Property History

The history of the Copper Creek Property goes back some 140 years with the Bunker Hill (Copper Creek) mining district being organized around 1883. Claims were staked to cover copper deposits prior to 1900, but little work was done in the district until after 1902. Most of the interest in this property came as a result of the massive outcropping of breccias that was evident to even the unsophisticated miner. By 1913, the Copper Creek Mining Company and its successors (the Minnesota-Arizona Mining Company and Copper State Metals Mining Company) had constructed a dam, power plant, dispensary and 200 ton/day gravity concentrator and had developed and mined a small ore body at American Eagle and the Old Reliable. About 30,000 tons were produced prior to shutdown in 1919.

Commencing in 1907, the Calumet and Arizona Mining Company (C & A), guided by Ira Joralemon, explored the Copper Giant, Copper Prince, Glory Hole (Globe), and Superior pipes by adits, shafts and drifts. To supplement the underground exploration, C & A drilled about 6,000 feet in fourteen surface holes during 1914. A copper resource was found in both the Glory Hole and Prince pipes, but there was no production. Title passed to Phelps Dodge Corporation in 1931 when it purchased the Calumet and Arizona Company (C&A). The only recorded production from the C & A ground has been by Arizona Molybdenum Corporation which mined and milled 23,312 tons from the Copper Prince pipe with average grade of 3.19 % Cu during 1937. Written logs of the C & A drill holes reside in Redhawk’s files, but core has not been located.

An adit, driven below the outcrops of the Childs Aldwinkle pipes in 1915 discovered the copper-molybdenum ore body there and the pipes were partly developed for production during 1917 — 1918; the claims were surveyed in 1916 and patented in 1919. Arizona Molybdenum Corporation acquired the property in 1933 and proceeded to develop the copper and molybdenum ore body to 520 feet below the haulage level. Between 1933 and 1938 about 329,000 tons were milled.

In 1959, Bear Creek Mining Company (Kennecott) optioned the Siskon ground and also the Childs Aldwinkle patented claims. Bear Creek mounted the first integrated exploration (geologic mapping, geochemical and geophysical surveys, followed by drilling), at Copper Creek. Fifteen holes were drilled there by Bear Creek and several of these cut mineralized zones. However, none of the Bear Creek intersections appeared to be minable and they abandoned the project in 1962. The Bear Creek drill core was stored in a cabin at the Old Reliable under care of watchman Pete Carey. This core was moved to a warehouse at Magma’s plant in San Manuel in 1967 and is now in the possession of Redhawk.

In 1966, Newmont Exploration Limited (NEL) optioned the Siskon property and enlisted Magma Copper Company (80.3 percent owned by Newmont Mining Corporation) as co-venture and operator. The Childs Aldwinkle patented claims were also optioned, as were adjacent claims owned by Clark, Downey and Lehman as well as the patented Redbird claims (Bluebird mine). Additional claims were located to cover open Federal land and State land was leased. This land package forms the bulk of the property Redhawk holds at Copper Creek, today.

By this time exploration was being directed toward discovery of a major disseminated copper deposit and the breccia pipes were no longer the primary target. Between 1966 and 1970, geology of the district was mapped and 30 deep core holes were drilled. Core from these and all other JV holes drilled at Copper Creek was stored in a warehouse at Magma’s plant at San Manuel, until June 2005. This work demonstrated a significant copper-mineralized zone, at depth, beneath the American Eagle Area. Magma became a wholly-owned subsidiary of Newmont in 1969.

In 1968, Occidental Minerals Corporation (Oxymin) leased some of the land and optioned part of the adjacent Phelps Dodge ground that covered the mineralized Glory Hole, Copper Prince and Copper Giant breccia pipes. The old workings that C & A had driven to test the Phelps Dodge pipes were rehabilitated above the water table and Oxymin drilled 67 surface and underground holes to test the Old Reliable, Glory Hole, Prince and Giant pipes. Oxymin released their option on the Phelps Dodge ground in about 1970. Redhawk has copies of Oxymin core logs, but no logs for percussion holes; location of the core is not known.

