080708_positive pre-feasibility outcome for cloncurry copper project[1]

8/8/2019 080708_Positive Pre-Feasibility Outcome for Cloncurry Copper Project[1]

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LEVEL 2

8 COLIN STREET

WEST PERTH WA 6005

PO BOX 1726

WEST PERTH WA 6872 TELEPHONE : +61 8 9211 2000

FACS IMILE : +61 8 9211 2001

ASX SHARE CODE: EXS

EMAIL : in [email protected] ITE www.excoresources.com.au

ABN 99 080 339 671

8th July 2008

Market Release (via electronic lodgement)

POSITIVE PRE-FEASIBILITY OUTCOME FOR CLONCURRY COPPER PROJECT

Results from the recently completed Pre-Feasibility Study have successfully demonstratedboth the technical and commercial credentials of Excos Cloncurry Copper Project

Production of ~20,000tpa of Cu and ~13,000ozpa of Au over an initial 11-year mine lifegenerates a robust base case project valuation (NPV = A$126M) with significant upside

On the basis of these positive results the Board intends making an immediate commitment tothe Definitive Feasibility Study phase

INTRODUCTION

Exco Resources Limited (Exco) is pleased to provide a summary of results from the recentlycompleted Pre-Feasibility Study (PFS) on the Cloncurry Copper Project (CCP). The PFS commenced

in December 2007 and initially considered options for a 1 to 2Mtpa sulphide concentrator operationlocated within the Companys Project areas (see Figure 1). The preferred scenario of locating a2Mtpa facility at Excos flagship E1 Camp emerged quite quickly allowing the Company and its StudyManager GRD Minproc to focus on developing preliminary engineering designs, cost estimates andsensitivity analyses for this option, which are summarised below.

In addition to identifying the optimal capacity and location, the PFS has also provided a solid technicalbasis for the CCP. Aspects such as mining, ore beneficiation, metallurgy (including by-productpotential), infrastructure and transportation have all been addressed. Each of these aspects willreceive more detailed attention during the upcoming Definitive Feasibility Study (DFS).

In parallel with the PFS the Company has also progressed an environmental impact study (EIS) andcompleted the major portion of an infill drilling program targeting conversion of ~25 million tonnes of

the existing ~36 million tonnes of CCP resources (see Table 1) to the indicated category (andultimately to a probable reserve) as the basis for the initial 11-year mine life. This drilling andsubsequent resource modelling will be completed during Q3/2008 to allow incorporation into the DFS.

Project valuations are considered robust and compare favourably with peer projects in Australia.There are also a number of opportunities for significant commercial upside (e.g., further resourceupgrades, pit optimisations, mine planning and scheduling, cost optimisations and by-productpotential), which will all be further investigated as studies continue.

On the basis of both the technical and commercial credentials of the CCP the Board intends makingan immediate commitment to the DFS, targeting completion by the end of Q1/2009.


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PROJECT OVERVIEW

Critical Mass ofresources in place

Simple open-pitmining

Excos wholly owned Cloncurry Copper Project (CCP) is located in NWQueensland with its centre of gravity at the Companys flagship E1 Camp,approximately 40 km northeast of the town of Cloncurry and 8km east of XstratasErnest Henry Mine (see Figures 1 & 2).

The CCP includes tenements and mining leases with a resource base in excess of35.8 Mt grading 0.93% copper and 0.25 g/t gold (see Table 1). The sulphidecopper-gold mineralization occurs predominantly within magnetite, pyrrhotite, andchalcopyrite-pyrite mineral assemblages.

Conventional blast, excavate and haul mining techniques will be utilized to recoverore from open cut pits. The project infrastructure (Figure 2) will be located at theE1 Camp with ore being trucked from Monakoff and Great Australia to aprocessing plant at E1.

Figure 2: Project layout & proposed infrastructure

Conventional Cu/Auconcentrator withgood by-productpotential

Processing of the ores will be by means of conventional crushing, grinding andflotation to produce a sulphide concentrate that will be sold to third parties forsmelting and refining. With an initial 11-year mine life and at a throughput rate of~2Mtpa the project is expected to produce ~20 000 tpa of copper and~13 000 ozpa of gold in a sulphide concentrate. Magnetite, cobalt and uraniumpresent upside potential as by-products.


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Schedule in placetargeting firstproduction in late2010

Tailings and waste rock will be deposited in surface dumps adjacent to theprocessing plant and respective pits. Water will be sourced primarily from pit de-watering.

