Redhawk raises funds for Remac project

To finance drilling at its Remac zinc project in southern British Columbia, Redhawk Resources (RDK-V) has arranged a $500,000 private placement of 400,000 flow-through shares and 100,000 non-flow-through shares at $1 per share.

Each share carries a single warrant. Two warrants entitle the holder to buy an additional share at $1.20 for the first 12 months, or at $1.40 between the 12th and 18th month.

The Remac project, which lies southeast of Trail, comprises 9 sq. miles and adjoins the past-producing Reeves MacDonald mine, which operated from 1949 to 1975.

Reeves MacDonald centred on four moderately dipping sulphide zones hosted in the Reeves limestone member of the Lower Cambrian Laib Formation.

“These four zones show remarkable down-plunge continuity, are repeated several times by block faulting and are of probable sedimentary-exhalative origin,” wrote Redhawk’s consulting geologist, Ralph Westervelt, in a geological summary of the property. “Definitive mineralogical and grade differences are noted between the zones, with grades ranging from 3.5% to 12.9% zinc, 1% to 5% lead, 0.02% to 0.09% cadmium, and 0.3 oz. to 3.5 oz.

silver per tonne.”

Drilling from 1986 to 1988 indicated the zones had been faulted on to Redhawk’s Remac property. Two holes drilled during that time intersected the Annex zone, returning 54 ft. averaging 8% zinc, 0.88% lead, 0.09% cadmium and 1.6 oz. silver (including 26 ft. averaging 10% zinc, 1.64% lead, 0.12% cadmium and 2.21 oz. silver) in hole 87-1, and 30 ft. averaging 7.53% zinc, 0.39% lead, 0.08% cadmium and 3.11 oz. silver in hole 88-1.

Redhawk plans to test the zone’s continuity by initially drilling downdip from hole 87-1. The company has almost 3 million shares outstanding, or 3.3 million fully diluted.