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Re: Selected News - Monday, February 26, 2007
Redhawk Copper, Inc. Acquisition of Phelps Dodge Corporation's
Mineral Claims in the Bunker Hill Mining District (Copper Creek
District), Pinal County, Arizona
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Redhawk Resources, Inc.(Redhawk), through its wholly owned subsidiary
Redhawk Copper, Inc., is pleased to announce that it has acquired
mining claims in the Bunker Hill Mining District (Copper Creek
District), Pinal County, Arizona from Phelps Dodge Corporation (Phelps
Dodge). The twenty-seven claims acquired consist of twenty-six
patented claims totaling 504 acres (203.96 hectares) and one internal
unpatented mining claim of 16 acres (6.48 hectares) for a total of 520
acres. The claims acquired adjoin patented claim groups currently
owned by Redhawk on the northwest and are internal to Redhawk's land
holdings in the district. Redhawk now controls more than 5,100 acres
(2,063.9 hectares) in the district.
The purchase price for the property is US $3.2 million, payable by a
deposit of US $500,000, and delivery of a promissory note for US $2.7
million which is payable over 12 years. The first two payments of US
$500,000 are required at 18 month intervals and the balance of the
payments are to be made in $200,000 increments annually until a final
$100,000 payment is made on maturity. The outstanding principal amount
bears simple interest at a rate of 5%. All amounts are secured by a
deed of trust over the property and a guarantee by Redhawk. Payment
under the note will become due in full if a decision is made to
construct a mine or if there is a default under the note. The property
is subject to a 1% net smelter return royalty in favour of Phelps
Dodge. Closing is subject to satisfaction of customary conditions,
including approval of title and acceptance of the TSX Venture Exchange.
The acquired lands complete the strategic consolidation of the Copper
Creek area for the development potential of the resources identified on
Redhawk's Copper Creek property. The Phelps Dodge property has had
limited deeper level exploration and potential exists for deeper level
mineralization similar to that currently identified on Redhawk's
property to the south of the Phelps Dodge property. The acquired
property straddles the two major breccia body trends of the district
and hosts at least 55 breccia bodies identified from surface
exploration. Three breccia clusters on the acquired lands have received
exploration drilling by previous operators. The breccias were explored
through underground workings, underground sampling, surface drilling,
and one by underground drilling. Two of the breccia clusters have had
minor historical production of copper and molybdenum. The drilling
data in the form of assays and, for most holes, geologic drill logs are
available for 55 drill holes totaling 50,830 feet (15,493 meters).
Core is available for 20,100 feet (6,126 meters) of the drilling total.
Additionally, there are considerable surface data in the form of rock
sampling, geophysical surveys, and geologic mapping.
Redhawk Resources Director Charles Pitcher: "The Phelps Dodge property
represents an important acquisition and the final step in the
consolidation of the Copper Creek assets under one ownership. This
acquisition allows us to systematically develop and search for breccias
and porphyry copper deposits in one of North America's greatest copper
belts."
Several of the more notable intercepts from the historical drilling are
listed below:
Globe breccias
GH-1 from 20'-35', 15' @ 1.14% Cu
also from 115'-155', 40' @ 2.47% Cu
GH-2 from 110'-210', 100' @ 1.91% Cu
G2 from 160'-260', 100' @ 1.72% Cu, 0.006% Mo
G4 from 100'-210', 110' @ 2.06% Cu, 0.005% Mo
G5 from 120'-200', 80' @ 1.26% Cu, 0.002% Mo
G6 from 100'-120', 20' @ 1.28% Cu, 0.002% Mo
also from 140'-210', 70' @ 1.61% Cu
Copper Prince breccias
OP-1 from 210'-235', 25' @ 2.57% Cu
also from 255'-265', 10' @ 2.92% Cu
CP1 from 270'-320', 50' @ 1.49% Cu, 0.003% Mo
also from 410'-430', 20' @ 12.45% Cu, 0.007% Mo
CP2 from 380'-460', 80' @ 2.36% Cu
CP3 from 90'-320', 230' @ 3.11% Cu, 0.017% Mo
CP4 from 260'-340', 80' @ 2.00% Cu
Copper Giant breccias
OG-1 from 335'-370', 35' @ 1.02% Cu, 0.045% Mo
CG6 from 90'-120', 30' @ 1.30% Cu, 0.011% Mo
R. Joe Sandberg, CPG, a Qualified Person under the meaning of NI
43-101, is responsible for the technical content of this news release.
About Redhawk
Redhawk is a Canadian-based resource exploration and development
company with projects in Arizona, Nevada and British Columbia.
Redhawk's primary focus is on the accelerated development of its
advanced stage Copper Creek copper-molybdenum project in San Manuel,
Arizona and the spin-off to Redhawk shareholders of its ReMac Zinc
project in British Columbia (For further details see press release
dated January 4, 2007). Redhawk also has two gold properties in Nevada.
Charles Pitcher, Director, Chairman of the Board
Phone: 604-633-5088
Robert McAllister, Investor Relations
Phone: 250-870-2219
The TSX Venture Exchange has neither approved nor disapproved this
release.
Suite 680 -- 1066 West Hastings Street
P.O. Box 12575
Vancouver B.C. V6E 3X1
Phone: 604-633-5088
Fax: 604-633-5098
www: redhawkresources.com
inquiries@redhawkresources.com
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Copyright (c) 2007 REDHAWK RESOURCES INC. (RDK) All rights reserved.
For more information visit our website at
http://www.redhawkresources.com/ or send
mailto:inquiries@redhawkresources.com
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