The project is expected to directly employ in excess of 200 people as bothresidential staff and on Fly-In-Fly-Out (FIFO) arrangements. Local contractors willbe utilised during both the construction and operational phases of the project.

Completion of the Definitive Feasibility Study (DFS) and the Environmental ImpactAssessment (EIS) is planned for the end of Q1/2009. Subject to receipt of therelevant project approvals and permits, and procurement of the necessary longlead items, construction is expected to commence in late 2009, targeting firstproduction in Q3/2010.

PROJECT SCOPE & PARAMETERS

JORC CompliantResource Base

Infill drilling willconvert projectresources to theIndicated category

GEOLOGY & RESOURCES: The resource base for the Cloncurry Copper Projectis made up of six main deposits located in three different geological settings, threedeposits at the E1 Camp (E1 North, South and East), two at Monakoff (Monakoffand Monakoff East) and one deposit on the edge of Cloncurry at the historicalGreat Australia mine (see Figures 1 & 2).

The six resources have been estimated using a combination of inverse distanceand ordinary kriging. Each of the resources has been reviewed either byindependent consultants and/or by Excos resource geologists. The resourceshave been classified using the JORC code as either Indicated or Inferred (with aminor amount of unclassified material, depending on the resource). The resourcebase is summarized in Table 1.

Infill drilling continues targeting conversion of ~25 million tonnes of the existing ~36million tonnes of CCP resources (see Table 1) to the indicated category (andultimately to a probable reserve) as the basis for an initial 11-year mine life. Thisdrilling and subsequent resource modelling will be completed during Q3/2008 toenable incorporation into the DFS.

Strip Ratio = 4.5:1

Mining Inventorieslikely to increase

MINING: The PFS has assessed the economic viability of mining operations at thesix deposits including development of open-pits and the infrastructure required toaccess, mine and dispose of waste rock.

The study has produced pit designs, inventories, a schedule and costs associatedwith feeding 2 Mtpa of ore to concentrator facility located at the E1 Camp.

On the basis of work completed during the PFS, mining inventories currently total21.4 Mt of ore at 0.92% Cu and 0.25 g/t Au with an average Net Smelter Return(NSR) value of $35.6/t of ore. The total mining inventory of 117.1 Mt includes95.7 Mt of waste at a strip ratio of 4.5:1.

Pit optimisations have been carried out assuming a copper price of US$2.00/lb,

which Exco currently considers conservative.

Inventories are expected to increase once infill drilling has been completed andsubsequent resource modelling and pit re-optimisation work carried out at a rangeof copper prices.

PROCESSING & METALLURGY: A number of metallurgical testwork programshave previously been completed on the CCP ores with an emphasis on flotation.The PFS testwork program therefore focused primarily on the comminution sectionwith the overall aim of obtaining sufficient information to develop a robust processflow sheet for a 2 Mtpa copper-gold concentrator.


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Testwork hasdemonstrated goodCu & Au recoveries

Simple &conventional processflowsheet

The results show that the majority of samples tested for ore competency arecategorised as hard to very hard favouring the inclusion of a Ball Mill, rather than aSAG mill as part of the comminution circuit.

The results of the previous flotation testwork can be summarised as follows:

Most primary sulphide composites float well

There are indications that the copper minerals are fine in size. Finer primary

grinds gave an improved copper recovery and concentrate grade Gold recovery is associated with copper recovery, cobalt is associated with

pyrite

Regrinding the rougher concentrate achieves higher re-cleaner concentrate

grades

Metal recoveries are 92% for primary Copper and 80% for Gold.

The current process flowsheet incorporates a single processing line, including athree stage crushing circuit, stockpile, reclaim, ball mill in closed circuit with cycloneclassification, flotation, high rate thickening of concentrate and tailings, pressurefiltration of concentrate and truck load-out facilities. Further testwork will beconducted as part of the DFS to refine this design.

Figure 3: Conceptual Process Flow Sheet

Existinginfrastructure is wellestablished

INFRASTRUCTURE & LOGISTICS: Infrastructure development for the projectincludes access and haul roads, water supply, power supply, campaccommodation, the process plant infrastructure and a Tailings Storage Facility.

Sufficient work has been completed to provide preliminary design information andcost estimates consistent with the level of detail required for the PFS. Furtherdetailed design will be carried out during the DFS.

