,000
Inferred1,616,0006.503.410.487.71400,000
(Metallurgical recoveries and net smelter returns are assumed to be 100%)

REDHILL RESOURCES CORP.

Graham Harris, Chairman

"This news release may contain forward–looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements."

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

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