Red Canyon Provides Exploration Update on its Scraper Springs Copper Project, Nevada USA
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Red Canyon Provides Exploration Update on its Scraper Springs
Copper Project, Nevada USA
Vancouver, British Columbia, January 16, 2025: Red Canyon Resources Ltd. (CSE: REDC |
OTCQB: REDRF) (the “Company" or "Red Canyon") is pleased to provide an exploration update
on its Scraper Springs copper project in northern Nevada (the “Project”), outlining exploration
results and new insights from last year’s activities. The Company is focused on impactful, value-
add exploration to make discoveries of copper and copper-gold deposits in established mineral
belts in North America.
Company Highlights:
• The Company’s 100% owned Scraper Springs copper project in northern Nevada hosts a
4 x 4 km alteration footprint comparable in scope to some of the world’s largest copper
deposits.
• In Q4/2024 the Company expanded its geophysical understanding of Scraper Springs by
completing additional deep penetrating IP geophysical line s, a gravity survey, and
magnetic inversion studies. This expanded program of geophysics has greatly improved
our understanding of the potential of the Scraper Springs system at depth and generated
high-priority drill targets.
• Internal and independent third-party targeting studies ha ve identified new, important
observations and reiterate that Scraper Springs has the potential to host a Tier 1 copper
porphyry system. Volumetrically significant hypogene alunite and pyrophyllite alteration
together with late zunyite alteration in high-temperature feeders indicate potential for the
system at Scraper Springs to host an upgraded potassic core (>1% Cu), as seen at the
Resolution deposit in Arizona and the Oyu Tolgi mine in Mongolia.
• Historic drilling at Scraper Springs largely targeted near surface gold related systems. The
only deep drill hole on property, collared 1.5 km from Red Canyon’s primary target area,
intersected 0.17% copper near the end of the drill hole. This drill intercept is interpreted
to be associated with a porphyry driven hydrothermal feeder, adding confidence to the
porphyry potential at Scraper Springs.
• The Company controls a portfolio of eight 100%-owned1, copper and copper – gold
projects.
Wendell Zerb, the Chairman and CEO of the Company, states: "The Tier 1 copper potential at
Scraper Springs puts it into a rare class of high-profile copper porphyry targets. While our previous
work at Scraper Springs suggested good potential to target a large porphyry system to depth,
new geophysics combined with third party targeting studies have vastly improved our confidence
at Scraper Springs. Furthermore, geological evidence that Scraper Springs exhibits
characteristics that suggest the possibility for an upgraded copper core, adds encouragement to
the potential. Finally, the infrastructure at Scraper Springs is excellent, adding considerable
margin upside should a n economic copper system be discovered. Scraper Springs is now
considered drill ready with multiple excellent drill targets in one of the world’s largest untested
hydrothermal alteration systems”.
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Project Overview:
The Company holds a portfolio of eight 100% owned1 projects in British Columbia, Nevada, and
Utah. High priority projects are Kendal in west central British Columbia and Scraper Springs in
northeast Nevada. For more information on the Company’s newly identified Kendal copper-moly
porphyry discovery in west central British Columbia , see Red Canyon press release s dated
November 4, 2024 and January 13, 2025.
Figure 1: Location map of Red Canyon’s 100% owned1 copper and copper-gold projects.
Scraper Springs Project:
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. The approximate 4 x 4 km alteration
footprint surrounding the Scraper Springs target is comparable in scope to some of the world’s
largest copper deposits. Access is considered excellent with maintained paved and packed gravel
year-round road access.
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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.
Figure 2: Scraper Springs plan view with new 2024 IP lines, magnetics, overlying 2024 Bouguer gravity
high.
In 2022, Red Canyon completed a single line deep IP survey at the Project, which outlined a
significant, chargeable zone near the limit of the survey penetration depth not previously drill
tested. One historical drill hole approximately 1.5 km east of this chargeability target intersected
propylitic alteration and anomalous copper mineralization with values of 0.17% copper over 10.7
metres. This zone is interpreted to be a distal skarn mineralization driven by a porphyry related
hydrothermal feeder.
