TORONTO, ONTARIO--(Marketwire - Nov. 17, 2011) - Red Crescent Resources Limited (TSX:RCB)(FRANKFURT:7RC), a base metals focused mineral exploration and mine development company with operations in Turkey, announced today that it has successfully produced 2000 tonnes of direct shippable ore (DSO) from its Hakkari Zinc Project (HZP). The ore has been independently assayed by A.H. Knight laboratories. The certificate report (attached) grades the ore at 26.75% zinc (Zn) contained with 4.75% lead (Pb) and relatively low silica and iron, and defines the product as amenable for direct smelter feedstock.
HZP is a high grade carbonate MVT (Mississippi Valley Type) style zinc/lead project, and hosts geometrically measured and defined potential for the development of significant compliant mineral and metal resources. Resource and reserve development is being undertaken using both conventional surface and underground diamond core drilling as well as the physical development from the outcrop of mine accesses and related future infrastructural backbones within the thick mineralised zones of between >2m and <10m.
"We are naturally pleased that our first production of DSO has met and exceeded our target grade criteria of 25% zinc," said Mr. Alan M. Clegg, Chairman and CEO of Red Crescent. "This important milestone enables us to generate positive cashflow that can be used towards the further development of compliant resource and reserves. This tactical action will be expanded as far as possible in the short term in order to generate larger DSO shipments on a regular basis and generate increased revenue."
The DSO product will be marketed by Link Investment & Consulting ("Link") with whom RCR signed an initial protocol off-take agreement earlier in 2011 and with whom a formal marketing agreement will be entered into imminently. It is expected that the HZP oxide DSO product will be shipped to a smelter either in Europe or the far east.
Mr. Cem Elmastas, one of the Directors of Link commented, "Based on the fact that the market conditions for zinc concentrates are tightening, the availability of the first DSO lot from Hakkari is very timely. We are also pleased to be able to generate immediately some revenue for Red Crescent. It is a very rare case for a junior mining company and this positive news will undoubtedly be well received by investors."
Alan M. Clegg, a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information contained in this news release.
The statements made in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
About Red Crescent Resources
Red Crescent Resources (TSX:RCB)(FRANKFURT:7RC) is a Turkey-based junior mining company targeting historically inaccessible areas where no modern application of exploration techniques or technology has been applied, with high potential for discovery of significant base metal deposits. For more information, please visit: www.redcrescentresources.com.
To view the certificate associated with this press release, please visit the following link: http://media3.marketwire.com/docs/rcr1117.pdf