Redhill Resources Corp.: Extension Drilling Underway at Gullewa
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/02/11 -- Redhill Resources Corp. (TSX VENTURE: RHR) ('Redhill' or the 'Company') is pleased to announce that Mutiny Gold Ltd. (ASX: MYG) ('Mutiny'), operator and optionee of Redhill's wholly owned Gullewa gold-copper project, has resumed drilling to follow up on mineralized extensions and high-grade drill intersections identified in earlier drilling.
The current program is planned to delineate mineralization that would enable extensions to the proposed open pit north and south along strike. Drilling will be restricted to depths of 120 metres (m) below surface (above 160m RL).
The existing Deflector resources within and below the proposed pit are set out in Table 1. The majority of the current Deflector Deposit resources are contained within a 500m strike-length. There has been less drilling density below 160m RL resulting in these underground resources being categorized as Indicated and Inferred. High grade shoots within both the West and Central Lodes plunge to the north at about 35 degrees. These shoots are untested down plunge. The size of the down plunge area to a depth of 500m is similar to that of the present resource. Mutiny intends to test this area to upgrade and increase the resources within the planned underground development.
On January 24, 2011, the Company made a payment in the amount of AUD$ 1,558,192 (AUD$1,500,000 plus 8% interest) to Sherwin Iron Limited (formerly Batavia Mining Limited) for the Gullewa Gold Project under the terms of an agreement dated April 18, 2008 as amended January 22, 2009 and June 30, 2009 respectively.
Gullewa is located 450 kilometres north of Perth, in the Yalgoo mineral fields of Western Australia. Gullewa 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 (see Table 1). Mining infrastructure assets at Gullewa include a 800 tonne per day CIL plant, a licensed tailings disposal facility, a 50-person camp, offices, and workshops.
Table 1: Deflector Deposit - Total Resources
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Au Au Cu Cu Ag Ag
Classification Tonnes (g/t) (oz) (%) (t) (g/t) (oz)
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Measured 930,000 4.3 130,000 1.26 12,000 6.8 200,000
Indicated 570,000 5.7 100,000 0.8 4,500 5.6 100,000
Inferred 1,900,000 6 350,000 0.5 9,000 3 200,000
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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.'
'Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.'
Contacts:
Redhill Resources Corp.
Investor Relations
604-662-8184 or Toll Free: 1-877-662-8184
604-602-1606 (FAX)
investor@redhill-resources.com
www.redhill-resources.com