Redstone Resources : New Projects Identified at Redstone's West Musgrave Tenement

4 June 2014
Company Announcements Office
Australian Stock Exchange Limited
20 Bridge Street
SYDNEY NSW 2000
Electronic Lodgement

Additional Projects Identified at Redstone's West Musgrave T enement

Redstone Resources Limited (ASX: RDS) ("Redstone" or "the Company") is pleased to announce that it has identified five additional projects on its 100% owned tenement (E69/2450) in the West Musgrave region of Western Australia.
The projects identified, which are in addition to the Tollu Project, are:

 Atlas Project (prospective for IOCG & Mt Isa style‐copper sediment‐hosted deposits)

 Babylon Project (prospective for IOCG & Mt Isa style‐copper sediment‐host ed deposits)

 Pompeii Project (prospective for Mt Isa style‐copper sediment‐hosted depo sit)

 Pergamon Project (prospective for Mt Isa style‐copper sediment‐hosted de posit)

 Herculaneum Project (prospective for Mt Isa style‐copper sediment‐hosted deposit)

Commenting on the additional projects, Redstone's Chairman, Richard Homsany sta ted:
"We are very pleased that the outcome of the work completed in the Stage 1 E xploration Program that
resulted in a significant increase to the Conceptual Explor
tion Target at the Tollu Project, has also led to
the identification of five new key projects on Redstone's highly prospective W est Musgrave tenement, E69/2450.
"As the final deliverable from the Stage 1 Exploration Program, these additional projects give the board further confidence that Redstone's exploration on the tenement has be en targeted and cost
effective.
Most importantly our work clearly demonstrates that, in addition to the high copper grades we
have been reporting, there is the potential for the scale and volume necessary for sustainable commercial mining operations on Redstone's tenement. This makes the projects attractive f or financing exploration and development activities."

Redstone Resources Limited ABN 42 090 169 154

60 Havelock Street, West Perth WA 6005 Tel: [phone] Fax: [phone]

www.redstone.com.au

Email : [e-mail]

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Tenement E69/2450 Prospectivity

BM Geological Services were engaged to
determine
project areas within t he tenement E69/2450
considered to be prospective for base and precious metals.
Five additional project s have been identified in
E69/2450 (Figure 1 and Figure 2) as key sites to conduct mineral exploration. These Projects are:

 Atlas Project (prospective for IOCG & Mt Isa style‐copper sediment‐hosted deposits).

 Babylon Project (prospective for IOCG & Mt Isa style‐copper sediment‐host ed deposits).

 Pompeii Project (prospective for Mt Isa style‐copper sediment‐hosted depo sit).

 Pergamon Project (prospective for Mt Isa style‐copper sediment‐hosted de posit).

 Herculaneum Project (prospective for Mt Isa style‐copper sediment‐hosted deposit).

The tenement is located immediately south of a deep‐seated crustal suture and hosts Proterozoic‐aged volcanic, sedimentary and intrusive rocks that were formed in a failed intra‐cr atonic rift setting. The
tenement
is prospective for Iron Oxide Copper‐Gold (IOCG) mineral systems a nd Mt Isa style‐copper
sediment‐hosted mineral systems.
This has been determined on the basis of eva luating the geodynamic
setting, stratigraphic architecture, fluid reservoirs, flow drivers, fluid pathways an d mechanisms for metal deposition.