Initial transport and logistics studies have been carried out to assess the facilitiesavailable during construction and for product transport. Cloncurry has extensiveinfrastructure serving the town, with good road and rail access, and an airfieldcapable of accommodating mid range (Fokker 100) type aircraft. No major issuesare expected as to the delivery of equipment as the existing infrastructure is welldeveloped.

Concentrate will be trucked either directly to the Mt Isa smelter as is the case from


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the Ernest Henry operation, or to existing loading sheds in Cloncurry. Theconcentrate would be transferred to rail cars in Cloncurry and moved to the port ofTownsville where it would be transferred to ship for international markets.Queensland Rail has provided quotations for the cost of transporting theconcentrate to Townsville.

EIS baseline studieswell underway

ENVIRONMENTAL: An Environmental Impact Statement (EIS) is currently beingprepared for the CCP, according to the requirements of the Environmental

Protection Act 1994. Potential impacts on the environment due to the constructionand operation of the project will be assessed, and appropriate mitigation strategiesoutlined to minimise environmental harm.

The following summary describes the progress of the EIS:

Draft Initial Advice Statement and Terms of Reference have been completed and

are awaiting submission.

The wet and dry season flora/fauna assessments have been completed.

The soil survey has been undertaken and the soil samples are undergoing

laboratory analysis.

Noise loggers have been deployed on site to collect data for analysis and

modelling.

Air quality, groundwater, surface water, waste rock and cultural heritage are

progressing with final reports expected in the coming months.

The following additional baseline studies will be undertaken in the coming months:

Visual amenity

Social Impact Assessment

Aquatic Flora and Fauna studies

Environmental Risk Assessment

TABLE 2: Cloncurry Copper Project Summary of Key Parameters

Project Owner Exco

Resource (Measured, Indicated, Inferred) 35.8 Mt @ 0.92% Cu and 0.25 g/t Au

Projected plant output (Concentrate) ~20 000 t/a Cu, 13 000 oz/a Au (~500 000 t/a Fe3O4)

Plant Throughput ~2 000 000 t/a

Concentrate Production ~80 000 t/a

Projected plant life ~11 years

Plant Location E1, approximately 8 km east of Ernest Henry

Ore Bodies E1 North, East and South, Monakoff, Monakoff East, Great Australia

Mining Open pit, drill, blast, excavate, haul

Process Crush, grind, float, de-water

Tailings Surface impoundment, conventional slurry discharge

Power requirement Up to 10 MWPower Supply Grid power - CS Energy/Ergon Energy (TBC)

Water requirement ~1 000 000 m3/a

Water Supply Pit De-Watering and Lake Julius (Sun Water)

Concentrate Shipping Trucked to Mt Isa or Trucked to Cloncurry and railed to Townsville

Workforce ~200

Workforce location Resident in Cloncurry and FIFO

Project Status Prefeasibility study completed

Environmental Full Environmental Impact assessment in progress

Schedule Construction end 2009, production third quarter 2010


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CAPITAL COST SUMMARY

Capex of A$209M inline with industry

benchmarks

Opportunities tooptimise MiningCapex during DFS

Incremental Capexrequired to increasethroughput andrecover by-products

The total PFS capital cost estimate for the CCP is ~A$209M. Table 3 provides a

summary of the CAPEX by area.

The costs are for a 2 Mtpa Cu-Au concentrator based in the Cloncurry district ofNW Queensland. The costs, which are presented in second quarter 2008Australian dollars, are considered to have an accuracy of 25% and are consistentwith a number of industry benchmarks.

Major equipment costs are based on budget quotes received from vendors. All

other items are based on either in-house database information, allowances or

information obtained from suppliers.

It is important to note that the Mining CAPEX includes both the costs for mine

development (pre-strip) and the cost of an owner mining fleet. The treatment of

these costs will be looked at together with the preferred mining regime (i.e., owner

mining versus contract mining and dry hire alternatives) during the DFS phase.

During the DFS the Company will also be investigating the impact of increasing

throughput from 2 to 2.5Mtpa. Conceptual estimates suggest project costs will

increase by ~10% for a 25% increase in throughput. Additional Capital Costestimates will also be compiled during the DFS phase in the context of recovering

by-product magnetite and uranium.

