Red Crescent Resources Announces Detail on 2012 Business Targets
February 21 2012 - 11:25AM
Marketwired Canada
Red Crescent Resources Limited ("RCR") (TSX:RCB)(FRANKFURT:7RC), a mineral
exploration and development company focused on base metals in Turkey, today
announced that following a full review by the board, it has approved the
Company's overall strategic business plan and its alignment with the specific
detailed business targets established for 2012 project operations aimed at
generating the ability for the corporation to be self-funding by the end of the
annual reporting period.
RCR's primary assets capable of delivering the targeted self funding include;
the Hakkari zinc and manganese projects, which are located in far south-east
Turkey; the Tufanbeyli/Kayseri regional hub zinc project, in south central
Turkey; while the potential for the Sivas copper project, located in north-east
central Turkey, to deliver early production through leveraging with application
of the proprietary oxide (AmmLeach(R)) and sulphide (HyperLeach(tm))
technologies of Alexander Mining Plc for further enablement is also under review
via a technical cooperation.
Selected targets for 2012:
-- The Hakkari operations are expected to generate approximately US$4 to
US$5 million in net cash earnings before interest, corporate tax,
depreciation, amortization (EBITDA) resulting from the sale of 40 to 50
thousand tonnes of high grade zinc oxide direct shipping ore (DSO) and
10 to 15 thousand tonnes of Zinc/Lead concentrate priced in the plan at
US$1900/t Zn equivalent; and the sale of 5 to 10 thousand tonnes of
manganese DSO priced in the plan at US$2.6/DMTU Manganese contained. The
proceeds will be used to continue to build internal capacity and
capability while sustaining the Company's operational development and
enable self funded ongoing resource development of its projects at
sustainable base minimum levels.
-- An update of the existing NI43-101 technical and resource for Hakkari
Zinc including the works completed in the 2011 exploration season and
further oxide and sulphide metallurgical testwork results can be
expected by early Q3/2012; The 2012 drilling program will consist of
deployment of RCR owned and operated surface and underground drill rigs
with in-house employed professional crews following the 2011 human &
equipment resource capital building project. Two surface rigs will
operate in the Zinc/Lead mineralised properties Licence 5 and 11A areas
targeting 6000m of diamond core drilling. One surface rig will operate
in the Manganese properties at Semdimli area targeting 3000m of diamond
core drilling.
Additionally a total of 5 RCR underground diamond drill rigs will be targeting
6000m to 8000m of core drilling for resource development from within the
mineralised zones on the Pentagon North & South and the Licence 26 underground
mine portal and access tunnel development areas.
-- A full feasibility study on an optimized process engineering solution
utilizing the Alexander Mining plc proprietary technology AmmLeach(R)
for Hakkari's primary zinc and lead metal production is expected to be
completed by end Q4/2012 for reporting in Q1/2013. Further RCR has
identified secondary potential believed to be in excess of 1.5 million
tonnes of lower grade 'non-DSO' mined reject material dumped in a number
of areas regionally in Hakkari over the past 10 years by small miners,
including RCR's joint venture partners in the years pre-2008, and which
it believes presents a potentially significant opportunity for low cost
AmmLeach(R) processing delivering metal in solution for sale to
refiners. An early concept engineering study for the gathering and
processing of this mineralised material will begin in March 2012.
-- A surface infill diamond core drilling program, targetting at least 1500
metres, is expected to be completed at the Company's Tufanbeyli zinc
project for the purpose of confirming the assumed strike continuity of
the mineralised zones between the currently identified mineralised areas
and updating the NI43-101 technical and resource report by Q4/2012 as
well as providing further input to the current concept open pit(s) mine
design.
-- The production of further saleable zinc contained from the concentration
of mined ores 'bought-in' from small miners for toll treatment, and
mined 'non-DSO' reject dump recovered mineralised material from the
Tufanbeyli/Kayseri regional hub project area is expected to generate
opportunity for further net cash earnings and studies are underway. Like
Hakkari potential exists for gathering and processing of regionally
dumped non-DSO reject mineralised material and this will be evaluated
also in 2012.
-- At the Sivas Project a detailed structural geology study, further
geochemical studies with rock, soil & trench sampling will be undertaken
in Q2/2012. This will be followed by further geophysical studies and an
at least 3,000 meter diamond core drilling program is expected to be
completed at the South East Zone of the project in the Q3/2012 period.
An additional 7,000m diamond core drilling is planned to follow in
Q4/2012 based on the results from the Q2/Q3 works. An inaugural NI43-101
technical and resource report from exploration results up to early
December 2012 for the project is planned for publication in Q1/2013.
"Generating cashflow and expanding our resource estimates on all active projects
throughout the year will give us the flexibility to invest further in our
existing significant asset base and project pipeline while constantly expanding
and facilitating RCR access to add to our asset base with quality prospects,"
added Mr. Clegg. "Whether by acquiring new contiguous and adjacent mining rights
or implementing appropriate new mining and processing technology specifically
for our oxide mineralised zones, we will explore opportunities where we can
leverage all our stakeholder relationships to accelerate our vision of
developing Red Crescent Resources as the major mining and base metals production
company in the Republic of Turkey."
Alan M. Clegg Pr.Eng FSAIMM, a Qualified Person as defined by National
Instrument 43-101, has reviewed and verified the technical information contained
in this release.
Forward-looking statements
The statements made in this press release may contain forward-looking statements
that may involve a number of risks and uncertainties. Actual events or results
could differ materially from the Company's expectations and projections.
About Red Crescent Resources
Red Crescent Resources (TSX:RCB)(FRANKFURT:7RC) is a Turkey-based junior mining
company targeting historically inaccessible areas where no modern application of
exploration techniques or technology has been applied, with potentially
significant base metal deposits under development.
RCR's strategic and operational focus is fundamentally under-written by virtue
of its situational geography, i.e. within Turkey as one of the fastest growing
industrial economies. The sustainability of this growth is dependent upon
Turkey's ability to fund the growing balance of payment deficit caused by its
continued and accelerating growth in consumption of the main industrial base
metal & other mineral commodities; four of the top six are Copper, Zinc, Lead,
and Ferro-metals. RCR is the leader in the drive for Turkey to be as far as
possible self sufficient by virtue of its ability to produce the key industrial
base metal commodities required by 2023. For more information, please visit:
www.redcrescentresources.com