Emerging copper producer Redbank Mines has outlined plans for a $19.4 million staged development of its Redbank Copper Project in the Northern Territory starting with a low-cost oxide operation within 12 months.

The plans follow completion of a positive Pre-Feasibility Study for the project. The company will also undertake a Definitive Feasibility Study as quickly as possible.

The Pre-Feasibility Study has confirmed that the Redbank Project is technically viable and financially robust at current copper prices as well as at the LME forward copper price over the medium term, generating an attractive return on investment and rapid capital payback.

The study has determined a production profile for the project of 31,500 tonnes of copper over five years, with average copper production of 6300 tonnes per annum. This would deliver total revenue close to $200 million over the projected five-year mine life based on resources within the top 100 metres alone.

The overall capital cost is estimated at $19.4 million, comprising $5.2 million for the oxides stage and $14.2 million for the sulphides stage.

Redbank's managing director Jerome Vitale says the Pre-Feasibility Study confirms the robustness of the Redbank Project and provides a framework for a staged development strategy designed to advance it towards production as rapidly as possible to take advantage of strong commodity prices.

"This staged development approach provides excellent flexibility and will enable the surplus generated from the initial treatment of oxide material in the initial years of the project's life to partially fund the refurbishment of the existing flotation plant for the treatment of sulphide ore." www.redbankmines.com.au