Underground work commences at DRC’s Afton project

Vancouver – Construction of the decline at DRC Resources’ (DRC-T) wholly-owned Afton copper-gold project, located just west of Kamloops in south-central British Columbia, is well underway.

British Columbia-based contractor Procon Mining & Tunnelling recently commenced work on the 2,000-metre exploration decline beneath the past producing Afton pit.

The underground access will allow further exploration and facilitate testing and work programs enroute to DRC Resources’ bankable feasibility study on placing the planned underground operation into production.

Underground drilling designed to infill and upgrade the project’s mineral resource to a reserve category, as well as test the extent of the mineralized body will commence in January-2005. A 20,000-metre drilling contract was recently awarded to F. Boisvenu Drilling.

DRC Resources expects to spend about US$14.5-million on its underground development program including drilling, bulk sampling and technical studies on the project. An independent engineering firm will be commissioned to finalize the production plan.

A scoping study completed by Behre Dolbear earlier this year, estimated initial capital expenditures in the order of US$120-million to put the project into production.

A measured and indicated mineral resource of 68.7 million tonnes grading 1.08% copper, 0.85 grams gold per tonne, 2.62 grams silver per tonne and 0.12 grams palladium per tonne (1.68% copper equivalent or 2.61 grams gold equivalent) has been outlined in the Afton project.

Vancouver-based DRC recently added an American Stock Exchange (AMEX) listing for its securities, which will assist the company in potential future financings as it pushes forward towards development of Afton.

The company also recently added Chris Bradbrook to the position of President and CEO, as well as director. He was previously with Goldcorp (G-T) as Vice-President of Corporate Development. DRC-founder John Kruzick has stepped up to the position of Chairman.

DRC Resources has 13.9 million shares outstanding, giving a market capitalization of $94-million at its recent trading level of $6.75 per share. The company reports a cash position of US$21-million.