Red Hill Energy Inc.
COMPANY DATA | INTRODUCTION
| PROJECT IN HAND | MANAGEMENT
NEWS UPDATE | CHINESE
| Address: | Suite 525, 999 West Hastings Street Vancouver, B.C. Canada V6C 2W2 |
| Tel No.: | (604) 642-2625 |
| Fax No.: | (604) 642-2629 |
| Web Site: | www.redhillenergy.com |
| Corporate Email: | info@redhillenergy.com |
| Contact Person: | Paul McKenzie |
| Position: | Director |
| Traded Market: | TSX-V |
| Traded Symbol: | RH |
| Outstanding Shares: | 32,203,056 |
| Public Float: | 3.9 million |
| 52 Week High: | $ 1.60 |
| 52 Week Low: | $ 0.65 |
| Present Price: | Click Here |
INTRODUCTION
Red Hill Energy Inc. is a junior resource company trading on the TSX-Venture Exchange under the trading symbol "RH". In addition to its extensive portfolio of uranium properties Red Hill is also developing the 154.3 million tonne Ulaan Ovoo Coal Project in northern Mongolia. Red Hill is also developing the Chandgana Tal Coal Project in eastern Mongolia and has 14 uranium properties and several gold and copper exploration projects located throughout Mongolia. Red Hill has a strategic alliance with Mega Uranium Ltd. to jointly develop its uranium assets and has a full time office in Mongolia's capital, Ulaanbaatar.
PROJECT IN HAND
2006 has seen Red Hill Energy increase its Ulaan Ovoo coal reserve for the second time from 136.4 million tonnes of high quality bituminous coal to its new reported quantity of 154.3 million tonnes. With a NI 43-101 report completed on the property by Behre Dolbear (USA) of Denver Colorado; Red Hill awaits its results of a pre-feasibility study being finalized.
Red Hill also added the acquisition of the new Chandgana Tal coal project and has completed its further uranium exploration on its Baganurat property, with drilling to begin later this year. Continuing exploration on 5 more of the most prospective uranium properties out of its 14 will proceed through the coming months. Red Hill also has 4 gold/copper projects in its portfolio.
(1) Ulaan Ovoo Coal Project highlights:
- Transferable 55 year mining license, with a 45 year extension option.
- 154.3 million tonnes reportable quality, hard, high volatile bituminous coal (94.9 million tonnes measured and 59.4 million tonnes indicated). Consistent with both JORC and NI 43-101 standards.
- Behre Dolbear of Denver, CO has completed NI 43-101 report and is in the final stages of completing its scoping study on the property.
- Project consists of high quality, hard bituminous coal. High in volatiles, low in ash (10.5%), very low in sulfur (0.3%) having an average thermal content of 6,990 kcal/kg (12,600 BTU/lb).
- The resource has been delineated by a total of 66 drill holes within 237.1 hectares.
- Drilling to test the south of the fault line has been completed and Red Hill awaits the results of the assays and if any further increase in the coal reserve will occur.
- A single seam averaging 53.9 metres in thickness carries most of the coal resources; also 5 minor seam layers.
- The overall stripping ratio will be very low. Overburden thickness ranges from 0 metre at outcrop to 120 metres near centre.
- With key equipment, a camp and infrastructure already in place by the previous owner. Ulaan Ovoo could be a low cost, open pitable mine. There is sufficient surface and ground water available to support a significant sized mining operation.
(2) Chandgana Tal Coal Project highlights:
Red Hill announced April 3, 2006 that it acquired a 100% interest in two licenses covering the major part of the Chandgana Tal Coal Project.
The Chandgana Tal Coal Project is in the northeast part of Nyalga coal basin, approximately 290 kilometres east of Mongolia's capital, Ulaanbaatar, reasonably close to good infrastructure - towns, roads & power lines.
- Historical Russian records (non NI 43-101 or JORC compliant) indicate 90 million tonnes of Sub-Bituminous Coal.
- Red Hill plans to explore the surrounding sub-basin as well as explore the project at depth and along strike.
- Historical records indicate a high volatile, good quality coal deposit low in ash, moisture and sulphur.
- Average BTU/pound was recorded at 9,459.
