Copper Strike Mining

At Einasleigh, located 350 kilometres northwest of Townsville in North Queensland, Copper Strike has discovered two copper‐gold‐silver deposits and four zinc‐lead‐silver deposits since 2004 and established resources on these discoveries.

The Resource

At Einasleigh the following JORC compliant resources have been established.   A number of the deposits remain open.

Feasibility Study

A feasibility study examining the joint development of the copper and the zinc-lead deposits has recently been completed.

The operation will treat up to 1.8 million tonnes pa of copper ore for up to eight years and about 700 kilo tonnes pa of zinc-lead ore for two years afterward.  This will result in about 15,000 tonnes pa of copper in concentrate being produced.  Total mine production for the first eight years is 100,000 tonnes of contained copper, 25,000 ounces gold and 3.5 million ounces silver.  In the following two years the operation will produce 42,000 tonnes of contained zinc, 25,000 tonnes of lead and 2.2 million ounces of silver.

The copper operations are based on an open cut at Kaiser Bill and underground operation at Einasleigh.  The ore would be processed at separate plant and the concentrate trucked to Townsville for export.  The concentrate is a clean concentrate and has attracted the interest of several potential purchases.

High NPV at Today's Prices

At a copper price of US$ 2.50/lb, the Project is estimated to return a cash surplus of A $289 million over the nine year life of the project, an NPV of A$81 million (after tax) and an IRR of 26%.

Future Plans

The company is completing base line environmental studies with the intention of obtaining a mining lease in 2011.

In addition to above resources, airborne electromagnetic and magnetic surveys in 2006 and 2008 identified several excellent targets on the Einasleigh exploration licences. In particular there are five that require immediate drilling in that they most closely resemble the anomalies over the known ore deposits.

Our Vision for Einasleigh

The vision for the Einasleigh area is to outline several high calibre deposits which would all supply ore to a centralised milling or concentrating operation located at Kaiser Bill.

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At Walford Creek, located 300 kilometres NNW of Mt Isa in NW Queensland, an Inferred Resource has been estimated at 6.5 million tonnes @ 0.6% copper, 1.6% lead, 2.1% zinc, 25g/t silver and 0.07% cobalt....