Redbank Copper Project 22 October 2010

Abstract

The Redbank Copper Project is located in the Northern Territory McArthur River Basin, some 30km from the Queensland border and 70km south of the Gulf of Carpentaria. The tenements comprise ERL 94 which includes MLN 631 to 636 inclusive and MLN 1108 as well as EL 24654. Seven exploration licenses have been granted in the McArthur South region. The seven tenements comprise EL 26758, EL 26778, EL 26779, EL 26780, EL 26781, EL 26965, EL 26999 which total 2,000km(2). Redbank holds a substantial ground position (with more than 4,000km(2) granted or under application) including the centre of the Redbank Mineral Field which hosts significant economic copper mineralisation and is highly prospective for copper, cobalt, phosphate, manganese and uranium. Redbank Copper is pleased to announce a significant upgrade in Resources at its expanding Northern Territory project. It takes the total Indicated and Inferred JORC Resources 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. In September 2009, a comprehensive Mine Study for the development of the Redbank project was released. The Mine Study reinforces the strong economic viability for a copper cathode and concentrate project and includes a base case model for an open cut copper mine with a life of ten years, including production from both oxide and sulphide ores. In early 2010, a Development Study was released outlining increased copper production targets, with capacity for copper cathode output lifted from 2,100 tonnes to 2,500 tonnes per year. Redbank has also accelerated the proposed ramp-up of its copper sulphide production stream. The initial rate is 20,000tpa of copper concentrate for the first year (2013) from 300,000tpa of sulphide ore, increasing to 30,000tpa from 500,000tpa sulphide ore in the second year (2014). Redbank has engaged Calder Project Services to design and construct the Solvent Extraction-Electro Winning (SXEW) plant for cathode production, with construction set to commence on site in the first half of 2011. Exploration in 2009 discovered additional resources together with four new breccia pipes. A significant exploration and drilling program is planned in 2010 in order to deliver further expansion of its resource base. The total drill program includes 12,500m RC and 2,500m of diamond drilling to test the depths of mineralisation which currently remains open. This reports goes on to give an historical summary and an overview of operations. downloaded from http://www.redbankcopper.com.au/projects-and-resources/redbank-copper-project.html 22/10/2010