rocklands group copper project - asxhis current focus to get the rocklands group copper project into...

Rocklands Group Copper Project Building a World Class Copper Mine

2013 ANNUAL GENERAL MEETING

For

per

sona

l use

onl

y

Disclaimer

PRESENTATION 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 28th day of November 2013. 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.

For

per

sona

l use

onl

y

Only 205.7m Shares on Issue

Key Development Milestones

$34m Cash at hand (September 2013 Quarterly) – No Debt

Owns Own Mining Fleet 100% Mostly purchased during GFC

All Approvals Received (Mining Leases granted, Native Title Agreements, Environmental Authority, etc)

Process Plant Componentry Full Paid For (Zero Balance Remaining)

Secured Rail-Load Facility in Cloncurry CuDeco regains 100% ownership

Secured Ship-Loading Facility at Port of Townsville (Currently under development – access to international markets secured)

Crushing Circuit Completed Undergoing Commissioning

Mining Operations Underway

For

per

sona

l use

onl

y

Significant JORC Compliant Resource Inventory Based on over 305,000m of drilling Discovery Costs ~ 1.5c/lb

Key Resource Milestones

30.3mt @ 1.7% CuEq (0.8% cut-off) Measured and Indicated


272.9mt @ 0.62% CuEq (0.2% cut-off) Measured & Indicated and inferred

Mineralisation Commences From Surface High-Grade Supergene Zone (Native Copper & Chalcocite) – accessed in initial years

*See details and notes to JORC compliant resource estimate from page 35 Note; copper equivalent (CuEq) is a net recovered metal calculation (ie, recovered grade) based on the copper grade, with expected recoveries of cobalt & pyrite (includes sulphur credit) and gold and magnetite to be processed through the Company’s Process Plant, converted to an “equivalent” copper grade for ease of reporting. See Notes to the Resource Estimate (from page 26) for full details of calculation.

For

per

sona

l use

onl

y

Significant JORC Compliant Resource Inventory Based on over 305,000m of drilling Discovery Costs ~ 1.5c/lb

Key Resource Milestones



272.9mt @ 0.62% CuEq (0.2% cut-off) Measured & Indicated and inferred

Mineralisation Commences From Surface High-Grade Supergene Zone (Native Copper & Chalcocite) – accessed in initial years

RESOURCE

UPDATE

RELEASED

SHORTLY

*See details and notes to JORC compliant resource estimate from page 35 Note; copper equivalent (CuEq) is a net recovered metal calculation (ie, recovered grade) based on the copper grade, with expected recoveries of cobalt & pyrite (includes sulphur credit) and gold and magnetite to be processed through the Company’s Process Plant, converted to an “equivalent” copper grade for ease of reporting. See Notes to the Resource Estimate (from page 26) for full details of calculation.

For

per

sona

l use

onl

y

About The Rocklands Copper Project

•  Mining Leases ML90177 & ML 90188 (white) and Corridor ML90219 (cyan) Rocklands Group Copper Project

•  EPM18054 (yellow) Strategic Importance (with exploration potential)

•  Located approximately 15km from the Cloncurry township and base for workforce

•  Company’s new Cloncurry Multi-user Rail Load Facility located immediately east of the township of Cloncurry.

For

per

sona

l use

onl

y

The Directors

Wayne McCrae – Executive Chairman Wayne McCrae’s experience includes all facets of mineral processing, mining, metallurgy, geology, underground and open cut mining, and on site and corporate management. In his 40 years of exploring he has steered more than 6 mining operations from grass roots exploration through to production…Rocklands however is the most exciting. Wayne’s successes include the discovery of the Century Zinc Mine in 1990 (at the time the world’s largest lead/zinc mine in Australia), and the Burton Downs Coking Coal mine (with over 200M tonnes of high grade coking coal) located in the Bowen Basin. Wayne’s trademark is to “get the job done”. In 2003 Wayne took control of bottom ranked ASX listed company Australian Mining Investments Ltd, and began producing the world’s highest grade copper sulphate pentahydrate, at Mt Normal near Cloncurry…whilst concurrently exploring on new ground the Company acquired west of Cloncurry. Using traditional exploration techniques, Wayne and then fellow director Tim Koitka (now deceased) discovered the world-class Las Minerale deposit. The Company subsequently sold the Mt Norma operations, focused all efforts on the new discovery, renamed the Company CuDeco and in the process catapulted the Company into the ASX top 200 Companies. His current focus to get the Rocklands Group Copper Project into production which is likely to be the final mining project in Wayne McCrae’s outstanding career.

