Vancouver – Strong metal prices have prompted Redcorp Ventures (RDV-T) to continue efforts to revive the stalled Tulsequah Chief massive sulphide project in northwestern British Columbia, possibly with a new joint-venture partner.
Tulsequah Chief is a former zinc-copper-silver-gold mine owned by subsidiary Redfern Resources, which spent $36 million to advance the underground mine project to the development approval stage.
The project was opposed by environmental groups for years, but the company eventually secured environmental certification from both federal and provincial government agencies. A Special Use Permit is also in place governing construction, use, and decommissioning of an access road.
Tulsequah Chief hosts measured and indicated resources totaling 5.38 million tonnes grading 1.41% copper, 1.32% lead, 6.73% zinc, 2.73 grams gold and 100.8 grams silver per tonne. A further 1.54 million tonnes of 1.13% copper, 1.07% lead, 5.44% zinc, 2.23 grams gold and 85.1 grams silver are classified as an inferred resource.
As part of ongoing efforts to revive the project, Redcorp retained a consulting engineer to conduct an internal review of information used in a partially completed 2005 feasibility study update. The initial (2005) update by two consulting firms was curtailed after a preliminary economic assessment concluded that the project was “not sufficiently attractive to proceed without further resource expansion.” The analysis was based on copper at US$1 per lb., zinc at US$0.55 per lb., lead at US$0.35 per lb., gold at US$400 per oz., and silver at US$6.50 per oz.
With metal prices now at or near record highs, the company sees improved economics, and has commissioned a review to identify areas of “potential cost reductions and optimization of the development plan.”
The company is reviewing the project with prospective joint-venture partners, while drawing up plans for an exploration program aimed at expanding resources. The program will also consider potential for resource expansion at the nearby Big Bull deposit, a former producer situated 9 km from Tulsequah Chief, on the same property. Previous production at Big Bull totaled 360,073 tonnes grading 1.2% copper, 1.9% lead, 7.3% zinc, 5.14 grams gold and 154.29 grams silver.
Additional exploration is planned to test targets within prospective stratigraphy between the two deposits.
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