Wednesday, December 9, 2009

REDBANK INCREASES COPPER RESOURCE AND GRADE

 

 

Highlights

 

·         Total Resource upgrade to 6.24Mt @ 1.5% copper

·         28% increase in total copper metal to 95,900 tonnes

·         Indicated Resource upgrade of 50% and increase in copper grades

·         Cost of discovery 4 cents per pound of total copper defined

·         New mineralised pipes possibly will support further resource growth with drilling 2010

 

 

 

High grade copper developer Redbank Copper (ASX: RCP) is pleased to announce a significant upgrade in Resources at its expanding Northern Territory project.

 

The new project Resource includes an increase in Resource tonnes, contained metal and copper grades, and provides further confidence for Redbank as it progresses toward planned production in 2010.

 

It takes the total Indicated and Inferred JORC Resource to 6.24Mt @ 1.5% Cu for 95,900 tonnes of contained metal. This includes an Indicated Resource of 2.76Mt tonnes at 1.6% Cu, and Inferred Resources of 3.48Mt tonnes at 1.5% Cu.

 

The new Resource has been generated from work completed by independent consultants SRK, following Redbank’s 2009 field program.

 

“Our focus in 2009 was to increase our Resource base, and we have been successful in delivering a significant boost to both our Resource tonnages and grade. We have achieved this at a cost of discovery of four cents per pound of copper,” Mr Morrin said.

 

“The work has shown increasing grade with depth trend for several tested pipes, and with new discoveries not included in the current Resource calculation it has confirmed our view of the Resource upside potential on our tenement base.”

 

“We head into 2010 with better definition and understanding of the geology, and an increased level of confidence in oxide and transitional mineralisation ahead of the planned SX-EW processing.  From additional acid-soluble copper testwork we have identified a small transitional zone of mineralization with different recovery characteristics at Redbank and Azurite, and have included this in the Resource statement for the first time.” Mr Morrin said.

 

Highlights of today’s Resource upgrade include a 28% increase in total copper metal to 95,900 tonnes, and a 50% increase in Indicated Resource to 2.76Mt. The average copper grade has been increased by 10% to 1.54% Cu, with a notable 30% increase in grade at the Sandy Flat deposit. It also includes an initial Inferred Resource calculation for the new Roman Nose discovery (1.29Mt @ 1.4% Cu).

 

During 2009, Redbank discovered a further five new mineralised pipes of which Camp Valley, San Manuel, Quartzite and GC2 have not yet been included in the new Resource calculations.

 

“We are confident that additional drilling currently planned for 2010 can deliver further positive Resource results,” Mr Morrin said.

 

In excess of 20,000m of RC and diamond drilling is planned for next year, and will include drilling of additional shallow oxide targets (less than 50m depth) at known prospects, and at more than 20 defined soil anomalies within ERL94.

 

The 2010 exploration programme will also test possible sulphide pipes to 150m depth below these shallow oxide targets, and the Company is planning a deeper drilling program to test high grade sulphide targets available to 300m in defined pipes.

 

The source of copper mineralisation will also be tested by deep drilling (some 500m vertical) through the Wollogorang formation and beyond.

 

We could well be sitting on a significant magmatic copper source colloquially called “The Big Pumpkin Theory” Mr Morrin said. 

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