is listed on the OTC markets in Berlin, Frankfurt, Hamburg,...

is listed on the OTC markets in Berlin, Frankfurt, Hamburg, Stuttgart and Munich

The Chacarilla Copper Project in Bolivia, South America, is a rich, near surface copper deposit. Sundance Resources holds a 50% working interest in this project.

It consists of three massive contiguous concessions with a total area of 66,000ha. Further to the west, the company’s geologists have identified additional mineralisation and graticular concessions are being considered with an additional area of 100,000ha.

Oxide copper is clearly visible at surface and our geologists have been able to field map and take channel samples over a strike of in excess of 35 kilometres.

During 1960-1976, the Japanese Nitto Metal Mining Company ("NMMC") carried-out underground mining to yield the majority of the recorded production for the area. Approximately 1,457,000 tonnes of sulphide copper ore grading 2.55% copper was reportedly mined to produce a 50% copper concentrate at a recovery of 89%.

NMMC mined only sulphide copper ores as feed for flotation processing, the oxide resources were completely disregarded as there was no technology available at the time to economically process the oxide resources. Today such a technology, utilising SX/EW (solvent extraction / electro winning) plants, is commonplace and results in lower costs of production.

As the name suggests an oxide ore has been exposed to oxygen thereby changing its chemical state and in most cases, will be located above the sulphide ore. The sulphide mineralisation on the other hand, has benefited from a supergene enrichment process, resulting in a significant body of copper enriched chalcocite ore. Both types of ore require different types of processing plants.

No work was untertaken on the project from the 1970’s until Sundance Resources became involved in 1997 due to the political and labour climate which existed in South America at that time.

The copper oxide that we have focused on resides between the sulphide ore and the surface making mining far simpler, easier and cheaper. Because of its changed chemical state the copper oxide can be extracted using the relatively new and inexpensive SX/EW process

The well developed infrastructure and convenient road access to the site locations also adds to the cost effectiveness of establishing mining and milling operations of a significant scale.
Recorded exploration by NMMC included 63,000m (530 drill holes) of predominantly vertical diamond drilling during delineation and underground grade control of the copper sulphide resources.

Oxide copper mineralisation was geologically logged in the diamond core but not assayed. The bulk of the diamond core was drilled for sulphide ore production purposes with all assaying being undertaken in the company’s mine site laboratory.
Sundance Resources activity in the area has been directed at verifying and expanding the NMMC records so our initial target was the Borda prospect which featured more clearly in the NMMC data, even though it was felt that other areas may hold greater potential for even higher tonnage and grade ore.

To ensure the accuracy and reliability of our work we employed technically sophisticated equipment and staff with a proven track record. Drilling equipment was transported from Australia to Bolivia, and an experienced team of Australian specialists were resident on site for several months. The personnel that have at various times been engaged on the project include drilling staff, geologists, mining engineers, metallurgists, project managers, geochemists and geoscientists. In addition to this team we have had as many as 30 local Bolivians working for the Company.
Sundance Resources completed in excess of 7,500 metres of reverse circulation drilling on the project.

Review of both our and previous data and subsequent economic analysis of the Chacarilla Copper Project has identified excellent potential for commercial development. Whittle 4D evaluation of ore blocks geologically interpreted from previous NMMC exploration diamond drill holes has indicated that the grade of copper mineralisation currently defined could support significant open pit mining operations.

In addition, strong potential exists to substantially increase the resource base through exploration of along strike and down-dip extensions of the host mineralised units.

Subsequent to the drill program two separate regional reconnaissance programs were undertaken. These programs involved mapping, geological traversing, rock chip and mullock dump sampling (refer to ASX Announcement dated 17th December 2003 for details).

These exploration programs were designed to rapidly investigate the local geology and identify significant outcropping copper mineralisation.
The initial rock chip sampling program around the Chacarilla area suggested that 38 million tonnes of potentially open pittable mineralised host may be present. The second program, further to the north, identified similar mineralisation with the potential to double again the tonnages.

These two programs covered an area of some 35 kilometres in length, varying in width from 2 to 3 kilometres. The copper oxides either outcrop in the form of mantos varying in thickness from 0.5 to 6 metres thick or are clearly visible at surface and easily identifiable. These mantos cover the entire length and breadth of the project area and run into the large neighbouring Coro Coro copper mine.

To date less than 2% of the project area has been systematically investigated. As data has emerged from the Borda and Tivina regions we have gained a deeper insight into the geology of the project and the accuracy of the NMMC data.

In summary the Chacarilla Project has at this stage:

