same horse differen jockey

here is HR and the boards response .please shareholders if you have a view on this email please post your view ,i am going to write the board a responding email over the week end but would like some oppinions as well ,just in case i am reading this wrong.the last paragraph leaves me gobsmacked...but maybe our/my email was unjustified...NOT

18th March 2011
Mr David Hopkin,
[email protected]
Dear Mr Hopkin,
YOUR EMAIL TO QMC � TUES 15 MARCH 2011
In reference to your email of 12 November 2010 and our reply on 18 November 2010 and
further, the letter to shareholders on 19 November 2010, I believe that the third and fourth
paragraphs of your email dated 15 March 2011 are in most instances, simply not true and I
draw to your attention releases in December 2010 of resources from drilling completed
over the previous period that the shareholders and investors did see the increase in value
and opportunity of the company outside the White Range purchase which was completed
on 16 July 2010 and the value of the company basically doubled through the share price.
The company also reported drilling results from Black Fort which were most encouraging.
Relevant details of changes to circumstances are notified to the market, especially of an
important or major nature.
To our recollection, we do notify the commencement of drilling at different project sites
mostly with a detailed report accompanying to the shareholders through the ASX.
As reported to the market before and in relation specifically to cyclone Yasi, Cloncurry Mt
Isa is some 960 kilometres from the eastern coast and had considerably weakened by the
time it got this far inland and was described as a tropical low or rain depression which
moved quickly south through Queensland to Victoria as a rain low depression.
Again, I would like to point out to you that the monsoonal season, tropical lows,
depressions over this area of Queensland can start as early as November and not the
period is through to March / April and each season can vary with the intensity of rain or
less rain. This season has been particularly wet as reported through the weather reports
everyday and therefore repairs to roads and creek crossings etc can only take place when
the season change. QMC will have to grade and repair roads internally and progressively
maybe up to 200 kilometres. At the same time, preparing access and drill pads and brining
in heavy equipment can only be done when the ground is sufficiently dry.
Due to the late wet season, the company will determine its exploration and drilling priorities
in due course, however, as reported, a great number of drill sites are drill ready and we
have indicated what out proposed priority is for the forthcoming year, not necessarily in
Queensland Mining Corporation Limited ABN: 61 109 962 469 2
order. Last year, we didn�t commence drilling until towards the end of May due mainly to
seasonal conditions and I might point out that drill rigs have left the area and therefore
companies wishing to drill later in this season will have to engage drill rigs that are not
local to return to the area. This in itself can cause delays to drilling and put out
commencement dates. The drill rig that we had lined up to commence in the near future
has just left the area and has travelled some 2,500 kilometres to engage in other
contracts.
As reported before, the only operation of monitoring and concern for QMC would be the Mt
Norma plant and vat leaching operations. The company�s management has been
monitoring this situation extensively since December on site and there have been no
issues that we are aware of or have been reported to be of concern.
The company released a presentation that was delivered to a 20/20 conference in Sydney
last week and next week will be releasing a new presentation which will be delivered at
Mines & Money in Hong Kong along with meeting with shareholders and brokers who have
or wish to look at the opportunity of investing.
The company did not make a 24 month production statement. What the company said was
that their objective was to become a copper producer in the medium term � within 24
months and to become a gold producer by 2012.
Some information on Company matters.
Regarding the timely and continuous disclosure that the Company has been making, I
would like to draw your attention to the list of ASX Releases that we have made since the
beginning of December 2010. (See Appendix A at the end of this letter). You will see that
eight releases have been made to the market over this three and a half month period, in
order to keep the market informed and up-to-date with the progress being achieved on the
various exploration and development projects.
This equates to one release to the market every 12.5 days. In our Quarterly Report
released to the ASX on 31 January 2011 we went to some lengths to explain the
Corporate and Business strategies that we are pursuing within our Company.
You will also see that the time scales that have been setout are mentioned for each of the
major outcomes being addressed. I would also like to emphasise, by highlighting in
italicised typeface, certain relevant extracts from this report to help address your concerns:
From the Corporate section of the March Quarterly. Page 1
QMC is currently in a number of negotiations in relation to the development and
production of their Cloncurry south copper projects. The two main project areas are
White Range and in the Sellwyn - Sellwyn north areas.
Discussions revolve around joint ventures for mining and ore treatment and third party
ore processing. Negotiations have been progressed to an advanced stage and the
Company is confident that they may be formalised into Heads of Agreement within the
next few months.
Queensland Mining Corporation Limited ABN: 61 109 962 469 3
From the section headed Gold (Under section Corporate Strategy). Page 3
QMC intends develop the Mt Freda gold project by way of joint venture and / or
separately creating a new company through IPO listing or through a listed vehicle.
QMC will focus immediately on development and production of its copper projects and
resources by way of joint ventures and / or third party toll treatment of copper ores from
their various mines.
The strategy of QMC is to mine properties, which contain substantial JORC resources
and, in some cases, have already been mine engineered and for which certain
approvals have been obtained in the past for mining activities. QMC, where possible,
wishes to engage with other mining companies in their strategic development so as not
to duplicate infrastructure and processing facilities but to enter into joint venture and
infrastructure sharing arrangements.