Figure 1 - West Musgrave ‐ Location Map

Figure 2 - West Musgr ave - Project Map

Redstone Resources Limited ABN 42 090 169 154

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A geophysical interpretation of the tenement was completed and has been integra ted with lithological data sets to produce a new geological map. This map utilises observations taken from the Redstone Resources
data room
and observations recorded by the Geological Survey
of Western
Australia (GSWA). It
incorporates new concepts published by the GSWA in 2011 and 2010 regardin g the western Musgrave
Province and more specifically the Blackstone sub‐basin, respectively. rationale published by Geoscience Australia in 2013 that is focused on such as this.
It also inc orporates an exploration iscovering I OCG deposits in districts
Importantly at least two transform structures have been identified in E69/2450. O ne is the Tollu Fault Zone with the second fault zone located in the western portion of the tenement. Both p robably have time‐space relationships with the deep‐seated crustal suture located immediately north of t he tenement (Figure 4). The presence of both features greatly enhance their prospectivity for hydrother mal mineralisation of an IOCG or Mt Isa style‐copper variety. Two subordinate faults have been interpreted in the tenement. These do not appear to have a direct time‐space relationship with the deep‐seated crustal suture but may have an indirect relationship and thus rema n prospective for significant hydrothermal mine ralisation.
Tenement E69/2450 is comprised of rocks of the Blackstone sub‐basin. This basi n formed over a period
>100 Ma
and represents a failed intra‐continental rift
(termed the Ngaanya tjarra Rift).
The basin
architecture is suitable
for supplying a substantial quantity of copper and sto ring this in an oxidised
reservoir at the base of the sequence. Sources for S and/or Cl, relevant as ligands mobilising the metals, is
debatable.
It is uncertain what the trap was for the copper mineralisation at th e Tollu Project. Volcanic
siltstones juxtaposed against pebble‐conglomerates in conjunction with antiform al stratigraphy may be suitable traps.

Figure 3 ‐ District scale structural interpretation illustrating the Tollu Fault's relationship with the T juni Purlka Tectonic Zone

(After Smalley 2014)

Redstone Resources Limited ABN 42 090 169 154

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Atlas Project

The Atlas Project lies to the immediate north of the Tollu Project and is proximal to the Tollu Fault Zone

(Figure 4).

Most of the project area appears to be under a thin Tertiary under cove r. Importantly, much of
the architecture of Tollu is repeated in Atlas. In addition is the inclusion of interm ediate volcanic rocks of the Hogarth Formation and the intrusion of a granite (Figure 5). In combination w ith the proximity of the Tollu Fault Zone, and expanse of Tertiary cover, this Project is prospective for a b lind Mt Isa style‐copper sediment‐hosted deposit.

Figure 4 - Atlas Project -Location Map

The Atlas project is also prospective for the IOCG mineralisation. In the northern portion of the Project, a
felsic intrusion is positioned at the margin
to the Tollu
Fault Zone. Immedi ately north
of this is a
magnetised unit with a strike of 1200 metres and width of 500m (Figure 6). The ro ck type is interpreted to
be a porphyritic rhyolite. As a magnetised
feature it
could represent a port ion of stratigraphy not
demagnetised by the Tollu Fault Zone, or the footprint of a hydrothermal cell th at caused magnetisation consistent with an IOCG analogy. Adjacent to this location, within the damaged an d demagnetised domain of the Tollu Fault Zone is a rock specimen P709660. This specimen was studied by petrographic analysis by Teale and Associates (2006) and was observed to be a porphyritic rhyolite that has been sulphidised. It
contained pyrite, chalcopyrite, covellite, magnetite and haematite as accessory
minerals.
Abundant K‐
feldspar and biotite was present but it is unclear from the description if these wer e primary or a product of metasomatism. The observation of pyrite, chalcopyrite, covellite, magnetite and h aematite favour an IOCG deposit model.

Redstone Resources Limited ABN 42 090 169 154

60 Havelock Street, West Perth WA 6005 Tel: [phone] Fax: [phone]

www.redstone.com.au

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Figure 5. The location of the six Projects situated within E69/2450 that have been considered prospe ctive for metal endowment.

The main mineral system targeted is Mt Isa style‐copper sediment‐hosted mineral system. IO CG mineralisation is also considered to be plausible. The tenement outline is in brown.

Figure 6. The spatial proximity of the sulphidised rhyolite as determined from petrographic thin sec tion (2006), a magnetic high, a felsic intrusive and the Tollu Fault Zone.

