BRITISH COLUMBIA — Redcorp Ventures of Vancouver has suspended activities at its Tulsequah Chief development 100 km south of Atlin. The property was being prepared for production next year. The company says the decision was necessary due to "uncertainty related to the costs required to complete the development."
In June 2008, Wardrop Engineering prepared an updated pre-production capital cost estimate for the Tulsequah Chief mine at a total gross cost of $332.0 million (total net costs of $297.1 million after deducting anticipated capital leasing credits of $34.9 million). A contingency of $16.9 million was included as part of total costs.
In December 2008, Redcorp engaged Global Project Management to review previous estimates. Global's estimate has extended the completion date of the time to August 2010 from the original Q4 2009 date. Moreover, capital costs have ballooned to $500.0 million or more. As of Dec. 31, 2008, an estimated $170.8 had been spent on the project.
Further information on Redcorp and the Tulsequah Project can be obtained on at www.redcorp-ventures.com or by calling toll-free to Troy Winsor, manager of investor relations (888-225-9662) or Salina Landstad, manager of public relations (888-669-4775 ext 103).
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