Peter Hutchison – Executive Director Peter Hutchison is a process chemist and hydrometallurgist with over 40 years industry experience involving the chemical, mineral processing and water treatment businesses. During the early days of Cudeco, Peter was responsible for the development and operation of the Mt Norma copper project that at the time was producing the world’s highest grade copper sulphate pentahydrate, The Company subsequently sold the Mt Norma operations to focus all efforts on the Rocklands Project and Peter was appointed as the Senior Executive responsible for the Rocklands site. For the Rocklands project, Peter is responsible for the development of the metallurgical programmes and concept process flowsheets, and for the Definitive Feasibility Study including the environmental and other project approvals.

For

per

sona

l use

onl

y

The Directors Continued

Paul Keran Independent Non-Executive Director

A chemical engineer with more than 30 years of experience in the resource sector in Australia and internationally, in senior operations management and project development roles in base metals mineral processing, smelting and technology development. He was previously with MIM Holdings as General Manager - Group Metallurgical Development and Metallurgical Works Manager at Mt Isa. He also completed technical assessment and development of the US $1 billion Alumbrera copper/gold project in Argentina.

David Taylor Independent Non-Executive Director

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.

Gerald Lambert Independent Non-Executive Director

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.

For

per

sona

l use

onl

y

The Directors Continued

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.

Hongwei Liu Independent Non-Executive Director

Mr Liu is a graduate from Mechanical Design and Manufacturing Dalian Ocean University with a bachelor degree, and a master degree of Management from Massey University New Zealand. He specialised in professional management and administration and during his career and has been involved in a number of major investment projects covering a wide range of areas including finance and energy. Mr Liu is a director of Oceanwide International Resources Investment Co Ltd and is responsible for this Company’s investments in overseas projects especially within the finance, energy and resource sectors. My Liu is also currently the Managing Director of Minsheng Investment Management Holdings Co Limited.

Zhaohui Wu Independent Non-Executive Director

Mr. Wu (46 years) is an executive director of Natsun Australia Pty Ltd and was nominated as a represented of New Apex Asia Investment Pty Ltd. Mr Wu graduated from Xiamen University in China with the degree of Bachelor of Economics. He has worked in the international trading sector since 1989. He was involved in export business during his working at either state owned or private mineral company in China, and kept working on import & export of alumina, aluminium, wool and wine when he moved to Australia in 2002. He also has been involved in acquisition of golf resort & farms and related activities from 2008.

For

per

sona

l use

onl

y

Shares & Shareholder Information Pre Rights Issue

Share Statistics

205m Shares on Issue As of November 26th 2013

392m Market Capital As of November 26th 2013

Major Shareholders China Oceanwide Holdings Co. Ltd 15.05%

Share Holding

New Apex 12.00% Share Holding

Sinosteel Corporation 5.33% Share Holding

For

per

sona

l use

onl

y

Shares & Shareholder Information Post Rights Issue If All Parties Take Up Their Entitlement Shares

Share Statistics

239m Shares on Issue As of November 26th 2013

456m Market Capital As of November 26th 2013

Major Shareholders China Oceanwide Holdings Co. Ltd 15.05%

Share Holding

New Apex 12.00% Share Holding

Sinosteel Corporation 5.33% Share Holding

For

per

sona

l use

onl

y

Key Milestone Achievements

Major Copper Discovery - 2006 Discovery RC drill hole DORC078 skirts the top of Las Minerale intersecting 67m @ 1.08% Cu. The follow-up RC drill hole DORC079 Intersected 71m @ 2.38% Cu, confirming a major discovery. Resource Drill-Out - 2007 to 2011 Over 340,000m of drilling completed at Rocklands, some 305,000m of which used for resource estimation.

