Vancouver, British Columbia – Further to its news releases of February 23, 2017 and March 15, 2017, Red Hut Metals Inc. (the “Company” or “Red Hut”) is pleased to report historical information on the Providence Group of Gold Mines.
The Providence Group of Mines (the “Property”) is located in the Summerville Mining District, Tuolumne County, California, upon the eastern belt of the “Mother Lode” District. A number of high grade, well known Motherlode gold mines of California are found within this belt, including the Black Oak Mine, the Soulsby Mine, the Dead Horse Mine, the New Albany Mine, the Star King Mine and others from which gold has been mined over the years. These mines are located via good all weather roads, three miles from the town of Tuolumne, and about 20 miles east of Sonora, California.
The Property being optioned by the Company consists of the Providence Mines, the Consuelo Quartz Mine, the Goodenough Quartz Mine, the Bonita Quartz Mine and Mill Site, as well as a number of patented claims. The following historical information is derived from the NI 43-101 technical report commissioned by the Company on the Property (the “Report”) and which is currently being reviewed by the TSX Venture Exchange (the “Exchange”):
Historical documentation shows that these mines were for many years profitably worked and were regarded as one of the best mining camps on the eastern belt of the “Mother Lode” occurrences. It is historically reported that owing to differences between the former owners and their then manager, the Property was shut down in the midst of active and profitable operations.
At that time, 1916, the lower levels of the mines were allowed to fill with water, and the lower four levels never reopened according to available records. Thus conditions of the mineralized bodies in these lower four levels are potentially in the same condition that they were when the operations ceased, at which time records indicated milling high grade mineralization from the tenth and eleventh levels. At the same time development work had been completed on the twelfth level into bodies of mineralization.
The veins of the Providence Mines are in black slates, lying parallel with each other at an angle of about 45 degrees, pitching toward the east. The strike of the vein is from south east to North West. The formation contains porphyry and limestone, the mineralized material is found in many places on these contacts, as often occurs in many mines. The mineralized material is found in lenses at varying distances along the veins. These lenses or shoots of mineralization have been opened up on various levels of the mine and a large amount of mineralized material extracted therefrom, although in many places in the mine these mineralized materials which have been historically reported have been worked in only one direction.
Development: A double compartment shaft was sunk to a depth of 1470 ft. on the dip of the vein. Twelve drifts were run north and south of the shaft on twelve different levels, the number 12 level being about 1400 feet from the mouth of the shaft. From different levels, crosscuts were run east or west to develop and open up parallel mineralization shoots found in parallel veins. Some of these mineralized material and veins have been stoped out. In others there is said to be potential mineralized material still in place. A significant amount of underground work has been completed, developing and proving the property to be one of permanent formation and to contain well defined mined mineralization bodies of value. The Providence Group of Mines has not only been said to be a producer of mineralization in its historical past, there still remains potential for similar untapped resources. The Providence Group of Mines has been historically identified and described as having identical similarities to many of the great mines within the “Mother Lode” gold district.
As previously reported, in conjunction with the proposed acquisition of the Providence Mines, the Company is undertaking a private placement of at least $1.2 million in gross proceeds through the issuance of at least 12 million units (the “Units”) at a price of $0.10 per Unit. Each Unit will be comprised of one share and one-quarter of one share purchase warrant (“Warrant”) with each whole Warrant entitling the holder to purchase one share of Red Hut at a price of $0.25 per share for a period of one year. The Company reports that it has received confirmation from the Exchange, that while they are reviewing the acquisition of the Providence Mines which is part and parcel with the private placement, the filing deadline for final materials on the private placement has been extended.
The italicized text above is all historical in nature. Due to regional forest fires, almost all original data has been destroyed or lost and, as such, the author of the Report is unable to corroborate any of these statements. The author believes that a significant amount of mineralization remains to be recovered from the mine; however he is unable to corroborate this belief. The Property requires a systematic mapping, sampling and drilling program to prove up any of the above statements.
This news release has been reviewed and approved by John Kowalchuk, P.Geo., who is acting as the Company’s Qualified Person for Providence Mines Project, in accordance with regulations under NI 43-101 standards.
ON BEHALF OF THE BOARD
Signed “Robert Eadie”
Robert Eadie, President, Chief Executive Officer and Director
FOR FURTHER INFORMATION PLEASE CONTACT:
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to: the terms and conditions of the proposed Transaction; the terms and conditions of the proposed Financing; future work to be carried on the Property; use of funds; and the business and operations of Red Hut after the proposed transaction. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There is no assurance any of the forward-looking statements will be completed as described herein, or at all. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; operating and technical difficulties in connection with mineral exploration and development activities, lack of investor interest in the Financing; requirements for additional capital; future prices of gold and precious metals; changes in general economic conditions; accidents, delays or the failure to receive board, shareholder or regulatory approvals, including the required permits; results of current exploration and testing; changes in laws, regulations and policies affecting mining operations; and title disputes. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Red Hut disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.