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February 13, 2008 -
Vancouver, British Columbia - 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.
Permitting Status
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"
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.
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Contacts:
Troy Winsor
Manager, Investor Relations
1-888-225-9662 604-466-8934
Salina Landstad
Manager, Public Relations & Corporate Communications
604-639-0135 / 1-888-669-4775
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