BC Government approves Tulsequah

Vancouver — Redcorp Ventures (RDV-V) reports that the Province of British Columbia has granted it’s wholly owned subsidiary, Redfern Resources, a Project Approval Certificate for Redfern’s 100% owned Tulsequah Project, located near Atlin B.C.

With the Project Approval Certificate now in hand, Redfern plans to perform a drill program with the goal of expanding the current resource by targeting possible extensions of the deposit.

Data from this work will be used to update the feasibility study, including a revision of the resource and reserve estimates to comply with the current NP 43-101 standards. Redfern is currently investigating various avenues for funding the work, including discussions with potential partners.

The Tulsequah project originally received a Project Approval Certificate in March of 1998 after a 3.5 year environmental assessment review under the former NDP government. Subsequent litigation by the local Taku River Tlingit First Nation resulted in a decision by the BC Supreme Court to quash the Certificate on the basis of deemed procedural errors. The BC Court of Appeal later determined that there had been no procedural errors and ordered the project remitted once again to the BC government for decision on a new Certificate, including consideration of the potential for impacts to the asserted rights and title of the First Nation.

The Ministers have stated that the project can be constructed, operated and closed in a manner which minimizes impacts on the environment and accommodates the concerns and asserted rights of the Tlingits.

The past producing Tulsequah Chief gold-silver-copper-zinc mine hosts a reserve estimate of 7.6 million tonnes grading 6.63% zinc, 1.31% copper, 1.24% lead, 105.20 grams silver per tonne silver and 2.51 grams gold per tonne. This reserve was calculated in 1997 in compliance with the former National Policy 2A standard.

The feasibility study is based on a 2,500 tonne per day underground mine, mill and flotation processing plant producing a gold-rich gravity concentrate as well as zinc, lead and copper concentrates.

Based on the previous feasibility study the mine would produce 98 million lbs. of zinc, 22 million lbs. of copper, 10 million lbs. of lead, 58,000 ounces of gold and 2.3 million ounces of silver, annually. The reserve contains a total of 610,000 ounces of gold and 25.5 million ounces of silver.

Redcorp states the Tulsequah deposit remains open at depth as well as laterally and that there is excellent potential for the discovery of new deposits on the property. This also includes another past producing mine, Big Bull, which has seen only limited exploration drilling since it shutdown in 1956. There has been no significant exploration or drilling anywhere on the 150 sq. km property since the permitting process commenced in 1994.

Redcorp reports that the development of the Tulsequah Chief mine will bring an estimated $150 million of capital investment, 260 direct high-paying jobs, and an estimated 550 indirect and induced jobs to a depressed region of the province.

To date, Redfern has spent almost $30 million to define the deposit and design an environmentally responsible re-development plan that meets the environmental standards for mining in British Columbia