Resource Estimate - May 2011 Independent JORC compliant resource estimate prepared by Mining Associates Pty Ltd.

Mine Planning, Pit Optimisation and Mining Schedules Numerous independent consultants engaged for preliminary studies on all aspects of mining.

✓

✓

✓

✓

Purchase of majority of mining fleet during global financial crisis (GFC) The GFC provides one-off opportunity to purchase the majority of our mining fleet at significant discount to market prices, including dump trucks and large-scale excavators, dozers, graders, etc...

✓

Mining Leases granted, including Infrastructure Corridor for 30 years Mining Leases ML90177 & ML90188 granted in November 2011 with No Objections

✓

Environmental Impact Statement and Plan of Operations approved CuDeco received Environmental Impact Statement Approval August 2011 Compensation agreements with the landowner and the Cloncurry Shire Council Agreement signed by Landowner, Cloncurry Shire and CuDeco Ltd November 2011

Native Title and Heritage agreements in place Completed and signed off by all relevant parties including State and Federal Authorities in mid 2009

✓

✓

✓

Rail-Load Facility in Cloncurry – Access to National Markets CuDeco regains 100% ownership after JV partners decide not to proceed, clearing the way for the development of a user-pays business model as originally intended.

Ship-loading Facility at Port of Townsville - Access to International Markets Secured Lease signed with Port of Townsville Limited for 1.506 ha of land at the Port of Townsville, allowing for the construction and operation of a bulk materials receipt, storage and export facility. Development Permit received from Queensland Department of Environment and Resource Management (DERM) for Ship-loader and Concentrate Storage Facility at the Port of Townsville - currently under development..

Exhaustive metallurgical test-work completed with high metal recoveries achieved Significant time, effort and expenditure allocated to metallurgy, resulting in high metal recoveries and premium concentrate grades

Key Off-take agreements in place 60% off-take agreement with Oceanwide

✓

✓

Project Development Fully Funded to Production Remaining funding via combination of;

• Cash at Hand • Bank Finance • Rights Issue

✓

For

per

sona

l use

onl

y

Las Mineral Stage 1 DSO Pit & Rocklands South Extension Pit Major strip-backs and preparations have been completed and mining has commenced.

Current Development Activities

Project development plans approved and site activities commence On schedule

Water Storage Facility (WSF) Water Storage Facility capable of holding 980 mega litres and meeting all site water requirements.

✓ Infrastructure Corridor & Haul and Major Access Roads Major access roads internal and external to site have been completed Tailings Storage Facility (TSF) Construction commenced, awaiting approval of upgrade - ongoing

Mining Offices Completed to a level that is sufficient for current use, upgrade as required

✓

✓

Service Workshops Completed and in use

Explosive Magazine Magazine storage facility development

Morris Creek Diversion (MCD) channel and Diversion Dam Completed Pit Dewatering & Water Diversion Bore Holes installed diverting water to two temporary water storage facilities and over flow going to WSF

Long-Term Ore Stockpiles Major drainage and site construction completed, stockpiles on-going

Waste Dump Drainage Major drainage and site construction completed

✓

Mobile Crushing Circuit Fully commissioned - waste rock being crushed for infrastructure, test-work on producing DSO ore

✓

Accommodation Cloncurry township - 38 cabin Office Complex and accommodation cabins, houses built and owned by CuDeco

✓

✓

✓

✓

✓

Engineering, Procurement and Construction contract awarded to Sinosteel The contract also incudes supply and installation of a 28 Megawatt (MW) “peak load” Cummins Power station.

✓

For

per

sona

l use

onl

y

Basic Process Plant Engineering Basic engineering for the processing plant

Status of Process Plant

Crushing Circuit (3mtpa) Commissioning ongoing...

