Red Canyon Provides Exploration Update
Suite 1210 – 1130 West Pender Street
Vancouver, British Columbia, V6E 4A4 Canada
T +1 (604) 681-9100
Red Canyon Provides Exploration Update
Vancouver, British Columbia, August 15, 2024: Red Canyon Resources Ltd. (“Red Canyon”
or the “Company”) (CSE: R EDC | OTCQB: REDRF) is pleased to provide an overview outlining
summary results on current activities and exploration plans for the remainder of 2024. The
Company is f ocused on impactful, value -add exploration to make discoveries of copper and
copper-gold deposits in established mineral belts in North America.
Company Highlights:
• Red Canyon controls a portfolio of seven 100%-owned, internally generated copper and
copper – gold projects.
• The Company is progressing on final set -up for its inaugural drill pro gram at its 100%
owned Kendal copper project in west-central British Columbia. All required permits are in
place, drill pad preparation is underway, and drill contractor Diamondhead Drilling is set
to mobilize a drill rig on September 1, 2024. The planned program will consist of 4 to 6
drill holes totalling up to 2,500m. Drilling will target an interpreted copper porphyry system,
represented by significant altered and mineralized volcanic and porphyritic rocks exposed
over 2.5 x 1.5 km. Recent lithogeochemical studies suggest that the erosional level of the
porphyry system alteration in Kendal Creek could be directly above and in close proximity
to the modeled zone of copper mineralization . Kendal has never been previously drill
tested.
• Plans are underway to conduct expanded IP and gravity geophysical surveys at the
Company’s 100% owned Scraper Springs project in northern Nevada. Scraper Springs
hosts a 4 x 4 km alteration footprint comparable in scale to some of the world’s largest
copper deposits. The Company plans to expand on a deep penetrating IP geophysical line
previously completed by Red Canyon which identified a large chargeable target at depth.
A series of parallel and cross -lines are planned to better define the extent of this feature
and aid in drill targeting. In addition, the Company has commissioned Fathom Geophysics
to complete a 3D magnetic inversion model at Scraper Springs prior to the expanded IP
program.
• In Q2, Red Canyon completed four first-pass diamond drill holes at its Peak copper-gold
project in British Columbia, testing two main areas of its priority Peak Central copper-gold
target. The drilling specifically tested zones with magnetic features, coincident IP, and
elevated copper-in-soil geochemistry interpreted to represent a covered Alkalic copper
gold porphyry system. Drilling identified an altered Alkalic megacrystic porphyry dyke with
quartz veining and minor sulphides but did not identify a causative intrusive body linked to
surface mineralization. The area potential remains open to discovery.
Wendell Zerb, the Chairman and CEO of the Company, states: "Red Canyon continues to
advance of its portfolio of 100% owned copper and copper/gold projects. We are very excited that
our high-profile Kendal project is weeks away from the first ever drilling . Cumulative work
suggests Kendal represents a large, mineralized porphyry system. Testing big targets is part of
our business plan, and we believe Kendal is a great leveraged target. While drilling at our Peak
project did not yet identify a source of the surface mineralization, potential for discovery remains
open at Peak Central and the Peak North area remains untested. Finally, expanded geophysics
at Scraper Springs this fall is expected to improve future drill targeting on this high-profile Nevada
project. Drilling is expected to commence as early as Q2, 2025”.
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Kendal Project Drill Plan
Red Canyon has initiated a planned diamond drill program consisting of 4 to 6 drill holes totalling
up to 2,500m. Kendal has never been previously drill tested. Drilling will target an interpreted
copper porphyry system, represented by significant altered and mineralized volcanic and
porphyritic rocks exposed over 2.5 x 1.5 km. Recent lithogeochemical studies suggest the
erosional level of the porphyry system at the base of Kendal creek could be directly above and in
close proximity to the modelled zone of copper mineralization. All required permits are in place,
drill pad preparation is underway, and drill contractor Diamondhead Drilling is set to mobilize a
drill rig on September 1, 2024.
Kendal comprises five 100%-owned mineral claims totaling 2,738 hectares located in west-central
British Columbia approximately 25 k m northeast of the city of Terrace, a regional infrastructure
hub with a well -serviced airport . Infrastructure is excellent with four intersecting highways,
hydroelectric power and rail corridors , and port facilities approximately 120 km to the west at
Prince Rupert. The project has direct road access, only 3.5 km from Highway 16.
Figure 1: Kendal Project location map.
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A key focus of the Kendal project is the large 2.5 x 1. 5 km zone of hydrothermal alteration ,
manifested as a phyllic zone associated with mineralized porphyry intrusions. The Company has
completed detailed geological interpretation, a lithogeochemistry vectoring study , magnetic
inversion modelling and radiometric surveys. These technical studies significantly enhance our
confidence that Kendal may represent a newly discovered, copper porphyry system.
Figure 2: Kendal project topographic orthophoto looking south, with outline of mapped phyllic alteration
(yellow line) and focus area of the Q4/23 trace element rock sampling program (blue line).
In the fourth quarter of 2023, a lithogeochemical vectoring study including approximately 200
specimens of variably altered and randomly mineralized whole rocks were collected within the
area of interest (Figure 2). Interpretation of Kendal data suggests that the current level of erosion
is potentially in close proximity to the most prospective potassic alteration zone (Figure 3) ,
suggesting that the top of a copper porphyry system could be near-surface.