Redstone Resources Limited ABN 42 090 169 154

60 Havelock Street, West Perth WA 6005 Tel: [phone] Fax: [phone]

www.redstone.com.au

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Babylon Project

The Babylon Project is located east of the Tollu fault zone (Figure 7).
At this lo cation there is a distinct
change in stratigraphy across the fault, both strike‐slip and dip‐slip. The dip slip movement is inferred by the significant thickness change of the porphyritic rhyolite unit (P_‐TLs‐frp). This in crease in thickness may also be due to post‐faulting gentle folding (possible with north‐east striking fold axi s). Ultimately, there is a lot unresolved about the stratigraphy. This Project is prospective for both IOCG and Mt Isa style‐copper sediment‐hosted deposits.

Figure 7- Babylon Project -Location Map

Another feature which is suggestive of an IOCG system is a set of complementar y geophysical anomalies

(Figure 8).

A north‐south striking magnetic high is observed at 440,500m E; 7,112, 000m N. Encompassing
this is K‐Th‐U radiometric anomalies. The K‐channel anomaly is distinct. It is possi ble this reflects changing stratigraphy from rhyolite‐magnetised basalt/mafic sill/rhyolite and the orientatio n is due to deformation. However, if this occurs then the deformation is distinctly different to the su rrounding region and is probably caused by a late antiformal fold. An alternative theory for this geop hysical feature is that it represents a hydrothermal alteration footprint. Interestingly, this footprint is vi sible from google earth. Recent mapping could not detect any overland flow (rain water run‐off) at this lo cation suggesting the K‐ Channel is detecting subcrop or weathering product of Proterozoic sequence. Cop per has been observed in subcropping quartz at 440,102 mE, 7,111,594 mN.

Redstone Resources Limited ABN 42 090 169 154

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Figure 8. Illustrated in this image is the magnetics (1dv) offset along strike by the Tollu Fault Zone. This indication fault bends

and corresponding dilation zones within the inferred transform structure. The Stratigraphy (dashed lines), normally east‐west, bends to north‐south in an irregular nature at the Babylon Project. Antiforms have been interpreted . Also a magnetic zone (blue ellipse) is identify within the corresponding K‐channel and U‐channel anomalies shown. A bull‐ey e magnetic anomaly is also identified (green c rcle).

Redstone Resources Limited ABN 42 090 169 154

60 Havelock Street, West Perth WA 6005 Tel: [phone] Fax: [phone]

www.redstone.com.au

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Herculaneum Project

The Herculaneum Project is located west of the Tollu Project (Figure 9). The key attributes that define its prospectivity are the inferred structure (Fault Zone F) (Figure 3), and what is b elieved to be the same rhyolite stratigraphy that hosts the Tollu copper mineralisation. The geology has been interpreted from GSWA mapping (Figure 10). This deposit is prospective for Mt Isa style‐copper sedi ment‐hosted system.

Figure 9 - Herculaneum Project -Locati n Map

Figure 10. The geological map for the Herculaneum Project representing the Fault Zon e F and the stratigraphy believed to be the lateral equivalent to that hosting the Tollu copper min eralisation.

Redstone Resources Limited ABN 42 090 169 154

60 Havelock Street, West Perth WA 6005 Tel: [phone] Fax: [phone]

www.redstone.com.au

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Pergamon Project

The Pergamon Project is located on the north‐western corner of E69/2450 (Figure 11). The key attributes that define its prospectivity are the inferred structure (Fault Zone E) (Figure 3), an d what is believed to be
the same
rhyolite stratigraphy that hosts the Tollu copper mineralisation.
The geology has been
interpreted from GSWA mapping (Figure 12). hosted system.
This deposit is prospective for Mt‐Is a copper style sediment‐

Figure 11 - Pergamon Project -Location Map

Figure 12. The geological map for the Pergamon Project representing the Fault Zone E and the stratigraphy believed to

be the lateral equivalent to that hosting the Tollu copper mineralisatio n.

