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Transcription

Rocklands Group Copper Project
Building a World Class Copper Mine…
ASX: CDU
Disclaimer
This presentation has been prepared by CuDeco Limited (“CuDeco”) and contains general background information in summary form about CuDeco
Limited’s activities as at the date of this presentation, namely the 5th day of March 2012. This disclaimer applies to this presentation, statements,
opinions and all other information provided in regards to the presentation (“information”). In accepting this document, the Recipient agrees to be
bound by the terms and conditions (including any amendments) of this disclaimer. The Recipient, to the extent permitted by law, releases CuDeco
and its officers, employees, advisors and associates from any liability without limitation arising as a result upon the reliance of the “information”
contained or omitted in this presentation. Except as required by law, no representation or warranty, express or implied, is made as to the fairness,
accuracy, completeness, reliability or correctness of the Information, opinions and conclusions, or as to the reasonableness of any assumption
contained in this presentation.
This “information” does not purport to be complete. Whilst due care and attention has been used in the preparation of the “information” included in this
presentation, all statements including assumed future performance, potential dividends, costs, production levels, prices, reserves, industry growth
and any estimated company earnings are or may be forward looking statements. Such statements involve known and unknown risks and
uncertainties. Actual results may vary in a materially positive or negative manner. Recipients are cautioned not to place undue reliance on these
forward looking statements which are forecasts and hypothetical examples which are subject to uncertainty and contingencies outside CuDeco’s
control. In particular, factors such as variable climatic conditions, regulatory decisions and the assumption of the success of CuDeco’s business
strategy may cause or may affect the future operating and financial performance of CuDeco. CuDeco does not undertake any obligation to release
the result of any reversions to reflect any events or circumstances after the date of this presentation.
Recipients are required to carefully conduct their own investigations and analysis in order to satisfy themselves as to the accuracy and completeness
of the “information”. This information in no way constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of
securities in any jurisdiction nor shall it form the basis of any contract or commitment.
The distribution of the “information” in jurisdictions outside Australia may be restricted by law and the Recipient shall observe any such
restrictions. The “information” in no way constitutes investment and financial advice and has been prepared without taking into account the
Recipient’s investment objectives, financial circumstances or particular needs. The Recipient is solely responsible for forming their own opinions and
conclusions based upon their own independent assessment of such matters.
Page 2
Contents
Section 1:
1.1 - Preamble
From Page 4
1.2 - Preliminary Financial Model - Highlights
From Page 22
1.3 - Executive Summary
From Page 27
1.4 - Project Highlights
From Page 33
Section 2:
2.1 - Metallurgy
From Page 41
2.2 - Development Path
From Page 46
Section 3:
3.1 - Pit Optimisation Study
From Page 56
3.2 - Geology & Resource
From Page 84
3.3 - Exploration Upside
From Page 98
3.4 - Photo Gallery
From Page 120
3.5 - Competent Person Statement & Resource Notes
From Page 125
Page 3
Preamble
Page 4
Section 1.1
Preamble
Number of people
with an opinion on CuDeco
Page 5
Section 1.1
Preamble
Details Date
Number of people
who understand
Cudeco
Page 6
Section 1.1
Preamble
CuDeco is building a world-class copper mine…
Page 7
Section 1.1
Preamble
Only 190m shares on issue
Page 8
Section 1.1
Preamble
$145m cash at hand (31-12-11) - No Debt
(Recent placement for additional $32m)
Page 9
Section 1.1
Preamble
Owns its own mining fleet 100% - purchased during GFC
Page 10
Section 1.1
Preamble
Mining Leases Granted
Page 11
Section 1.1
Preamble
$30m already paid towards 3mtpa plant
(balance of $20m remaining)
Page 12
Section 1.1
Preamble
Secured Rail-load Facility in Cloncurry
(currently under development - access to national markets secured)
Page 13
Section 1.1
Preamble
Secured Ship-loading Facility at Port of Townsville
(currently under development - access to international markets secured)
Page 14
Section 1.1
Preamble
Significant resource inventory based on over 340,000m of drilling - discovery costs ~ 1.5c/lb
Page 15
Section 1.1
Preamble
30.3mt @ 1.7% CuEq (0.8% cut-off) Measured and Indicated
Page 16
Section 1.1
Preamble
Page 17
Section 1.1
Preamble
272.9mt @ 0.62% CuEq (0.2% cut-off) Measured, Indicated & Inferred
Page 18
Section 1.1
Preamble
Mineralisation commences from Surface
High-grade supergene zone (native copper and chalcocite) - accessed in initial years
Page 19
Section 1.1
Preamble
Off-take agreement in place
Page 20
Section 1.1
Preamble
Off-take agreement in place
Admitted to ASX 200 (ASX:CDU)
Page 21
Section 1.1
Section 1.2
Preliminary Financial Model - Highlights
Page 22
Section 1.2
Based on 10 year life of mine;

Project revenue……………………………..
$3.99 Billion

Operating project costs …………………...
$1.22 Billion

Pre-tax Net operating cash flow…………..
$2.77 Billion

Pre-production capital……………………...
$0.25 Billion

Pre Tax NPV (Using 10% discount rate)…
$1.25 Billion

Internal Rate of Return…………………….
104%

Mining and processing costs……………...
$0.81 per pound

Life of Mine Strip Ratio…………………….
3.16 to 1

Mill throughput………………………………
3mt per annum
Wide diameter PQ (85mm) metallurgical diamond
core as it is retrieved from the drill string. Massive
solid copper and chalcocite can be seen throughout.
(Native copper contains 99.8% copper and
chalcocite contains 79.85% copper).
Native copper will be extracted early in the mining
process.
Copper filings deposited by the water-returns washback during diamond drilling at Las Minerale.
Page 23
Section 1.2
Key Input Assumptions to Preliminary Financial Model;

Average metal prices;
Copper = USD$3.25 per pound
Cobalt (+ pyrite/sulphur credit) = USD$26 per pound
Gold = US$1600 per ounce
Magnetite = USD$220 per tonne

Average Metal Recoveries;
Copper = 95%
Cobalt = 90%
Gold = 80%
Magnetite = 55%

USD/AUD exchange rate = 0.90

May 2011 Resource Estimate (30.3 Million tonnes @ 1.7% CuEq)

Mining costs = 42.29 cents per lb

Processing costs = 38.92 cents per lb
Page 24
Section 1.2
Wide diameter PQ (85mm) metallurgical
drill hole DODH073 intersected large
free nuggets of native copper at
approximately 39m.
Key Input Assumptions to Preliminary Financial Model
continued…

