Redbank closes in on oxide copper production

Redbank Mines has taken a key step towards a proposed low-capital development....

  Redbank Mines has taken a key step towards a proposed low-capital development of its Redbank Copper Project in the Northern Territory after lodging a Notice of Intent with the authorities for the Stage 1 Oxides Project.The Perth-based company said it was confident of securing the necessary approvals within 4-6 months, enabling it to commence production within 12 months from heap leaching of the available oxides at the key Bluff, Azurite and Redbank deposits – which contain oxide resources of some 1.0 million tonnes grading 1.4% Cu within 35m of the surface.Redbank’s Managing Director, Gino Vitale said the company was moving as quickly as possible to fast-track the development, for which the preliminary feasibility study completed last year estimated a capital cost of just A$5.2 million.“This represents a remarkably low capital outlay to commence production and secure the company’s position as a niche producer of high-grade, high-quality copper concentrates at the Redbank Project,” Mr Vitale said.“The Feasibility Study forecast that the Stage 1 Oxides Project would generate revenue of A$61m and a pre-tax cash surplus of A$20m over an initial 2.5-year life, with capital payback being achieved in just over 12 months,” he said. “That was based on the then forward curve copper price of US$3.10/lb, with the spot price since increasing to almost US$4.00/lb.”