Redzone Resources Ltd.

Projects

Lara Property

Lara Socos (Lara) Porphyry Copper Molybdenum Property, Peru

The Lara Property is located at moderate elevation, 40 km from the Pan American Highway and 400 km south of Lima on the southern coast of Peru. It consists of three mineral concessions, covering an area of 1,800 hectares (18 km2).

In January 2010, Redzone acquired the right to earn up to 75% interest in the property through an option agreement with Lara Exploration Ltd. (LRA: TSXV) via earning into Minas Dixon BVI ("Minas"), a wholly owned subsidiary of Lara. Under the agreement Redzone agreed to spend US $2.5 million in exploration on the property and issue 850,000 Redzone common shares to Lara over a three-year term to earn an initial 55% interest in the property.

. Lara retains a 1% net smelter royalty on all production from the property.

Work Completed to Date
Redzone funded two separate diamond drilling campaigns on the Lara Property totalling 6,566.3 m in 21 holes, thru December 2010 - January 2011 (1,998 m) and October 2011 - January 2012 (4,568.5 m). Geological mapping and sampling, geophysical surveys, on-going compilation of all data, permitting and community relations agreements have successfully been executed by the Minas team and independent contractors to date. Permits will require updating.

The Phase I drilling objectives (2010) were designed to:
1) investigate the enrichment zones;
2) add step-out drill holes to increase the existing estimated tonnage;
3) test the area for hypogene Cu-Mo mineralization.

Positive results from the Phase I drilling campaign led to a mapping and geophysical survey program in areas of interest. Results of the 35 km IP and 70 km total magnetics ground surveys completed in August 2011, generated 20 additional “Priority One” diamond drill targets at 300 m spacing.

The Phase II follow-up diamond drill program was planned with the objective to:
• test the overall size potential of the Lara Socos system;
• outline a resource of 350 Mt - 400 Mt of 0.3% CuEq.

The exploration programs completed to date on the Lara Property have successfully determined that the area of the original resource (18.6 Mt at 0.53% Cu with 0.2% Cu cut-off) is now 2,000 m long east and west and 500 m - 800 m wide north to south.

Additional Work – Potential Expansion of the Resource Base
It is proposed that diamond drilling of 3,000 m at approximately 100 m spacing could outline a higher grade core zone, and the diamond drilling of an additional 10,000 m at 300 m spacing could further expand the are of the resource.

Property Setting, Location and Access
The Lara Cu-Mo Property is located in southern coastal Peru approximately 400 km southeast from Lima. Access to the property is via the Pan American highway to the town of Palpa and then 32 km of gravel road heads northeast to the property along the valley of Rio Viscus. An 8 km all-terrain road has been constructed between Rio Viscus and the property. The town of Nazca, 45 km southeast from Palpa, has sufficient infrastructure and supplies to be used as a base of operations, and Palpa has labour and minor amenities. However, power for any mining operation would be sourced from the main power grid at Palpa and a new power line would have to be constructed. The nearest port lies 78 km south of Palpa at San Juan de Marcona.

Community Relations
The Lara concession directly affects three communities, Ocaña, Laramate, and Llauta. The property is accessed through the Saramarca village which are part of the Ocaña district lands.

On December 5, 2011 agreements were signed with representatives of the Laramate community that permits access to the land.  These agreements allow for the resource area to be drilled once the rainy season terminates at the end of April or early May.

Permitting 

The company has been on extreme cost cutting mode and has let the permits expire. As the Lara Property falls within the north east boundary of the Nazca Lines and Archaeological Reserve an archaeologist and assistant must be contracted prior to and during a drilling campaign in accordance with the Ministry of Culture laws.