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Figure 3: Geochemical data from Kendal indicate s the approximate erosional level to be at the top of the
magmatic-dominant portion (potassic zone) that hosts porphyry copper deposits, when compared to the
Halley et al. (2015) cross -section through the porphyry copper lithogeochemical footprint model. The
erosional level of Kendal is well-constrained by threshold enrichments of Mo, W and Sn, as well as Cu, and
depletions of Na, Mn, Sr, As, which are all characteristic of the high temperature parts of the system.
The drill plan is set up at approximately 115 m above the base of Kendal Creek at multiple sites,
to drill through the phyllic zone and test the system to depth below the base elevation of Kendal
Creek. Drilling will concentrate on testing below exposed porphyrytic intrusions in Kendal Creek
and within the interpreted magnetic destruction zone and gamma-ray radiometric response
outlining very low thorium/potassium (Th/K) ratios identified previously (Figure 4). The Company
anticipates the program to run into late October.
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Figure 4: Magnetic analytic signal image over t he central part of the Kendal project indicates a (> 2 km 2)
hydrothermal alteration footprint defined by a large zone of depressed magnetic response from potential
hydrothermal magnetite destruction within a broader region of gossanous pyrite alteration.
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Figure 5: (left) Kendal Creek, highly-fractured and veined outcrop of intrusive rocks with an early, closely -
spaced generation of parallel fractures and veins, cut by later, larger generation of sulphide-rich veins with
pink weathering, possibly potassium feldspar alteration. (right) Kendal Creek o utcrop with multiple
generations of veins with pink alteration halos hosted in a coarse-grained and porphyritic texture intrusion.
Scraper Springs Project Expanded Geophysics:
Plans are underway to conduct expanded IP and gravity geophysical surveys at the Company’s
100% owned Scraper Springs project in northern Nevada. The Company expects to expand on a
deep penetrating IP geophysical line previously completed by Red Canyon in 2022. A series of
parallel lines and one cross-line are planned to better define the extent of a large , previously
identified chargeable target. In addition, the Company has commissioned Fathom Geophysics to
complete a 3D magnetic inversion model at Scraper Springs prior to the expanded IP and gravity
program (Figures 6 and 7).
Scraper Springs is in northern Nevada approximately 125 km from the cities of Winnemucca and
Elko. The project is 100% owned, subject to a 2% net smelter return royalty and consists of 190
unpatented mining claims, spanning 1,589 hectares. Scraper Springs hosts a 4 x 4 km alteration
footprint comparable in scope to some of the world’s largest copper deposits.
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Figure 6: Scraper Springs plan view shallow IP with 2022 IP section.
Figure 7: Scraper Springs proposed expanded IP .
Previous operators at Scraper Springs mostly targeted shallow, high -grade gold systems or
Carlin-related gold systems. A reinterpretation of the alteration and geology at the project by Red
Canyon and third-party consultants suggests high-temperature, low-pH clays and Eocene-aged
intrusions at Scraper Springs could be associated with a deeper, large -scale copper system. In
2022, Red Canyon completed a deep IP survey at the project, which outlined a significant,
chargeable zone not previously drill tested. One historical drill hole approximately 1.5 km east of
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this new chargeability target intersected strong propylitic alteration and ended in anomalous
copper mineralization with values up to 0.17% copper.
The Company views Scraper Springs as an important, high -profile copper project with excellent
discovery potential.
Peak First Pass Drill Program
In Q2 the Company drilled four first pass diamond drill holes totaling 1,310 m at the Company’s
Peak copper-gold project in central British Columbia . This initial program tested the main Peak
Central target with three holes and the 6S target with one hole.
The project area has multiple copper -gold targets highlighted by magnetic features, coincident
Induced Polarization (IP) anomalies and elevated copper geochemistry. Peak represents a 6,560-
hectare, strategic land position situated in a copper ‐gold district with active large scale mining
operations nearby and excellent infrastructure.
The Company’s main priority was to test Peak Central. A previous IP survey at Peak Central
outlined a large chargeability zone and a deep resistive centre, west of outcropping copper
bearing porphyritic rocks grading up to 2% copper.
Figure 8: Peak Central Drill hole locations – Plan view
Drill holes (Figures 8 and 9) at Peak Central intersected a series of mixed sediments including
black graphitic shales, sandstones, and polymictic conglomerates. The sedimentary package is
intruded throughout by a series of porphyry dykes . The highly charg eable zone outlined by IP
geophysics is likely due to graphitic sediments and zones with up to 5% pyrite. In addition, a deep
resistive centre targeted in RC -PG-02 is interpreted to be caused by quartz -rich sandstones,
conglomerates and late porphyry dykes. Both the high chargeability and high resistivity anomalies
targeted by drilling are not considered to be associated with an intrusive centre at Peak Central.
A source of copper mineralization found on surface to the east of recent drilling by Red Canyon
remains unknown. However, d rill hole RC-PC-01 intersected an altered megacrystic alkaline
porphyry dyke that contains quartz veining and minor sulphides. This rock is encouraging in that