"Xstrata are looking at an underground development at Ernest Henry for an 'uncertain' resource of 25mt @ 0.7% Cu and are prepared to spend $560 million to do it. That equates to $4.06 per share if they were to bid for CDU and successfully secure a much more certain open cut resource with a lot of still untapped potential. Copper fundamentals will definitely come into play here and Rocklands will be under the microscope now."
The plan was approved after a series of studies lead to the mine's ore reserves being revised to 72 million tonnes at a grade of 1% copper, 0.5 grams per tonne gold and 22% magnetite.