2024 Geophysics
In Q4/2024, Zonge International, Inc . completed three additional Induced Polarization (IP) and
Resistivity survey lines at the Scraper Springs project. This survey was to follow up the single IP
line completed by Red Canyon in 2021 (Figure 2). The 2024 Time-Domain survey used a dipole-
dipole array configuration with an a-spacing of 300 m on three lines for a total of 7.2 line-kilometres
ag low
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of electrode coverage . A two-dimensional inversion was completed to produce a section
representative of an image of the electrical properties of the subsurface . The program identified
an expanded zone of chargeability identified in 2021 with increased depth resolution, as well as
several new centres of high chargeability (Figure 3). Several features identified represent
chargeability highs corresponding with conductive zones (low resistivity).
Figure 3: Scraper Springs 2024 Expanded IP Geophysics Line L3N with Inversion Model Resistivity and
IP Chargeability
Based on geological and alteration mapping, the Company believes the Scraper Springs area is
underlain by a large intrusive complex with causative intrusions responsible for the large 4 by 4
km hydrothermal alteration cell seen at surface. The alteration footprint is characterized by
widespread distribution of an advanced argillic alteration mineral assemblage that indicate s
formation from hot, acidic and oxidized fluids. High temperature minerals such as pyrophyllite
and zunyite in steep structures, as well as abundant dickite and alunite, indicate that the current
erosional surface is close to the base of the lithocap. This further suggests a possible porphyry
system remains intact and at moderate depths (Figure 4).
In Q3/2024, Magee Geophysical Services LLC conducted a detailed gravity geophysical survey
covering the Scraper Springs area (Figure 2). The survey included 429 new stations spaced 200
m apart. The central area of Scraper Springs is represented by a 10 by 5 km north – south trending
gravity high. This high is interpreted to represent a deep, intrusive complex likely associated with
causative intrusions responsible for the large hydrothermal alteration footprint at Scraper Springs.
In 2024 , the Company also engaged Fathom Geophysics (“Fathom”) to conduct a Magnetic
Vector Inversion study on the Scraper Springs 2005 ground magnetics survey data. Fathom work
identified that the moderate magnetic high (Figure 2), central at Scraper and associated with the
North and South intrusive stocks, appears to coalescence at depth suggesting a larger, intrusive
body continues to depth.
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New Targeting Studies
The Company, together with independent consulting geologist Dr. Mike Sepp, undertook a review
of Scraper Springs geophysics, geological and alteration mapping, geochemistry and
hyperspectral work. In particular, Dr. Sepp is considered an expert in high temperature minerals
(zunite and pyrophylite) associated with porphyry systems.
Figure 4: Scraper Springs modeling, high temperature feeder structure interpretation and interpretation of
Scraper Springs Porphyry targeting to depth.
The following are s ome important conclusions developed previously and as part of Dr. Sepp’s
review work:
• Scraper Springs has a Tier-one size alteration cell (4 x 4 km) analogous to world’s largest
porphyry deposits.
• Favorable project magnetics with a large property scale magnetic low (hydrothermal
alteration) and associate bullseye magnetic high (Figure 2).
• New IP geophysics outline a series of large anomalies (chargeable and conductive zones)
that underlie the favorable deep lithocap alteration (Figures 2 and 3).
• The large footprint of Alunite alteration at Scraper Springs likely indicates strongly oxidized
magmas, which are important to develop porphyry systems worldwide (Figure 4).
• North and South stock diorite intrusions at Scraper Springs are the same age as Bingham
Canyon in Utah (38 Ma) (Figure 4).
• Strong high temperature zunyite alteration indicates high chlorine magmatic fluids
favorable to porphyry formation (Figure 4).
• Late zunyite alteration in high -temperature feeders indicate potential for an upgraded
potassic core (>1% Cu), as seen at the Resolution deposit in Arizona and the Oyu Tolgi
mine in Mongolia (Figure 4).
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• Surface alteration and indicator geochemistry model the system at base of the lithocap,
suggesting high preservation potential of system while also suggesting reasonable
exploration target depths (Figures 3 and 4).
• Reprocessing of hyperspectral SWIR data discovered the presence of mixed muscovite
and pyrophyllite in high -temperature feeder structures, characteristic of the lithocap -
porphyry transition at: Yerington-USA, Pebble-USA, KSM-Canada, Oyu Tolgoi-MNG, Far
Southeast-Lepanto-PHL, El Salvador -CHL, Los Helados -CHL, Valeriano-CHL (orange
oval Figure 4).
• One historical deep drill hole approximately 1.5 km east of the current target area
intersected propylitic alteration and anomalous copper mineralization with values of 0.17%
copper over 10.7m. This drill intercept possibly represents a hydrothermal exoskarn zone
interpreted to be associated with an adjacent copper porphyry system.