Transport costs to Port of Townsville = $50 per tonne of
concentrate

Concentrates sold FOB Townsville under off-take agreement

Smelter (treatment & refining) = USD$0.15 per pound

Royalties = 4.0% of gross revenues

Mining dilution = 5%

Mining loss = 5%

Mining rate maintained throughout 10 year mining life requires increased waste dump size and amendment to
current EIS after year 6 (currently underway).
Page 25
Section 1.2
Notes on Preliminary Financial Model
The Preliminary Financial Model was compiled from data
and information developed from independent expert
consultants, together with contributions from in-house
consultants and CuDeco employees.
Subsequent to pit optimisation studies and development of
preliminary mining schedules, a proposed increase in the
mining rate has been determined to provide superior
project economics.
Amendments to the currently approved EIS is required and
is currently underway.
Proposed changes to mining rates will impact current
waste-dump designs and also includes the creation of a
stockpile of low-grade ore that would otherwise have been
discarded on the waste dumps.
When the amended EIS submission has been approved
and final capital costs are available for the revised mining
plans, the Company will be in a position to complete a
DFS.
Page 26
Section 1.2
Section 1.3
Executive Summary
Page 27
Section 1.3
Executive Summary
Board of Directors
Mr Wayne McCrae
(Executive Chairman)
Wayne McCrae has a 40 year career in the Mining Industry, with experience in developing underground and
open cut mines. He has bought 6 mines from exploration to production in Australia and Africa, both
underground and open cut and designed and constructed the plant and mineral extraction process at each.
Wayne has been on various Boards of ASX listed companies commencing in 1987. He spent 7 years in
Tanzania as Chairman of Tanzania Diamond Mines, Rift Valley Gold Mines and Great Africa Mines, and
developed the “Block A” underground Tanzanite Mine at Merilani, Tanzania, where he was Chairman and
MD of Ruano Tanzanite Mines. He has been central to the development of more than 20 other mineral
exploration projects.
Wayne was Chairman and MD of Diversified Mineral Resources NL (DMR), from 1987 to 1992 and was
instrumental in the exploration, drilling and discovery of the largest zinc mine in the world; the ”Century Zinc
Mine”, at that time owned by DMR in far NW Queensland. Other projects include the exploration, drilling and
discovery of more than 200 million tonnes of coking coal, which is regarded as one of Queensland’s most
profitable Coal Mines; “Burton Downs”, now owned by Peabody.
Wayne’s experience covers all facets of the mining industry from asset acquisition, exploration, metallurgy,
process design and mining, through to infrastructure, logistics and development.
Wayne has taken CuDeco (formerly Australian Mining Investments Ltd.), from the second lowest capitalised
Company on the ASX, to being ranked among the S&P Top 200 ASX listed companies.
Page 28
Section 1.3
Executive Summary
Board of Directors
Mr Peter Hutchison
(Executive Director) – MAusIMM, MRACI Ch Chem
A process chemist with over 40 years mineral and chemical processing industry experience.
Peter is also the Site Senior Executive responsible for the Rocklands site, development of the
metallurgical programme and concept process, and for the DFS including the environmental and
other project approvals.
Mr Paul Keran
(Independent Non-executive Director) - BAppSc, BE (Chemical), Dip BA
A chemical engineer with more than 30 years experience in the resource sector in Australia and
internationally.
Previously with MIM Holdings as MIM Group Metallurgical Manager and has also completed
technical assessment and development of the Alumbrera copper project in Argentina.
Page 29
Section 1.3
Executive Summary
Board of Directors
Mr Gerald Lambert
(Independent Non-executive Director) - B Com(Hnrs), ACA, MAICD
An experienced Company Director with both listed and unlisted entities and an experienced Senior
Corporate Executive.
Currently a Non-executive director of Boystown.
Previously an executive Director of Villa World Limited from 2000 to 2005; he was also the CFO and
General Manager of Villa World during this period. Mr Lambert was a Director and CFO of City
Resources Limited.
Mr David Taylor
(Independent Non-executive Director) - BA LLB AAICD
Mr. Taylor was appointed to the Board in July 2009. Mr Taylor is admitted as a Solicitor in the
Supreme Court of Queensland and High Court of Australia.
He has over four years experience in Civil Litigation having been involved in a diverse range of
claims.
He holds Bachelor Degrees in Law and Arts from Bond University as well as having studied at the
University of British Columbia in Canada. He also holds a specialisation in Legal Practice.
Page 30
Section 1.3
Executive Summary
Board of Directors
Mr Zhijun Ma
(Independent Non-executive Director)
Mr Zhijun Ma is a graduate from Engineering Management Tianjin University with a bachelor degree.
Mr Ma is a specialised professional economist and during his career has been involved in a number
of major investment projects covering a wide range of areas including finance, energy and real
estate.
Mr Ma is a director and general manager of Oceanwide and is responsible for this Company's
investments for overseas projects especially within the energy and resource sectors.
He is also currently the Chairman on Minsheng Investment Management Holdings Co Limited, and
Director of the Guangxi Beibu Gulf Bank and Minsheng Securities Co, Ltd.
Page 31
Section 1.3
Executive Summary
Key Statistics
Share Price / Volume History
Details
Date
Ordinary shares on issue
2-March-12
189.6m
Fully diluted shares on issue 1
2-March-12
190.6m
Share price
2-March-12
$3.35
Market capitalisation
2-March-12
$635.2m
Fully diluted market capitalisation
2-March-12
$638.5m
Add: Net debt / (cash)
31 Dec-11
$(145.0)m
Undiluted enterprise value
$490.2m
Diluted enterprise value2
$491.0m
1.
2.
Only includes in-the-money (ITM) options.
Includes A$2.5m cash from the exercise of ITM options.
Substantial Shareholders
Details
Date
M&G Investments
16%
New Apex
13%
Oceanwide
11%
Director Interests
Directors collectively hold approximately 6.5% of the securities on issue
Page 32
Section 1.3
Section 1.4
Project Highlights - Details
Page 33
Section 1.4
Location, Location…

Mining Leases ML90177 & ML
90188 (white) - Rocklands
Group Copper Project

Application for New EPM18054
(yellow) - Strategic Importance
(with exploration potential)

Rocklands
is
located
approximately 15km from the
Cloncurry township and base
for workforce

Just 17km to the Company’s
new Cloncurry Multi-user Rail
Loop and Subdivision Facility
Page 34
Section 1.4
Proximity to Key Infrastructure

The township of Cloncurry has its own
airport and runway

Sealed road to site completed in a costshare arrangement between CuDeco
and Cloncurry Shire Council.
Safe Operating Jurisdiction

The Project is located in Australia,
considered to be a stable, developed
and mining-friendly country.
In Good Company

Rocklands Group Copper Project
literally surrounded on all sides by
Xstrata, apart from a single sub-block.
Regional “Players” - The Rocklands Group Copper Project is bounded on all sides by Xstrata, except for a small subblock to the south-west
Page 35
Section 1.4
Significant Resource Inventory
Significant resource inventory, with focus on reserve
conversion and exposure to significant exploration
upside and option to upscale at a later date.
Measured and Indicated Resources;
30.3mt @ 1.70% CuEq
(1.14 billion lbs CuEq - 515,000 tonnes CuEq)
0.80% CuCoAu cut-off
97.9mt @ 0.96% CuEq
(2.08 billion lbs CuEq - 944,000 tonnes CuEq)
Shaded 3D block-model of the main cluster or orebodies at Rocklands, showing grade distribution,
starter pit (blue) and final pit outlines.
0.40% CoCoAu cut-off
Measured, Indicated and Inferred Resource;
272.9mt @ 0.62% CuEq
(3.70 billion lbs CuEq - 1,680,000 tonnes CuEq)
0.20% CuCoAu cut-off
See end of document for full details of resource
Page 36
Section 1.4
Solid native copper in PQ (85mm),
metallurgical diamond drill core
Geological Attributes Differentiating Rocklands

Depth of Ore – Rocklands mineralisation commences at surface.