Ball Mill (5800 diameter x 8300mm long) Currently being installed

Thickeners Currently being installed

De-agglomerator Currently being installed

Tower Mills Currently being assembled

Process Control System On schedule

High Pressure Grinding Rolls (HPGR) Currently being installed

Gravity Jig (alljig ®) Currently being installed

Structural Steel Majority of structural steel requirements have arrived on site, balance in transit to site for the mineral processing plant. Structural steel supply agreement requires all steel to be prefabricated prior to export to Rocklands, which will reduce the expensive costs associated with the onsite fabrication, cutting and handling.

✓

Flotation Cells Currently on site and being assembled

Detailed Design Engineering On schedule F

or p

erso

nal u

se o

nly

Potential For Increased Copper Grades

Potential Upside – Las Minerale & Rocklands South Speculation Speculation Native Copper Missed in RC Drilling

Large native copper nuggets pushed aside in soft matrix, not returning or sample analysis.

Investigating Sample Recovery in Chalcocite & Native Copper Zones (Diamond versus Reverse Circulation Drilling) 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. Key observations from the diamond versus RC drilling study Chalcocite-only Zones; Assay results for

Copper 49% higher on average for RC Drilling compared to diamond drilling. (Diamond drilling potentially washing away sooty massive chalcocite?)

Trace fine-grained sooty chalcocite identified in voids remaining in metallurgical diamond drill hole DODH012, right (53m) and above (81-85m).

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.

Native Copper-only Zones; Assay results for Copper 19% higher on average for diamond drilling compared to RC drilling. (RC drilling potentially unable to recover large native copper in soft matrix due to size of return hole on hammer?)

Low-grade Zones; Differences are negligible at low grades and increase significantly as grade increases in both the Native Copper and Chalcocite-only zones

Drilling Method; RC drilling on average results in 10% less Coarse Native Copper 23% More Fine Native Copper When compared to diamond drilling

Speculation Chalcocite Lost in Diamond Drilling Soft sooty fine-grained chalcocite within vuggy matrix (typical at Las Minerale), being lost during diamond drilling.

For

per

sona

l use

onl

y

Potential For Increased Copper Grades

Deep costean over central Las Minerale intersected high-grade oxide copper minerals including malachite, azurite and particularly chalcocite, in areas not defined to contain copper mineralisation in resource estimate. Larger Than Estimated Shallow Oxide Zone May Exist •  Void in drilling between angled and vertical holes means expected “flute shaped” oxide cap was not included 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. •  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 showing Las Minerale native copper domain (red) and chalcocite domain (purple), with 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 malachite, 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.

Above; 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.

Above; 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.

For

per

sona

l use

onl

y

Metallurgy

Metallurgical Testing 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 Various products from bulk-sample test-work; large native copper nuggets (+40mm), smaller native copper nuggets (+4mm-40mm), flotation froth (primary circuit - chalcopyrite), flotation froth (primary circuit - chalcocite), magnetite separation.

+4mm native copper nuggets (maximum size approximately 40mm), sitting in the collection tray after passing through the alljig® continuous jigging separation process.

For

per

sona

l use

onl

y

Metallurgy

Metallurgical Testing Flow Sheet

1

High Pressure Grinding Rolls (HPGR)

2

Approximately 35mm thick rolled & crushed “Flake” product from HPGR

3

Wet Trommel breaks down the “Flake” product

4

+4mm product from Trommel

6

>95% Cu recovery at 94.7% Cu grade through first test gravity circuit. Magnetite (black spots) will be magnetically removed.

5

Gravity separation Jig

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 to Concentrate 90.3% primary Cobalt recovery 85.0% Magnetite recovery to magnetic separator rougher concentrate

Chalcocite Ore

85.0% Copper recovery 75.9% primary Cobalt recovery 90.5% Magnetite recovery to magnetic separator rougher concentrate Process Fine Tuning & Remaining Test-work Currently Underway, with Further Improvements Expected

For

per

sona

l use

onl

y

Mine Planning, Scheduling & Stockpiles

Pit mark-up at RL210 in a section of the Las Minerale starter pit. The areas marked include chalcopyrite (CPY), chalcocite (CC), native copper (NatCu), Oxide (Ox) and ore-based waste (W). In the middle stands a PVC drill collar from a decommissioned in-pit dewatering borehole. The ore zone is approximately 50m wide at this location.

