VANCOUVER, June 1, 2011 /CNW/ - Redtail Metals Corp. (TSXV: RTZ) (the "Company") is pleased to announce that it has closed the previously announced acquisition of an unencumbered 100% interest in the Marg Project, Yukon, and that it has also received a NI 43-101 compliant Technical Report and Mineral Resource Estimate on the Project disclosing significantly increased tonnage from previous reports.
The Report describes an Indicated Resource of 3,960,000 tonnes of 1.57% copper, 1.92% lead, 3.90% zinc, 49.40 g/t silver, and 0.79 g/t gold and an Inferred Resource of 7,780,000 tonnes of 1.12% copper, 1.36% lead, 2.89% zinc, 34.88 g/t silver, and 0.52 g/t gold, both with a 0.50% copper cutoff. The use of the 0.5% copper cutoff resulted in an increase in the Resources as announced by the Company on April 18, 2011, which were reported at a 1.0% copper cutoff. The full report will be filed on the Company's profile on SEDAR (www.sedar.com) in the next 45 days.
"This resource on the Marg Project compares favourably with the initial resource estimates at Capstone's Minto Project from 2005. We anticipate that the deposit has the potential to be rapidly advanced through the feasibility stage, towards production," said William M. Sheriff, Chairman. "We are extremely excited by the opportunity ahead of us."
Highlights of the Technical Report
The Report, authored by A. A. Burgoyne P.Eng, M.Sc and G.H. Giroux P.Eng, MASc also outlines the favourable potential of increasing the known resource within the overall property block. The authors state:
The Marg Property contains a 15 km long belt of favourable Devono-Missippian felsic metavolcanic and metasedimentary rocks that host the Marg Deposit. This type of massive sulphide deposit occurs in clusters and a number of discrete occurrences. The Marg Deposit is larger and higher grade than global averages for mineral deposits of this type and the probability of expanding the Marg resource and defining additional VMS deposits on the Property is considered excellent.
The Report recommends a two-phase exploration and development program. The first phase will focus on data compilation, the completion of metallurgical studies initiated by the previous operator, and the completion of a preliminary Engineering Economic Assessment Report (Scoping Study). The budget for the first phase program is estimated to be $340,000. The second phase of the program will include diamond drilling to test the strike and down dip extensions of the Marg deposit and to acquire more sample material for further metallurgical testing. The second phase will also include further prospecting, mapping, geochemical and geophysical surveying, as well as diamond drilling of the favourable stratigraphy outside the existing Marg deposit. The budget for the second phase of the program is estimated to be $3,720,000. The Company plans to initiate the two-phase program in June, 2011.
About Redtail Metals Corp.
Redtail Metals specializes in identifying, acquiring and developing quality precious metal enriched copper, lead and zinc mineral deposits in Yukon, Canada. The Company currently controls the Marg and Clear Lake massive sulfide deposits, both with 43-101 compliant mineral resources, along with a number of other quality exploration properties in Yukon. Redtail Metals has a committed management team with extensive experience in Yukon and a proven track record of building shareholder value in the junior equity market.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Redtail Metals' plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Redtail Metals' assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
SOURCE Redtail Metals Corp.
For further information: Redtail Metals Corp., William M. Sheriff, Chairman: (604) 566-8181; J. Greg Dawson, President: (604) 566-8185