depth, page-62

hi Hoot,

Apologies for the tardy reply. I have been kept busy for an old guy. By the way, I will gladly take the first 5 years of Rocklands glory.

From what information I can glean from my learned mining colleagues, CuDeco Management initially regarded the new magnetite resource as waste in the old JORC and it was ascribed of no value.

However, CuDeco Management has now identified magnetite as a 330mt resource grading 14% magnetite with an in-ground value of some $4.6 billion working on a magnetite price of $100 a tonne.

The in-ground value of the copper equivalent resources is also around this figure based on the new JORC.

Therefore, the magnetite is seen as a real bonus for CuDeco shareholders, and should ensure that revenues are maintained throughout the entire 10 years of initial mining.

The higher grade portion of the magnetite resource has been assessed at 200 mt @ 20% magnetite. Assuming $100 per tonne for magnetite sales and say costs of 25% for processing in years 5 to 10, this equates to earnings of over $1 per share throughout the period. This comes on top of the earnings from copper, cobalt, gold and magnetite in the 30mt resource still to be mined after year 5.

Overall, the earning from year 6 and beyond for the copper resource, should still be relatively strong, just like the first 5 years of high grade mining.

The reason for this is because by mining at a greater rate than 3 mt. in the first 5 years, CuDeco Management will build a large stockpile and carry all of the mining costs for years 6 to 10 in the first 5 years.

Greater yhroughput of lower grade ore through years 6 to 10 without mining costs should look positive, earnings wise. However, CuDeco Management now have the opportunity of adding to earnings from magnetite to bolster earnings even further during this period.

Certainly there is a lot of work to do around the magnetite resource because at this stage it is only inferred as it currently stands. It will need further delineating to improve confidence. "Magnetite only" holes would have been regarded as duds initially, especially as the search was for copper back then, and so further holes in the area of a dud hole would have been placed elsewhere in the continuing search for copper. It is thought therefore, that magnetite areas haven't been drilled out thoroughly as yet.

That's it from me. Make what you like from it but Rocklands all looks good to me.


cheers,

Max