Redcorp Ventures Ltd.: Tulsequah Chief Mine Update
Construction and Permit Progress
VANCOUVER, BRITISH COLUMBIA–(Feb. 13, 2008) – Redcorp Ventures Ltd. (TSX:RDV) and its wholly-owned subsidiary, Redfern Resources Ltd. (together, the “Company”) is pleased to provide an update on mine development and construction activities as well as associated permitting progress for the Tulsequah Chief Mine.
The project detailed engineering is well advanced and approximately 50% complete. However, the permit acquisition process has been slower than anticipated which has led to delays in the implementation of our original construction schedule. At the same time, we have successfully identified and secured virtually all of the essential long-lead time capital equipment at lower than anticipated costs. As a result we have mandated our engineering and procurement contractor, Wardrop Engineering Inc. (“Wardrop”), to update the capital cost estimate and, with Merit International – our construction manager, to prepare an updated project control estimate and schedule to reflect current procurement knowledge, vendor quotations and contractor rates. We anticipate that the control estimate will be finalized near the end of February and will be used to manage the project through to completion.Equipment Procurement
We recently completed purchase of the ball mill, the rod mill and the two associated re-grind mills for the primary grind and re-grind circuits of the processing plant. These mills are used equipment which have been selected, tested and confirmed for suitability by Wardrop and our equipment advisor, Westpro Machinery Inc. of Vernon, BC (“Westpro”). We are pleased with the assistance extended by Westpro. The mills and necessary materials, as specified by Wardrop, are being shipped to Westpro’s facilities for refurbishment and subsequent shipment to site, inclusive of warranty. Westpro is also supplying a fifth mill for the limestone grinding circuit for the tailings slurry feed.
We have also provided notice to Carmacks Commercial Corp. of our intention to exercise our option agreement to acquire or lease, on or before February 28, 2008, the diesel generating plant and associated equipment previously announced in our news release of September 18, 2007. One of the eight generator units will be sent to Finning Canada for installation of a heat-recovery system. This will allow preparation of field upgrade packages for heat-recovery installation on site for the remaining seven units.
The Company has notified Sandvik Mining and Construction Group of its intention to proceed with purchase or lease of the selected underground mobile equipment fleet, consisting of three LHDs, two 40 tonne haul trucks, two longhole and two jumbo drill rigs and miscellaneous support units. The equipment is scheduled for delivery in two stages commencing in January 2009, with a second delivery in March 2009.
The permanent mine camp facility construction is in progress on a fixed cost basis. Initial deliveries are expected to commence in March 2008. The camp is being designed and constructed by Modular Transportable Solutions, LLC (“MTS”) of Yakima, Washington, USA.
Hovertrans Ltd. is handling the design and construction specifications for the Air Cushion Barge (“ACB”) and the Amphitrac tow vessel. The ACB is being built at Sundial Shipyards in Portland, Oregon and the amphibious tow vessel construction is in progress in Southampton, England, both managed by Hovertrans. Some delays have been experienced due to final design modifications and attendant vessel certification approvals. The delivery dates for the vessels are under review and are expected to be in late spring. Redfern has also commissioned a re-fit to the Arctic Eagle, our shallow-draft river tug, which will increase its available power from 750 to 1430 BHP for use with the air-cushion and conventional barge operations. The re-fit work is being conducted at Allied Shipyards in Vancouver.
Underground Development Design and Contract
Redfern has completed the detailed design for underground development in close consultation with Procon Mining and Tunneling Ltd. (“Procon”), the selected underground development contractor. The design is being incorporated in a pending Mines Act permit amendment submission. The contract with Procon is being finalized and should be executed by the end of February. The start of the underground development work is scheduled for June 2008.
We anticipate imminent receipt of the initial Mines Act permit which will allow commencement of construction on the PAG (potentially acid generating) and NAG (non-acid generating) waste pads. On completion of the PAG site the Company will commence re-location of the existing waste material at the mine site, followed by commencement of site preparation for plant construction in the summer of 2008. A Mines Act permit amendment application is now being finalized which will govern the underground mine development, the upgrade of site roads approved by the previously issued Mineral Exploration (MX) permit and for additional roads. A third Mines Act amendment submission is envisaged for approval of the tailings dam detailed design and construction plan, and the barge site.
A Construction Discharge Approval permit application is required for regulating water management and treatment of discharges during the construction of the mine. It has been prepared in close consultation with the Ministry of Environment and is due to be released shortly for a 30 day stakeholder comment period prior to finalization.
