Redfern boosts reserves at Tulsequah property

After incorporating 1992 exploration results, Redfern Resources (TSE) says preliminary reserves at its 100% owned Tulsequah Chief deposit increased to 9.4 million tons grading 1.48% copper, 1.17% lead, 6.85% zinc, 0.075 oz. gold per ton and 3.02 oz. silver.

The project, located on the Tulsequah River in northwestern British Columbia, was previously estimated to contain about 8.6 million tons grading 1.6% copper, 1.2% lead, 6.5% zinc, 0.08 oz. gold and 3.2 oz. silver. Redfern is now proceeding with a pre-feasibility study on the project to determine capital and operating costs, projected economic performance and deposit sensitivities.

Additional metallurgical testing is also under way and the company reports that preliminary results confirmed and improved on the results of previous testwork which indicated recoveries for all metals will range between 87% and 92%.

The pre-feasibility should be complete by mid-April and the company is now in the process of planning further exploration on the Tulsequah and Big Bull properties.

Redfern acquired a 100% interest in the adjacent Big Bull property last year from Cominco (TSE) along with a 60% interest in the Tulsequah property. Redfern sees excellent potential for the discovery of additional sulphide lenses along strike to the west of the Tulsequah deposit as well as at depth where the deposit remains completely open.

The company has also identified a number of targets on the Big Bull property where Cominco operated a small underground operation in the 1950s. Cominco reportedly mined a total of 396,000 tons grading 1.2% copper, 1.9% lead, 7.3% zinc, 0.15 oz. gold and 4.5 oz. silver from the mine.

This year’s exploration programs at Tulsequah and Big Bull are slated to begin in June.

Redfern has about $1 million in working capital and although the company has yet to set a budget for the 1993 programs, President John Greig said he is looking at total expenditures in the order of $3-4 million.

Greig said the company is not in a big hurry to raise additional funds at current share prices, and noted that there are 927,000 warrants outstanding from a private placement last year which could bring in additional funds. The warrants are exercisable at $3.30 and expire in August.