Mineral royalty corporation Redstone Resources (TSE) has bought an additional 0.375% net smelter return (NSR) royalty interest in the Robinson copper project near Ely, Nev., for US$2.5 million.
The project is being developed by Tucson-based Magma Copper (NYSE) at a cost of US$300 million. It contains 252 million tons averaging 0.553% copper and 0.0102 oz. gold per ton, and is scheduled to enter production in the first quarter of 1996.
Robinson is expected to produce 135 million lb. copper, 110,000 oz. gold and 325,000 oz. silver annually for 16 years, with net operating cash costs projected at less than 50 cents per lb. copper.
Redstone now holds a 0.6% NSR in the Robinson project. It also holds royalties in 14 other base metal and industrial mineral properties.
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