Redfern experienced delays in initial permit receipts in 2007 which resulted in slower than expected commencement of construction activities and which have extended the project’s estimated completion date to the second quarter of 2009. We are currently completing an Environmental Assessment (“EA”) certificate amendment to permit the operation of the proposed air-cushion barge transportation system on the Taku River. Due to additional information requests the public meeting associated with these permits in Alaska was delayed until February 4. This was completed and the associated public comment period in Alaska was extended to February 21. The EA amendment is now estimated for completion in March 2008.
In November, we entered into a rigorous review with the Taku River Tlingit First Nation (“TRTFN”) of the portion of the MX permit covering road construction from the barge landing site to the proposed limestone quarry area, south of the mine site, covering approximately seven kilometres of new road. Redfern voluntarily suspended construction on this section of the road in order to cooperate with and address TRTFN concerns. In the interim, construction activities were directed to the airstrip and associated roads north of the mine site. We recently received notice from the TRTFN that they are satisfied with the environmental assessment and design of the southern road section. Accordingly we have supplied the Ministry of Forests (“MoF”) with the associated clearing envelope for inclusion as an amendment to the existing License to Cut (“LTC”). On receipt of the LTC amendment approval, and confirmation from the Ministry of Mines, the proposed road construction will be able to proceed under the existing MX permit.
Current Construction Activities
Arctic Construction’s crews are currently clearing and building the airstrip at the site and preparing for bridge construction for the Shazah Creek crossing. The new camp at the Shazah airstrip location is being erected and set-up to support continuing construction operations. A second heading of road construction is expected to commence from the barge site connection road towards the Tulsequah Chief Mine site as soon as the MoF LTC permit amendments have been issued, expected to occur imminently.
Redcorp Ventures Ltd. is a Vancouver based mineral exploration and development company with active projects in British Columbia, Canada and Portugal. Further information on Redcorp and the Tulsequah Project can be obtained on the Company’s website at www.redcorp-ventures.com and at Redfern’s website at www.redfern.bc.ca or by calling toll-free to Troy Winsor, Manager of Investor Relations or Salina Landstad, Manager of Public Relations at the contact numbers listed below.
ON BEHALF OF THE BOARD OF DIRECTORS OF REDCORP VENTURES LTD.
Terence Chandler, President and CEO
Certain of the statements made and information contained herein is “forward-looking information” within the meaning of the Securities Act (Ontario) and the Securities Act (Alberta). Forward-looking information includes disclosure regarding possible or anticipated events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action and includes future oriented financial information with respect to prospective results of operations or financial position that is presented either as a forecast or a projection. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend”; statements that an event or result is “due” on or “may”, “will”, “should”, “could”, or “might” occur or be achieved; and, other similar expressions.
More specifically, forward-looking information contained herein includes, without limitation, statements concerning our plans at our Tulsequah Project (inclusive of the Big Bull Project), the net present value of the Tulsequah Project, the timing and amount of estimated future production and mine life, expected future prices of gold, silver, copper, lead and zinc, mineral reserve and mineral resource estimates, estimated capital and operating costs of the project, estimated capital pay-back period, estimated asset retirement obligations, timing of development and permitting time lines; all of which involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.
Forward-looking information contained herein is based on material factors and assumptions and is subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from a conclusion, forecast or projection in the forward-looking information. These include, without limitation, material factors and assumptions relating to, and risks and uncertainties associated with, the availability of financing for activities when required and on acceptable terms, the accuracy of the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the consistency of future exploration, development or mining results with our expectations, metal price fluctuations, the achievement and maintenance of planned production rates, the accuracy of component costs of capital and operating cost estimates, current and future environmental and regulatory requirements, favourable governmental relations, the availability of permits and the timeliness of the permitting process, the availability of shipping services, the ultimate recovery amount, if any, of our investment in third-party asset-backed commercial paper (ABCP) that is currently undergoing liquidity restructuring by the Committee representing the Montreal Accord, the availability of specialized vehicles and similar equipment, costs of remediation and mitigation, maintenance of title to our mineral properties, industrial accidents, equipment breakdowns, contractor’s costs, remote site transportation costs, materials costs for remediation, labour disputes, the potential for delays in exploration or development activities, timely completion of future NI 43-101 compliant reports, timely completion of future feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, continuing global demand for base metals, expectations and beliefs of management and other risks and uncertainties, including those described under Risk Factors Relating to Our Business in our Annual Information Form, filed on SEDAR on April 2, 2007, and in each subsequent Management’s Discussion and Analysis. Although we have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the forward-looking information.
Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, we undertake no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.
News Release 08-04
For more information, please contact
Redcorp Ventures Ltd.
Manager, Investor Relations
1-888-225-9662 or (604) 466-8934
Redcorp Ventures Ltd.
Manager, Public Relations & Corporate Communications
(604) 639-0135 or 1-888-669-4775
(604) 669-5330 (FAX)
Website: www.redcorp-ventures.com / www.redfern.bc.ca