Vancouver – A resource estimate for the American Eagle porphyry at Redhawk Resources (RDK-V) Copper Creek project in Arizona estimates the deposit hosts 1.54 billion lbs. of copper, making American Eagle five times larger than the previous four zones combined.
The American Eagle estimate pegs inferred resources at 99.8 million tonnes grading 0.7% copper and 0.014% molybdenum.
Copper Creeks five deposits all lie within 1500 metres of one another along an east-west strike. The Mammoth breccia sits in the middle, above the Keel zone porphyry. The American Eagle deposit is a short distance southeast of Keel. Beside Mammoth to the west sits the Childs-Aldwinkle breccia, followed by the Old Reliable breccia.
American Eagle is a sheeted vein-porphyry system with some disseminated mineralization. The mineralization is zoned with depth, transitioning from primarily pyrite near surface to chalcopyrite and then to bornite at depth.
The zone has been traced 1,160 metres along a north-south strike, 1,220 metres east-west, and to 900 metres depth. It remains open in three directions. The current drill program aims, in part, to step out from the current resource boundary and to explore the zone at depth to expand the resource. Since the eastern edge of American Eagle adjoins the Keel zone at depth, one of the logical areas for expansion is between the Keel and American Eagle zones.
American Eagle has seen 63 drill holes at an average 150-metre spacing. Redhawk reports that a number of holes returned intervals with significant gold and silver assays; however the current resource estimate did not consider precious metals. Future drill cores will be assayed for gold and silver.
The 12 sq. km Copper Creek project, which lies some 110 km northeast of Tucson, has seen over 340 drill holes totaling 142,640 metres. Redhawk recently initiated a 10-month work program aiming for an additional 23,470 metres of core drilling.
A September 2006 report estimated Old Reliable, Childs-Aldwinkle, Mammoth, and Keel together held a measured and indicated resource of 5.8 million tonnes grading 1.51% copper, 0.019% molybdenum, 0.085 grams per tonne gold and 0.28 grams per tonnes silver. The zones also hold 3.2 million tonnes grading 1.4% copper, 0.034% molybdenum, 0.14 grams gold, and 1.4 grams silver in the inferred category.
Redhawk is applying for an underground exploration license, with plans to develop an exploration decline linking the Childs-Aldwinkle and Mammoth zones. The decline would be sized so as to be available as a production ramp.
Redhawks long term plan is to develop current resources in the three breccia bodies, which are higher-grade and will be accessible via the exploration decline. Selective mining from the breccias could provide cash flow for the project while the large, lower-grade American Eagle and Keel zones are developed. The porphyry zones would see bulk mining methods.
News of the American Eagle resource estimate pushed Redhawk up 10 or 19% to close at 62 on Oct. 15th trading. The company has a 52-week trading range of 33.5 to 79 and has 66.4 million shares issued.
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