CUO copperco limited

new mineral resource estimates

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    Page 1
    1 November 2006
    Manager Company Announcements
    Company Announcements Office
    Australian Stock Exchange Limited
    Level 4, 20 Bridge Street
    Sydney NSW 2000
    (By electronic lodgement – 4 pages)
    Dear Sir
    NEW MINERAL RESOURCE ESTIMATES – MOUNT CLARKE EXTENDED AND FLYING HORSE
    EXTENDED
    • Mount Kelly global Mineral Resource significantly strengthened by the addition of 2.28
    Mt at 0.9 % Cu for 21,000 tonnes of contained metal from Mount Clarke Extended and
    Flying Horse Extended.
    • This represents a 29% increase in tonnage and 37% increase in contained copper metal
    in the Mount Kelly Project area
    • The Mount Kelly project copper deposits now contain a combined Mineral Resource of
    10.2 Mt at 0.8% Cu for 77,700 tonnes of copper metal.
    • The global Mineral Resource for the Lady Annie project is now 21.5 Mt at 0.9 % Cu for
    194,400 tonnes of contained copper, an increase of 12% in respect of resource and
    contained metal.
    • Mineral Resource studies are continuing with revised Mineral Resource estimates due at
    the completion of the diamond drilling programme.
    Page 2
    Mount Kelly Project
    The Mount Kelly project, forming part of the global Lady Annie project, located 110 km’s north of
    Mount Isa (Figures 1 and 2) has been the subject of a feasibility study that was completed in May
    2006.
    Figure 1: CopperCo Mount Isa tenement holding
    comprising 2500km2 . Three key project areas
    comprising Lady Annie, Mount Kelly and Buckley
    River.
    Figure 2: Key prospects at the Mount Kelly project
    The Project will initially mine five ore bodies by conventional open pit mining. The ore will be
    treated by a heap leaching, solvent extraction and electrowinning process (SX-EW) producing
    19,000 tonnes per annum of LME “A” grade copper cathode.
    Significant oxide copper mineralisation has been discovered over the past two years with updated
    Ore Reserves recently being announced (ASX Release of 11 October 2006) for Lady Annie, Mount
    Clarke, Flying Horse, Mount Kelly Workings and Swagman. Over the past six months, RC drilling
    has focused on near mine exploration targets at Mount Clarke Extended and Flying Horse
    Extended where high grade oxide copper intersections have been returned.
    The global Mineral Resource for the Lady Annie project is now given at 21.5 Mt at 0.9 % Cu for
    194,400 tonnes of contained copper (Table 1).
    Table 1: Total Copper Mineral Resource Estimate Lady Annie Project Nov 2006 – Using a 0.2% lower copper cut-off
    Lady Annie
    Deposit Tonnes Cu % Tonnes Cu % Tonnes Cu % Tonnes Cu % Cu Tonnes
    Lady Annie 4,851,000 1.3 4,387,000 0 .9 2 ,099,000 0.6 11,337,000 1 .0 116,700
    Mount Clarke 1,450,000 0.8 2,764,000 0 .7 3 7,000 0.5 4,251,000 0 .7 30,100
    Flying Horse 1,018,000 0.8 857,000 0 .7 1 ,213,000 0.7 3,088,000 0 .7 23,100
    Mount Clarke Extended 1 ,470,000 1.0 1,470,000 1 .0 15,000
    Flying Horse Extended 8 20,000 0.8 820,000 0 .8 6,000
    Mount Kelly Workings - - 129,000 0 .7 8 3,000 0.6 212,000 0 .7 1,400
    Swagman 128,000 0.6 170,000 0 .6 6 1,000 0.5 359,000 0 .6 2,100
    Total 7,447,000 1.1 8,307,000 0.8 5,783,000 0.6 21,537,000 0 .9 194,400
    CopperCo - Total Mineral Resource as at 01 November 2006
    Measured Indicated Inferred Total Resource
    Note: Figures used are rounded
    Page 3
    Mineral Resources
    The Company is pleased to announce an Inferred Mineral Resource for its new oxide copper
    discoveries at Mount Clarke Extended and Flying Horse Extended (Figure 2). The Inferred Mineral
    Resource category applied to this Mineral Resource estimate does not reflect the density of drill
    data but rather reflects the need to complete QA/QC data checks and geostatistical analyses
    (variography). This is expected to be completed over the next two weeks with the majority of the
    Mineral Resource anticipated to fall into the Measured and Indicated categories.
    Two separate zones of oxide copper mineralisation have been defined along 250 metres of strike
