MLN 631, 632, 633, 634, 635, 636, 1108 Exploration activities report for the 12 month period to 31 December 2009

Abstract

Redbank Copper Operations operates from a series of small mining leases (MLN 631, MLN 632,MLN 633, MLN 634, MLN 635, MLN 636 and MLN 1108), previously producing copper from a stockpile leach operation located within the mining leases surrounded by ERL 94. The operation was placed on care and maintenance early in 2009, and the project was been subjected to an intensive exploration review under new management. Commencing in April 2009, a comprehensive exploration effort commenced, including: compilation to digital formats of all historic media; validation of all drill data, including data entry of geology; confirmatory field mapping; establish AHD survey control over the lease; capture of high resolution orthophoto and generation of DTM; close-spaced small loop TEM survey of Redbank-Bluff corridor; complete coverage of lease with gravity survey at minimum 200 x 200m, with infill; and partial coverage of the lease with close-spaced ground magnetics and radiometrics. In the twelve months to the end of December 2009 the company completed around 9000m of RC and diamond core drilling program across the total project, with over 2800m drilled across MLN 634, MLN 635, and the Sandy Flat ML's, 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 6,244,000 tonnes at a grade of 1.5% Copper per tonne containing 95,900 tonnes of copper, representing an overall 28% increase in contained metal over the previous estimate (SRK 2008). There was a 50% increase in Indicated category resources for the project. The company has completed a mine and subsequent development study and intends to push forward with plans to mine oxide deposits at Redbank later in 2010.