Imperial Metals Corporation reports that construction has commenced on the portal site for an exploration decline into the deep East zone at Red Chris. The Red Chris Joint Venture (RCJV) approved C$135 million (on a 100% basis) of funding for the construction of the exploration decline and associated infrastructure and permitting costs. Imperial will fund its 30% share of this work in accordance with the RCJV Agreement. Newcrest Red Chris Mining Ltd (NRC) is operator of the RCJV (Newcrest 70%; Imperial 30%).

Work on the exploration decline is expected to commence following the completion of the portal site and is subject to further regulatory approvals which are in progress. The development of a block cave mine will be subject to NRC completing a successful exploration program and further studies, market and operating conditions, and a positive decision to mine.

Brian Kynoch, President of Imperial Metals said, “The beginning of work to develop an underground mine at Red Chris is a key moment in the mine’s life. This is the first step in the development of an underground block cave mine designed to deliver the higher grade, deep East zone copper-gold mineralisation to the mill in five to six years. With drilling confirming the presence of even higher grade pods within the deep East zone, a number of options are being studied to mine this higher grade material before block caving operations begin. The aim of this smaller scale underground mining would be to increase cash flow prior to the start of the block cave operations. We, at Imperial, are excited that the development of a block cave mine at Red Chris, a long-held goal of ours, has now begun.”