| The Tulsequah
project is located in northwest BC approximately 100 kilometres south
of the town of Atlin, the nearest Canadian community. Juneau, the
capital of Alaska, is situated about 65 kilometres southwest of the
project. The property covers two former producing mines in the Tulsequah
River valley.

Redfern Resources Ltd. has had an active interest in the project
and its development since 1981 and presently owns 100% of the project
The project encompasses the proposed re-activation of the former
Tulsequah Chief Mine, based on extensions of the original deposits
of zinc, copper and lead sulphide ores which also contain significant
amounts of gold and silver.
Redfern completed a positive Feasibility Study in 1995 and updated
it in 1997. A Project Approval Certificate was granted by the government
of BC in 1998 to allow development of the mine and the Special Use
Permit governing the construction and management of the mine access
road was obtained in 1999.
A legal challenge to the project approval, launched by the Taku
River Tlingit First Nation, resulted in a decision by the Supreme
Court in June 2000 to quash the Project Approval Certificate. In
its decision, the Court found no fault with the company's actions
and the judges stated, "…Redfern has made genuine and
full efforts to comply with the EAA (Environmental Assessment Act)
and has made a genuine effort to satisfy the concerns of the Tlingits."
The Court ordered the final stage of the environmental assessment
process to be re-done to address deemed deficiencies in the process.
This re-consideration assessment process commenced in September
2001 for a nominal period of two months, “unless further time
is considered necessary by the Project Committee.” Redfern
was forced to suspend development progress on the project pending
a new project approval decision. The re-consideration assessment
process continued through all of 2001 and into 2002.
In September 2001 the BC Court of Appeal heard the appeal of the
earlier decision. In January 2002 the Court of Appeal found that
the earlier decision was in error and ordered the re-consideration
process to be set aside. The Court ordered instead that the responsible
Ministers consider the project anew, with the additional consideration
of the asserted interests of the Tlingits. The project, in the form
of all of the information available as of March 1998, was referred
to the Ministers in June of 2002 for their decision on project approval.
This decision was made in December of 2002 when a new Project Approval
Certificate was awarded to Redfern for Tulsequah Chief.
While Redfern commenced renewed activity on the Project, the province
of BC appealed to the Supreme Court of Canada to contest the
provincial Court of Appeal's determination that the
prior consultation record had not dealt adequately with asserted
aboriginal rights. This case was heard in March of 2004 and a decision
released on November 19, 2004. In this decision the Supreme Court
of Canada unanimously and conclusively determined that the province
of BC had the obligation to consult and, if necessary, accommodate
the interests of the First Nation and moreover that the province
had indeed met this obligation in the case of the environmental
assessment review and certification of the Tulsequah Chief Project.
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