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Redbank Mines reports outstanding copper grades
Wednesday , 28 May 2008


Emerging copper producer Redbank Mines Limited (ASX: RBM - "Redbank") has significantly boosted the resource potential at its flagship 100%-owned Redbank Copper Project in the Northern Territory, today unveiling outstanding final assay results from an in-fill drilling programme conducted as part of the Redbank Oxide Copper Project expansion definitive feasibility study (DFS).

Redbank announced today (Wednesday) that final laboratory results from the first 23 RC (Reverse Circulation) holes of the 29-hole RC and diamond drill programme returned exceptional copper intercepts including:

37m @ 8.4% Cu from 5m, including 10m @ 20.67% Cu from the Redbank Deposit;

35m @ 3.92% Cu from 6m, including 8m @ 12.8% Cu from the Redbank Deposit;

12m @ 4.42% Cu from 3m from the Azurite Deposit; and

13m @ 4.09% Cu from 8m, including 3m @ 9.55% Cu from the Azurite Deposit.

Commenting on the results, Redbank's Managing Director, Mr Gino Vitale, said the final assay results dramatically exceeded preliminary results from a field portable XRF machine, which were reported to the ASX on the 3rd and 7th of April 2008.

"These final laboratory results are significantly higher than was anticipated after our initial field analysis, and enhance the Redbank Copper Project's overall resource potential and confidence level in our resource base at the Redbank Deposit," Mr Vitale said.

Grades received at the nearby Azurite Deposit were also highly encouraging, and were again consistently higher than the average grade calculated for the existing Inferred Resource.

"With the Azurite oxide mineralisation located less than 3km from the Redbank Plant, these latest assay results provide further strong indication that this deposit will provide an easily accessible ore source for the proposed expansion of the oxide leach operations," Mr Vitale commented.

A Pre-feasibility Study completed in 2007 outlined an overall production profile from miming in the top 100 metres from surface alone of 31,500 tonnes of copper over 5 years, with average copper production of 6,300 tonnes per annum.

Results from six diamond holes completed in April are expected to be announced within the next week. Mr Vitale said that upon receipt of the remaining assay results, the Company's consultants will prepare a revised mineral resource estimate for the Redbank Copper Project.

"Given the spectacular high grades we have received from these latest assay results, we intend to move quickly to develop a revised resource estimate for the Redbank Project, together with detailed pit planning and mine scheduling as part of the Definitive Feasibility Study which is currently underway," Mr Vitale said.

Redbank acquired the Redbank Project in 2005 and has since moved quickly to prove up its resource potential. Within 12 months, the Company secured a life-of-mine off-take agreement with international commodities group, Swiss-based Glencore, and last year announced an upgraded resource within four oxide deposits and three sulphide deposits to 5.03 million tonnes at 1.4% Cu for 71,000 tonnes of contained copper metal, comprising 1.65 million tonnes at 1.7% Cu in the Indicated Resource category and 3.38 million tonnes at 1.3% Cu in the Inferred Resource category.