Oxymin, in 1971, assigned their interest in the Old Reliable to Ranchers Exploration and Mining Company (Ranchers). Ranchers drilled three holes to confirm results of Oxymin drill holes; logs of the Ranchers holes are in Redhawk’s file, but location of the core is not known. In 1972, Ranchers, in association with Du Pont, rubblized the Old Reliable pipe above the 3730 elevation, by blasting with ANFO. Copper was leached from this rubble-column with dilute sulfuric acid; copper was recovered from the leach-liquors by precipitation on tin-cans in a plant below the mine. More than 12,077,000 pounds of cement copper were recovered between 1972 and 1981, when Ranchers’ lease expired.

In the years 1972 — 1974, after retrieving its property from Oxymin, Phelps Dodge geologists mapped, sampled and tested the Phelps Dodge ground with geophysics; nine holes were drilled to test deep targets, with disappointing result. Phelps Dodge did not explore the breccia pipe deposits on its ground. Redhawk has copies of the Phelps Dodge drill hole logs. Phelps Dodge has the core.

Humble Oil joined Newmont and Magma in exploration for porphyry copper deposits at Copper Creek in 1971. Humble assumed project management during 1971-1972 (their “earn-in” period) and drilled 20 deep holes. It was Humble-Newmont hole HN-12 that discovered the third (north) finger of the Childs Aldwinkle pipe. Redhawk has both logs and core. Humble Oil was renamed Exxon Corporation in about 1973.

Newmont resumed management of the Copper Creek Joint Venture in 1973 and drilled six angled holes from surface to test pipe targets. However, by the mid-1970s, Newmont’s corporate interest in porphyry copper exploration had waned. The Copper Creek project reverted to care and maintenance; drill targets were carefully selected, but drilling was reduced to the amount needed to underwrite property maintenance costs (assessment work). Hole NE-6 discovered the lower Mammoth feeder-zone and hole NE-10 discovered the Mammoth breccia pipe. Redhawk has both logs and core for these holes. Between 1972 and 1977, the joint venture surveyed for patent claims on public domain that would be interior to a crack-line projected at 45 degrees from the bottom of the American Eagle deposit. This survey was filed with the BLM but the claims were not patented. Exxon ceased contributing to the joint venture in 1985 and withdrew in 1987.

When Newmont distributed Magma’s equity to Newmont’s shareholders in 1987, Newmont’s ownership interest in properties at Copper Creek was incorporated into Magma and Magma became an independent company. Magma’s management had little interest in exploration at Copper Creek; they reduced the size of the property package, but held the core property. Magma met requirement for assessment expenditure by drilling three holes. Redhawk has logs and drill core for these holes.

Arizona Mineral Technology (AMT) finalized an agreement to acquire the Copper Creek property from Magma in 1994. Between 1960 and 1995 when AMT became active at Copper Creek, more than 77 deep holes had been drilled there by major copper companies and large amounts of geological, geophysical, geochemical and other analytical data had been generated by them. These explorers were searching for a major porphyry copper deposit; the mineralized pipes were too small to interest these major companies.

AMT began field investigations at Copper Creek in the spring of 1995; the relatively shallow mineralized pipes were favored targets for AMT. Claims were staked to recover the ground dropped by Magma and to fill fractions. Agreements to acquire the Bell (Ryland) ranch and the Mercer ranch were signed. An agreement was signed with Phelps Dodge Exploration Corporation to obtain an interest in their patented claim block. AMT obtained a Prospecting Permit for State lands in the south half of Section 2, near the Bluebird mine. Access and drill roads were repaired and a new access road was constructed from Saloon Gulch to the top of White Bear hill. During May and June 1995, AMT drilled nine reverse circulation (RC) holes at Old Reliable to confirm that leaching by Ranchers had not significantly depleted the chalcocite ore body there. In addition, three RC holes were drilled at Old Reliable in June 1996 and 20 RC holes were drilled there in January through March 1997. Six of these vertical RC holes were extended with the core drill to test the deposit below the rubble column.

