Redbank Copper Limited announced an updated and comprehensive Development Study for its high grade Redbank copper project in the Northern Territory.

The new Development Study details the cost and operational requirements to commence copper production in mid 2011. The report combines the recently released Capital Cost Study and Redbank’s Mine Study which was released last year to provide a blue print for project development.

As outlined in the Mine Study, Redbank intends to commence copper production via an oxide processing stream. This will involve processing of 210,000 tonnes per annum of oxide ore grading 1.5% copper over 10 years from the Redbank, Azurite, Bluff and other deposits to produce 2,500 tonnes per year of copper cathode.

The Study also includes a sulphide production stream to commence in 2013. The initial rate is 20,000 tonnes per year concentrate from 300,000 tonnes per annum of sulphide ore increasing in the second year to 30,000 tonnes per annum concentrate from 500,000 tonnes per annum sulphide ore from open pit sources.

Highlights of the Development Study include
1. Average operating costs of USD 1.40 per lb
2. Average project operating costs if AUD 52.32 per tonne
3. Start up costs capital for cathode production of USD 18.17 million
4. Total projected capital cost of USD 55.7 million
5. Revenue of USD 539 million
6. Net cash flows over 10 years of USD 180 million.

The Development Study incorporates Redbank’s increased copper resource and grade position announced in December. It also requires additional material amounting to 1.75 million tonnes of sulphide mineralization and 1.35 million tonnes of oxide mineralization to provide a ten year mine life. These quantities represent the equivalent of about2 to 3 additional breccia pipes containing resources similar to those already discovered at Redbank.