TABLE 3: CAPEX Summary by Area

Direct Costs AREA $A

Mine Pit Development 21 348 834

Mine Infrastructure 6 975 328

Mining Fleet 31 140 615

TOTAL - Mining 59 464 776

TOTAL - Process Plant 50 583 567

Buildings & Various 9 776 979

Tailings Storage Facility 10 718 495

TOTAL - Plant Infrastructure 20 495 474

Permanent Accommodation 10 629 910

Area Roads 10 528 347

Other 2 195 404

TOTAL - Area Infrastructure 23 353 661

Regional Roads 1 226 047

Electrical Power Feeder 7 947 000

TOTAL - Regional Infrastructure 9 173 047

TOTAL - Miscellaneous 4 749 687TOTAL Direct Cost 167 820 211

Indirect Cost

Construction Facilities & Camp 2 571 903

EPCM 14 742 944

Other 910 347

TOTAL Indirect Cost 18 868 304

SUB-TOTAL 186 688 515

Accuracy Provision 22 205 045

TOTAL 208 893 560


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OPERATING COST SUMMARY

Opex of A$1.62/lb ofpayable Cu

Opportunities tooptimise Opex andincrease by-productcredits during DFS

Operating costs have been developed using the parameters specified in theprocess and mine design criteria. The operating cost estimate (see Table 4) ispresented in second quarter 2008 Australian dollars, and is considered to have anaccuracy of 25%.

Cash operating costs (before royalties, but after gold credits) are estimated to

average A$1.51/lb of payable copper.

Total cash costs (after royalties and gold credits) are expected to average $1.62/lbof payable copper, or $28.66/t of ore treated.

The operating costs are dominated by power, fuel and labour. Significant attentionwill be given to optimising these specific cost areas during the DFS.

No additional allowance has been made during the PFS for potential by-productcredits from Cobalt, Magnetite and / or Uranium. These will be further investigatedduring the DFS

TABLE 4: Production Statistics & Operating Cost Summary

Item Unit Life of MineTonnes ore treated/tonne of concentrate t/t 29.8

Net revenue/tonne ore treated A$/t ore 54.6

Net revenue/tonne concentrate A$/t Cu conc 1 630

Cash operating costs/lb payable Cu after credits A$/lb Cu 1.51

Total cash costs/lb payable Cu after credits A$/lb Cu 1.62

Cash Cost Details (Per Pound Payable Cu)

Mining A$/lb Cu 0.72

Processing A$/lb Cu 0.69

General and Administration A$/lb Cu 0.13

Total Cash Costs at Mine Gate A$/lb Cu 1.55

Transport and logistics A$/lb Cu 0.03

Treatment and refining A$/lb Cu 0.31By-product credits (gold) A$/lb Cu (0.38)

C1 Cash Costs A$/lb Cu 1.51

Royalties A$/lb Cu 0.11

Total Cash Costs A$/lb Cu 1.62

PROJECT FINANCIAL MODEL

A detailed financial model has been constructed for the project by Exco usingcapital and operating costs developed by GRD Minproc and commodity priceassumptions based on published forward curves, as summarised in Table 5.

For the purposes of the PFS, the financial analysis has been conducted on aproject basis only. The analysis is on an un-escalated basis and assumes financingby shareholders.

The principal project case assessed, assumes that the concentrate product is solddomestically to Australian smelters on a CFR (Cost and Freight) basis withassumed off-take terms.

The base case model includes only copper and gold products.


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TABLE 5: Assumed Commodity Prices (A$)

Year Copper $/lb Gold $/oz

2010 3.80 1 123.55

2011 3.61 1 208.38

2012 3.43 1 296.15

2013 3.24 1 350.00

2014 3.05 1 350.002015 2.86 1 350.00

2016 2.68 1 350.00

2017 2.49 1 350.00

2018 2.30 1 350.00

2019 -2020 2.20 1 350.00

Robust Base CaseNPV of A$126.7M

Significant potentialto further improveproject economics

Finance discussionsunderway

Key financial data is presented below in Table 6. All data is presented inAustralian dollars unless stated otherwise

The project life of 11 years is based on mining indicated and inferred resourcesdelineated in US$2/lb pit shells.

The base case NPV of A$126.7 million is considered robust with the projecteconomics and payback period expected to improve during the DFS on the basisof:

further resource upgrades

re-optimising pit shells at a range of higher copper prices

optimising the preferred mining scenario and associated costs, and

inclusion of additional by-product credits from Cobalt and Magnetite

The financial model will also be further refined during the DFS to incorporateproject finance arrangements. Preliminary discussions have commenced with anumber of potential project finance partners.

