any outcome from the cdu meeting ??, page-57

Karlene
I have got to reply to this one. William McCrae has been criticised by all and sundry including myself on occasions, however I think he actually has listened to peoples comments and has acted accordingly.

The JORC says 1.7% so to stay out of trouble someone, maybe himself, might have just done a calculation of ten years at 1.7% on three million tons per year and guess what the answer per year could be based on those figures. There is not one broker or analyst in the country who could take him to task for that.

There are a couple of things everyone should understand and the first is by it's very nature the JORC is conservative. The second is and again we all understand that a lot of the drill holes were reverse core circulation which do not pick up all the native copper.

The first four to five years is going to be spectacular in that the area known as the jewellery box will be dug up.

Wilgar is interesting and I suspect we are getting the mushroom treatment on Wilgar. The two metre by two metre centres of drilling on Wilgar one suspects is the Geologist trying to work out two geological events and how and where to drill for what is below. That is one version there could be other versions of what is happening. Then there is the drilling at Fairfield.

So we are now mid 2011 and hope to be mining by mid 2013. By my calculations if you add four years to that they could be out of the jewellery box by somewhere between 2017 to 2018.

By then Wilgar at surface will have been skimmed off, we will know a lot more about the geology of the entire area. I assume a minimum of a ten million ton a year plant will have gone in to treat the lower grade ore. You do not treat around 0.6% in a 3MTA plant.

The rail to Townsville and the port facility, try to understand that magnetite is a bulk material and to handle it efficiently will require specialist facilities. CDU, do not generate enough magnetite for those facilities so it is a taken that CDU will handle magnetite from other mines. This will be a good little earner.

So my basic answer is that number of dollars over ten years could well be a number that the company knows will a minimum that will be achieved, the number that will actually take place is, well the answer as to that is why I own shares in CDU. Strewth I hope I am right!