TORONTO, ONTARIO — (Marketwire) — 10/01/12 — Red Crescent Resources Limited (TSX: RCB)(FRANKFURT: 7RC) („RCR“), a base metals focused mineral exploration and mine development company with operations in Turkey, is pleased to provide an update on its activities since the closing of the private placement with Link Investment & Consulting, LLP („Link“) in July, in which Link subscribed for CAD$1.2 million in units and converted USD$1.8 million of debt to equity.
The initial focus of the Company has been to get the Hakkari Zinc mining operation to become a cash generating asset as quickly as possible.
To enable this, the Company entered into a five-year lease agreement through its Turkish bankers to procure additional mining equipment valued in excess of USD$ 1 million and purchased additional equipment outside of the lease arrangement valued at approximately USD$ 170,000. This equipment was delivered on site in mid-September.
Concurrently, the Company entered into a third party agreement with a subcontractor to expand operations on an open pit basis and commence the development of underground tunnels that will enable access to mineable resources and create mineable reserves.
Production on the Uzumlu (Pentagon) licence from open pit mining commenced in mid-September and to the date of this release, approximately 500 tonnes of DSO (Direct Shippable Ore) has been extracted and is currently undergoing sizing via crushing and screening prior to trucking to the Turkish port for export, which is expected in October. The first export lot of DSO is expected to be around 1,000 tonnes, valued around USD$120,000 FOB Turkish port basis.
Also during this period, Alexander Mining PLC reported through a press release favourable AmmLeach® amenability testwork results for the recovery of zinc from samples provided from the Hakkari Project.
Management is evaluating opportunities to monetize the Sivas and Tufanbeyli projects which might include entering into joint venture arrangements, sale of part or all of a property or further exploration as additional cash resources become available.
The statements made in this press release contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from RCR-s expectations and projections.
About Red Crescent Resources Limited
Red Crescent Resources Limited (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 .
About Link Investment and Consulting LLP
Link maintains its corporate office in London, United Kingdom and specializes in the trading, investment and marketing of non-ferrous ores and concentrates on a worldwide basis. The key personnel of Link have extensive experience in their fields, maintaining a strong global network of contacts with investors, producers, consumers and international merchants, as well as a strong history of working in Turkey.
Link has an exclusive marketing agreement with RCR for the sale of production from the three existing properties under development in Turkey. A partner in Link is a director, officer and significant shareholder of RCR.
Contacts: Red Crescent Resources Limited Dr. Selahaddin Anac CEO + 90 532 341 22 51 + 90 312 448 29 26 (FAX)
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