Redfern confirming Tulsequah model

A 6-hole infill drilling program at the Tulsequah Chief property in northwestern British Columbia is confirming projections made by a new geological model recently compiled by Cambria Data Services.

Redfern Resources (TSE), 40% owner of the property, has an option to acquire the remaining 60% interest from Cominco (TSE) although details of the agreement remain confidential.

Redfern is negotiating with a number of parties interested in participating in the property and John Greig, president of the company, said any deal would likely result in Redfern increasing its stake to 50% while gaining a new partner.

The consultant’s model radically changes the outlook of the deposit with the elimination of what was previously believed to be a dyke cutting through the H lens mineralization at depth.

Greig said the consultant re-worked all the drill core logs and came to the conclusion that the dyke is actually a mafic flow unit and part of the stratigraphy lying above the H lens.

The deposit was last reported to have preliminary reserves estimated at eight million tons grading 1.55% copper, 1.22% lead, 6.81% zinc, 0.08 oz. gold and 3.19 oz. silver. The majority of the reserves are located in the H lens, a steeply plunging synclinal lens of massive sulphide mineralization. The balance of reserves is located in the A-B lens, stratigraphically below and parallel to the H lens.

Greig expects reserves to increase as a result of the infill program. The drilling shows the H lens continues further up-plunge than previously thought. A hole drilled in 1989 (89-17) failed to intersect the H lens indicating it disappeared somewhere above hole 89-13 which intersected the H lens over 49 ft. at an average grade of 1.03% copper, 1.47% lead, 6.24% zinc, 0.07 oz. gold and 2.68 oz. silver. Hole 89-17 is now believed to have intersected a post-mineralized dyke.

This theory is supported by recent drilling in the infill program. Hole 91-33 intersected the H lens about 250 ft. up-plunge from hole 89-13 while hole 91-32 intersected the lens an additional 300 ft. up-plunge of 91-33. Tonnage is also expected to be added up-plunge on the A-B lens. Cambria’s study indicates Cominco had been mining the A-B lens during Tulsequah’s original operations from 1951 to 1957. At the time, mineralization was believed to be structurally controlled and when the lens was cut off, mining moved to another area of the mine.

As a result, Greig said the lens is believed to extend 600-700 ft. above the level of previous reserve calculations.

Before conducting further work on the deposit, Greig said the company is working to complete the option agreement with Cominco and bring a third party on board.

At that point Greig said the company would likely proceed with a 35-hole infill program to bring reserves into a proven and probable category. In addition to the infill program, Greig said the company will extend the exploration drift on the 5400 level in order to complete six deep holes to test the down-plunge extent of the H lens.

Ultimately, Greig is confident that the deposit size will jump to the 12-15-million-ton range at grades similar to the current reserve. Greig added that further drilling can be started on very short notice since all the drilling equipment is on the property. Redfern purchased the equipment earlier this year from the receivers of the former drilling contractor which went bankrupt.

Holes 30 through 33 are listed below while assays from 34 and 35 are pending. Hole Interval Width Copper Lead Zinc Gold Silver

(ft.) (ft.) (%) (%) (%) (oz./t) (oz./t)

91-30 1,867.3-1,887.0 19.7 0.43 0.79 4.09 0.041 1.21

91-31 1,661.0-1,684.0 23.0 0.48 1.12 3.86 0.068 2.02

1,700.4-1,707.3 6.9 2.48 0.31 2.03 0.13 2.45

* 2,039.8-2,048.3 8.5 0.46 2.23 8.66 0.050 6.30

91-32 994.2-1,026.0 31.8 2.41 1.12 2.56 0.007 2.63

91-33 1,073.9-1,088.3 14.4 2.4 0.90 4.8 0.051 1.81

1,105.7-1,180.2 74.5 1.56 1.17 7.26 0.072 2.55

incl. 22.0 3.66 2.52 15.66 0.15 5.58

note: * represents A-B lens intersection