from mining news

CuDeco keeps on keeping on Michael Vaughan
Friday, July 21, 2006

SHARES in high-profile junior CuDeco went on a 66% upwards run yesterday, following news that it had extended the strike length of the Las Minerale zone of copper-cobalt mineralisation at its Rocklands project near Cloncurry in Queensland.

The company released the results of two drill holes at Las Minerale, one that hit 46m grading 0.57% copper from 29m and the other intersecting 60m at 1.67% copper from 146m including a higher grade zone of 19m at 3.92% copper and 0.23% cobalt from 151m. According to the company, the results extended the mineralisation's strike length by 50m northwest.

Gold assays are awaited, expected in about a week.

CuDeco also pointed to a possible "inferred strike projection" of Las Minerale to the southeast based on a geochemical drilling program conducted earlier in the year.

The company was forced to slash its resource estimate for Las Minerale earlier in the week after a highly publicised battle with the Australian Stock Exchange. The new inferred resource is 25 million tonnes grading 1.57% copper, 818 parts per million cobalt and 0.2 gram per tonne gold.

Las Minerale also has an exploration target of 40-50Mt based on depth and strike extensions of the inferred resource.

In another CuDeco development, the company's public relations representatives severed ties with the company earlier this week.

The CuDeco story has attracted media attention nationwide, with chairman Wayne McCrae making a number of bullish statements including that the Rocklands project could well become the biggest copper mine in the world.

Shares in CuDeco were off 35c (9.2%) at $3.44 in morning trade.