VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 10/25/13 -- Redhawk Resources, Inc. ("Redhawk" or the "Company") (TSX: RDK)(OTCQX: RHWKF)(FRANKFURT: QF7) announces that, as a result of a review by the British Columbia Securities Commission, the Company is issuing the following news release to clarify its disclosure.
Use of Cautionary Statements
On the Company's website, investor materials, certain news releases and other disclosure, the Company has referred to the results of a preliminary economic assessment (a "PEA") without including the prominent cautionary statements required by National Instrument 43-101- Standards of Disclosure for Mineral Projects ("NI 43-101"). The disclosure which did not have the required cautionary statements includes the following:
-- the Company's April 12, 2010 news release disclosing results of a technical report entitled "Redhawk Copper, Inc. - Copper Creek Project 2,500 - 10,000 tpd Scoping Study" (the "2010 PEA");-- the Company's June 25, 2013 news release disclosing results of a technical report titled "Copper Creek Project, Preliminary Economic Assessment, 25,000 TPD Mill with an Underground Mine for Development of the Copper Creek Resource" (the "2013 PEA");-- the Company's September 2013 corporate presentation titled "Large Porphyry Copper System, Copper Creek, Arizona" (the "Corporate Presentation") posted on the Company's corporate website;-- the Copper Creek Project page on the Company's corporate website; and-- the 2013 PEA.
The Company has removed the Corporate Presentation from its corporate website and will revise its Copper Creek Project page on its corporate website to include the necessary cautionary statements. The Company would like to retract and restate all of the above disclosure to clarify that: (i) a PEA is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and that there is no certainty that a PEA will be realized; and (ii) mineral resources that are not mineral reserves do not have demonstrated economic viability.
Amended 2013 PEA
The Company is in the process of amending the 2013 PEA to include the cautionary statements required by NI 43-101 and address certain technical deficiencies identified by the British Columbia Securities Commission. The Company anticipates filing the amended 2013 PEA on SEDAR on or before November 1, 2013. The amendments will not in any way change the financial models or conclusions in the 2013 PEA.
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 thirty-three square miles of 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 mill and smelter. The area is a mining friendly and politically secure location with excellent and readily accessible infrastructure including power, rail, water, roads and qualified consultants.
ON BEHALF OF THE BOARD
J. Stephen Barley, Executive Chairman
Redhawk Resources, Inc.
J. Stephen Barley