TSX VENTURE: RRX
CALGARY, Nov. 21 /CNW/ - Ruby Red Resources Inc. ("Ruby Red" or the
"Corporation") is pleased to announce that it has signed a letter of intent
with certain vendors to option a sedimentary copper property (the "Robocop
Property") in southeast British Columbia. The Robocop Property is located on
the west flank of the Rocky Mountains immediately north of the United States
border at Roosville, Montana. The Robocop Property is 3,812 hectares in size
and is comprised of ten mineral tenures (claims). Southeast British Columbia
and the adjacent part of Alberta are recognized as having geology favourable
for large tonnage sedimentary copper deposits such as Spar Lake at Troy,
Montana (58Mt grading 0.76% Cu and 54 g/t Ag; Lefebvre, D.V., Alldrick, D.J.,
1996). These deposits typically also have a significant cobalt association.
Subject to the approval of the TSX Venture Exchange, Ruby Red will
acquire a 100% undivided interest in and to the Robocop Property in
consideration for a cash payment of $3,000 and the issuance of up to an
aggregate of 350,000 common shares of Ruby Red. In addition, pursuant to the
terms of the letter of intent, Ruby Red will incur minimum exploration
expenditures on the Robocop Property of $1,000,000 over a period of four years
from the date of signing of the formal agreement in respect of this
acquisition. If Ruby Red does not issue any or all of the common shares or
incur any or all of the exploration expenditures specified above, it shall be
in default and all rights and title to the Robocop Property shall be promptly
returned to the vendors.
The area surrounding the Robocop Property and adjacent ground have
previously been explored by Cominco Ltd., Teck Exploration Ltd. and by Noranda
Ltd. Historical work focused on an area of copper mineralization where
trenching and some diamond drilling were completed by Teck in 1990. Trench
results returned up to 1.93% copper over 6 metres and drilling intersected up
to 1.35% copper over 5.48 metres. This drill intersection included 271 ppm
(0.027%) cobalt. Cobalt is commonly associated with copper on the property.
Disseminated copper mineralization as chalcopyrite and chalcocite is
hosted by a coarse arkosic sandstone of the Roosville Formation which overlies
the Nicol Creek Volcanics and is in turn overlain by a stromatolitic domolite
unit. Nicol Creek volcanics on the property locally have a lahar breccia
texture supporting the presence of a proximal volcanic vent which may have a
bearing on the copper mineralization. The mineralization has been traced along
the strike of the Roosville sandstone unit for 1600 metres.
Recent work by Ruby Red has identified additional copper mineralization
in two areas not drilled by previous operators and geologic work supports the
existence of a nearby growth fault which may be a mineralizing control.
Ruby Red intends to drill test the Robocop Property including the areas
of newly discovered copper mineralization as soon as permitting is approved.
Acquisition of the Robocop Property with its demonstrated favourable
copper and cobalt grades provides Ruby Red with additional exposure to copper
in the district.
Ruby Red was formed to participate in the acquisition, exploration and
development of mineral claims in the Fort Steele Mining Division of British
Columbia for the purpose of exploring for precious and base metals. In
addition to the properties Ruby Red has recently acquired, the Corporation
holds 100% working interest in 135 mineral claims (approximately 40,000
hectares), all located within 35 kilometres of Cranbrook, B.C. in the Purcell
and Rocky Mountains. Ruby Red is currently awaiting assay results from its
recent drilling program on its 100% owned Zeus, Jacleg and Loose Leg
Except for statements of historical fact, this news release contains
certain "forward-looking information" within the meaning of applicable
securities law. Forward-looking information is frequently characterized by
words such as "plan", "expect", "project", "intend", "believe", "anticipate",
"estimate" and other similar words, or statements that certain events or
conditions "may" or "will" occur. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are made, and
are subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those
anticipated in the forward-looking statements, which include but are not
limited to risks inherent in the mining industry, regulatory and economic
risks, and risks associated with the Company's ability to implement its
business plan. The Company undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions should
change except as required by law. The reader is cautioned not to place undue
reliance on forward-looking statements.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED, AND DOES NOT ACCEPT
RESPONSIBILITY FOR, THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information:
For further information: Randall Tronsgard, Vice-President, Corporate
Development of Ruby Red, at (403) 770-1346 or 1-866-257-4337