Redbank Copper hits more high grade copper at Redbank project in Northern Territory

Australian copper explorer, Redbank Copper (ASX: RCP) has continued the good news flow from the Redbank Copper Mine in the Northern Territory.

Initial results from one of the five drill holes of its current exploration program at the Punchbowl target within ERL94 at Redbank project produced high grade copper intersections.

Redbank is located in the Northern Territory McArthur River Basin, some 30km from the Queensland border and 70km south of the Gulf of Carpentaria.

Of interest, is that Stirling Resources (ASX: SRE) owns 20% of Redbank Copper.

The results from PBRC09-002 included:

- 31m @ 2.5% copper from 182m including
- 10m @ 4.4% copper from 202m

This actually improved on best drilling results achieved from Punchbowl in 2006.

Combined, there is a likelihood of a resource upgrade in tonnage and grades - with this breccia pipe now extending to at least 180m vertical depth and with significantly higher grades.

Due to the current intermittent access to transport from the remote site, the balance of the drilling results are expected within a few weeks.

Redbank Exploration Manager, Craig Hall said, “the initial results from Punchbowl appear to increase in grade with depth, and the company is encouraged that significant deep targets exist below the breccias pipes identified so far. In particular we are beginning to look closer at the genesis of these zones, and the possibility of the copper-bearing solutions being released from a large magmatic source at depth”.

Mineralised breccias pipes at Bluff and Sandy Flat extend to at least 300m vertical depth within the lease.

Redbank is planning an enhanced exploration program for deeper drilling, following a recent capital raising.

Redbank Managing Director, Bruce Morrin said that Redbank is in the final stages of completing a Scoping Study which will be released shortly.

Morrin said, “the study is predicated on starting open pit mining at the Sandy Flat sulfide deposit in May next year and commencing processing with the refurbished onsite concentrator plant in July next year."

“Annual production would be targeted at 20,000 tonnes of 27% concentrate in 2010/2011 increasing to 30,000 tonnes in 2012/2013”, he said.

www.proactiveinvestors.com.au