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February 17,
2009 - Vancouver, British Columbia - Redcorp Ventures Ltd. (TSX:RDV) ("Redcorp" or the "Company") and its
wholly-owned subsidiary, Redfern Resources Ltd. ("Redfern"), today announce that construction
activities at the Tulsequah Chief Mine will
remain suspended until further notice because of uncertainty related to the
costs required to complete the development of the project. On December 2,
2008, Redfern and Redcorp
announced the appointment of Global Project Management Corporation
("GPMC") to head the Tulsequah Chief
Mine project development. As part of its mandate GPMC initiated a Project
Execution Plan to, among other things, review and update capital
expenditure and schedule estimates. GPMC has concluded that the estimated
costs to complete the construction of the Tulsequah
Chief Mine are significantly higher and the construction period will be
longer than estimated by Wardrop Engineering Inc.
("Wardrop") in 2008.
In June 2008, Wardrop prepared an updated pre-production capital cost
estimate for the Tulsequah Chief Mine development
of a total gross cost of $332.0 million (total net costs of $297.1 million
after deducting anticipated capital leasing credits of $34.9
million). A contingency of $16.9 million was included as part of total
costs.
GPMC's review of Wardrop's
previous estimate has extended the completion date of the mine to August
2010 and forecasts that total gross capital costs could exceed $500
million. An independent third party review of GPMC's
assessment indicates potential savings could reduce this amount to
approximately $430 million (including anticipated capital leasing credits
of $35 million) on the assumption certain efficiencies can be achieved. As
of December 31, 2008 estimated expenditures of $170.8 have been recorded,
before capitalized interest. These expenditures have been used to:
establish a connected network of 15 kilometers
of roads at the mine site; construct an airstrip and temporary camp
infrastructure; and also to purchase key long lead-time equipment including
diesel power generating plant, rod, regrind and ball mills, river tugs and
tow vehicles.
The lengthening of the
development schedule, increased capital costs, current commodity prices and
the limitations on the Company's ability to access sources of additional
funding raise serious concerns about the development of the Tulsequah Chief Mine by the Company without strategic
partners. As a result, Redcorp is proposing to
engage in discussions with its funding partners to evaluate strategic
opportunities, including alternative development strategies.
Redcorp 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 our website at http://www.redcorp-ventures.com/ and at Redfern's
website at http://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
604-639-0131
Contacts:
Troy Winsor
Manager, Investor Relations
604-466-8934 / 1-888-225-9662
Salina Landstad
Manager, Public Relations & Corporate Communications
604-639-0135 / 1-888-669-4775 ext. 103
Certain of the statements made and information contained herein may
contain "forward-looking information" within the meaning of the
British Columbia Securities Act,
Alberta Securities Act and
Ontario Securities Act or
"forward-looking statements" within the meaning of Section 21E of
the Securities Exchange Act of 1934
of the United States, including, without limitation, statements concerning
the Company's plans at its Tulsequah Project and
other mineral properties and the Company's revised economic evaluation of
the Tulsequah Project, which involve known and
unknown risks, uncertainties and other factors, some of which are beyond
the Company's control which may cause the actual results, performance or
achievements of the Company, or industry results and/or consensus metal
prices, to be materially different from any future results, metal prices,
performance or achievements expressed or implied by such forward-looking
information or forward-looking statements. Forward-looking information and
forward-looking statements are subject to a variety of risks and
uncertainties which could cause actual events or results to differ from
those reflected in the forward-looking information or forward-looking
statements, including, without limitation, material factors and assumptions
relating to, and risks and uncertainties associated with, risks relating to
the availability of financing for activities when required and on
acceptable terms, risks relating to the inability to achieve the conditions
required to receive full funding contemplated by its gold sale agreement or
the MRI contingency loan, risks related to the ability to secure capital
leasing arrangements for the purchase of mining equipment on suitable
terms, if at all, the ultimate recovery of the Company's investment in new
long-term ABCP that were issued on January 21, 2009, risks and
uncertainties relating to the interpretation of drill results and the
estimation of mineral resources and reserves, the geology, grade and
continuity of mineral deposits, the possibility that future exploration,
development or mining results will not be consistent with the Company's
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 availability of specialized vehicles and similar
equipment, costs of remediation and mitigation, maintenance of title to the
Company's 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, the fact that the
2007 Feasibility Study is based upon probable mineral reserves and not proven
mineral reserves, expectations and beliefs of management and other risks
and uncertainties, including those described under "Risk Factors"
in the Annual Information Form of the Company filed on SEDAR on March 31,
2008, and in each subsequent management's discussion and analysis. Forward-looking
information and forward-looking
statements for time periods subsequent to 2008 involve longer term
assumptions and estimates than forward-looking information and
forward-looking statements for 2008 and are consequently subject to greater
uncertainty. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those described in forward-looking
information or forward-looking statements. Accordingly, readers are advised
not to place undue reliance on forward-looking information or
forward-looking statements. When used herein, the words
"anticipate", "believe", "estimate" and
"expect" and similar expressions, as they relate to the Company
or its management, are intended to identify forward-looking information or
forward-looking statements relating to the business and affairs of the
Company. Except as required under applicable securities legislation, the
Company undertakes no obligation to publicly update or revise
forward-looking information or forward-looking statements, whether as a
result of new information, future events or otherwise.
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