standing ovation for cudeco chairman

From GC Bulletin http://www.goldcoast.com.au/article/2011/11/25/368715_gold-coast-business.html

Standing ovation for CuDeco chairman

CUDECO chairman Wayne McCrae had his `Twiggy Forrest' moment yesterday after the State Government granted the Gold Coast copper explorer its mining leases.

The company-making news has set the emerging resource powerhouse on track to start mining its Rocklands project near Cloncurry in early 2013.

It also has defied prolonged skepticism from the investment community about CuDeco's ability to proceed to production.

"It's massive news," Mr McCrae said. "Today is the first day we can plan -- from now on, it's full on."


The granting of the leases has taken a significant weight off Mr McCrae's shoulders.

It drew comparisons with the burden of expectation that mining entrepreneur -- and Mr McCrae's former stockbroker -- Andrew `Twiggy' Forrest endured before bringing his Fortescue Metals iron ore mine in the Pilbara to production in 2008.

CuDeco, which has a $12.5 billion copper-equivalent resource in the ground, will immediately begin the dewatering process on site and deliver a timetable to develop the Rocklands mine with an initial life span of 10 years.

CuDeco has already revealed it would process three million tonnes of ore a year, but Mr McCrae said he planned to lift output to between five and 10 million tonnes a year once in production.

Rocklands has a 272.9 million tonne measured resource at a 0.62 per cent cut-off grade.

Assuming a copper price of $4 a pound, CuDeco is targeting profit of $270 million a year if its ore grades come in at 1.7 per cent and $650 million if they are, as expected, about 3 per cent.