Mining Costs – strip ratio will be low compared to peers.

Pit Optimisation – multiple ore-bodies at Rocklands strike parallel
which will enable one super-pit as the deeper ore is extracted,
providing option to continue mining after nameplate 10 year period.

High-grade supergene zone (native copper and chalcocite), will be
accessed in the initial years.
Resource Upside

Areas of mineralisation for which resource estimates have not yet
been calculated including; shallow, high-grade poly-metallic prospect
at Wilgar (Au, Ag, Te, Mo, U) and; shallow, high-grade prospect at
Fairfield (Cu, Co, Au).

Las Minerale extensions at depth and to North West...undrilled
mineralised corridor, over 2km long, 1km wide.

Extensions to identified zones (Solsbury Hill and Rainden, underexplored and remain open).
Page 37
Section 1.4
Wide diameter PQ (85mm) metallurgical diamond core as it is
retrieved from the drill string. Massive solid copper and chalcocite
can be seen throughout. (Native copper contains 99.8% copper and
chalcocite contains 79.85% copper).
Key Milestones Summary

Mining Leases (ML)s Granted by Queensland Government for Rocklands
Group Copper Project (ML is for a period of 30 years).

Native Title agreements in place.

Environmental Impact Statement (EIS) - Environmental Authority (EA) for
the Rocklands Project granted.

Draft Environmental Management Plan (EMP) Converted to Final EMP,
Consistent with Environmental Authority (EA).

Exhaustive metallurgical studies complete (over $4m spent), with
favorable outcomes and high recoveries.

Major goals achieved in Phase-2 bulk sample testing of Rocklands ore single circuit flow-sheet confirmed to efficiently treat all Rocklands ore
types - average head grade for all ore types (Phase 2) = 4.15% CuEq.
(Phase 1 native copper ore zone average head grade: 4.37% Cu).

Contracts let for supply of 3 million tonne per annum mineral processing
plant - with one of China’s largest state owned corporations, Sinosteel.
Page 38
Section 1.4
Port of Townsville Development Plan (2010 - 2040) with
existing and proposed infrastructure shown.
Key Milestones Summary continued…

High-cost mining fleet/equipment purchased during GFC downturn

Agreement to lease with Port of Townsville Ltd (POTL) for the construction
of a 400,000 tonne storage capacity facility including ship loading facility
and rail and truck delivery and unload facility.

Development Application for Townsville port facility, in association with
POTL and Engineering consultants Robert Bird Group and LCJ
Engineering.

Memorandum of Understanding to lease up to 900 hectares to construct a
Multi-user, Multi-purpose Rail Load-out Facility close to Cloncurry.

Off-take Agreement for sale of mineral concentrates from Rocklands
Group Copper project completed with China Oceanwide International
Holdings Co. Ltd (“China Oceanwide”).

$US2.1 Million agreement for basic engineering design for the process
plant with Sinosteel and its associate Nerin, China’s foremost
metallurgical and engineering design company.

Land Bank acquired in Cloncurry
Page 39
Section 1.4
D11 Dozer purchased during the GFC - ready to be
put to work.
Key Milestones Summary continued…

Memorandum of Understanding with Australia Rail Group (ARG).

Town Planning approval for a 200-man accommodation facility in the
township of Cloncurry.

Completed and commenced utilisation of CuDeco's engineering, design
and Rocklands project offices and associated 20 self-contained
accommodation cabins.

Current cash position (Dec 31 2011); AUD$145m (no debt)

Placement post December 2011 raised $32m

$30m progressive payments to Sinosteel for Plant, balance just $20m

Low number of shares on issue; Approximately 189.6m fully diluted

Admitted to the ASX 200
Dump Truck driver training area adjacent to Exploration
Compound at Rocklands
Part of the fleet of dump-trucks purchased during the GFC
Page 40
Section 1.4
Section 2.1
Metallurgy
Page 41
Section 2.1
Metallurgy
Various products from bulk-sample test-work (from left to right); large native copper nuggets (+40mm), smaller native copper nuggets (+4mm-40mm), flotation froth (primary circuit chalcopyrite), flotation froth (primary circuit - chalcocite), magnetite separation.

Major goals achieved in Phase-2 Bulk-Sample testing of
Rocklands ore - with single circuit flow-Sheet confirmed to
efficiently treat all Rocklands ore types.

Average head grade for all ore types (Phase 2) = 4.15%
CuEq

Five saleable products recoverable to specifications suitable
for end users in a single circuit flow-sheet;
Copper, Cobalt, Gold, Sulphur, Magnetite
Page 42
Section 2.1
Colour
enhanced
SEM
Photomicrograph of a common texture
illustrating the strong association of
chalcocite with carbonates– Sample
07_50-51
Metallurgy (Process Flow Sheet)
Recovery Summary
Native Copper Ore

98% recovery of +1mm native copper from ore sample

94.1% recovery of -1mm native copper prior to milling
Primary Ore

94.3% Copper recovery

90.3% primary Cobalt recovery

85.0% Magnetite recovery to magnetic separator
rougher concentrate
Chalcocite Ore
Page 43
Section 2.1

85.0% Copper recovery

75.9% primary Cobalt recovery

90.5% Magnetite recovery to magnetic separator
rougher concentrate

Process Fine Tuning and Remaining Test-work
Currently Underway, with Further Improvements
Expected
Recovery Detail
Native Copper Ore:
 recovery of +1mm native copper from ore sample 98%
 separation efficiency for +1mm native copper 95%
 recovery of -1mm native copper prior to milling by spirals
and Knelson Concentrator proven feasible
 recovery of -1mm native copper prior to milling 95%
Primary Ore:
 overall copper recovery to concentrate 94.3%
 final copper (chalcopyrite) concentrate grade 34.4% Cu
 no deleterious elements identified that would attract penalties from end users
 primary cobalt recovery 90.3%
 final pyrite concentrate grade 5,600ppm Co
 overall magnetite recovery to magnetic separator rougher
concentrate 85.0%
Chalcocite Ore:
 overall copper recovery to concentrate 85.0%
 final copper (chalcocite) concentrate grade 56% Cu
 overall cobalt recovery to pyrite concentrate 70%
 final pyrite concentrate grade 3,500 ppm Co
 overall magnetite recovery to LIMS rougher concentrate
90.5%
Process flow-sheet
Page 44
Section 2.1
Process Flow-sheet

proposed flow-sheet successfully treated 5.52 tonnes of representative
primary ore

proposed flow-sheet successfully treated 4.68 tonnes of representative
chalcocite ore

proposed flow-sheet currently successfully treating 10 tonnes of native
copper ore

High Pressure Grinding Rolls (HPGR) successful as primary comminution
process, for all three ore types

Continuous jigs proven to produce high purity native copper metal stream at
high recovery levels

Spiral and Knelson concentrator tested for fine copper recovery

Proposed flotation scheme works for the three ore types

Representative batches of concentrates (chalcopyrite, chalcocite, pyrite/
cobalt and magnetite) produced for marketing

Native copper nuggets and fines concentrate produced for marketing

Representative batches of all product streams produced for further testing,
(eg. Dangerous Goods classification, toxicology and for developing a
Material Safety Data Sheet for Rocklands concentrate products)
Page 45
Section 2.1
Native copper nuggets recovered during pilot test-work on bulksamples of Rocklands ore during processing of the bulk native
copper sample. Nuggets shown beside an Australian 10 cent coin
(approximately 24.5mm).
Section 2.2
Development Path
Page 46
Section 2.2
Development Path (Site General Arrangement)
Page 47
Section 2.2
Development Path (Site General Arrangement)
Page 48
Section 2.2
Development Path
Power Options

CuDeco has entered the final decision stages for
its power options.