Redstone Resources Limited ABN 42 090 169 154

60 Havelock Street, West Perth WA 6005 Tel: [phone] Fax: [phone]

www.redstone.com.au

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Pompeii Project

The Pompeii Project is located on the north‐western corner of E69/2450 (Figure 13). The key attributes that define its prospectivity are the inferred transform structure (Fault Zone C) (F igure 3), an interpreted antiform and spatial proximity to a felsic intrusive. The geology has been interpret ed from GSWA mapping (Figure 14). It includes two key units, a pebbly conglomerate (P_‐TLh‐frsi) that enables substantial fluid
flow, and a volcanic siltstone (P_‐TLh‐frn) which may act as a redox trap. A
distinct black feature is
observed overlying the southern limb of this anticline, and to a lesser extent in the northern limb. This deposit is prospective for Mt Isa style‐copper sediment‐hosted.

Figure 13 - Pompeii Project -Location Map

Figure 14. The geological map for the Pompeii Project representing the Fault Zone C and th e antiform in close proximity to an intrusive felsic unit.

Redstone Resources Limited ABN 42 090 169 154

60 Havelock Street, West Perth WA 6005 Tel: [phone] Fax: [phone]

www.redstone.com.au

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Competent Persons Statement

The information in this announcement that
relates to Exploration Targets and
exploration results was
authorised
by Mr Darryl Mapleson, a Principal Geologist and a full time empl oyee of BM Geological
Services, who are engaged as consultant geologists to Redstone Resources Limi ted. Mr Mapleson is a
Fellow of the Australian Institute of Mining and Metallurgy. Mr Mapleson has suffic ient experience which is
relevant to the style of mineralisation and type of deposit under consideration
to act as a competent
person as defined in the 2012 edition of the "Australasian Code for reporting of Ex ploration results, Mineral Resources and Ore Reserves". Mr Mapleson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward‐Looking Statements

This document may include forward‐looking statements. Forward‐looking stateme nts include, but are not limited to statements concerning Redstone Resources Limited's (Redstone) plann ed exploration program and other statements that are not historical facts. When used in this document, th e words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should", and similar e xpressions are forward‐ looking statements. Although Redstone believes that its expectations reflected i n these forward‐looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward‐looking statements.

Redstone Resources Limited ABN 42 090 169 154

60 Havelock Street, West Perth WA 6005 Tel: [phone] Fax: [phone]

www.redstone.com.au

Email: [e-mail]

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ABOUT REDSTONE RESOURCES

Redstone
Resources Ltd (ASX: RDS) is a Perth‐based company focu ed on hig hly prospective copper
exploration properties in the West Musgrave region of Western Australia.
Redstone's 100% owned Tollu Project is located in the south‐east portion of the W est Musgrave region of Western Australia. The Tollu Project consists of a large swarm of hydrothermal cop per rich quartz veins in a mineralised system covering an area at least 5km2. Malachite‐rich gossans assoc iated with quartz veins are exposed at surface and form part of a dilatational system between two majo r structures within the Tollu Fault Zone.
The Tollu
Project has
a Conceptual Exploration Target
estimated to be 22 to
33 million
tonnes of
mineralisation at a conceptual grade range of 0.9 ‐ 1.3% Cu, containing 198,000 to 445,000 tonnes of
copper. This includes 4.3 to 6.4 million tonnes of mineralisation at
conceptua l grade range of 1.6 -
2.4%, containing 69,000 to 154,000 tonnes of Copper on the Chatsworth Prospect.

For further information please contact:
Richard Homsany
Chairman
Redstone Resources Limited
[phone] [e-mail]
Miranda Conti Company Secretary Redstone Resources Limited
[phone] [e-mail]

Redstone Resources Limited ABN 42 090 169 154

60 Havelock Street, West Perth WA 6005 Tel: [phone] Fax: [phone]

www.redstone.com.au

Email : [e-mail]