12 December 2006 STAGE 2 OXIDE EXPANSION DRILLING COMMENCES Redbank Mines Limited is pleased to confirm the commencement of resource infill drilling at its 100% owned Redbank Copper Project (“Project”) in the Northern Territory. A multipurpose reverse circulation and diamond core drilling rig has been mobilised and is expected to commence a targeted 4,000 metre drilling programme later this week.
JORC classified Copper resources at the project currently stand at 4.2 million tonnes at a grade of 1.5% copper for 65,000 tonnes of contained copper in 3 deposits, Sandy Flat, The Bluff and Punchbowl, and high grade oxide stockpiles at the plant site (refer Resource Statement detailed in 2006 Annual Report at page 6 for detail). The Company has adopted a rapid and relatively low capital cost staged development strategy for the Project utilizing existing mine infrastructure with the objective of producing 6,000 to 8,000 tonnes per annum of contained copper production within two years.
Stage 1 - Oxide Stockpile Leaching Redbank recommissioned Stage 1 of the Project earlier this year. Stage 1 consists of leaching high grade stockpile material in vats and transitional ore in a heap leach to produce a high quality precipitated copper (copper cement) containing in excess of 80% copper.
Production continues to increase and is expected to produce 800 to 1,000 tonnes of contained copper per annum over an 18 month period.
RBM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
