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Early Cash Flow Study Commences

The company is currently investigating commencement of early crushing of high-grade areas of the coarse native copper zone, prior to installation and completion of the floatation plant.

Initial desk-top models suggest cash flows will be robust.
Mining and strip back at Rocklands is planned to commence within the next 4-6 weeks, and once the Run of Mill (ROM) pad has been established, the crushing circuit (expected to be completed and commissioned by the end of 2012), may commence crushing of ore material from the native copper zone. The crushing circuit is designed to screen off +40mm size native copper nuggets separately, with the -40mm being
Unit 34, Brickworks Annex,19 Brolga Avenue, SOUTHPORT 4215
Phone: +617 5503 1955 Facsimile: +617 5503 0288
MARKET RELEASE
7th June 2012

ROCKLANDS COPPER PROJECT (CDU 100%)
Figure 1: Initial ground works have begun at Rocklands - Large excavator loading one of the Company’s fleet of dump trucks.transferred to the gravity and floatation circuit. The current study will investigate commencing crushing and recovery of the +40mm native copper ore, with the -40mm being stockpiled for later processing through the 3mpta process plant.

The proposal will also provide valuable working data on the two giant rolls crushers being installed as secondary crushers to handle the high grade native copper zones of the orebodies.

Development Activity Accelerates
The CuDeco Rocklands Group Copper Project is accelerating the process of transformation from exploration to production, with the commencement of earthworks including roadways, construction of a 42 hectare water storage facility (WSF), creek diversion channel, clearing and foundations for administrative and other buildings. A fully mobile primary and secondary crushing circuit has arrived on site and will commence crushing of more than 200,000 tonnes of road base for the haulage roadways.
The company has received confirmation that the 3mtpa crushing circuit for the process plant is on target for commissioning by mid December 2012.
Construction of housing is well underwa
y with the company expecting to complete the current batch of new houses by mid July. An additional 20 cabins are being added to the current village to accommodate some of the construction crews. When current construction activities have been completed, the Company believes it will have procured sufficient housing to accommodate the required staff profile for the Rocklands project.
Long term purchase items (including the ball mill) is 90% complete, and our engineers are carrying out
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