The Company views Scraper Springs as an important, high -profile copper project with excellent
discovery potential. Scraper Springs is drill ready and the Company is currently working through
project and finance planning, and budgeting for 2025.
Corporate Strategy:
Red Canyon is focused on exploring for copper and copper-gold related mineral systems within
mining friendly jurisdictions in North America, with a particular focus on British Columbia and the
Western United States. The Company is specifically targeting new or underexplored areas within
established, premier copper districts.
The Red Canyon team has sourced and advanced its portfolio of 100% owned1 projects over the
last four years using leading -edge geoscience to generate new exploration concepts. The
Company is largely focused on exploring for and acquiring new projects . Projects are either
acquired by staking claims on open ground , or through options with third parties, on terms that
allow the Company to acquire a 100% project interest.
Red Canyon’s plan is to drill test priority projects with a goal of bringing targets to a decision point
as quickly and cost-effectively as possible. The Company also intends to advance earlier stage
projects to a drill decision by executing geologic, geochemical, and geophysical programs. Red
Canyon is executing a corporate strategy of seeking out strategic alliances and will evaluate
opportunities to joint venture, option or sell projects to qualified partners to maximize its exposure
to exploration success.
Additional information on the Company’s projects can be found on the Company’s website
www.redcanyonresources.com. Further projects are in development and details will be disclosed
as information comes available.
1 Red Canyon holds three projects subject to option agreements under which the Company may earn 100%
interest in the projects.
About Red Canyon Resources:
Red Canyon Resources Ltd. (CSE: REDC) is a technically-driven, discovery -focused mineral
exploration company focused on exploring North America’s top copper jurisdictions. The
Company’s core goal is to make impactful copper discoveries to benefit all stakeholders. Red
Canyon has a portfolio of 10 0% owned copper and copper -gold porphyry exploration projects.
The Company’s technical team consists of experienced geoscientists with diverse capital market,
junior and major mining company backgrounds and a track record of success.
For more information, please visit the Company's website at www.redcanyonresources.com.
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Red Canyon is part of the NewQuest Capital group which is a discovery -driven investment
company that builds value through the incubation and financing of mineral projects and
companies. Further information about NewQuest can be found on the company website at
www.nqcapitalgroup.com.
On Behalf of the Board of Directors
Wendell Zerb
Chairman and Chief Executive Officer
+1 (604) 681-9100
For further information, please contact:
Brennan Zerb
Investor Relations Manager
+1 (778) 867-5016
Qualified Person:
The technical information contained in this update has been reviewed and approved by Wendell
Zerb, P. Geol, a “Qualified Person” (“QP”) as defined in National Instrument 43-101 – Standards
of Disclosure for Mineral Projects.
Forward-Looking Statements:
This news release includes certain forward -looking statements and forward -looking information
(collectively, “forward-looking statements”) within the meaning of applicable Canadian securities legislation.
All statements, other than statements of historical fact, included herein including, without limitation,
statements regarding future capital expenditures, exploration activities and the specifications, targets,
results, analyses, interpretations, benefits, costs and timing of them, and the anticipated busi ness plans
and timing of future activities of the Company, are forward -looking statements. Although the Company
believes that such statements are reasonable, it can give no assurance that such expectations will prove
to be correct. Often, but not always, f orward looking information can be identified by words such as “pro
forma”, “plans”, “expects”, “may”, “should”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”,
“anticipates”, “believes”, “potential” or variations of such words including negativ e variations thereof, and
phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken
or achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the Company to differ materially from
any future results, performance or achievements expressed or implied by the forward -looking statements.
Such risks and other factors include, among others, risks r elated to the anticipated business plans and
timing of future activities of the Company, including the Company’s exploration plans and the proposed
expenditures for exploration work thereon, the ability of the Company to obtain sufficient financing to fund
its business activities and plans, the ability of the Company to obtain the required permits, changes in laws,
regulations and policies affecting mining operations, the Company’s limited operating history, currency
fluctuations, title disputes or claims, environmental issues and liabilities, as well as those factors discussed
under the heading “Risk Factors” in the Company’s prospectus dated October 12, 2023 and other filings of
the Company with the Canadian Securities Authorities, copies of which can be found under the Company’s
profile on the SEDAR website at www.sedar.com.
Readers are cautioned not to place undue reliance on forward -looking statements. The Company
undertakes no obligation to update any of the forward-looking statements, except as otherwise required by
law.