TABLE 6: Cloncurry Copper Project Financial ModellingItem Unit Life of Mine

Throughput Mt/a 2.0

Project life Years 11.5

Pre Production project Capital Costs A$M 187.6

Pre Production Mine Development A$M 21.3

Total Initial Capital Costs A$M 209

Total Sustaining & Deferred Capital A$M 76

Pre-tax

NPV at a discount rate of 8.5% A$M 126.7

Internal rate of return % 28.6

Payback period Years 3.2

Net revenue total A$M 1,168.6

Total operating costs A$M 645.8

Total capital costs A$M 285.2

Total Pre-tax Cash Flow A$M 237.6

Corporate income tax (estimated @ 30%) A$M 71.3

Total After Tax Cash Flow A$M 166.3


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SENSITIVITY ANALYSIS

Preliminary sensitivity analyses have been conducted for the project to assess theeffects of changes in key parameters (i.e., copper price, mined Cu grade,concentrate Cu grade, Opex and Capex) on the IRR, NPV and the pre-tax cashsurplus.

The NPV is most sensitive to the copper price, which is currently assumed to

average US$2.72/lb over the life of the project, and mined copper grade.

Figure 4: Pre-Tax NPV Sensitivity

BY-PRODUCT POTENTIAL

Magnetite and Cobaltare technicallyrecoverable

Potential to generatesignificant furtherrevenue

Recovery of magnetite (Fe3O4) and cobalt has the potential to significantly improvethe project economics. This was not included in the PFS base case but will beconsidered during the DFS.

High level testwork has been carried out on magnetite recovery indicating thetechnical feasibility of producing a high-grade saleable product, for only incrementaladditional capital outlay (~A$10M). Payability will however be linked to marketingand transport constraints, which require further investigation.

Testwork has also demonstrated that Cobalt is partially recovered to the copperconcentrate, whilst potential also exists to produce a separate Co-bearing pyriteconcentrate. The payability of the cobalt in either concentrate will depend on off-take terms.

Table 7 indicates the potential additional value generated by magnetite and cobalt.

TABLE 7: Project NPV Including Magnetite and Cobalt by-Products

Pre Tax

SummaryBase Case Base Case +

Co onlyBase Case +

Fe3O4 onlyBase Case +

Co & Fe3O4NPV $126.7 M $151.5 M $176.8 M $201.6 MIRR 28.6% 31.4% 32.6% 35.1%Surplus Cash $237.6 M $276.4 M $321.8 M $360.7 M


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Additional processbenefits from Fe3O4recovery

In addition to the potential by-product revenue, several inherent process benefitsmay also be realised by the inclusion of a magnetite recovery circuit. These includeadditional copper, gold and cobalt recovery realised by scavenger flotation of thereground cleaner magnetic tails and an approximate 30% reduction in the tailsthickening and storage duty.

The CCP resource base also contains valuable amounts of uranium. While theQueensland State Government currently prohibits the mining of uranium, it is

considered possible that future mining may ultimately be allowed, creating theopportunity for a further viable by-product stream. The conceptual processflowsheet (acid leaching of the tailings stream) and economics of uranium recoverywill be more clearly defined in the DFS.

DEFINTIVE FEASIBILITY STUDY & PROJECT SCHEDULE

DFS to commenceimmediately

A deliberatelyaggressive scheduletargeting productionin late 2010

Exco is well fundedto achieve itsobjectives

Exco has received a number of engineering proposals to assist in the completionof a DFS for the CCP and, given the positive results generated by the PFS, theBoard intends making an immediate commitment to this next important phase inthe development of the project.

A preliminary project schedule has been completed considering major milestonessuch as, completion of the DFS and EIS, project approvals, financing, tendering,detailed design, construction, commissioning and project handover.

Key milestones include;

Immediate commencement of the DFS

Completion of the DFS and submission of the EIS by the end of Q1/2009

A commitment to long-lead items during Q4/2008; the ball mill and vertimillare the two longest lead items, with lead times of roughly 85 weeks.

Commitment to Project Finance during early 2009

Completion of the permitting process and receipt of all relevant project

approvals, which will dictate the critical path of the subsequent constructionand commissioning phases

Assuming no major delays are encountered in the approvals process it isanticipated that construction may commence in late 2009

Project commissioning and first production is targeted in late 2010, withproject handover in Q1/2011

The schedule is deliberately aggressive with a view to expediting production andmaximising the opportunities created for companies such as Exco in the currentcommodity price and supply / demand environment.

