how many new mines?

The dire state of the mining industry is a poignant reminder that, if a company cannot raise finance, it is doomed to remain either mainly inactive, mothballed or liquidated.

Which brings me to the question How many new mines will open in Australia this year?

Rocklands is one for sure. I know of no others, but would be happy to hear from learned posters of how many others there are.

The newspapers are full of mines closing. So Rocklands is really good news, especially for the Mount Isa region, where the prospect of Glencore closing the Xstrata operations is a possibility by 2019.

The employment generated by the Rocklands Project will be most welcome to the region’s mining fraternity.

More importantly than the fall in the share price, is that the Rocklands resource is increasing and it will be mined.

To some, the DFS is of paramount importance. However, the Chinese have opted to invest in CDU in a big way without a DFS, and also to increase their holdings. M@G also made a major investment without a DFS.

Ore that has come, in a short period of time, out of the small box cut from the Las Minerale open cut, has brought to notice that all that ore exceeded the JORC% estimate, and some by wide margins.

This illustrates the difficulty in arriving at an accurate JORC figure where native copper and, in particular, native copper nuggets, are part of the ore body.

If an accurate JORC figure cannot be certified, it follows that an accurate DFS figure also cannot be certified. Therefore, the mining of Rocklands is the only way of establishing its true worth, and CuDeco Management is moving to do just that.

The downturn in the mining industry is unfortunate for a lot of companies and their shareholders.

This however, offers the opportunity for CuDeco to pick up plant cheaply.

WM saw the benefit, following the GFC, to purchase, at bedrock prices, the machinery at work at Rocklands today.

Wayne would be aware that the current situation will present other opportunities, and I am thinking of the gold miners in difficulties, and how useful their plant would be when Wilgar is mined.

Perhaps, some areas of the Media will need to spruik about CuDeco when Rocklands begins to mine CuDeco will, undoubedly, be a profitable copper mine.

It is regrettable that other mines must probably have to wait for another upside in the Resources sector. That is, if they survive in the interim.

Personally, I am happy that I was fortunate enough to buy CDU early in the piece, and now know what potential Rocklands holds for me.


cheers,

Max