Several options being considered all of which
have merit.

CuDeco is in a good position for a reliable supply
for the life of the mine.

The Company may consider installing its own
gas fired turbine as a standby and phase one
option whilst waiting for the Queensland
Government’s planned Copper String Power
Line from Townsville, which is expected to be
completed in 2012/13.
State Grid Sub-station just
7km from Rocklands
Gas fired turbine power station
Page 49
Section 2.2
Development Path
Power Options

Renewable energy sources such as solar and
wind-power (local or remote) are being
investigated as supplementary power supplies.

Wind testing stations to be erected on site.

Cloncurry is widely regarded as holding the
record for the highest temperature recorded in
Australia at 53.1 °C (127.5 °F). Extreme solar
conditions make Cloncurry perfect for solar
power generation.
Executive Chairman Wayne McCrae, inspecting Wind Turbine plant in China.
Solar collector on the outskirts of Seville, produces a peak capacity of
11 megawatts (MW) of electricity generated from steam driven turbines.
Excess heat from the day is stored in containers of molten salt, enabling
the plant to generate power 24 hours a day.
Page 50
Section 2.2
Development Path
Local Work-Force

The Rocklands site is located approximately
15km from the major regional township of
Cloncurry.

Town Planning Approval for construction of a
200-person accommodation village in Cloncurry

Approval for 48 housing block sub-division in
Cloncurry.

Engineering Design Project Office Complex in
Cloncurry, completed and in use.

Fully self-contained accommodation cabins to
house 20 staff located at Cloncurry Office
Complex Site and currently in use.

Permanent positions to be encouraged at the
Rocklands Mine on a non fly-in / fly-out basis.

Significant savings over typical mining camps.
Some of the 20 accommodation
cabins at the Office Complex Site
Town Planning Approval has been
received for a 200-person accommodation
village in Cloncurry
Engineering Design Project Office
Page 51
Section 2.2
Development Path
Major Mining Equipment Purchased

The Company has acquired the majority of the
earthmoving equipment and support equipment
required for mining operations at Rocklands.

Mining operation to be contracted out - the
contractors will be responsible for the upkeep
and maintenance of all equipment, to be
monitored by CuDeco audit process.

Major fleet items include 7 up to 200 tonne
Hitachi late-model excavators and 16 Komatsu
dump trucks.

Other associated equipment includes dozers,
water trucks, graders, service trucks, drill and
blast equipment and loaders. Combined new
value; over $40m.

Equipment is located on site and is owned 100%
by CuDeco Ltd.
Hitachi 1900 Excavator.
To date, 16 Komatsu dump trucks
have been purchased and are
progressively being re-fitted or
upgraded to mine specification
standard.
Page 52
Section 2.2
Development Path (Cloncurry Rail Spur)
Cloncurry Multi-user Rail Loop and
Subdivision

Memorandum of Understanding (MoU) entered
into for lease of up to 900Ha outside south-east
boundary of township...preferred option for
minimal impact on township

Bounded by current Townsville/Mt Isa/Duchess
rail line network and the Flinders Highway

Lease over the land for period of 40 years

Discussions with third party users

MOU With Australian Rail Group (ARG) for
guaranteed rail access

ARG expressed interest in participating in the
Multi-user Facility in Cloncurry

Completes the link between Cloncurry and Port
of Townsville Facility
Page 53
Section 2.2
Preliminary layout design and space analysis of CuDeco’s Multi-user Rail Loop and
Subdivision.
Access to International/Domestic Markets
Development Path (Port of Townsville)
Right; Outloading mobile
conveyor to outload
stage 2
Left; Conveyor system and
shiploader at Berth 4
Below; Stormwater & dust
management design
Below; Shiploader and
Conveyor Termination
at Berth 4
Port of Townsville - CuDeco Ship Loader, Conveyor Route and Storage Facility
Access to International/Domestic Markets
Page 54
Section 2.2
Development Path (Rocklands)
In-house Design Development
Significant savings over contract design services
Rocklands

Workshop Complex incorporating Mining and
Workshop Administration Offices

Process Mill Office Complex and support
buildings

General Administration Buildings
Cloncurry

Contractor Office Complex

Staff accommodation

Contractor accommodation

Land bank established for future use
Page 55
Section 2.2
Design layouts - cut-away image of General Administration Block (top), detail of Workshop
Service Bays (bottom left) and cut-away of ground-floor area of Workshop Administrative
Offices (bottom left)
Section 3.1
Pit Optimisation Study
Page 56
Section 3.1
Pit Optimisation Study (Indicative Schedule)
Page 57
Section 3.1
Page 58
Section 3.1
Page 59
Section 3.1
Page 60
Section 3.1
Page 61
Section 3.1
Page 62
Section 3.1
Page 63
Section 3.1
Page 64
Section 3.1
Page 65
Section 3.1
Page 66
Section 3.1
Page 67
Section 3.1
Page 68
Section 3.1
Page 69
Section 3.1
Page 70
Section 3.1
Page 71
Section 3.1
Page 72
Section 3.1
Page 73
Section 3.1
Page 74
Section 3.1
Page 75
Section 3.1
Page 76
Section 3.1
Page 77
Section 3.1
Page 78
Section 3.1
Page 79
Section 3.1
Page 80
Section 3.1
Page 81
Section 3.1
Page 82
Section 3.1
Page 83
Section 3.1
Contents
Section 3.2
Geology & Resource
Page 84
Section 3.2
Geology and Resource
EPM13049 - Main Group of 5 Sub-blocks
Page 85
Section 3.2
Morris Creek Fault - primary ore near surface to east of fault (right of page)
Page 86
Section 3.2
Drill traces showing copper equivalent grades (Cu Eq)
Page 87
Section 3.2
Drill traces showing copper equivalent grades (Cu Eq)
Page 88
Section 3.2
3D model of orebodies
Page 89
Section 3.2
3D model - distribution of ore-types
Page 90
Section 3.2
3D model - grade distribution (Cu Eq)
Page 91
Section 3.2
3D model - grade distribution (Cu Eq)
Page 92
Section 3.2
Geology and Resource (cross section)

Proximal to ore-bodies, stratigraphic units dip to the north

Las Minerale structural domain 1 (vertical) near-surface

Las Minerale structural domain 2 (sub-vertical, south dipping below RL100m)
Page 93
Section 3.2
Geology and Resource (cross section)

Southern Lodes sub-vertical dip to the north

Rocklands South Offset Fault interpreted to dip steeply to the east

Las Minerale Hanging-wall Dolerite Wedge thickens and widens to the west
Page 94
Section 3.2
Geology and Resource (investigating sample loss)
Investigating Sample Recovery in Chalcocite and
Native Copper Zones, Using Diamond Drilling and
Reverse Circulation Drilling Techniques.
Limited twin hole drilling programme compared copper assay
results from both diamond and reverse circulation drilling, for
assay results over 0.2% Cu in both the Native Copper only and
Chalcocite only zones at Las Minerale.
Speculation;

Soft sooty fine-grained chalcocite within vuggy matrix
(typical at Las Minerale), being lost during diamond drilling.