The Company remains well funded to achieve its immediate objectives with acurrent cash position of ~A$20M.

On behalf of the Boardof Exco Resources Ltd

Michael AndersonManaging Director


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PLEASE DIRECT ENQUIRIES TO

Michael Anderson

Managing Director

Tel: +61 8 9211 2000

Fax: +61 8 9211 2001

E-mail: [email protected]

Geoff Laing

General Manager: Corporate & Project Development

Tel: +61 8 9211 2000

Fax: +61 8 9211 2001

E-mail: [email protected]

FORWARD LOOKING STATEMENTS & COMPETENT PERSONS STATEMENT

This report contains forward looking statements that are subject to risk factors associated with resourcesbusinesses. It is believed that the expectations reflected in these statements are reasonable but they may beaffected by a variety of variables and changes in underlying assumptions which could cause actual results ortrends 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 delay or advancement, approvals and cost estimates.

All references to dollars, cents or $ in this presentation are to AUS$ currency, unless otherwise stated.

Information in this report relating to mineral resources and exploration results is based on data compiled by ExcosExploration Manager Stephen Konecny, BSc Hons Geo. (MAusIMM), Mr Mike Dunbar, (who is a full timeemployee of the Mitchell River Group and a consultant to Exco Resources Ltd), and who is a member of TheAustralasian Institute of Mining and Metallurgy, and Mr Laurie Barnes (who is a full time employee of the MitchellRiver Group and a consultant to Exco Resources Ltd) and who is a member of the Australian Institute ofGeoscientists. Mr Konecny, Mr Dunbar and Mr Barnes have sufficient experience which is relevant to the style ofmineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify asCompetent Persons under the 2004 Edition of the Australasian Code for reporting of Exploration Results, MineralResources and Ore Reserves. Mr Konecny, Mr Dunbar and Mr Barnes consent to the inclusion of the data in theform and context in which it appears.


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Figure 1: NW Queensland Tenement Map highlighting Excos ground positionand the location of key deposits & prospects.


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TABLE 1: EXCO RESOURCES NW QUEENSLAND Cu-Au RESOURCE SUMMARY

Grade MetalDeposit Class Tonnes

Cu% Au g/t Cu T Au Oz

E1 North Indicated 4,162,000 1.22 0.35 51,000 47,400

Inferred 3,770,000 0.99 0.32 37,000 38,400

TOTAL 7,932,000 1.11 0.34 88,000 85,800

E1 South Inferred 15,200,000 0.70 0.18 106,900 89,400

E1 East Inferred 8,000,000 0.83 0.26 66,000 65,500

Sub-total - E1 Deposits 31,132,000 0.84 0.24 260,900 240,700

Monakoff Indicated 926,000 1.59 0.47 14,700 14,000

Inferred 976,000 1.57 0.49 15,300 15,400

TOTAL 1,902,000 1.58 0.48 30,000 29,400

Monakoff East Inferred 700,000 1.25 0.36 8,700 8,000

Great Australia Indicated 1,378,000 1.53 0.13 21,000 5,700

Inferred 756,000 1.57 0.14 11,900 3,300

TOTAL 2,134,000 1.54 0.13 32,900 9,000

Sub-total - CCP 35,868,000 0.93 0.25 332,500 287,100

Other Deposits

Turpentine Indicated 1,626,600 1.04 0.21 17,000 10,800

Inferred 214,600 0.9 0.16 2,000 1,000

TOTAL 1,841,000 1.03 0.2 19,000 11,800

Taipan Inferred 1,460,000 0.80 0.1 11,600 5,000

Kangaroo Rat Inferred 875,000 1.65 1.0 14,400 28,000

Wallace South Inferred*** 1,000,000 - 1.6 - 53,000

Victory-Flagship Inferred 196,000 1.2 1.4 2,300 8,800

Mt Colin Measured** 113,800 3.80 - 4,330 -

Indicated** 311,000 3.49 - 10,900 -

Inferred** 242,000 3.16 - 7,650 -

TOTAL 667,195 3.43 - 22,878 -

Sub-total - Other 6,039,000 1.16 0.57 70,178 106,600

TOTAL 41.9 Mt 0.96 0.30 402,600 393,700

Note: Unless otherwise stated the above resources are reported at a 0.5% Cu cut-off.**Mt Colin resource cut-off = 2.3% Cu.*** Wallace South resource cut-off = 0.5g/t

080708_positive pre-feasibility outcome for cloncurry copper project[1]

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