Stirling Resources backs Redbank Copper, Matilda Zircon

Friday, January 29, 2010

Copper, gold and zircon investor/developer Stirling Resources Ltd (SRE) said 26 per cent-owned Redbank Copper Ltd (ASX: RCP) had upgraded its Gulf of Carpentaria resource to 6.2 million tonnes at 1.5 per cent copper, indicating a resource of 95,900 tonnes Cu.

A$9.7 million-capped Stirling said the resource had been upgraded 28 per cent, with Redbank also organising US$7.5 million in development funding, via convertible notes, through US-based institutional investor La Jolla Cove Investors.

According to Stirling, Redbank is “highly prospective for copper, cobalt, phosphate, manganese and uranium.

“In excess of 20,000 metres of reverse circulation and diamond drilling is planned, with the funds raised to be used in the construction of the SX-EW plant, and general working capital.”

Stirling added that 63 per cent-owned Matilda Zircon Ltd (ASX: MZI) had completed its Tiwi Islands mining plan.

“The board has approved the construction of a screening/slurrying unit, and a 300 tons per hour pre-concentrator,” Stirling said.

“Work commenced in December 2009, and work on the pre-concentrator is planned for January 2010.”

Matilda has additional sites at Cape York, central Australia, South-west Western Australia and within Indonesia’s Kalimantan (part of Borneo).

The Keysbrook project in SW Western Australia is prospective for leucoxene, which is a titanium mineral consisting of rutile and anatase.

“The company is finalising planning applications for development approval,” Stirling said. “These applications will be submitted in January/February 2010.

“Once granted, Matilda plans to obtain project finance and start development of mining operations in mid 2010, with mining to commence in 2011.”

Stirling has also launched a A$9.8 million renounceable rights issue to recapitalise Monarch Gold Mining Ltd (ASX: MON).

Monarch was involved in the Carnegie and Mt Ida gold projects near Kalgoorlie, with Stirling planning to change its name to Swan Gold Mining Ltd.

For the December quarter 2009, Stirling Resources outlaid A$9.5 million - mainly on the partial Monarch Gold Mining receivership settlement - with equity and borrowings amounting to A$9.47 million.

That left a cash position of $140,000, with a A$10 million loan facility completely utilised.

At the time of writing, the Stirling share price was sitting at 12 cents.

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