TSX: RDK. Large Porphyry Copper System Copper Creek, Arizona September 2016

Transcription

1 Large Porphyry Copper System Copper Creek, Arizona September 2016

2 The Copper Creek Opportunity Large District with Many Targets Large known Resources and Potential to Expand Excellent Management Joint Venture Partner: Anglo American 2

3 Anglo American Joint Venture Anglo American(1) 60% interest(2) Redhawk(1) 40% interest Copper Creek Project (1) Anglo American US Holdings Inc., a wholly owned subsidiary of Anglo American Exploration (USA) Inc., and Redhawk Copper, Inc., a wholly owned subsidiary of Redhawk Resources, Inc., formed a joint venture company Copper Creek LLC with respect to the Copper Creek Project. (2) Anglo American must fund US$44 million over a five year period to retain 60% ownership interest in the Copper Creek LLC; Anglo American is also eligible to earn an additional 20% interest by funding a further US$20 million in expenditures on or before November 25,

4 Current Focus Operator of Copper Creek Joint Venture Redhawk remains as operator of the joint venture with Anglo American for initial three years due to high quality technical team US$3m spent during the first year of the joint venture with a planned expenditure of US$4m during the second year with a drill program underway after extensive targeting efforts including geophysics, geochemistry, 3D modeling, and review of existing drill data Seeking Additional Projects Downturn in both equity markets and commodity prices create an excellent opportunity to acquire interests in other projects Quality technical team searching for projects of merit suitable for portfolio 4

5 Copper Creek Project Summary Large early halo porphyry copper deposit Large porphyry mineralization in Arizona close to existing mines District size potential Current resource area >4 km in length and open Nearly 29 square miles of contiguous property, less than 5 % explored Large geologic, drilling, geophysical and geochemical data base Total of over 670,000 feet of drilling completed Extensive geologic, geochemical, and geophysical mapping and surveys Completed work 100,000 foot (30,000 meter) step out and infill drill program completed in June 2012 Resource in accordance with CIM standards delivered in June 2012 and updated in December 2012 Right of ways completed; advanced hydrology; metallurgical; active permitting in progress Preliminary Economic Assessment (PEA) completed July 2013 Mining friendly region with excellent infrastructure including rail, roads, water, power, services and consultants Mill and smelter within 30 miles 5

6 October 2013 PEA Results The results below are discussed in greater detail in the 2013 PEA, available on Company s website and filed on sedar.com A PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that a PEA will be realized. 6

7 October 2013 PEA Results $3.30 Case Results Mine/Mill Throughput 25,000 short tons per day Underground Room and Pillar/Post pillar with backfill Conventional grind/float sulfide concentrator: copper and moly concentrate products Life of Mine Payable Copper production 2,128,743,000 pounds Annual Copper production 121,726,000 pounds 55,200 metric tonnes Price Assumptions: Copper $3.30 per pound Molybdenum $12.00 per pound Silver $20.00 per ounce Pre-Production Capital $857,067,000 Life of Mine Capital $1,199,899,000 Average Production Cost net of by-products $ 1.74 per pound 7.5% $488,000,000 IRR 16.0% 7

8 October 2013 PEA Results Underground Mine processing 25,000 tpd ore from a Room and Pillar/Post Pillar mine Conventional copper flotation concentrator with a molybdenum separation circuit US$488m NPV at 7.5% discount pretax; US$3.30 Cu price; 16% IRR Cu production sold: 121 million pounds or 55,200 mt per year at US$1.74 per pound cost net of by-products Confirmed high recovery rates of >90% Cu and Ag; 80% Mo Confirmed high expected concentrate averaging 30 to 35% Confirmed reasonable grind size and moderate work index 8

9 Deposit & CuEq Cutoff Class Ktons Old Reliable Breccia 0.40% Breccia Deposits 0.75% Keel Am. Eagle 0.50% Table 1 December 2012 Mineral Resource Estimate Copper, % Moly, % Silver, opt Gold, opt CuEq, % Measured 2, Indicated M&I 2, Inferred Measured 4, Indicated 1, M&I 5, Inferred Measured 29, Indicated 115, M&I 144, Inferred 85,