Reported copper resources of some 18.9mt @ a grade of 2.44%Cu.
An extensive data base of in excess of 60,000 metres of diamond drilling.
An ever increasing data base of confirmation RC drilling (now in excess of 7,500 metres).
An landholding area of 66,000 hectares (660 square kms).
An easily identifiable visible strike length of more than 35kms.
Soft ground conditions which could lead to inexpensive "free-dig" mining.
Very good infrastructure, sealed roads, water, electricity, etc.
A stable democratic government.
A government very keen to provide incentives to start up projects
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MANTOS GRANDES ACQUISITION
Sundance Resources Ltd is pleased to announce that it has successfully concluded
negotiations to purchase 100% of the Mantos Grandes copper/gold project in Chile for
US$1.2m in cash which has now been paid.
Previously, Sundance had the right to move to 100% ownership through a series of
payments totalling US$4m over three years, of which US$250,000 had already been
paid. Under the new arrangement Sundance has now acquired the entire project for a
single payment of US$1.2m.
Sundance regards the move to complete ownership as critical in its plans to most
economically explore and develop the project and to pursue corporate opportunities.
Sundance sees the Mantos Grandes project as an exceptional opportunity in the highly
rated Chilean mining industry.
The Mantos Grandes Copper Project
Mantos Grandes is predominantly a hypogene, skarn related Cu/Au deposit which has
previously been the subject of small scale mining using underground methods.
Initial geological reconnaissance and mapping of the area suggest that in addition to the
main skarn orebody there is potential to discover a second skarn orebody as well as
porphyry style mineralization within the lease area.
The mining and exploration leases cover an area of approximately 1,350 hectares (13.5
km2), with additional prospecting claims covering in excess of 2,800 hectares (28 km2)
of additional ground.
Geological information available on the project includes.
— 2 —
A 1:25,000 geological and structural map of the project area, produced by
integrating the regional aeromagnetic survey with published geology maps and
field observations.
o Surface and underground mapping program (1:2000 and 1:500 scale,
respectively) conducted by a local state company in 1997.
o Surface and underground mapping program (1:1000 and 1:500 scale,
respectively) conducted by the previous owner in 1998-99.
o Surface mapping program (1:1000) conducted by a prospective buyer in 1999-
2000.
o Results from a number of rock geochemical surveys conducted between 1996
and 2000, including assays for a total of 738 channel and chip samples.
o Drill hole logs from a 1,660m (in 13 drill holes) step-out drilling program (in 13
drill holes) conducted by a prospective buyer (a major international mining
company) in 2000.
o 2,000m of underground development.
o Geological assessment reports from a prospective buyer.
Significant assay results (above 1% Cu-equivalent) reported from the limited drilling
carried out to date are as follows.
Hole No Collar coordinates Drillhole Intercept
East North RL Azim. Dip From To
L
(m)
Cu
(%)
Au
(g/t)
WFDH002 351,405 6,584,765 2,505 20 -2 0 28 28 0.62 1.79
WFDH003 351,405 6,584,765 2,505 30 -26 0 22 22 0.57 1.59
WFDH003 351,405 6,584,765 2,505 30 -26 32 34 2 0.64 1.50
MGDH009 351,407 6,584,662 2,607 135 -85 133.95 135.75 1.8 1.38 4.09
MGDH007 351,407 6,584,662 2,607 135 -60 4 6 2 <0.01 6.0
MGDH007 351,407 6,584,662 2,607 135 -60 24 26 2 <0.1 3.1
A
ssay results from underground sampling, based on a total of 192 mostly 5kg samples
representing various underground mapping programs, reportedly provided an average
of 0.91% Cu (max. 6.8%), 2.27g/t Au (max. 23.4g/t), and 2.1g/t Ag (max. 51.0g/t).
Surface chip and channel sampling in garnet skarn outcrops also identified anomalous
concentrations of Cu (max. 4.27%), Au (max. 10.8 g/t), and Ag (max. 30g/t).

Previous mining history includes artisanal mining dating back to the 1940s, followed
by intermittent small scale mining since 1976. Historical production is reported to be
about 500,000 tonnes of ore. Production records for the 1998-1999 period indicate that
a total of 35,885 wet tonnes of ore averaging 2.97 g/t Au and 0.63% Cu (non-soluble
component) were mined and processed during the period, resulting in some 1,190
tonnes of concentrate containing 41.96 g/t Au, 20.36% Cu, and 101.84g/t Ag. The
process plant has a current capacity of about 200 tpd and is presently on care and
maintenance.
Most of the mining activity reportedly focused on high grade veins and ore shoots, with
some less selective room and pillars mining taking place in the later years. Existing
underground workings include some 2,000m of development distributed in 11 levels
and a decline (4m x 3m) which links the various levels and is used as transport level.
All underground workings appear dry and in good condition
Existing project infrastructure is in place to support a small scale operation, and
includes.
o Access road – Some 83 km to the closest major town, including 25 km of gravel
road in rugged terrain which will require upgrading. The closest major port
facilities are located some 160 km from the mine.
o Power supply and distribution.
o Water supply and distribution
o Basic camp and office facilities.
o A small scale (200 tpd) conventional flotation plant and associated facilities.
In February 2005, Sundance announced that a total of 22 soil samples were collected
from geological target areas in order to assess the prospectivity of areas outside the
known skarn deposit. Anomalous Cu values were found in each of the soil samples, and
ranged from 550 to 59,700 ppb (low detection limit 10 ppb). Silver values ranged from
2.3 to 235ppb (low detection limit 0.1 ppb).
The program successfully defined strong coincident Cu, Ag, Mo, Au, Zn, Cd and W
responses over the copper target zones. Granitic zones also returned elevated Cu, Ag,
Au, Zn and Pb values, whilst the main fault zone returned elevated Ag, Co, Zn and Pb.
A mineralized breccia showed characteristically elevated Cu, Ag, Co, Zn and Pb.
All field work and geochemical sampling were conducted under the supervision of
Perth based consultants MMI Technology. Sample preparation and assaying was
conducted by ALS Chemex laboratories in Australia.
John Corr
Director