The step out holes they are drilling can be for only one logical reason IMHO for PP and further advancement of drilling.  I suspect the logical reason is to take the current underground production estimates from 25,000 t per day towards somewhere like 35,000t - 55,000t per day range which would be bea significant underground daily production increase. Curious about the significance of the research paper filed at Univ. of British Columbia Mining & Metallurgy Dept. re a significant study by world expert(s) re associated minerals with specific copper systems. Reasons listed further below in part IIfor holding and buying more RDK are intact. Could that be the sriver for new drilling? Do your own DD work starting with below. Last couple of news releases and below Part II discussion as well as Research Rpt Brief below in part III. Whose who of stock buyers-sellers in Part IV shows accumulation by confident parties somewhere.

I/ Good news on Macro Cu front contines as well
  • Cu imports by China, reversed the fall in August and jumped 18 % in September, as importers boosted orders ahead of a seasonal pickup. Imports of anode, refined Cu, alloy and semi-finished Cu products reached 457,847 t in September, the highest since March 2012 and up 16 % from a year ago. Total imports of Cu in Q313, rose 21.4 % over Q213 to 1.256 M t and in 9M13 were down 10% to 3,258,283 t.
    • China imported a record 74.58 M t of iron ore in September--up 8 % from August and an increase of 15 % on an annual basis, customs data showed. Imports were driven by robust steel production, with daily runs above 2.14 M t in the first 20 days of September, versus August's daily figure of 2.13 M t.
  Source: Visage
II/  Trading volumes and Reasons for Cu Investors to consider RDK
As you'll see below and further below in Part IV specifying who buyers and sellers are, we've watched14,437,532 shs trade hands since mid April and potentialy 12 M shs in a PP  re new buying includin ginsiders for totalof 26 M whic is a lot. And CIBC is still in the background as RDK's Corp Advisor.

Oct to Date  volume    725,306
Sep monthly volume 4,056,080
Aug monthly volume 3,551,728
July monthly volume 2,059,733
June monthy volume 1,238,693
May monthly volume 1,615,383
April monthly volume 2,403,754

Why maintain patience on RDK and yes dollar cost average on higher priced earlier purchases.

-A little homework on Copper Alley USA and  you just might see that it is North America's Cu hot-bead hence continued optimism of stock buyers from $0.50 to present price levels.
-Why maintain patience for RDK to unfold? For starters there's location, infrastructure. their high profile industry personnel vs. other advanced explorers or junior producers. RDK has engineers, mine planners, mine operators, geologists, geo-seismic personnel, assorted specialists  involved on their Executive, Advisory Committee, & Board of Directors.
Arizona offers geo political benefits, a favorable steady tax regime, detailed infrastructure benefits (road, power, water, rail, milling, smelters, close by towns, close by mines, operating and mothballed with lots of equipment new and old just hours away.) 

There is a mobile skilled work force chomping at the bit for Copper Creek to get up and running backed by AZ's mining friendly state govt who know what side their bread is to be buttered on. 

Having the overall majority blessing of local municipal, county and state politicians  who recognize the importance of higher paying skilled jobs and a product good for the state's GDP is a rarity in this "NIMBY" day and age.
Arizona is a  very attractive place for management, employees and their families to work in a stable, safe environment. Let's see Arizona over Mongolia, Indonesia, DRC Congo, Ecuador, Peru, Chile,  Argentina , Khuzestan, Kyrgyzstan, Madagascar, Rwanda, Pakistan, Zambia, for  security, schooling, water, food, accommodation, internet and satellite access for the workers and families, Indeed a stable socio-economic-political environment to raise their families in while working on a project....just take a look at how various 'exotic locations" have been working out of late for new or recent projects yet to come online, recently brought online, let alone offline be it by Barrick, Newmont, BHP, Glencore, RIO TINTO whomever.

