Company Overview and Objectives

The principal activities of Redbank Mines Limited are copper mining and exploration in Australia's Northern Territory and gold exploration in Fiji.

The Company was formed as a mineral exploration company in April 1993 and was listed on the Australian Stock Exchange as Burdekin Resources Limited in December 1993. Between 1993 and 1999 the Company successfully acquired, developed and operated the McKinnon’s Gold Project near Cobar, New South Wales. In 1999, the Company acquired a 100% interest in the Mt Kasi gold project. During the 2000 and 2001 financial years the Company diversified its asset base to include technology investments. This was reversed in July 2002 when the Company decided to refocus its activities on mineral resource exploration and development.                                                                                                                                                                                                               In  December 2005 the Company diversified its project portfolio to include copper with the acquisition of the Redbank Copper Project. Redbank's primary corporate objective is to create shareholder wealth by exploration and profitable operation of its mineral resource projects. The commissioning of the Redbank Copper Project in the first half of fiscal year  2007 has initiated a cash flow for the Company.  The Company's strategy is to apply cash generated from this source to fund project development activities both at Redbank itself and at Mt Kasi.

Redbank Copper Project Development Strategy  

The Company has adopted a development strategy comprising three distinct phases of development for the project: 

Stage 1:

(presently under way as at May 2007) Treatment of high grade oxide stockpiles targeting to produce 800-1,000 tpa of copper from vat and heap leaching of high grade stockpiles (5% Cu) and preparation of site for Stages 2 and 3 of the project.   Stage 1 is expected to continue until 30 June 2008 and overlap with Stage 2 of the project. 

Stage 2:

Heap leaching of freshly mined oxide material from the Bluff and other deposits.  Planning for mining of Stage 2 has now commenced and subject to permitting this stage could be operational by the end of December 2007.   

Stage 3:

Treatment of sulphide material from the Sandy Flat deposit and subsequently the Bluff and other deposits. The three Stages and resultant production and cashflow are expected to overlap as the project develops. For a more detailed description of the staged development strategy for the project refer report for the quarter ended 31 December 2006 (issued on 31 March 2007) and the Company’s 2006 Annual Report.