Large native copper nuggets within soft matrix, not
returning for sample analysis via the small (approx. 20mm)
return holes on RC drill hammer.
Example of large native copper nugget, possibly encountered in soft clay or friable
oxide material and unable to return up the small (20mm) sample return holes at the
end of the RC bit. Left; the remaining middle section appears to have been “stamped”
out of a larger solid copper nugget that has been flattened, then cut through by the bit
and right; underside of the copper “stamp” showing how the metal was pushed into the
two sample return holes (top right & bottom left) and was unable to return to surface
Key observations from the study include;

Chalcocite Only Zones - Assay results for copper 49%
higher on average from RC than diamond drilling. (Diamond
drilling potentially washing away sooty massive chalcocite?)

Native Copper Only Zones - Assay results for copper 19%
higher on average from diamond drilling than RC. (RC
drilling potentially unable to recover large native copper in
soft matrix due to size of return hole on hammer?)
Page 95
Section 3.2
Trace
fine-grained
sooty
chalcocite identified in voids
remaining
in
metallurgical
diamond drill hole DODH012,
above (53m) and left (81-85m).

Differences are negligible at low grades and
increase significantly as grade increases in
both the Native copper and Chalcocite only
zones.

RC drilling on average results in 10% less
coarse native copper but 23% more fine native
copper when compared to diamond drilling.
Deep costean over central Las Minerale
provides further evidence of potential
sample loss, intersecting high-grade oxide
copper minerals including malachite,
azurite and particularly chalcocite, in areas
not
defined
to
contain
copper
mineralisation in resource estimate.


Chalcocite not previously identified in either
diamond or RC drilling above 12m in this area,
and not included in chalcocite domain in
current resource estimate.
Heavily oxidised native copper nuggets (up to
80mm in size), identified just 5m from surface
in soft oxide matrix. Native copper has not
been logged from RC drilling above 12m in this
area, which has not been included in native
copper domain in current resource estimate.
Page 96
Section 3.2
Oxide copper zone (red shaded area) identified adjacent to the
Las Minerale orebody during recent excavation of a deep
costean. The red shaded area adjacent to Las Minerale is
speculated to exist, and will be the subject of a specifically target
infill bedrock drilling programme that will test for the existence of
these zones along the entire Las Minerale strike length.
The green-grey/olive coloured highgrade copper-rich ore is easily
identified against the red-coloured,
iron-rich gangue (waste) material.
The deep costean, excavated over
central Las Minerale was constructed
in two stages, the second of which
was limited by the vertical reach of
the excavator.

Significant zones of oxide mineralisation identified in areas immediately adjacent to the Las Minerale orebody. The
mineralised area is typical of zones that have been omitted from the resource estimate due to drilling “voids”, often
immediately adjacent to the vertical orebody.
Left; current resource block model (left), showing Las Minerale native copper domain (red) and chalcocite domain (purple), wi th overlapping zones in between. The large costean
(white outline) targeted a shallow traditional oxide zone (malachite, azurite), but also intersected native copper and chalcocite.
Middle and right; Example of 1m benches that were sampled in deep costean located over central Las Minerale, with exposed mal achite, azurite and chalcocite. A wide costean was
first excavated to a depth of 7m, at the base of which a second narrow costean was excavated to the maximum vertical reach of the excavator. A total combined depth of 12m was
reached.
Page 97
Section 3.2
Section 3.3
Exploration Upside
Page 98
Section 3.3
Exploration Upside
Significant Exploration Upside

Wilgar Prospect (significant Au, Ag, Mo, Te and U).

Fairfield...shallow, high-grade Cu, open in all directions.

South-west Prospect - significant geophysical and geochemical signatures.

Amphibolite Prospect - potential new discovery, with disseminated copper minerals identified in large outcropping unit, unlike
other mineralised zones at Rocklands.

Las Minerale Along Strike to north-west

Rocklands group mostly open at depth & numerous geophysics targets throughout ML
Wilgar Twin-hills, as viewed from the
top of the nearby Breccia Hill, with
indicative outline of currently identified
Wilgar mineralisation (dark and light
shading). The dark shaded area is the
shallow mineralised outline identified to
date
from
bedrock
drilling
(approximately 80m x 50m). The lightred shaded area is the interpreted subcropping high-grade zone which is up
to 15m wide. Mineralisation remains
open along strike to the west, north,
and at depth.
Page 99
Section 3.3
Exploration Upside (Geophysics)
Page 100
Section 3.3

Large scale Magnetics
(Air Mag survey) helps
delineate major
geological units

Dolerite, which is a
magnetic rock type, is
often associated with
mineralisation at
Rocklands

Magnetic lows help
identify sedimentary
units, often host to
mineralisation at
Rocklands.
Page 101
Section 3.3

Sub Audio Magnetics Total Magnetic Intensity,
Reduced to Pole (SAM
TMI RTP) geophysics
survey.

Used in conjunction with
SAM Conductivity
interpretation, is proving
to be an invaluable tool
in highlighting zones of
mineralisation.

In-house proprietary
filtering system achieves
significant exploration
success.

Correlation with
mineralisation and
interpreted SAM
signatures at Rocklands.
Page 102
Section 3.3

Sub Audio Magnetics
(SAM) Conductivity
geophysics survey has
proven to be an
invaluable exploration
tool.

Most successful
geophysics reference
tool used at Rocklands
to date.

SAM survey covers all
of the Rocklands EPM.

Numerous targets
remain to be drill tested.
Page 103
Section 3.3

Radiometrics survey (total
count uranium per
second).

Wilgar Prospect is a major
target, with significant,
high-grade Polymetailc
mineralisation including
Au, Ag, Mo, Te, Se and U

South-west Anomaly
significantly larger than
Wilgar, with an areal
extent of approximately
1.25km x 1km
Page 104
Section 3.3

Induced Polarisation (IP)
survey to approximately
650m depth

Significant Chargeability
targets exist throughout
the EPM, some of which
are similar in style to the
signature corresponding
with the eastern end of
the Las Minerale
orebody.