Geology and  Mineralization
The Property is situated within the central portion of the Cretaceous to early Tertiary Coastal Batholith that extends at least 800 km and consists primarily of granodiorite and tonalite. The batholith intrudes meta-sedimentary rocks of the Jurassic-Cretaceous Yura Group. The youngest lithology belongs to the late Tertiary Nazca Group and consists of sub-aerial volcanic flows, agglomerates, breccias and tuffs. The occurrence of the porphyries within this belt is due to tectono-magmatic factors that have controlled the emplacement of these deposits during the Upper Cretaceous and Medium-Upper Paleocene ages. The most widespread rock on the property is the quartz diorite porphyry, which is the principal host of the Cu-Mo mineralization.

History and  Exploration

Total Metres Drilled on Lara Property, Peru

Drilling Period
RC
DD
Total
Metres
Holes
Metres
Holes
Metres
Holes
1997-2007
2,504
21
780
4
3,284
-
2010
 
 
1,998
11
1,998
-
2011
 
 
4,568.5
10
4,568.5
-
TOTALS
2,504
21
7,346.5
25
9,850.5
46

Potentially the greatest scope for improving the outlook the zone lies in the core of project where the current drill pattern leaves a large area untested (see Mineralized Foot Print Map below). Drilling of the Phase I and Phase II campaigns discovered higher chalcopyrite contents than those previously tested and the mineralization can now be consider as  “mixed or transitional” and new test work is necessary to confirm recoveries previously reported.

Phase 1 Diamond Drilling Intercepts

Drill Hole N°
From (m)
To (m)
Length (m)
Cu (%)
Mo (%)
CuEq
LA-10-28
33.4
90.20*
56.80
0.27
 
0.27
Including
38.85
43.85
5
0.56
 
0.56
LA-10-29
4
47.40
43.40
0.22
 
0.22
Including
35.50
39.25
3.75
0.41
 
0.41
LA-10-30
46
223*
177
0.28
0.013
0.36
Including
46
172
126
0.32
0.015
0.41
Including
46
76
30
0.69
0.015
0.78
LA-10-31
44
170
126
0.43
0.090
0.48
Including
44
74
30
0.77
0.011
0.86
LA-10-32
54
162
108
0.81
0.015
0.90
Including
58
98
40
1.39
0.012
1.46
LA-10-33
0
90.60*
90.60
0.33
 
0.33
Including
2
50
48
0.39
 
0.39
LA-10-34
52
90
38
0.61
 
0.61
Including
56
86
30
0.71
 
0.71
LA-10-35
30
248.10
218
0.57
0.042
0.81
Including
30
60
30
0.88
0.058
1.24
Including
206
234
28
0.74
0.017
0.84
LA-10-36
24
30
6
2.14
 
2.14
Including
26
28
2
5.88
 
5.88
and
36
130*
94
0.38
0.016
0.48
LA-10-37
48
362
314
0.21
0.012
0.28
Including
222
344
122
0.23
0.017
0.33
Including
280
344
64
0.25
0.021
0.38
LA-10-38
30
220
190
0.28
0.011
0.35
Including
118
178
60
0.33
0.016
0.43
* End holes

Phase II Diamond Drilling Intercepts

Drill Hole N°
From (m)
To (m)
Length (m)
Cu (%)
Mo (%)
CuEq
LA-39
170
220
50
0.1925
0.0288
0.36
 
274
430
156
0.2195
0.0110
0.28
LA-40
78
236
158
0.1976
0.0182
0.30
LA-42
170
246
76
0.1907
0.0035
0.21
 
294
376.7
82.7
0.2156
0.0062
0.25
LA-46
140
378
238
0.2872
0.0077
0.33

Copper equivalents represent (Cu-Eq%) the value for each metal multiplied by the conversion factor, summed and expressed in equivalent copper grades. These results are exploration results only and no allowance is made for metallurgical recoveries. The conversion factors used were:  CuEq (%) was calculated using US $2.80 per pound of copper and US $16 per pound of molybdenum. CuEq= copper % + (Mo% X 5.71428571).

Location of Lara Socos Copper Molybdenum Property, Peru.

Concession Map and Location of Lara and Socos Prospects.

Mineralized foot print, location of drill holes and results of 2010 and 2012 drilling.

Redzone Resources Ltd.