    from the north western edge of Mount Clarke and Flying Horse and are up to 100 metres wide.
    The recently completed 17,300 metre RC drill programme has provided a drill density within the
    two new zones of 25 metres by 25 metres.
    A 1,500 metre metallurgical diamond drilling programme has commenced. This programme will
    principally assess the leach characteristics of the mineralisation in addition to providing bulk
    density and structural measurements. Given the malachite distribution within the host dolomitic
    siltstone and sandstone units, the Company expects that the leach kinetics will be similar to those
    of Flying Horse and Mount Clarke.
    The new Mineral Resource inventory at Mount Kelly now stands at 10.2 Mt at 0.8% Cu for 77,700
    tonnes of contained copper metal. This represents a 37% increase in contained copper metal from
    the recently announced Mineral Resource and Ore Reserve update of 11 October 2006. A higher
    grade oxide copper zone (> 1.5% Cu), approximately 100 metres by 100 metres within Mount
    Clarke Extended, is currently being wire framed separately in order to determine its potential to
    become a high grade starter pit for the commencement of production in 2007.
    The continuing exploration success is expected to bring forward the Company’s timetable for
    increasing the production capacity of the Mount Kelly plant from a nameplate 19,000 tonnes per
    annum. An extended 10,000 metre drill programme remains in progress with a total of 17,300
    metres in 235 RC holes having been completed.
    Mount Clarke Extended and Flying Horse Extended
    The new Mineral Resource estimate for Mount Clarke Extended and Flying Horse Extended (Table
    2) is given as:
    Table 2: Total Copper Mineral Resource Estimate Mount Clarke Extended and Flying Horse Extended Nov 2006 – Using a 0.2%
    lower copper cut-off.
    CopperCo - Mineral Resource Extensions as at 01 November2006
    Deposit Tonnes Cu % Tonnes Cu % Tonnes Cu % Cu Tonnes
    Mount Clarke Extended 1,470,000 1.0% 15,000
    Flying Horse Extended 820,000 0.8% 6,000
    Total 2,280,000 0.9% 21,000
    Measured Indicated Inferred
    Note: Figures used are rounded
    Page 4
    Detailed resource modelling has been completed and has comprised:
    • Geological modelling;
    • Wireframing; and
    • Resource estimation.
    Database validation, geostatistical analyses and check assaying will be completed over the next
    two weeks with the expectation that the majority of the Inferred Resource will be upgraded to
    Measured and Indicated categories.
    The new Mineral Resource estimates incorporate all drilling completed to the end of September
    2006. The dominant copper mineral in the oxide zone is malachite with minor secondary
    chalcocite, azurite and cuprite.
    The Mineral Resource estimate undertaken by Finore Pty Ltd employed the Inverse Distance
    Squared method of grade estimation.
    The information in this report that relates to the Mineral Resource and Ore Reserve estimates is based on information compiled by Malcolm Titley BSc
    (Geology/Chemistry), MAusIMM, MAIG, of Finore Pty Ltd. Malcolm Titley is a Member of The Australasian Institute of Mining and Metallurgy and the Australian Institute
    of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit 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 Ore
    Reserves’ (the JORC Code). Malcolm Titley consents to the inclusion in the report of the matters based on his information in the form and context in which they appear.
    Yours faithfully
    Brian Rear
    Managing Director
    Mr SJ Pooley (MAusIMM, MAIG), a geologist employed full-time by CopperCo Limited, compiled the technical aspects of this report. Mr Pooley is a member of the Australasian
    Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being
    reported on to qualify as a Competent Person as defined in the 2004 edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Pooley consents to
    the inclusion in the report of the matters in the form and context in which it appears.
    For further information please contact:
    • Keith Liddell Chairman (08) 9221 7466
    • Brian Rear Managing Director (08) 9421 1999
 
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