Sophisticated Mining and Stockpile Management Plan •  Up to 12 stockpiles with ore characteristics to match Process Plant requirements

•  Significant stockpile inventory planned prior to plant being “switched on”

•  Highest grade ore at the top of the stockpiles at time of Process Plant Commissioning

•  Mining rate 1.5 times that required, facilitates high-grading the front end of the mill feed process.

•  Increased mining rate results in a net increase in revenues even after the higher costs of mining and leaves “free ore”

at surface for later processing at reduced costs.

•  Accelerated aging studies show negligible loss in recoveries of stockpiled ore for the anticipated timeframes

•  Higher mining rate and stockpiling also creates contingent ore supply.

•  High-resolution mining model ensures maximum flexibility

Mining block model at RL210, with ore types and grades delineated in the upper oxide zones. The image on the left is marked out as oulines on the based of the pit and the image on the right has added grade details, is used by the pit-spotters and geologists to identify which ore goes where on the stockpiles, subject to in-pit confirmation

For

per

sona

l use

onl

y

Development Rockland Site General Arrangement Plan

For

per

sona

l use

onl

y

Development

Diversion Channel Dam Wall

Waste Dump

Process Plant ROM Pad Nat Cu

Box-cut

LM Pit

Waste Dump

Water Storage Facility (WSF)

Waste Dump and Short-term Stockpile Area

Morris Creek Diversion Channel

June 2013

For

per

sona

l use

onl

y

Local Work Force •  The Rocklands site is located approximately 15km from the major regional township of Cloncurry.

•  Engineering Design Project Office Complex in Cloncurry, completed and in use.

•  39 Fully self-contained accommodation cabins constructed in the town of Cloncurry.

(no need for on-site accommodation).

•  13 Fully owned residences in the township of Cloncurry.

•  Large rental inventory locked in

No Fly-in / Fly-out Permanent positions are being encouraged at the Rocklands Mine on a non-fly-in / fly-out basis. This approach appears to be attractive to young-couples and the mature staff profile, ensuring a balanced but more experienced work-force, especially with respect to senior management.

Engineering Design Project Office Accommodation cabins at the Cloncurry Office Complex Site

Development F

or p

erso

nal u

se o

nly

Crushing Circuit The Rocklands three-stage crushing circuit was recently completed and is currently undergoing commissioning. Commissioning test-work includes batch-runs of differing ore-type and head-grade combinations as part of the optimisation process. Particular focus on achieving optimal fraction size settings to efficiently scalp coarse native copper metal to produce direct shipping ore (DSO). Test-work on Las Minerale supergene ore is also underway using conveyor based ore-sorters, with the view to producing a separate multi copper species DSO concurrently with the scalped coarse native copper ore (dominated by chalcocite, cuprite and small-fraction native copper). The Company is extremely pleased with initial results of this test-work and looks forward to producing DSO well before the remainder of the process plant is operational.

Process Plant F

or p

erso

nal u

se o

nly

Process Plant

Flowsheet Stage 1: Crushing Circuit Recovery of oversize native copper

For

per

sona

l use

onl

y

Process Plant

Flowsheet Stage 2: Gravity Circuit Recovery of remaining native copper

For

per

sona

l use

onl

y

Process Plant

Flowsheet Stage 3: Flotation Circuit Recovery of primary sulphides; chalcopyrite (copper concentrate) pyrite (cobalt/sulphur concentrate) & magnetite