AMT drilled 40,135 feet in 37 angled diamond core holes to test the Childs Aldwinkle pipe above the 2800 elevation, in March through September, 1996. These westerly-directed holes were drilled from four surface sites, east of the Childs Aldwinkle glory-holes. In addition, 3,580 feet were drilled in nine RC holes to test the top of the blind north finger of the pipe and three vertical core holes were drilled to obtain metallurgical test samples. These holes, plus pre-AMT holes, comprise the data-base from which the resource in the Childs Aldwinkle pipe deposit has been estimated.

In the years 1976 through 1982, Newmont drilled two core holes beneath the south wall of Copper Creek canyon, almost directly beneath the prior location of the Arizona Molybdenum Corporation concentrator. Both of these holes cut mineralized intervals, of potential ore-grade. The near surface intercept in hole NE-10 was similar to other copper-mineralized breccia-pipe deposits in the area, but the deeper intercepts in hole NE-6 were pervasive sericite-chalcopyrite replacement of granodiorite. Follow-up holes drilled by AMT, 37,578 feet in 24 angled and seven vertical holes, defined the Mammoth breccia, a pipe-form, quartz-chalcopyrite veinlets stockwork deposit with N25W elongation; potentially economic parts of the pipe, bottom above the 2800 elevation. These 31 core holes drilled by AMT, plus Newmont’s hole NE-10, comprise the data-base from which the Mammoth pipe resource was estimated.

During November, 1996, hole VIX 28-2 extended through the relatively shallow Mammoth pipe and into sericite-chalcopyrite rock, similar to the deep mineral intercept in Newmont hole NE-6. The similarity between these mineral intercepts, about 700 feet apart, stimulated drilling of holes to test the continuity of the intervening “Lower Mammoth” (LM) mineralized zone. The Lower Mammoth deposit is a steep, N25W- trending, altered and mineralized sheared zone that clearly has fed mineralizing fluids upward, into the Mammoth pipe. In addition to Newmont’s hole NE-6, the Lower Mammoth zone has been tested by an additional 13 holes drilled by AMT; it is, however, incompletely drilled at this juncture. The limited current information indicates potentially economic parts of the Lower Mammoth feeder zone tops near 2400 elevation; it appears to have reasonable continuity for at least 700 feet along strike, to be open downward and to the southeast. Both tenor and thickness appear to increase toward the south, where thickness of the zone probably exceeds 100 feet. AMT mounted a staggered, 200-foot grid that covers much of the productive ground at Copper Creek. This grid was used to guide collection of geochemical samples, ground magnetic and radiometric surveys. The exploration survey data is in files controlled by Redhawk and warrants study. AMT exhausted its financial resources in 2001 and ceased all exploration. Norshield Investments, AMT’s primary creditor, advanced funds necessary to maintain the key properties at Copper Creek, but agreements to secure the “Ryland” ranch, the Mercer Ranch, the Phelps Dodge claims and Downey’s Moose claims were dropped.

Redhawk acquired AMT’s property at Copper Creek, as well as the drill core, rock samples and the accumulated project data, in 2005. Redhawk has subsequently organized and consolidated the available data and drill core. The historical core as well as core from subsequent drill proframs is now housed in a core storage facility in San Manuel, Arizona. San Manuel is 15 miles from Copper Creek and is where the project office for Redhawk Copper, Inc., a subsidiary of Redhawk Resources, Inc. is l;ocated. Redhawk continued to consolidate its property position in the district starting with the lease-purchase agreement in November 11, 2005 with D&G Mining Company for the four Moose unpatented claims. Early in 2007 Redhawk reached an agreement with Phelps Dodge Corporation (PD) to purchase 27 mineral claims (26 patented claims and one unpatented claim which is internal to the patented claims). The claims adjoin the patented claim groups owned by Redhawk on the northwest and are internal to Redhawk’s land holdings in the district. Starting in 2011 Redhawk staked an additional approximately 22 square miles of contiguous property to the Northwest of Copper Creek to maintain a secure district land position.