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VANCOUVER, Sept. 27, 2012 /CNW/ - Redtail Metals Corp. (TSX-V: RTZ) (the "Company") announces that it has commenced drilling on its R15 Property, recently acquired from Kaska Minerals Corp. The Company has also closed the non-brokered private placement announced on August 23, 2012 for gross proceeds to the Company of $1,000,000.
The R15 Project consists of a Yukon Government Lease of Mining Rights to the Kaska Minerals Corp oration covering 4,304 hectares of land set aside for the Ross River Dena Council. Redtail has an option to acquire a 95% participating interest in the R15 Project (see RTZ News Release of August 23, 2012), and has also entered into an Exploration Memorandum of Understanding and Traditional Knowledge Protocol with the Ross River Dena Council governing the R15 Project.
R15 is located approximately 120 km ESE of Ross River and approximately 25 km southwest of the Robert Campbell Highway within the prolific Finlayson Lake District; a crescent-shaped portion of the Yukon Tanana Terrane (YTT) located in the south-eastern part of the Yukon Territory that hosts numerous other volcanic-hosted massive sulphide deposits including the high-grade, poly-metallic Wolverine deposit, the Kudz Ze Kayah deposit, and the GP4F deposit.
In 2004, Teck Cominco Limited optioned the R15 Property from Kaska Minerals and drilled 7 diamond drill holes on the property. Four of the drill holes outlined a new discovery by intersecting a mineralized horizon highlighted by 3.4 m of 15.84% Zn, 7.09% Pb, 0.2% Cu, 68 g/t Ag, 0.268 g/t Au in R04-006. No follow up drilling has been conducted since Teck's initial discovery.
The R15 Project is adjacent to, and along strike with, Teck's GP4F project (historical resource estimate of 1.5 million tonnes of 6.4% Zn, 3.1% Pb, 90 g/t Ag, 2 g/t Au (1) and hosts massive sulphide mineralization that is geologically similar to the GP4F. The R15 mineralization may represent the continuation of the GP4F horizon along strike.
The R15 mineralization consists of a 1-3m thick horizon of massive sulphide hosted within Mississippian-aged felsic metavolcanic and metasediments of the Kudz Ze Kayah Formation within the Grass Lakes Succession. The horizon consists of massive to brecciated and recrystallized sphalerite, galena, magnetite, pyrrhotite, and chalcopyrite with minor silica, plagioclase, + chlorite and biotite gangue. The immediate footwall consists of variably altered chlorite, biotite, quartz, muscovite altered crystal tuff with strong sulphide disseminations and veins.
In September 2012 Redtail will complete an initial drill program focused on expanding the initial discovery made by Teck in 2004.
The Company has closed the non-brokered private placement announced on August 23, 2012. A total of 10,000,000 units were issued at a price of $0.10 per unit for gross proceeds to the Company of $1,000,000. Each unit consists of one common share and one half of one non-transferable share purchase warrant, each full warrant entitling the holder to acquire an additional common share at a price of $0.15 until September 27th, 2013. Finders' fees totalling $32,150 were paid on closing. All securities issued pursuant to this private placement are subject to a trading hold period expiring on January 28th, 2013.
The proceeds from the private placement will be used for expenditures under the R15 agreements, exploration of the Company's mineral properties, the final payment for the Company's Marg Property, and for general working capital purposes.
Shares for Debt
The Company also announces that, subject to receipt of the approval of the TSX Venture Exchange, it has issued 4,800,000 common shares at a deemed price of $0.10 per share in satisfaction of approximately $480,000 of outstanding indebtedness owed to certain creditors, pursuant to a debt settlement agreement. The common shares that will be issued in connection with the debt settlement agreement are subject to a hold period of four-months plus one day from the date of issuance.
The technical contents of this release have been reviewed and approved by Gilles Dessureau, MSc, PGeo. Mr. Dessureau is the Company's Vice-President, Exploration and a Qualified Person as defined by National Instrument 43-101.
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 R15 Project in the Finlayson Lake District plus the Marg and Clear Lake massive sulfide deposits, both with 43-101 compliant mineral resources. Redtail Metals, a member of the Predator Group of Companies, has a committed management team with extensive experience in the Yukon.
(1) MacRobbie, P.A., and Holroyd, R.W., 2004. 2004 Summary Report, R-15 Option (KZK Project) Canada, Linecutting, Grid Ground Geophysical Surveys (UTEM/MAG), Diamond Drilling, and Minor Geological Mapping. Exploration Report for Kaska Minerals Corporation and Yukon Territorial Government.
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.
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