QMC�s resource strategy is to continue drilling on its mining leases and EPM�s to add
substantial resources to its already significant resource base. Within the next 2 years,
QMC�s aim is to achieve a resource inventory of 500,000 tonnes of JORC copper
metal at around 1% Cu and / or supported by economic equivalents of Cobalt, Gold
and Silver credits.
QMC, through continuous drilling of its gold mining leases and tenements, is targeting
up to 500,000 ounces of gold at a grade of � 2 grams per tonne. Some of this JORC
gold resource may come as credits with their JORC copper inventory.
From the section headed Business Plan and Development. Page 5
Activities for March Quarter 2011
QMC is currently in a number of negotiations in relation to the development and
production of their Cloncurry south copper projects. The two main project areas are
White Range (Greenmount, Mt McCabe, Vulcan, Mt McNamara, Hampden mining
leases) and the second areas Sellwyn - Sellwyn north (Stuart, Belgium, Answer,
Young Australian � East Drift, Kuridala mining leases).
These discussions revolve around joint ventures for mining and ore treatment and
third party ore processing, the establishment of stand alone ore processing facilities
as well as exploration to be carried out on mining leases and EPM�s. The various
negotiations have been progressed to an advanced stage and QMC is hopeful that
they may be formalised into Heads of Agreement within the next few months.
QMC will address the BFS in relation to copper processing, capital and infrastructure
requirements, capital costs, environmental, permitting, plan of operations that will have to be
upgraded and re-lodged with the respective Queensland government departments.
In the gold projects, the Mt Freda gold project area, QMC is expecting a JORC
resource to be established at Mt Freda and as well the resource engineers are
Queensland Mining Corporation Limited ABN: 61 109 962 469 4
seeking to establish a JORC resource for Gilded Rose (up to 5,000metres of drilling is
planned and may be required before establishing JORC resources). At both sites, the
mine engineers are looking at two aspects � mine and design for extraction of ore and
further drilling that will be required to increase the JORC resource base.
QMC at the same time is progressing documents in relation to joint venturing and / or
IPO in relation to its gold resources and gold operations which includes important
plant and infrastructure with a view to develop production from these mines as soon
as possible.
QMC is planning further drilling subject to joint venture arrangements in EPM�s and on
its mining leases to add resources and assist in its mine development. Up to 30,000
metres initially planned in the next two quarters. The first phase of drilling of 8,000
metres - 10,000 metres is to start as soon as possible, subject to seasonal conditions
targeting the Young Australian, the Answer Mine (both Sellwyn district) Duck Creek
and Gilded Rose.
No doubt you are aware and understand, when a Company is seeking to introduce
partners into a project � as we have very openly declared that we are doing � these
proceedings and negotiations often take place over an extended period of time. It would be
counter productive therefore, to provide a running commentary on the details of how these
negotiations are progressing. We are currently in situations where we have flagged to the
market that we are seeking partners to join us in developing our various copper and gold
projects. These discussions are ongoing, and as such, this is all that we are at liberty to
disclose.
No there was no structural/storm damage from cyclone Yasi. However, as we pointed out
in our ASX release of 18 January 2011 access and mobilisation of drill rigs was affected by
the seasonal heavy rains. Some slippages in drilling schedules have resulted but this was
anticipated as a strong possibility as this is the wet season.
We have recently presented at the Resourceful Events 20:20 conference in Sydney. The
full video & Audio of the Presentation is available at:
http://www.brr.com.au/event/frame/77516
We will also be presenting at the Mines & Money Conference to be held in Hong Kong
next week.
Further presentations have yet to be scheduled.
We employ geologists for their technical expertise in exploration geology with the specific
experience for the deposit types that we are searching for. We are currently employing
mining and metallurgical engineering consultants to assist us with the evaluation and
planning for the exploitation of our JORC resource deposits some of which are amenable
to heap leaching.
Net Cash and receivables as at 31 December 2010 $3.5 million. We have sufficient funds
for our immediate program.
Queensland Mining Corporation Limited ABN: 61 109 962 469 5
In relation to the top 20 shareholders, we and our Share Registry always ensure we
comply with our obligations. We published a top 20 list with our 2010 Annual Report and
published a top 5 list in our recent presentation. We cannot continue to respond to
individual requests for such documents.
The relationship with Butmall Pty Ltd is fully documented and disclosed in the original
Prospectus as well as every Annual Report we have released since listing. Full details of
the shareholding and directorship of Butmall Pty Ltd is available for public inspection at
ASIC as you would know.
We have devoted substantial company time in responding to your queries. You future, we
suggest you speak with your stockbroker or other advisors in relation to your current or
future QMC shareholding.
Thank you for showing interest in the Company.
Yours faithfully
QUEENSLAND MINING CORPORATION LIMITED
Richard Hill
Company Secretary
Appendix A
Date Headline Pages
09/03/2011 Investor Presentation 26
08/03/2011 Mt Freda Gold Resource - Maiden Resource Estimate 6
03/02/2011 Young Australian- Maiden JORC Resource 5
31/01/2011 Quarterly Activities and Cashflow Reports 24
18/01/2011 Update of Seasonal Weather Conditions- Cloncurry District 2
21/12/2010 Black Fort Prospect Significant Copper Cobalt Results 9
17/12/2010 Young Australian Project - Further significant drill results 8
10/12/2010 Young Australian Project- Drill Results