This is what they wrote:
Redhill Clarifies and Restates Disclosure on PropertiesPress Release Source: Redhill Resources Corp. On Monday April 18, 2011, 6:06 pmVANCOUVER, BRITISH COLUMBIA--(Marketwire - April 18, 2011) - Redhill Resources Corp. (TSX VENTURE:RHR - News) -
"As a result of a review by the British Columbia Securities Commission, we are issuing the following news release to clarify our disclosure."
On its website, investor relations material, and corporate presentation, Redhill discloses a mineral resource for the Gullewa Gold Project that
On its website, investor relations material, corporate presentation, news releases, and MD&A, the Company discloses:
On its website, investor relations material, corporate presentation, news releases, and MD&A, the Company fails to identify and disclose the relationship to the Company of the qualified person who approved, prepared or supervised the preparation of the technical information it is disclosing, contrary to section 3.1.
On the company's website, redhill-resources.com under the Guellewa project, the Company's NI 43-101 was incompletely reported as:
"Redhill purchased the Gullewa Gold Mine in 2008, and completed a NI 43-101 Technical Report on the project for a Measured and Indicated Resource centered at the main open pit area at Deflector of 1.7 million tonnes at 6.74 g/t gold equivalent for 369,000 ounces, and an Inferred Resource of 1.6 million tonnes at 7.71 g/t gold equivalent for 400,000 ounces. Other areas have an Inferred Resource of 72,700 ounces of gold."
This is non compliant to section 2.2(d) and 3.4(b), which states that the grade of each contained metal used to obtain the gold equivalent is to be included in the mineral resource reported.
The company website and future presentations will now indicate the following:
ed the Gullewa Gold Mine in 2008, and completed a NI 43-101 Technical Report on the project reporting Measured and Indicated Resource centered at the main open pit area at Deflector of 1.7 million tonnes at 4.18 g/t gold, 6.87 g/t silver and 1.03 percent copper for a gold equivalent grade of 6.75 g/t gold equivalent. Also reported in 2008 are Inferred Resource of 1.6 million tonnes at 6.50 g/t gold, 3.41 g/t silver and 0.48 percent copper with a gold equivalent grade of 7.71 g/t gold equivalent.
The following resource estimation was filed on June 13, 2008 in a report titled; "Technical Report Gullewa Gold-Copper Project, Yalgoo Mineral Field, South Murchison District, Western Australia", by Stephen J. Godden, and was an independent Qualified Person as defined under NI 43-101. The resource estimation section, dated August 2006, was prepared by J. Graindorge, who at the time was the Senior Resource Geologist for Snowden Resources, and was an independent Qualified Person as defined under NI 43-101. The resources were prepared according to JORC 2004, and as such they may be reasonably be construed to be NI 43-101 compliant, as defined by CIMM 2005 (i.e the codes that applied at the time the Mineral Resources were compiled).
As such any resource numbers that Redhill has quoted in the above table cannot be relied on as they were not prepared for Redhill and therefore are not considered 43-101 compliant.
In March 2011, the Company prepared an investor presentation titled "Corporate Presentation", which was also posted on the company's website. The presentation and the company's website, news release, and management discussion and analysis contained the following information on page 7, Gullewa Gold Mine-Western Australia:
"The project area contains substantial existing resources of 650,000 oz gold (Au) and 25,000 tonnes of copper (Cu) 43-101".
This is non compliant to section 2.2(b) which requires each category of mineral resource and reserve to be stated separately and section 2.2(c) which does not allow inferred mineral resources to be added to other categories of mineral resources.
Future presentations will now indicate the following:
Redhill purchased the Gullewa Gold Mine in 2008, and completed a NI 43-101 Technical Report on the project reporting Measured and Indicated Resource centered at the main open pit area at Deflector of 1.7 million tonnes at 4.18 g/t gold, 6.87 g/t silver and 1.03 percent copper for a gold equivalent grade of 6.75 g/t gold equivalent. Also reported in 2008 are Inferred Resource of 1.6 million tonnes at 6.50 g/t gold, 3.41 g/t silver and 0.48 percent copper with a gold equivalent grade of 7.71 g/t gold equivalent.
The Company's Management Discussion and Analysis ("MD & A"), the most recent being January 31, 2011 for the third quarter ended November 30, 2010, does indicate the above correct 2006 Mineral Resource Estimate, however Table 2-Other Mineral Resources, Gullewa Project Area has been retracted.
The Company's Press Release dated, November 9, 2010, titled "Gullewa Drill Program Complete" indicated the above 2006 Mineral Resource Estimate, but incorrectly combined Measured and Indicated Resources, with Inferred Category, which is non-compliant with 43-101, section 2.2 (c), and should not be referred to.
The Company's Press Releases dated January 18, 2011, titled "Deflector Deposit Resource Upgrade and Recommencement of Drilling at Defector", and February 2, 2011, titled "Extension Drilling Underway at Gullewa", refer to Measured, Indicated and Inferred Resources announced by the Company's partner, Mutiny Gold Ltd. While these resources are believed to be compliant with JOREC, the Company has not completed a review of the data or resources with respect to compliance with 43-101, and should not be relied upon.
Content of the presentation, MD &A and the website failed to clearly indicate that the disclosure was approved by a qualified person as defined by NI 43-101. Going forward, all website content and materials distributed to the public will be under the supervision of Brent Butler, B.Sc. In Geology; Member SEG, AusIMM whom is the Company's Qualified Person as defined under NI 43-101.
The Company retracts the prior investor presentation, and will provide an updated and revised new presentation, to replace the prior presentation, which will be available on the company's website.
In addition to the removal of the retracted language, the following updated cautionary language, among others, has been added to the home page of the company's website.
Cautionary note regarding mineral resources and mineral reserves:
Readers should refer to the Company's current technical reports and other continuous disclosure documents filed by the company available on SEDAR for further information the mineral resource estimates of the company's projects, which are subject to the qualifications and notes set forth therein, as well as for additional information relating to the company more generally. Mineral resources which are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources have insufficient confidence to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability suitable for public disclosure. Neither the company nor readers can assume that all or any part of an inferred mineral resource will be upgraded to indicated or measured mineral resources. Most projects at the inferred mineral resource stage do not ever achieve successful commercial production. Each stage of a project is contingent on the positive results of the previous stage, and there is a significant risk that the results may not support or justify moving to the next stage.
In those instances where the company has retracted, revised, clarified or updated previous disclosure, the company advises readers not to rely on such statements as they may continue to be found in the public domain.
This news release has been reviewed by Brent Butler, a Qualified Person as that term is defined in NI 43-101.
REDHILL RESOURCES CORP.
Graham Harris, Chairman
This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contact:Investor Relations Redhill Resources Corp. 604-662-8184 or Toll Free: 1-877-662-8184 604-602-1606 (FAX) email@example.com www.redhill-resources.com
And this is what it means: