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Gold/Mining/Energy : Redhawk - RDK.V -- Ignore unavailable to you. Want to Upgrade?

To: CLK who wrote (16)	11/18/1997 12:26:00 PM
From: keith schaefer	Read Replies (1) \| Respond to of 44

Redhawk's Remac Zinc Project is one part of a huge SEDEX deposit that Kristian is confident runs for at least six miles. The Reeves-MacDonald mine on our eastern border is also part of this same formation. We know it runs for at least 6 miles because in 1952 Cominco drilled a hole 6 miles from Reeves MacDonald and came up with the same orebody. SEDEX deposits are usually very large. Remac has three miles of this 6 mile stretch. This deposit is four mineralized bands that were laid down over millions of years. The bands have been tilted up and then faulted into many blocks. Reeves-MacDonald mined 2 blocks - 7.2 million tons of ore, over 500 million pounds of zinc. RDK has already found one other block of mineralization, along strike where it was supposed to be. The independent consultant report says if this block is the same size as the other two at Reeves MacDonald (and there's nothing to suggest it will or won't be) then Redhawk is looking at 10-12 million tons of 8% Zn, 3% lead, 2 opt silver and .05% Cadmium, which works out to, in today's prices, at about $180 rock (Cdn). Gross metal value in situ would be roughly $1.8 billion at 10 million tons. Only 5 million tons would make a mine - 1200 ton per day operation with a mine life of 12 years. Very simple, cheap open stope underground mining. With two zinc concentrators and one smelter all within 20 miles. And this is only one fault block of mineralization. Our model says there should be multiple fault blocks along our three miles of strike length. The initial target is a very decent sized 5-10 million ton mine. Some people may think that's small, but it is very profitable and any major would look at it, especially including the upside of multiple fault blocks.