Redzone Resources Ltd. ("Redzone" or the "Company") (TSX:REZ) is pleased to announce that the final permit document for the proposed exploration program at the Lara Project has been issued by the Peruvian Ministry of Energy and Mines and that MDH SAC of Lima, Peru has been awarded the drilling contract for the Lara Project.
Redzone’s initial drill program is expected to commence within the week and is designed to test the extensions of the oxide, supergene and primary copper mineralization of the Lara deposit. Of particular interest to Redzone is the prospects for expansion of mineralization to the east where previous drill hole 21 returned 0.76% copper over 36 metres and bottomed in mineralization grading 0.46% copper and to the west where hole 12 returned 0.51% copper over 64 metres.
In total, 27 drill holes representing 3,290 metres have tested a roughly 500 metre by 500 metre portion of the Lara copper-molybdenum porphyry centre. Several of the holes were terminated in primary copper mineralization grading from 0.22% to 0.33%. The Lara zone contains a NI 43-101 compliant inferred mineral resource estimate of 18.6 million tonnes grading 0.53% copper using a 0.2% copper cut-off. Within this inventory is higher-grade blocks estimated at 6.5 million tonnes grading 0.91% copper using a 0.5% cut-off and 4.8 million tonnes grading 1.04% copper using a 0.6% copper cut off.
An updated Technical Report on the Lara Porphyry Copper-Molybdenum Deposit, Peru, authored by Simon J. Meldrum, Consulting Geologist and dated March 1st, 2010, concluded that the overall mineralizing system is much larger than the current mineral resource estimate indicates, with the secondarily enriched portion of the deposit open to the east and west and the primary mineralization open in all directions. Most notably, a large portion of the core of the deposit and the Socos copper target remain untested by drilling.
Redzone acquired the right to earn up to a 75% interest in the Project from Lara Exploration Ltd (LRA-TSXV) via earning into Minas Dixon BVI (“Minas”), a wholly owned subsidiary of Lara. Under the agreement, Redzone must spend US$2.5 million in exploration on the Property and issue 850,000 Redzone common shares to Lara over a three year term to earn an initial 55% interest in the Project. Redzone can then elect to earn an additional 20% interest in the Project by completing a bankable feasibility study and making a onetime cash payment of US$1.5 million on or before January 28, 2015. Lara retains a 1% net smelter royalty on all production from the Project. Under the terms of the agreement, Redzone must spend US$500,000 on or before October 26, 2011 and it is anticipated that the cost of the initial drill program will meet that obligation.
Richard Graham P.Geol., a director of Redzone and a Qualified Person, as defined by National Instrument 43-101, is responsible for the preparation of the technical information in this release.
Redzone is a mineral exploration company engaged in the acquisition and exploration of mineral properties with prospects for hosting gold and base metal deposits. The Company is currently active in Peru on the Lara copper project and trades on the Toronto Stock Exchange under the symbol REZ.
ON BEHALF OF THE BOARD OF DIRECTORS OF
REDZONE RESOURCES LTD.
Director, President and CEO
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Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Redzone, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements