Good copper and the finances may be sorted out on Glencore shaddow. Could run this time as the usual sellers on announcements are missing this time.
4 December 2007
Exploration joint venture with Glencore on EL 24654
Redbank Mines Limited is pleased to announce that Glencore
International AG (“Glencore�) and Redbank Mines Limited (“Redbank�)
have entered into a joint venture agreement to explore an 805 sq km
Exploration License EL 24654 adjacent to the Redbank Copper Project in
the Northern Territory (Figure 1). The JV area is located 10km north east
of present operations and project area on ERL 94, in relation to which the
Company recently announced the results of a preliminary feasibility study
to establish a 6,000 tonnes per annum copper operation which will
continue to be owned 100% by the Company.
Figure 1 – EL 24654 and ERL 94
Geology
The Redbank Copper Project is located in the Macarthur Basin, a mid
Proterozoic epicratonic basin that also contains the world class Macarthur
River lead, zinc, silver deposit (Figure 2). Primary copper mineralisation
at Redbank consists largely of steeply dipping sub-volcanic breccia pipes
hosted by the Gold Creek Volcanics unit. Over 50 breccia pipes have
Redbank Mines Limited
ASX Announcement 4 December 2007
been recognized in the area but only some are mineralised. The largest cluster of significantly copper mineralised pipes
occurs within Redbank’s tenement holding, where resources of 5 million tonnes at 1.4% copper have been defined from 4
pipes located within ERL 94 and exploration is continuing on
a number of other pipes and pipe targets.
EL 24654 contains a large area of the Gold Creek Volcanics
(Figure 1). Previous exploration on the tenement has been
cursory due to difficult terrain. Consequently despite being
only 10km north east of the Redbank, the tenement is
essentially unexplored for base metals.
JV Exploration Programme
The extensive area of prospective but poorly explored Gold
Creek Volcanics within the JV area represents an exciting
frontier exploration opportunity for the discovery of new
copper resources in close proximity to the expanding
Redbank Copper Project. With the logistic benefit of the
Redbank Copper Operations 10km from the JV area it will be
possible to progress exploration can progress rapidly. Plans
are underway for a comprehensive airborne (helimag)
aeromagnetic survey of the JV area to define broad target
areas from which drilling targets will be defined using soil
geochemical surveys.
JV Terms
The principal terms of the JV are: Figure 2
• Glencore shall have the option to acquire a 50% interest in the JV area tenement EL24654 after sole funding AUD 1
million within 2 years.
• Expenditure within the first field season will be AUD 500,000.
• Glencore will spend the first AUD 500,000 before it is able to make an election to withdraw.
• Redbank will prepare programmes and budgets for consideration by the JV parties and will conduct the exploration
on behalf of the JV.
• Contributions subsequent to the first AUD 1 million of expenditure will be on an equity pro rata basis
• Glencore and related entities will have the exclusive right to the offtake of base metals derived from the JV area.
The Company looks forward to an active field exploration programme on the joint venture area and to working closely with
Glencore on this exciting near minesite source of additional mineralization for treatment at the Redbank Mine.
Yours faithfully
Redbank Mines Limited
Susan J Field
Executive Director
RBM
redbank mines limited
