Redhill shares jump as partner Mutiny extends Deflector gold deposit

Redhill Resources (CVE:RHR) saw its shares rally on Wednesday as Mutiny Gold, the operator and optionee of its wholly owned Gullewa copper-gold project, announced higher grade intersections to the north and south of existing resources at the Deflector gold deposit.

Mutiny, based in Perth, West Australia, conducted a reverse circulation drill campaign after having received a 70% operating interest in the 550 square kilometre Gullewa property last September. In exchange, Mutiny paid Redhill A$9million.

The Deflector gold deposit is the most significant on the Gullewa project, located 450 kilometres north of Perth.

Redhill, out of Vancouver, B.C., reported Mutiny's findings of 11.6 grams per tonne (g/t) of gold and 2.2% copper over 12 metres in hole 11-DRC-048; 42.1 g/t gold and 2.3% copper over three metres in hole 11-DRC-053; 12.9 g/t gold and 2.5% copper over three metres in hole 11-DRC-0547, and 17.0 g/t gold and 0.7% copper over four metres in hole 11-DRC-068, extending north of the current Deflector mineralization.

Meanwhile, south of existing resources, hole 11-DRC-074 returned 72.2 g/t gold and 1.2% copper over one metre.

Redhill's stock climbed 14.29%, trading at $0.08 per share as of 1:37 pm EDT on Wednesday.

Redhill said Mutiny will update the resource for the project, which now extends over 850 metres, at the end of the current reverse circulation and diamond drilling program.

"It is particularly encouraging that there are high grade intercepts being achieved in multiple locations," said Mutiny managing director, John Greeve.

"The results indicate likely extensions to the planned open pit and, also, importantly, confirm the down plunge continuity with depth of high grade shoots, these will be included in underground mine planning."

The Deflector target hosts resources measuring 1.7 million tonnes grading 4.18 g/t gold, 6.87 g/t silver and 1.03% copper in the measured and indicated category, and 1.6 million tonnes grading 6.5 g/t gold, 3.41 g/t silver and 0.48% copper in the inferred category.