For

per

sona

l use

onl

y

Logistics

CuDeco 3 Stage Mill to Market Process Stage 1 The concentrate Storage and Loading Facility at the Rocklands Mine Site is scheduled to be completed after the Process Plant construction phase. When fully operational, concentrates from the Mill will be loaded into sealed containers and dispatched by “Type 2” road-trains to the Company’s Multi-user Rail Load Facility (MURLF) in Cloncurry. Containers delivered to the MURLF are unloaded with specialised loaders. Stage 2 CuDeco Regains 100% Ownership The Cloncurry Multi-use Rail-load Facility is capable of processing up to 480,000 tonnes of mineral concentrates per annum from CuDeco’s 100% owned Rocklands Group Copper Project. The Multi-use Rail-load Facility provides access to the Port of Townsville via the Queensland Rail network. Stage 3 CuDeco’s Port of Townsville Ship-loading and Storage Facility includes storage capacity of up 400,000 tonnes of mineral concentrates and includes an associated Ship-loading Facility capable of loading concentrates at the rate of 2,000 tonnes per hour. The Ship-loading facility provides access to international markets and completes the final stage of the Company’s 3-stage mill-to-market cycle.

View looking west at the Cloncurry Multi-user Rail-load Facility - 3D Model

Loading sealed containers at the Cloncurry Multi-user Rail-load Facility - 3D Model

For

per

sona

l use

onl

y

Fairfield Prospect To be included in New Resource Estimate to be Released Shortly Shallow Copper-cobalt Prospect in the North of ML90177 •  hosted in a complex shear system similar supergene mineralogy to Las Minerale •  massive chalcocite and pyrite in quartz breccia Potential to be Integrated Into Planned Mining Schedule •  high-grade, shallow chalcocite zone Results include;

DODH443 Intersected 25m @ 3.96% CuEq

(from 71-96m)

Including 18m @ 5.31% CuEq (from 71-89m)


(from 66-87m)




(from 73-103m)




Developing structural and geological interpretation of Fairfield, including a high-grade mineralisation.


Exploration & Resource Upside F

or p

erso

nal u

se o

nly

Exploration & Resource Upside

Wilgar Prospect Exotic Mix of Mineralisation •  Gold (Au), Silver (Ag), Tellurium (Te), Molybdenum (Mo), Uranium (U) •  Gold results up to 1090 grams (35 oz) tonne from Drill hole DODH 264 Jury Still Out on Mineralisation Style… Intrusive Related Gold System (IRGS)? •  Typically regional in scale, structurally controlled - look for repeats

Iron Oxide Copper-gold System (IOCG)?

Iron Oxide Copper-gold System (IOCG)? •  Tick-hill style - structural controlled shear zone in Corella Formation

Gold Skarn System? •  Potentially associated with the north - west intrusive system

Previous Drill Results From Wilgar Prospect High-grade intersections include; Gold; 9m @ 97.9 g/t Au Diamond Drill Hole DODH248 (from 5m)

Silver; 10m @ 250 g/t Ag Diamond Drill Hole DODH285 (from 5m)

Uranium; 9m @ 2500 ppm U Diamond Drill Hole DODH261 (from 13m)

Tellurium; 9m @ 652 ppm Te Diamond Drill Hole DODH248 (from 5m)

Molybdenum; 14m @ 2450 ppm Mo Diamond Drill Hole DODH346 (from 5m) Wide zones of mineralisation intersected including; Gold (Au): 17m @ 48.4g/t Au (Drill hole DODH248 - 1.56 ounces per tonne from 3-20m)

Gold (Au): 24m @ 34.4g/t Au (Drill hole DODH223 1.11 ounces of gold per tonne from 14-38m)

For

per

sona

l use

onl

y


Rocklands •  More than 30 untested targets across non-development

areas at Rocklands, based on comprehensive geophysics surveys, soil sampling, bedrock drilling and limited exploration drilling.

•  Deep Las Minerale exploration - incomplete, with likely depth extensions suitable for future underground operations yet to be defined.

•  Rocklands South new high-grade copper zone - infill drilling identifying high-grade ore in areas previously undrilled

•  Potential to monetise numerous shallow copper “shows” across the Mining Lease, take advantage of existing Plant

Above; Three dimensional representation of Rocklands ore bodies over gravity survey and soil/bedrock results for copper - over 30 individual targets yet to be drill tested.

