Stage 2 - Oxide Leach Expansion The Stage 2 Oxide Leach expansion will involve mining and leaching of oxide ore at The Bluff and Punchbowl deposits to produce 3,000 to 4,000 tonnes of contained copper per annum for at least 5 years. A Stage 2 feasibility study is planned to commence in early 2007 and a positive study outcome and necessary permitting approvals could see Stage 2 production begin mid to late 2007.
Stage 3 - Sulphide Expansion Stage 3 will involve mining and flotation concentration of sulphidic ores beneath the oxide resources to produce a further 3,000 to 4,000 tonnes of contained copper per annum. Progression to Stage 3 would require a further feasibility study and then the refurbishment of the existing flotation plant. With Stage 2 and Stage 3 of the Project in operation production could be 6,000 to 8,000 tonnes of contained copper per year.
At current copper prices this would represent an annual revenue of A$40M to A$54M.
Scope and Purpose of Drilling Programme The Stage 2 and Stage 3 expansion plans require further drilling to improve the definition of resources and provide samples for definitive metallurgical testing at The Bluff and Punchbowl deposits (ahead of completion of detailed mining plan), and metallurgy at Sandy Flat. A 3,500m reverse circulation (RC) and 575m diamond core (diamond) drilling program will be completed during December 2006 and January 2007 depending on the severity of northern Australia’s wet season conditions this year. The program objectives are:
(1) Completion of resource definition to enable development of a mining schedule of oxide and sulphide ores sufficient for at least 2 years production, and to provide a high degree of confidence in resources for a further 3+ years of operation.
(2) Provide a clearer definition of the oxidation profiles at The Bluff and Punchbowl and consequently the balance of oxide and sulphide ores.
(3) Provide fresh mineralisation samples for metallurgical test work on sulphide mineralisation at Sandy Flat and oxide and sulphide mineralisation at The Bluff and Punchbowl.
A broader scope for the Redbank Project The staged development plans for the Project are based on the existing drilled Mineral Resources. However the project area (Figure 1) and adjacent 1,500 km2 of exploration ground held by the Company present the opportunity for very focussed exploration for more deposits within reach of the Company’s existing and developing operational infrastructure at Redbank.
RBM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
