Vancouver, Canada – May 24, 2016 – Redhawk Resources, Inc. (“Redhawk” or the “Company”) (TSX: RDK, FSE: QF7) announces that the Company is issuing the following news release to clarify its disclosure.
Non-Compliant Disclosure of Mineral Resources
In the Company’s corporate presentation entitled, “Large Copper System, Copper Creek Arizona” (the “Corporate Presentation”), which is available on its website, the Company had provided a resource estimate, expressed as contained metal quantities, which omitted certain information required by National Instrument 43-101- Standards of Disclosure for Mineral Projects (“NI 43-101”), including the grade of each category of mineral resource. In addition, contrary to NI 43-101, the Corporate Presentation disclosed a combined contained metal quantity which summed inferred mineral resources with other classes of mineral resources. The Company has now updated the Corporate Presentation and revised the disclosure to include the grade of every metal in each category of mineral resource and present the inferred mineral resources as a separate class in accordance with the requirements of NI 43-101.
In addition, the Company’s website inadvertently referred to its previous preliminary economic assessment dated July 25, 2013 (the “Prior PEA”), rather than its amended preliminary economic assessment dated October 28, 2013 (the “Amended PEA”). The Prior PEA was not compliant with NI 43-101 and should not be relied on. The Amended PEA was filed to replace it in its entirety and the website has been updated to refer to the Amended PEA.
Non-Compliant Disclosure of a Preliminary Economic Assessment (PEA)
The Company’s website also contained disclosure from the Amended PEA which was not compliant with NI 43-101 because it did not contain the following cautionary language: “The Amended PEA is preliminary in nature as 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. There is no certainty that the results of the Amended PEA will be realized.” The Company’s website has now been updated to include this disclosure.
Finally, the Company’s disclosure of the Amended PEA results on its website failed to discuss the impact of taxes on such results. The cash flow-analysis in the Amended PEA is pre-tax. If the Copper Creek project is profitable, the Company would be subject to tax in the State of Arizona. Combined federal and state corporate income taxes in the State of Arizona have been estimated at 39.53 percent. A further discussion on the impact of taxes on the results of the Amended PEA is available on the Company’s website and in the Amended PEA.
R. Joe Sandberg, CPG, President and Director of the Company, is a qualified person within the meaning of N1 43-101 and has approved this written disclosure.
Redhawk is a Canadian-based resource exploration and development company with a current focus on the advancement of the Copper Creek copper-molybdenum project in San Manuel, Arizona through a joint venture with Anglo American. The Copper Creek property consists of approximately twenty-nine square miles of contiguous patented and unpatented mining claims and state prospecting permits, located about 70 miles northeast of Tucson, Arizona. The area is a mining friendly and politically secure location with excellent and readily accessible infrastructure including power, rail, water, roads and qualified consultants. Redhawk is concurrently implementing a strategy for growth through the opportunistic acquisition of interests in further mineral projects during this period of decreased valuations in the mining sector.
ON BEHALF OF THE BOARD
“J. Stephen Barley”
J. Stephen Barley, Executive Chairman
For more information, please contact:
|J. Stephen Barley, Executive Chairman|
Cautionary Note Regarding Forward Looking Information
Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. These forward looking statements relate to future events or the Company’s future performance, business prospects or opportunities. The Company believes that the expectations reflected in such forward looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. These statements speak only as of the date of this press release. Forward looking information involves risks and uncertainties which may cause actual results to be materially different from those expressed or implied by such forward looking information. The Company does not intend, and does not assume any obligation, to update any forward-looking information except as required by law.