10 The mineral resource in Table 1 is tabulated at different copper equivalent (CuEq) cutoffs for each of three areas: The near surface Old Reliable breccia is tabulated using a 0.40 percent CuEq cutoff to reflect a potential open pit resource. This resource has been confined within a pit shell based on process plus G&A costs of $10.00/ton and mining costs of $2.00/ton. The breccia deposits of Globe, Copper Prince, Childs-Aldwinkle and Mammoth are tabulated using a 0.75 percent CuEq cutoff to reflect a selective, underground mining approach. The Keel - American Eagle porphyry is tabulated at a 0.50 percent CuEq cutoff to reflect a bulk underground mining approach. 10

11 The copper equivalent grade is based on the metal prices and estimate of recoveries for copper, molybdenum, silver and gold (estimated in the breccia deposits only). Metal Price Recovery Copper $2.75/lb 90% Molybdenum $12.00/lb 80% Silver $20.00/oz 90% Gold $1100/oz 40% The copper equivalent calculations are: Keel American Eagle: CuEq% = Cu% x Mo% x Ag (opt) Breccia Deposits: CuEq% = Cu% x Mo% x Ag (opt) x Au (opt) 11

12 Total mineral content for the Old Reliable Breccia is: 44,730,000 lbs. Cu, 656,040 lbs. Mo, 229,614 troy oz. Ag in M&I class; plus 1,074,400 lbs. Cu, 11,060 lbs. Mo, 1,027 troy oz. Ag in Inferred class. Total mineral content for the Breccia Deposits is: 183,490,000 lbs. Cu, 2,064,240 lbs. Mo, 774,090 troy oz. Ag in M&I class; plus 32,353,200 lbs. Cu, 588,240 lbs. Mo, 63,468 troy oz. Ag in Inferred class. Total mineral content for the Keel Am. Eagle porphyry deposit is: 2,087,755,200 lbs. Cu, 37,695,580 lbs. Mo, 7,249,150 troy oz. Ag in M&I class; plus 1,167,437,600 lbs. Cu, 24,035,480 lbs. Mo, 3,433,640 troy oz. Ag in Inferred class. Table 2 is a summary of the Breccia deposits by the individual deposits at the 0.75 percent CuEq cutoff. Table 2 shows the Keel - American Eagle porphyry at different cutoff grades to show the distribution of mineralization with the mineral resource at 0.50 percent CuEq cutoff highlighted. 12

13 Table 2 Individual Breccia Deposits at 0.75% CuEq Cutoff 13

14 Table 3 Keel - American Eagle Mineral Resource by Cutoff Grade 14

15 Copper Creek Project Location Arizona is copper country; Copper Creek is 1 of 15 major porphyry copper centers Arizona is mining friendly and has a rich copper mining history, and is socio-economic stable Mill and smelter within 30 miles, molybdenum roaster within 100 miles Infrastructure includes rail, roads, water, power, services and consultants Many mines in area have grown and remain economic after 50+ years of operation New discoveries are still being made in Arizona 15

16 Copper Creek Property Map 16

17 Copper Creek Property Potential Over 29 square miles of property under control District consolidation now complete Current resource located within original 7 sq. miles of claims Only 8% of total property adequately explored Substantial potential for expansion of existing resource and in consolidated district 17

18 Conceptual Geologic Block Diagram Sulfides are zoned; copper mineral grades increase with depth Sets of early halo veins are present at high angles near surface, while sets occur sub-horizontal at depth At least 3 phases of mineralizing porphyries 18

19 Early Halo Porphyry Copper Systems Copper Creek is an early halo type copper porphyry system Early halo type deposits are frequently recognized in major copper districts worldwide Early halo copper porphyry deposits tend to be large and high-grade systems, including: Butte, Montana, USA Los Pelambres, Chile Chuquicamata, Chile Haquira deposit, Peru Ann Mason & Bear deposits, Nevada, USA Lomas Bayas deposit, Chile Pyramid deposit, Alaska, USA Valley deposit, Highland Valley, BC Early halo vein from drill hole RAE at