Redhawk Resources, Inc. (TSX: RDK) <> (OTCQX: RHWKF)
Current Price: CAD $0.29/ U.S. $0.28

Redhawk Resources, Inc. ("RDK" or "the Company") is a Canadian-based resource exploration and development company with a primary focus on the accelerated development of its advanced stage Copper Creek copper-molybdenum project in San Manuel, Arizona. With over 675K feet of drilling completed to date, the large high grade Copper/Moly Porphyry style system now contains over 3.5B lbs. of Copper, 66M lbs. of Moly and 11M oz. of Silver. Located in the prolific Southwest Porphyry Copper Belt, Redhawk has emerged as one of the top development companies in North America. With the exceptional experience and strength of Redhawk's management team, combined with the developed infrastructure, Redhawk may be positioned to become a mid-tier copper producer.
RDK announced the results of a Preliminary Economic Assessment (PEA) June 25, 2013 using independent consultants Milne and Associates, Call & Nicholas, Inc., Golder Associates, SGS METCON/ KD Engineering, Westland Resources, and Independent Mining Consultants (IMC).
PEA Highlights:
         Pre-tax NPV of US$488 million at 7.5% Discount Rateand US$794 million at 5% Discount      Rate and 16% IRR at US$3.30 copper over 18 year life of mine
         Average total operating cash cost of US$1.74 per pound copper net of byproduct credits
·         Average annual production of 121.7 million pounds of salable copper (55,200 metric tons)
·         Production rate of 25,000 short tons per day mining and milling
·         Milling produces 30% copper concentrate and a separate molybdenum concentrate
·         92% copper recovery in flotation mill

The PEA uses a mining and milling rate of 25,000 short tons per day (tpd). Mining is by room and pillar/post pillar with backfilling method in the porphyry deposit and results in approximately 75% recovery of the resource. Mining of the near surface breccia deposits is by cut and fill or blasthole stoping and fill with very high recovery of the resource. A small open pit may be used to mine the Old Reliable breccia, but is not considered in the current PEA. Milling is by standard flotation and produces a copper concentrate and a molybdenum concentrate with 92% copper recovery and 30% copper concentrate grades. All dollar figures are in $US. The resource used in the PEA is the NI 43-101 compliant resource reported December 20, 2012.

R. Joe Sandberg, President and CEO of Redhawk, commented; "The results of the 2013 PEA confirm the economic potential of the Copper Creek Project and a successful growth in project scale from a 10,000 tpd operation in the 2009-2010 NI 43-101 Scoping Study to the 25,000 tpd operation in the current NI 43-101 PEA. Management believes there are several aspects of the PEA that can be further optimized based upon additional work. In addition, the drilling in 2010-2012 and the ongoing geologic work in the district suggests the potential for significant expansion of the existing resources and identification of several very large untested porphyry targets on the Redhawk controlled lands. The Company will announce these resource expansion plans and further development plans in separate news releases."

The Company has two wholly-owned subsidiaries, Redhawk Copper Inc. and Redhawk Resources (USA), Inc.  Redhawk Copper Inc. holds title to the Copper Creek Project and Redhawk Resources (USA), Inc. holds no assets. RDK's Copper Creek Project consists of approximately thirty-five square miles of 100% controlled, contiguous patented and unpatented mining claims, state prospecting permits and ASLD Mineral Exploration Permits located approximately 70 miles northeast of Tucson, Arizona and 15 miles east of San Manuel. All of the mineral titles are held by the Company's wholly-owned subsidiary, Redhawk Copper, Inc. ("Redhawk Copper").

Arizona based Copper Creek has been intermittently explored since the early 1880's and small-scale production occurred on site from 1913-1919. The property has been held and explored by a handful of companies since its discovery, including Calumet & Arizona Mining Company, Phelps Dodge, Arizona Molybdenum, Bear Creek Mining, Newmont Exploration Ltd, Occidental Minerals, and Magma. Redhawk purchased the property out of receivership in 2005 and began collecting and aggregating all available historical data and drill core at the property. The Company also worked to consolidate property holdings in the district to build its initial seven square mile project zone. Over the past two years, Redhawk has purchased more land rights to an additional 28 sq. miles to the northwest and southwest of the main zone. From 2007-2010, the Company engaged in extensive exploration drilling through the property to define a select group of breccia and porphyry structures.

To date, over 675,000 feet of drilling has been completed on the property. Results of new and historic drilling were the basis of the 2010 resource and scoping study. After the initial study, Redhawk continued to drill out the property and has since identified additional resources, particularly in the porphyry zones. The Copper Creek Project hosts multiple breccia and porphyry copper deposits. Both deposit types include historical copper resources.  Molybdenum is present in varying amounts in both the breccia and porphyry copper deposits and is expected to provide substantial credits to both deposit types.  Gold and silver are also present in both deposit types and are expected to provide credits during mining.
On July 9th, the Company announced that Jack H. L. Miller has agreed to join the Company's Technical Advisory Board. Mr. Miller holds a B.A.Sc. and a M.A.Sc. in geological engineering and is a registered professional engineer. Mr. Miller has held various site operating and head office leadership roles in multiple base and precious metal operating companies. In these roles, Mr. Miller has been responsible for the entire mine development cycle; starting from exploration, through development and finally to operations. His most recent role, prior to retirement in 2010, was Chief Operating Officer for Quadra FNX Mining Ltd.