(3) Uranium Projects
Red Hill built up the strategic uranium alliance with Mega Uranium Ltd. (TSX-V: MGA). Mega can earn a 50% interest in Red Hill's current portfolio of uranium exploration properties through the expenditure of US$1.5 million over a three year period ($1 million has been allocated for exploration in 2006 including upcoming uranium drill programs). Once Mega has acquired a 50% interest, it will have the option of increasing its interest to 60% through additional expenditures of US$2 million over a three year period. This agreement only pertains to Red Hill's uranium properties.
Field activities will be directed at examining the uranium potential of a number of priority target areas on Red Hill's uranium properties. Based on extensive studies by Red Hill's Russian, Mongolian and Canadian geologists five properties have been selected for detailed investigation in 2006: Jargalan, Baganurat, Maikhan Tolgoi, Shorvog Gol/Adag Unsi Khudag and Ganga properties.
The 2006 field season will see specific identified targets areas in the five priority properties studied and advanced through the use of ground-based radiometric surveys, vertical electrical sounding (VES) surveys, induced polarization (IP) surveys, (Alpha card - patented) radon surveys and soil and rock sampling. Red Hill and Mega Uranium have budgeted to drill test the most favourable anomalies and showings later this year.
On May 31 Red Hill and Mega Uranium completed its 6 week exploration program that confirmed strong anomalies on its Baganurat property, located in Dornogovi province in southeastern Mongolia. Planned is a 4,500 metre drill program and exploration has recommenced on the Maikhan Tolgoi property.
(4) Gold & Copper Projects
(A) Argalant Property
Red Hill has an option to earn up to an 80% interest in the prolific 2,090 hectare Argalant gold/copper property located in western Mongolia. The property is contained within a large volcanogenic massive sulphide (VMS) belt which has the potential to host many Cu-Au-Ag deposits. Red Hill has plans to immediately drill two prospects on the Argalant property, the Ovoot and the Gozgor.
(B) Khondloy Property
The property comprises 9,798 hectares in Bayanhongor Aimag province. The Company has acquired a 100 percent interest through cash payments in September, 2003 and a four-man field crew completed a preliminary evaluation of the property from November 3 to 20, 2003. The main mineral prospect on the property is the Khondloy occurrence which is a three kilometre mineralized surface anomaly with returned grades reaching 14% copper, 17 g/t gold and 21 g/t silver. Khondloy was the site of numerous historic shallow pits and trenches completed by the Chinese for copper oxide mineralization. Previous work on the property by Russian explorers in the 1980s included sampling and the drilling of 11 shallow drill holes which indicated widespread anomalous copper values, associated with semi-massive to massive sulphide mineralization. As previously reported, hole 11 returned the best intersection, being in excess of 30.0 metres from 69.0 to 99.0 metres, comprising 0.28% Cu, 0.33% Zn and 7.2 g/t Ag. The Russian drill program was never assayed for gold despite the fact that gold mineralization was found on surface.
(C) Gold Ram Property
The property is 100% interest owned by Red Hill Energy Inc. The property comprises 15,482 hectares and is located in the Omnogovi Aimag province, 75 kilometres southwest of the capital of the aimag, Dalanzadgad. The property is bordered by QGX Inc. to the east and is surrounded by Asia Gold Corp.'s extensive South Gobi property. Previous Russian-Mongolian surveys indicated significant gold mineralization in a system of mesothermal quartz veins with Nomhon formation sediments.
(D) Naranbulang Property
The property comprises 1,428 hectares in Zavkhan Aimag province, about 700 km west of Ulaanbaatar. Red Hill has purchased a 100% interest through an outright sale from a Mongolian private company, with no underlying royalties. The property covers numerous ancient working and quarries for copper mineralization hosted in granites and silicified volcanics. The property has had 3,208 metres of diamond drilling in 33 holes and trenching by the Russians from 1977 to 1979. Based on this program 9 mineralized deposits are indicated with grades of 0.20 to 0.50% copper. The width of mineralization varies from 6 metres to 35 metres (Zone III). Core recovery from the Russian program was very poor (41%) and no assaying for gold was ever done.
MANAGEMENT
Red Hill Energy Inc. has a well management team with experience in different areas.
Ranjeet Sundher - Managing Director, President
Arnold Armstrong - Director, Chairman & CEO
Garry Clark, P.Geo - Director
Mel L. Klohn, M.S., P.Geo - Director
Paul McKenzie - Director
Lloyd Bray - Director
Carol Brownie - Director
Glenn S Griesbach, P.Geo - VP Project Development
Scott Parsons - Investor Relations
NEWS UPDATE
On January 29, 2007 Red Hill Energy Inc.'s preparations for the 2007 Mongolian uranium exploration season are under way and fieldwork will commence as soon as weather permits.