20 Copper Creek Early Halo Deposit First identified by Redhawk geologists in 2010 Copper Creek hosts multiple early halo mineralizing events Quantitative core-logging and mapping of early halo veins has led to a new understanding of ore control and district-wide distribution This understanding has led to new, better defined drilling targets for resource expansion 20

21 Exploration Potential Current resource open in most directions Confirmed porphyry resources with multiple generations of mineralization Drill targets selected in both resource and district expansion 21

22 Our Team Board of Directors R. Joe Sandberg, BSc., MBA, AIPG J. Stephen Barley, B.Comm., LLB. Steven C. Bastable Kevin Puil, BA, CFA Art Ratte, B.Sc., MBA, P.Eng. Management Team R. Joe Sandberg, BSc., MBA, AIPG, President and CEO J. Stephen Barley, B.Comm., LLB., Executive Chairman Alec Peck, CA, CFO A. Joe Fernandez, VP Project Development Bud LaCombe, Vice President Business Development Technical Advisory Board Brock Riedell, B.A., M.S., Consulting Geologist Consulting Team Independent Mining Consultants, Inc. Westland Resources, Inc. Milne & Associates SGS Engineering / Metcon Research Call & Nicholas, Inc. Golder Associates, Inc. 22

23 Capital Structure February 1, 2016 Issued and Outstanding Shares 157,698,138 Options Outstanding 11,775,000 Warrants Outstanding 191,500 Fully Diluted 167,404,638 23

24 Major Achievements Received Aquifer Protection Permit Application to allow underground development and exploration in 2009 Completed multiple reports in accordance with CIM standards with significant copper and molybdenum resource and large expansion capability Determined Copper Creek was an early halo deposit, and revised and verified geologic model Expanded mineral holding by 22 square miles of contiguous property Initiated and completed Preliminary Economic Assessment (PEA) July 2013 Built a strong exploration team with over 200 years of geologic experience with an impressive background in copper porphyry systems Established joint venture with multinational mining giant Anglo American 24

25 Contact Information Head Office (Canada) One Bentall Centre 505 Burrard Street, Suite 1560 Vancouver, BC V7X1M5 Canada Phone: +1 (604) Investor Inquiries USA Office 130 N. Redington Road San Manuel, AZ United States of America Phone: +1 (520) Fax: +1 (520)

26 Disclaimer Cautionary Statements Regarding Forward Looking Information Certain statements in this presentation constitute forward-looking statements, within the meaning of applicable securities laws. Forward-looking statements include, but are not limited to, statements with respect to commercial mining operations, anticipated mineral recoveries, projected quantities of future mineral production, interpretation of drill results, completion of the pre-feasibility study and conversion of mineral resources to proven and probable mineral reserves, analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Statements concerning mineral resource estimates may also be deemed to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is developed, and in the case of mineral resources, such statements reflect the conclusion based on certain assumptions that the mineral deposit can be economically exploited. These statements speak only as of the date specified. Redhawk Resources, Inc. (the Company ) does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. These forwardlooking statements involve risks and uncertainties relating to, among other things, results of exploration and development activities, the Company s historical experience with development-stage mining operations, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals and the granting of permits, changes in commodity prices and, particularly, copper prices, actual operating and financial performance of facilities, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. Actual results may differ materially from those expressed or implied by such forward-looking statements. Cautionary Notes to U.S. Persons Concerning Resource Estimates Technical information contained in this presentation has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of the U.S. securities laws. All resource estimates have been prepared in accordance with the Canadian Institute of Mining and Metallurgy Classification System (CIM). The terms mineral resource, measured mineral resource, indicated mineral resource and inferred mineral resource are defined in CIM; however, these terms are not defined terms under United States Securities and Exchange Commission ( SEC ) Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. Readers are cautioned not to assume that any part or all of mineral deposits in these categories will ever be upgraded to a higher category. Readers are further cautioned that inferred mineral resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. The technical information contained in this presentation has been approved by R. Joe Sandberg, a qualified person within the meaning of CIM. Mr. Sandberg is the Company s President and Chief Executive Officer. February,