Large untested anomaly
in the south-west of the
EPM
Page 105
Section 3.3

Induced Polarisation (IP)
survey to approximately
650m depth

Significant Conductivity
targets exist throughout
the EPM, some of which
are similar in style to the
signature corresponding
with the Las Minerale
orebody.
Grid: 100m x 100m
Page 106
Section 3.3
Grid: 100m x 100m
Page 107
Section 3.3
Grid: 100m x 100m
Page 108
Section 3.3
Grid: 100m x 100m
Page 109
Section 3.3
Exploration Upside (Geophysics - Northern Siltstone)
Grid: 100m x 100m
Page 110
Section 3.3
Induced Polarisation (IP) chargeability survey, sliced into sections, with approximate position of current resource model inset.
Over 30 IP targets remain untested throughout the Rocklands EPM (including chargeability and conductivity anomalies), as
well as additional Sub-Audio Magnetic (SAM), Radiometric, Gravity and geochem targets.
Page 111
Section 3.3
Significant Targets Identified by Consulting
Geophysicist
Induced Polarisation (IP), 3D inversion model (chargeability),
showing priority target areas as identified by consultant
geophysicist, and location of existing orebodies.
Page 112
Section 3.3
Target 1 -
Southwest Radiometric High/Very High
strong IP Anomaly.
Target 2 -
Central Western IP/SAM MMR Anomaly
Target 3 -
Rocklands west conductivity/SAM MMR
anomaly
Target 4 -
SAM MMR Anomaly
Target 5 -
Rainden SAM MMR Anomaly
Target 6 -
Solsbury Hill IP anomaly
Target 7 -
Wilgar SAM MMR anomaly Isolated
unnamed SAM MMR anomaly
Target 8 -
SE corner of Target 1 above, SAM MMR
Moderate
Exploration Upside (Wilgar)
Wilgar - bonanza gold grades and high-grade silver,
tellurium, molybdenum and uranium up to;
Gold (Au): 1090g/t
(Drill hole DODH264 - 35 ounces per tonne from 7-8m)
Silver (Ag): 3260g/t
(Drill hole LMRC753 - 104.8 ounces per tonne from 52-53m)
Tellurium (Te): 3500ppm
(Drill hole 3.5kg pounds per tonne from 5-6m)
Molybdenum (Mo): 3.18%
(Drill hole 70.1 pounds per tonne from 7-8m)
Uranium (U): 1.37%
(Drill hole 30.2 pounds per tonne from 8-9m)
Visible gold and possible tellurides in drill hole DODH240 at
approximately 11m, which assayed 348g/t Au
Wide zones of mineralisation intersected including results
up to;
Gold (Au): 17m @ 48.4g/t Au
(Drill hole DODH248 - 1.56 ounces per tonne from 3-20m)
Wilgar remains open to the west, north and at depth
Gold (Au): 24m @ 34.4g/t Au
(Drill hole DODH223 1.11 ounces of gold per tonne from 14-38m)
Page 113
Section 3.3
Exploration Upside (Wilgar)
Three dimensional view of Wilgar drill hole intercepts (bedrock, RC and diamond), with mineralised intervals represented as
2m x 2m x1m blocks...silver (Ag) and gold (Au) shown.
Page 114
Section 3.3
Exploration Upside (Fairfield)
Fairfield - High-grade Cu Prospect (Under-explored)
Results include;
DODH320:
Intersected:
Including:
23m @ 4.19% CuEq
7m @ 6.54% CuEq
(from 48-71m)
(from 61-68m)
DORC330:
Intersected:
10m @ 3.91% CuEq (from 56-66m)
DODH242:
Intersected: 10m
@ 3.08% CuEq
(from 101-111m)
DODH383:
Intersected:
Historic records reveal Fairfield produced 1118 tonnes of ore at an
average grade of 6.50% Cu, from 1968-1972. Workings evident
today include an open cut pit to a depth of approximately 15m with
exposed copper oxide minerals (malachite, azurite) clearly evident
on the pit walls.
Page 115
Section 3.3
21m @ 1.01% CuEq
(from 27-48m)
LMRC458:
Intersected: 22m
@ 1.30% CuEq (from 87-109m)
Exploration Upside (South-west Prospect)
Major Target - South-west Prospect Area
Wilgar is one of two significant Radiometric anomalies
identified at Rocklands. The second is located in the
south-west corner of the EPM where an anomaly over
1.2km x 1km in size has been identified.
This much larger Radiometric anomaly also coincides
with an Induced Polarisation (IP) geophysical anomaly
and was recently highlighted as a major target by a
senior consulting geophysicist.
Induced Polarisation (IP) Chargeability
survey, showing the location of Wilgar
(circled top right) and the large anomaly
in the south-west of the EPM.
Page 116
Section 3.3
Radiometric survey (total cps), showing
the location of Wilgar (circled top right)
and the large anomaly in the south-west
of the EPM.
Major Target - South-west Prospect Area
Geochemical surveys including soil sampling and
shallow bedrock drilling, has identified elevated Cu, Zn,
Pb, Mo and U, coincident with the geophysical targets.
Exploration upside (undrilled) - Induced Polarisation - 3D inversion model (chargeability),
with coincident Airborne Radiometric-high anomaly outlined. Separate zone of elevated Cu,
Te and Au also shown.
Exploration upside (undrilled) - Gravity 3D inversion model
showing relationship to new zone of elevated Cu, Te and
Au, on the southern margin of the south-west anomaly area.
Page 117
Section 3.3
A separate unit of massive amphibolite, (medium-high
temperature metamorphic rock) has also been identified
in the South-west Prospect area, with elevated Cu, Te
and Zn identified from outcrop, soil sampling and
bedrock drilling. The rock type is not common at
Rocklands over such large areas, nor with consistently
anomalous disseminated copper minerals.
Possible New Discovery - South-west
Amphibolite Prospect.
Close-up of freshly broken massive amphibolite outcrop containing finely disseminated malachite clearly visible under a geologists eye-glass. The green minerals are disseminated oxide
copper minerals, interpreted to be the product of oxidation of primary copper sulphides. Handheld XRF result for above specimen inset.
Sub-audio Magnetics (SAM - tmi rtp), showing approximately 1km long exploration target associated with a massive amphibolite unit identified in the far south-west of the tenement.
Page 118
Section 3.3
A unit of massive amphibolite, (medium-high
temperature metamorphic rock), has been
observed in the far south of the Rocklands
EPM13049
tenement,
throughout
which
anomalous disseminated copper mineralisation
has been observed, suggesting it may have
been altered by a mineralising metamorphichydrothermal system.
The rock type is not common at Rocklands over
such large areas, nor with consistently
anomalous disseminated copper minerals.
Exploration Upside
Eriachne Mucronata (copper grass)
Found throughout the Rocklands EPM and can be seen growing around
malachite outcrop.
Usually indicates elevated Cu levels (200ppm+) in background soil at Rocklands,
but is also known to indicate the presence of other elevated base metals in the
soil such as zinc and lead.
Often grows where nothing else will, due to Copper tainted soil profile, which is
mostly toxic to other plant life.
Other geobotanical indicators include “copper weed”, a ground spreading and
flowering wide leave plant and variations on the above “copper grass” including
Eriachne Robusta, which is a taller standing version of the more shrub like copper
grasses show above left.