For additional information on Redhawk Resources, Inc. please download our FREE initiation of coverage report dated June 5, 2013; the report is available on our website: <> . 


ouse Positions for C:RDK from 20130415 to 20131015
House Bought $Val Ave Sold $Val Ave Net $Net
7 TD Sec 5,738,370 1,609,917 0.281 1,667,035 524,519 0.315 4,071,335 -1,085,398
59 PI 1,832,750 572,585 0.312 257,750 65,665 0.255 1,575,000 -506,920
85 Scotia 1,730,200 499,886 0.289 1,329,542 436,604 0.328 400,658 -63,282
68 Leede 238,200 73,596 0.309 23,500 7,167 0.305 214,700 -66,429
62 Haywood 596,000 177,855 0.298 423,911 128,623 0.303 172,089 -49,232
80 National Bank 202,850 73,961 0.365 43,650 15,813 0.362 159,200 -58,148
79 CIBC 208,593 68,215 0.327 126,692 35,671 0.282 81,901 -32,544
124 Questrade 357,656 108,229 0.303 288,456 95,305 0.33 69,200 -12,924
81 HSBC 70,000 22,882 0.327 10,000 2,895 0.29 60,000 -19,987
22 Fidelity 30,000 12,571 0.419 0   30,000 -12,571
25 Odlum 30,000 10,200 0.34 0   30,000 -10,200
65 Goldman 92,500 38,737 0.419 64,000 20,110 0.314 28,500 -18,627
58 Qtrade 25,300 7,084 0.28 0   25,300 -7,084
31 D&D 25,000 7,569 0.303 0   25,000 -7,569
88 Credential 14,000 4,825 0.345 3,230 1,050 0.325 10,770 -3,775
89 Raymond James 20,000 5,200 0.26 10,500 3,360 0.32 9,500 -1,840
39 Merrill Lynch 27,500 7,675 0.279 18,500 5,232 0.283 9,000 -2,443
82 Stifel Nicholas 14,321 4,943 0.345 10,767 3,492 0.324 3,554 -1,451
19 Desjardins 12,000 3,190 0.266 8,500 2,730 0.321 3,500 -460
57 Interactive 250 102 0.408 0   250 -102
95 Wolverton 0   300 114 0.38 -300 114
72 Credit Suisse 0   499 124 0.248 -499 124
44 Jones Gable 0   3,500 945 0.27 -3,500 945
3 AltaCorp 1,532 404 0.264 5,395 1,534 0.284 -3,863 1,130
143 Pershing 0   4,000 1,140 0.285 -4,000 1,140
28 BBS 20,500 6,032 0.294 26,500 7,086 0.267 -6,000 1,054
54 Global 0   6,500 2,145 0.33 -6,500 2,145
13 Instinet 28,000 9,604 0.343 35,500 11,397 0.321 -7,500 1,793
27 Dundee 0   10,000 3,200 0.32 -10,000 3,200
99 Jitney 9,000 2,612 0.29 28,000 8,664 0.309 -19,000 6,052
14 ITG 102,250 37,272 0.365 153,882 45,072 0.293 -51,632 7,800
46 Macquarie 0   73,000 23,262 0.319 -73,000 23,262
15 UBS 0   199,000 58,951 0.296 -199,000 58,951
33 Canaccord 1,090,970 366,990 0.336 1,408,476 458,026 0.325 -317,506 91,036
9 BMO Nesbitt 126,540 42,984 0.34 513,642 163,336 0.318 -387,102 120,352
2 RBC 825,250 241,469 0.293 1,388,305 410,072 0.295 -563,055 168,603
1 Anonymous 968,000 302,538 0.313 6,295,000 1,775,823 0.282 -5,327,000 1,473,285
TOTAL 14,437,532 4,319,127 0.299 14,437,532 4,319,127 0.299 0 0

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