For

per

sona

l use

onl

y


New EPM 18054 New EPM shares common boundary point with the Mining Lease - never before drilled, significant geophysics targets identified, known copper occurrences off western boundary where copper was also intersected in historic drilling. Major conductivity targets highlighted by Sub Audio Magnetics (SAM) geophysics survey - with similar characteristics to the flagship Las Minerale ore body.

Sub Audio Magnetics (SAM) Survey over EPM18054 - EQMMR (conductivity) - target 1 shares similar characteristics to the flagship Las Minerale orebody

New EPM18054 (yellow), existing Mining Leases ML90177 and ML90188 (white) and interconnecting Corridor ML90219 (cyan).

For

per

sona

l use

onl

y

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 mineralisation and type of deposits under consideration 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 consents 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 compiled 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 techniques which are 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 Resource 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. Rocklands style mineralisation Dominated by dilational brecciated shear zones, throughout varying rock types, hosting coarse splashy to massive primary mineralisation, 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 volcano-sedimentary rocks of the eastern fold belt of the Mt Isa Inlier. The observed mineralisation, and alteration, exhibit affinities 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, ±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).

For

per

sona

l use

onl

y


Solsbury style mineralisation Brecciated and vein-hosted, throughout varying rock types, hosting coarse splashy primary mineralization with supergene bornite and native copper. Polymetallic copper-gold mineralisation persists throughout the oxidation profile and remains open at depth. Notes on Assay results All analyses are carried out at internationally recognised, independent, assay laboratories. Quality Assurance (QA) for the analyses is provided by continual analysis of known standards, blanks and duplicate samples as well as the internal QA procedures of the respective independent laboratories. forming their own opinions and conclusions based upon their own independent assessment of such matters. In order to be consistent with previous reporting, the drill intersections reported above have been calculated on the basis of 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. 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. Au = Gold Ag = Silver Te= Tellurium Mo = Molybdenum Cu = Copper Co = Cobalt U = Uranium CuEq = Copper Equivalent

For

per

sona

l use

onl

y


Copper Equivalent (CuEq) Calculation The formula for calculation of copper equivalent is based on the following metal prices and metallurgical recoveries: 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% CuEq = Cu(%) x 0.95 + Co(ppm) x 0.00117 + Au(ppm) x 0.49219 The recoveries used in the calculations are the average achieved to date in the metallurgical test-work 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 to be recovered. Disclaimer and Forward-looking Statements This report contains forward-looking statements that are subject to risk factors associated with resources businesses. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including, but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delays or advancements, approvals and cost estimates.

For

per

sona

l use

onl

y


Hole Location Table

Hole ID Easting Northing RL (m) Azi(°) Dip(°) Hole Depth (m) DODH223 DODH248 DODH251 DODH264 DODH285 DODH346 DODH443 DODH446 DODH447

432121.6 432137.1 432139.8 432139.0 432157.7 432173.2 433371.2 433370.9 433370.2

7715522.3 7715521.6 7715522.9 7715520.9 7715508.8 7715466.8 7716064.4 7716064.9 7716065.2

238.5 240.5 240.4 240.5 237.4 232.9 219.2 219.1 219.2

090 000 000 000 000 000 090 095 092

-30 -90 -90 -90 -90 -90 -50 -45 -55

110.1 41.6 29.1 41.6 50.5 50.5

179.0 119.0 185.0

Datum: MGA94 Project: UTM54 surveyed with Differential GPS to 10cm accuracy.

For

per

sona

l use

onl

y

Resource Notes

Rocklands Resource 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.

For

per

sona

l use

onl

y

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 opin-ion 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.

For

per

sona

l use

onl

y

Photo Gallery

Examples of Native Copper, Malachite, Chalcopyrite and Chalcocite in Diamond Drill core

For

per

sona

l use

onl

y

Photo Gallery F

or p

erso

nal u

se o

nly

rocklands group copper project - asxhis current focus to get the rocklands group copper project into...

Documents