Malachite Uncovered in Costean
Malachite (copper oxide) in siltstone, uncovered in exploration costean (trench),
coincident with geochemical and geophysical anomalies. The mineralised zone
shown left, also correlates with a SAM conductivity anomaly in the south-west of
the Rocklands EPM, in an area that has not been drilled.
Page 119
Section 3.3
Section 3.4
Photo Gallery
Page 120
Section 3.4
Photo Gallery
Native copper nuggets recovered during pilot testwork on bulk-samples of Rocklands ore during
processing of the bulk native copper sample.
Nuggets shown beside an Australian 10 cent coin
(approximately 24.5mm).
Page 121
Section 3.4
Photo Gallery
Visible gold and possible tellurides in drill hole
DODH240 at approximately 11m, which assayed
348g/t Au (left), and visible gold in drill hole
DODH223 at 17m which assayed 655g/t Au (below)
Page 122
Section 3.4
Photo Gallery
Examples of Native Copper, Malachite, Chalcopyrite
and Chalcocite in Diamond Drill core
Page 123
Section 3.4
Photo Gallery
Page 124
Section 3.4
Competent Person Statement
Competent Person Statement
The information in this report that relates to Exploration Results is based on information compiled by Mr Andrew Day. Mr Day is employed by GeoDay Pty Ltd, an entity engaged, by
CuDeco Ltd to provide independent consulting services. Mr Day has a BAppSc (Hons) in geology and he is a Member of the Australasian Institute of Mining and Metallurgy (Member
#303598). Mr Day has sufficient experience which is relevant to the style of mineralization and type of deposits under consi deration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ores Reserves”. Mr Day consent
to the inclusion in this report of the information in the form and context in which it appears.
The information in this report insofar as it relates to Metallurgical Test Results and Recoveries, is based on information co mpiled by Mr Peter Hutchison, MRACI Ch Chem, MAusIMM,
a full-time executive director of CuDeco Ltd. Mr Hutchison has sufficient experience in hydrometallurgical and metallurgical te chniques which is relevant to the results under
consideration and to the activity which he is undertaking to qualify as a competent person for the purposes of this report. Mr Hutchison consents to the inclusion in this report of the
information, in the form and context in which it appears.
Rocklands style mineralisation
Dominated by dilational brecciated shear zones, throughout varying rock types, hosting coarse splashy to massive primary mine ralisation with high-grade supergene chalcocite
enrichment and bonanza-grade coarse native copper. Structures hosting mineralisation are sub-parallel, east-south-east striking, and dip steeply within metamorphosed volcanosedimentary rocks of the eastern fold belt of the Mt Isa Inlier. The observed mineralisation, and alteration, exhibit affinit ies with Iron Oxide-Copper-Gold (IOCG) classification.
Polymetallic copper-cobalt-gold mineralisation, and significant magnetite, persists from the surface, through the oxidation profile, and remains open at depth.
Wilgar style mineralisation
Polymetallic and rare element hosting prospect, which includes mineralisation of Au, Mo, Ag, Te, Se, ±U. The high-grade gold, silver and tellurium may be present as tellurides and
mineralisation may be related to an IRGS (Intrusion-Related Gold System).
Notes on assay results - Wilgar style mineralisation
All analyses are carried out at internationally recognized, independent, assay laboratories. Quality Assurance (QA) for the a nalyses is provided by continual analysis of known
standards, blanks and duplicate samples as well as the internal QA procedures of the respective independent laboratories.
Wilgar drill intersections reported have been calculated on the basis of a gold cut-off grade of 0.4g/t AuEq with 3m allowance for internal waste.
Reported intersections are down-hole widths. Weighted averages are reported in drill holes with more than one intercept of mineralization.
Au = Gold
Ag = Silver
Page 125
Section 3.5
Competent Persons Statement
Te
Mo
Pb
Cu
Co
U
Se
Zn
= Tellurium
= Molybdenum
= Lead
= Copper
= Cobalt
= Uranium
= Selenium
= Zinc
Gold (Au) equivalent calculation
The formula is based on metal prices of:
Gold
$1200.00 USD/ounce
Silver
$30.00 USD/ounce
Tellurium
$300.00 USD/kg
U3 O 8
$45.00 USD/lb
Molybdenum
$25.00 USD/lb
Notes on assay results - Rocklands style mineralisation
All analyses are carried out at internationally recognized, independent, assay laboratories. Quality Assurance (QA) for the a nalyses is provided by continual analysis of known
standards, blanks and duplicate samples as well as the internal QA procedures of the respective independent laboratories.
In order to be consistent with previous reporting, the drill intersections reported above have been calculated on the basis o f a copper cut-off grade of 0.2% Cu, or a copper equivalent
grade of 0.35%, with an allowance of up to 4m of internal waste.
Reported intersections are down-hole widths. Combined Copper Equivalent results reported over multiple intersections are calculated on a weighted average.
Cu
= Copper
Co
= Cobalt
Au
= Gold
Page 126
Section 3.5
Competent Persons Statement
CuEq
= Copper Equivalent
Copper equivalent (CuEq) calculation
The formula for calculation of copper equivalent is based on the metal prices and metallurgical recovery of:
Copper: $2.00 US$/lb; Recovery: 95.00%
Cobalt: $26.00 US$/lb; Recovery: 90.00%
Gold: $900.00 US$/troy ounce Recovery; 75.00%
The recoveries used in the calculations are the average achieved to date in the metallurgical testwork on primary sulphide, supergene, oxide and native copper zones.
The Company’s opinion is that all of the elements included in the copper equivalent calculation have a reasonable potential t o be recovered.
Bedrock Drilling
Bedrock drilling at Rocklands is completed with the Company’s own Ingersoll Rand, LM500C Rotary Air Blast (RAB), Hydraulic Cr awler Drill, which drills vertical holes from the surface
down until hard bedrock is reached. When reached, the drill continues for another metre before stopping. Samples are taken do wn hole in 1 metre intervals from surface, including the
last metre which is typically hard bedrock. A six metre hole typically provides 5m of softer, decomposed surface material (co lluvium, alluvium, regolith or just plain soil), and one metre
(the last metre), of fresh bedrock. The depth of the softer cover material at Rocklands generally varies from 2 to 14 metres in thickness.
Page 127
Section 3.5
Resource Notes
cut-off
CuCoAu
%
0.20
0.40
0.80
Tonnes
cut-off
CuCoAu
%
0.20
0.40
0.80
Tonnes
cut-off
CuCoAu
%
0.20
0.40
0.80
Tonnes
cut-off
CuCoAu
%
0.20
0.40
0.80
Tonnes
cut-off
CuCoAu
%
0.20
0.40
0.80
Tonnes
Page 128
Mt
47.2
34.6
13.8
Mt
121.9
63.3
16.4
Mt
169.2
97.9
30.3
Cu
%
0.41
0.54
