Redbank Copper Operations Northern Territory MLN 631 to 636, MLN 1108 exploration activities report for the 12 month period to 31 December 2008

Abstract

Redbank Copper Operations operates from a series of small mining leases (MLN 631-635 and MLN 1108), producing copper from a stockpile leach operation located within the mining leases surrounded by ERL 94. Some 287 tonnes of copper was produced from this operation in calendar year 2008. In the twelve months to December 2008 the company completed a 1577.2m RC and diamond core drilling program focussing on the copper deposits at Redbank and Azurite on MLN 634, and to a lesser extent on Bluff deposit within MLN 635, and the Sandy Flat deposit, across MLN 633 and MLN 636. New resource estimates were calculated for all drilled deposits. The new JORC compliant resource estimate provided by independent consultants SRK Consulting Pty Ltd is a combined indicated and inferred 5,208,000 tonnes at a grade of 1.4% Copper per tonne containing 75,000 tonnes of copper, representing a modest increase in overall tonnage and an overall 6% increase in contained metal over the previous estimate (SRK 2007). Drilling within the established mineralized envelopes of known high-grade deposits has seen an excellent conversion from Inferred to Indicated category for resources in the oxide zone.