Red Canyon signs definitive Exploration Lease and Option to Purchase Agreement on Private Land at Scraper Springs, Nevada
Suite 1210 – 1130 West Pender Street
Vancouver, British Columbia, V6E 4A4 Canada
T +1 (604) 681-9100
Red Canyon signs definitive Exploration Lease and Option to
Purchase Agreement on Private Land at Scraper Springs, Nevada
Vancouver, British Columbia, April 4, 2024: Red Canyon Resources Ltd. (CSE: REDC) (the
“Company" or "Red Canyon") is pleased to announce it has entered into a definitive Exploration
Lease and Option to Purchase Agreement (the “Agreement”) with a private landowner on key
private land at the Scraper Springs project (the “Project”) in Nevada.
Highlights:
• This Agreement covers important internal and adjacent private blocks of land associated
with the interpreted mineral system at Scraper Springs in northern Nevada;
• The Agreement includes full surface estate and partial mineral estate in fee lands situated
within the Project area. Red Canyon retains the option to lease the property for a 30-year
period and purchase the private land outright;
• The 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.
Interpretation of project geochemistry, geology and geophysics suggests Scraper Springs
could potentially be associated with a large-scale copper system. A deep penetrating IP
geophysical line completed by Red Canyon has identified a large chargeable drill target
starting at approximately 400m below surface; and,
• Red Canyon is focused on impactful, value-add exploration to make discoveries of copper
and copper -gold deposits in established mineral belts in North America . It controls a
portfolio of seven 100%-owned, internally generated copper and copper – gold projects,
four of which are drill ready.
Wendell Zerb, the Chairman and CEO of the Company, states: "We are very pleased to have
finalized this definitive Exploration Lease and Option to Purchase agreement. This Agreement
consolidates high-value land associated with our Scraper Springs project , clearing a path to
conduct important exploration work including diamond drilling”.
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Terms of the Agreement
Red Canyon, through a wholly owned US subsidiary, has entered into an Agreement with an arms
length private landowner on private land that occurs within and adjacent to 100% owned BLM
mining claims held by the Company.
The Agreement covers important internal and adjacent private blocks of land associated with the
interpretated mineral system at Scraper Springs in northeastern Nevada.
Figure 1: Location map of Red Canyon’s 100% owned mineral claims and private surface and mineral
ownership at Scraper Springs.
Private land optioned through the Agreement consists of full private surface estate and 50%
ownership of applicable mineral rights , with the remaining mineral interest controlled by a third
party (Figure 1). By making an initial cash payment of US$5,000 on signing and making annual
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payments over the 30-year term, Red Canyon is granted exclusive surface rights, exclusive rights
to the landowner’s 50% mineral interest, and an option to purchase the land. Annual fees start at
US$5,000 on the first anniversary, increasing US$1,000 yearly over the first 9 years; US$20,000
on the tenth anniversary, increasing US$2,500 yearly over the next 10 years; and US$40,000 on
the twenty-first anniversary, increasing US$5,000 yearly until the thirtieth anniversary on which
the Agreement terminates . The Company has the right to purchase the private land and
associated mineral interest outright for US$2.375 million. The Agreement is subject to a retained
4% NSR on the private land , which may be purchased by Red Canyon at any time for US$1.5
million.
Scraper Springs Project Overview
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% NSR 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.
Figure 2: Scraper Springs plan view shallow IP with 2022 IP section.
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Previous operators at Scraper Springs mostly targeted shallow, high -grade gold systems or
Carlin-related gold systems whereas a reinterpretation of the alteration and geology 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 porphyry copper
system. In 2022, Red Canyon completed a deep IP survey, which has outlined a significant,
undrilled chargeable zone. One historical drill hole approximately 1.5 km east of this new
chargeability target intersected strong propylitic alteration and near the end of the drill hole
intersected anomalous copper mineralization with values up to 0.17% copper over 10.7 metres.
The Company views Scraper Springs as an important, high -profile copper project with excellent
discovery potential. Red Canyon is reviewing options regarding conducting deep penetrating MT
geophysics and extending IP geophysical coverage prior to initial drill testing.
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% owned projects over the
last 3.5 years using leading-edge geoscience to generate new large-scale exploration concepts.
Red Canyon intends to drill test several priority projects in 2024 with a goal of bringing targets to
a decision point as quickly and cost -effectively as possible. The Company also intends to
advance several additional projects to a drill stage 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.
The Company’s Peak copper -gold project in central British Columbia has multiple targets
highlighted by magnetic features, coincident IP, and elevated copper geochemistry. An initial
minimum 1,000 m drill program to test priority targets including the Peak Central area is planned
for the first half of 2024.
Additional information on the Peak and Scraper Springs projects can be found in the NI 43 -101
Technical Reports dated May 1, 2023 and September 26, 2023 respectively, as filed on SEDAR+
at www.sedarplus.ca.
Additional information on the Company’s other 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.
About Red Canyon Resources:
Red Canyon Resources Ltd. (CSE: REDC) is a geoscience -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 and aid
in the clean energy transition. Red Canyon has a portfolio of 100% owned copper and copper -
gold porphyry exploration projects. The Company’s technical team consists of experienced
geoscientists with diverse capital market, small cap and major mining company backgrounds, and
a track record of success.
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For more information, please visit the Company's website at www.redcanyonresources.com.
Red Canyon is part of the NewQuest Capital Group which is a discovery-driven investment group
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, P. Geol
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.