1.10
Measured Resource Estimate May 2011 at various cut-off grades
Estimated Grade
Copper Equivalent
CuEq
Co
Au
Mag
CuCoAu
Cu
%
ppm
ppm
%
%
Mlb
1.00
353
0.10
2.94
0.89
425
1.20
407
0.11
2.97
1.10
410
2.06
597
0.19
3.53
1.93
335
Cu
%
0.19
0.32
0.81
Indicated Resource Estimate May 2011 at various cut-off grades
Estimated Grade
Copper Equivalent
CuEq
Co
Au
Mag
CuCoAu
Cu
%
ppm
ppm
%
%
Mlb
0.64
241
0.08
3.10
0.53
505
0.83
291
0.11
2.74
0.74
448
1.40
367
0.19
1.32
1.36
293
Rocklands Resource
Contained Metal,
CuEq
CuCoAu
Mlb
Mlb
1,037
929
918
838
628
589
Contained Metal,
CuCoAu
Mlb
1,417
1,026
491
CuEq
Mlb
1,712
1,161
508
Total Measured and Indicated Resource Estimate May 2011 at various cut-off grades
Estimated Grade
Copper Equivalent
Contained Metal,
CuEq
Cu
Co
Au
Mag
CuCoAu
Cu
CuCoAu
%
%
ppm
ppm
%
%
Mlb
Mlb
0.74
0.25
273
0.09
3.05
0.63
930
2,347
0.96
0.40
332
0.11
2.82
0.86
858
1,864
1.70
0.94
472
0.19
2.34
1.62
627
1,081
CuEq
Mlb
2,750
2,080
1,136
Inferred Resource Estimate May 2011 at various cut-off grades
Estimated Grade
Copper Equivalent
CuEq
Co
Au
Mag
CuCoAu
Cu
%
ppm
ppm
%
%
Mlb
0.42
167
0.10
2.87
0.32
134
0.62
269
0.08
2.11
0.55
78
1.25
281
0.13
1.06
1.22
19
Contained Metal,
CuCoAu
Mlb
724
248
29
CuEq
Mlb
957
282
29
Total Measured Indicated and Inferred Resource Estimate May 2011 at various cut-off grades
Estimated Grade
Copper Equivalent
Contained Metal,
CuEq
Cu
Co
Au
Mag
CuCoAu
Cu
CuCoAu
Mt
%
%
ppm
ppm
%
%
Mlb
Mlb
272.9
0.62
0.18
233
0.09
2.98
0.51
1,064
3,070
118.5
0.90
0.36
321
0.11
2.70
0.81
935
2,112
31.4
1.69
0.94
465
0.19
2.29
1.61
646
1,109
CuEq
Mlb
3,704
2,361
1,165
Mt
103.7
20.6
1.1
Cu
%
0.06
0.17
0.80
Section 3.5
References to the Rocklands Resource,
and/or Rocklands Resource Estimate,
have been sourced from the Company’s
Resource Estimate Report 2011 released
via the ASX on the 25th May 2011 which
is based on work undertaken by Mr Andrew J. Vigar, who is an employee of
Mining Associates Pty and a Fellow of
The Australasian Institute of Mining and
Metallurgy, and qualifies as a Competent
Person as defined in the 2004 Edition of
the “Australasian Code for Reporting of
Exploration Results, Mineral Resources
and
Ore
Reserves‟
(JORC
Code). Pursuant to the requirements of
ASX Listing Rule 5.6 and clause 8 of the
JORC Code, Mr Vigar included with that
Report a Written Consent Statement
verifying that the Report fairly and accurately reflected the information in the
supporting documentation relating to
Mineral Resources. A detailed description of the resource estimation methodology is included in the above mentioned
Report, completed by Mining Associates
Pty. Ltd. and released to ASX on 25th
May 2011.
Resource Notes
Notes to accompany the Resource Estimate:
The Rocklands tenements are owned 100% by CuDeco Limited (ASX:CDU).
The mineral resource estimate is based on all 3,793 drill holes (306,671.2m) including 305 diamond drill holes (69,521.0m) and 1,458 RC drillholes (225,207.5m).
Mining Associates (MA) conducted a review of the data and sample collection of the historic drilling.
MA has reviewed the EAM Procedures and visited site on 4 occasions during the course of the current Drill Programme.
The geological resource is constrained by domains consisting of 3D models. The mineralised domains were digitised on cross sections defining boundaries for High-grade Cu as >0.5%Cu, Low-grade Cu as >0.1% Cu and
Cobalt as >100ppm Co. The domains are nested. There are a total of 36 currently defined domains.
Drill intercepts within each lode are flagged in a database table and composited for each assay element separately to 2m downhole giving 39,157 informing two metre composites for Cu in the domained areas and 20,780 in
the undomained from drillholes.
A grade cap was applied to informing composites to remove outliers. Cu grades were capped at 23%, Co grades at 5,000ppm, Au grades at 10ppm and Magnetite% at 44%.
Density was determined on 3,002 samples throughout the ore body using the immersion method. Bulk density is related to the oxidation state of the rock and extent of mineralisation. The geologists have logged three oxidation states between totally oxidised to un-oxidised fresh rock. The oxidation states of each block were defined by wireframes based on sectional interpretation. Density was assigned based on the weathering profile and
copper and magnetite grades.
Block model parent block size selection of XYZ 50 x 8x 20m was chosen The estimation block size was varied by resource category down to the sub-block size of 12.5 m (E) by 2 m (N) by 5 m (RL) was used against all
wireframes for volumes. The model was screened for topography by block.
Grade was interpolated into a constrained block model in 3D space by domain using Ordinary Krige estimation with parameters based on directional variography by domain. Estimates were validated against informing samples and with nearest neighbour and inverse distance squared. The block model was also checked against recent CuDeco Drilling.
Informing samples were composited to 2 m within domains and 10 m in undomained areas. A minimum of 10 composites for both a maximum of 20 samples for domained and 10 samples for undomained.
Resources have been classified as Measured, Indicated and Inferred for the domained areas based on the number of informing samples, average distance and the kriging variance for each block. All undomained blocks are
classed as Inferred.
Lower cutoff grade of 0.2% CuCoAu and only blocks above -250m RL were applied to blocks in reporting the resource estimates in a range of cut-off grades. Magnetite has not been included in the cut-off grade as it is not
directly related to the mineralisation, but will be produced as a by-product so is included in the final Block Model report and estimates.
Copper equivalents have been calculated assuming average metal prices and recoveries. A copper price of USD2/lb and recovery of 95%; a cobalt price of USD26/lb and recovery of 90%; a gold price of USD900/oz and
recovery of 75% and a magnetite price of $US185/t. The CuCoAu for selection of cut-off grades does not include the magnetite, but it is included for calculation of final metal equivalents, as follows. It is the company's opinion that all the elements included in the metal equivalents calculation have a reasonable potential to be recovered.
CuCoAu% = cu_perc_krig + co_ppm_krig*0.001232 + au_ppm_krig*0.518238
CuEq% = cu_perc_krig + co_ppm_krig*0.001232 + au_ppm_krig*0.518238 + mag_perc*0.035342
Reported Tonnage and grade figures have been rounded off to the appropriate number of significant figures to reflect the order of accuracy of an inferred estimate. . Minor variations may occur during the addition of rounded
numbers.
Page 129
Section 3.5
Section 3.5
Questions and Answers
Page 130

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