On January 11, 2007, Red Hill Energy Inc. provided its advancement plans for its Ulaan Ovoo and Chandgana Tal coal projects in Mongolia.
Ulaan Ovoo coal project
Red Hill has planned 2007 exploration programs that include extensive drilling in the structural basins that surround the coal-bearing Ulaan Ovoo basin. The life of the future Ulaan Ovoo coal operation could be greatly increased beyond the currently anticipated 34 to 40 year mine life should any of these surrounding basins be proven to contain significant coal accumulations.
Chandgana Tal coal project
Red Hill is preparing to advance its 100% owned Chandgana Tal coal project in the first quarter of 2007. Exploration is planned to define and advance historical Russian resource estimates to National Instrument 43-101 and JORC compliant standards.
On December 14, 2006 The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement announced November 16, 2006. Shares: 3.3 million Purcahse price: 75 cents.
On December 13, 2006 Red Hill Energy Inc. has closed a $2,475,000 non-brokered private placement previously announced on Novemebr 16, 2006. The company placed a total of 3.3 million units. Proceeds of the placement will be applied to the company’s exploration programs on its Mongolian coal properties and to general working capital.
On November 15, 2006, Red Hill Energy Inc. announced that it has entered into an agreement with the private Mongolian corporation, to purchase 100% title and interest in five mineral licences, including licences that are contiguous and entirely surrounding Red Hill's Ulaan Ovoo coal project. The purchase price for the licences is US$400,000, with US$50,000 being payable with 10 days of signing and the balance of payment due upon transfer of ownership title to Red Hill. There are five known structural basins in the vicinity of the Ulaan Ovoo coal property, three of which are considered highly prospective for further discoveries of economic coal.
On November 9, 2006, Red Hill Energy Inc. released the results of the scoping study for its Ulaan Ovoo coal project in Mongolia. Behre Dolbear (USA) Ltd. of Denver, Colo., undertook the scoping study and the study shows potential for 20 year highly profitable coal mine at Ulaan Ovoo.
On September 6, 2006, Red Hill Energy Inc. announced that the final results from the two-phase 2006 drill program on its 100% optioned Ulaan Ovoo Coal Project located in northern Mongolia have increased the coal resource estimate announced June 27, 2006, by further 51.6 million tonnes, to a revised total coal resource of 206.2 million tonnes. A total of 11 new holes were drilled, six in the northern portion of the reserve to confirm previous drilling information and five in the southern part of the area to extend the informational base to the south.
On August 30, 2006, Red Hill Energy Inc. announced that Red Hill and Mega Uranium Ltd. begin the 2006 drilling and borehole geophysics campaign at Baganurat and Maikhan Tolgoi uranium properties in eastern Mongolia. The drilling and geophysics programs are designed to follow up on positive results obtained by Red Hill in its fieldwork conducted on both properties earlier this year and on the Maikhan Tolgoi property in 2005.
On June 27, 2006, Red Hill Energy Inc. announced that its recently completed exploration drilling program at its Ulaan Ovoo Coal Deposit in northern Mongolia has increased Measured Coal Resources in the Northern Block of the deposit by 33 percent (17.9 million tonnes) and overall total coal resources by 13 percent. Results of exploration drilling in the Southern Block of the deposit are still being compiled and are expected to add further new coal resources to the deposit. Red Hill also reported that a detailed Scoping Study to assess the economic merits of this exceptional high quality bituminous coal deposit is in final stages of editing.
On June 19, 2006, Red Hill Energy Inc. announced that promising results have been obtained from field work on Red Hill Energy's and Mega Uranium's Mongolian uranium exploration program. A 6 week program on the Baganurat property, located in Dornogovi Province in southeastern Mongolia, was completed on May 31. Three areas on the property were explored in detail. The program included mapping, gamma-spectrometer surveys, and resistivity surveys using the vertical electric sounding (VES) method. A reconnaissance magnetic survey was also conducted on Block 3. Results are promising with a number of partly to completely overlapping uranium and thorium anomalies identified. A 4,500 metre rotary air blast (RAB) drilling program is planned to be conduced within the next few months. Approximately 100 holes will be drilled to depths ranging from about 30 m to 60 m (If necessary, the RAB drill can drill to about 150 metres depth).