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Chinalco Yunnan Copper Resources Ltd - Quarterly Activities Report(ENP Newswire Via Acquire Media NewsEdge) ENP Newswire - 25 July 2014 Release date- 24072014 - The Board of Chinalco Yunnan Copper Resources Ltd (ASX: CYU) continues to focus on transforming the Company into a substantial mid-tier mining group, with a primary exploration focus in the Mt Isa region and the ongoing pursuit of project acquisition opportunities currently under review and negotiation. Business Plan The Board of CYU has identified the opportunity in the current challenging mining and development environment to seek to transform the Company into a mid-tier mining company which has an ongoing exploration commitment. The Board sees a clear opportunity to develop and acquire mining projects in the Australian region and, as a consequence, endorsed a Business Plan in April 2014 that provides the basis for these actions to be implemented. In accordance with the April Business Plan, the key activities of CYU at the present time are: assessment of acquisition opportunities for projects that are either in production or near to commencing production - this involves the conduct of detailed technical and financial due diligence which, in the case of one particular project, is likely to be finalised by the end of August 2014; ongoing exploration activities across CYU's large portfolio of tenure in the Mt Isa region and continuing efforts to sell and/or abandon the existing tenure holdings in Chile and Laos. Regardless of whether these holdings are abandoned or sold, no further expenditure is intended to be incurred by CYU on these interests. 2014 Exploration Program The CYU Board has approved a total proposed exploration expenditure budget for 2014 of $2 million across a combination of regional-scale data collection and prospect delineation activities. These are designed to further define existing copper, gold and other mineralization at prospects such as Millennium and also create a pipeline of drill targets into 2015 and 2016. The CYU Mt Isa project covers more than 1000km2, centred in an area 75km northeast of Mt Isa and 40km northwest of Cloncurry in north western Queensland. The project area comprises a number of farm-in agreements (Mount Isa Mines - a Glencore company, Altona/Roseby Copper South, Elementos and Goldsearch), together with tenure held directly by CYU. Initial Drilling Program - April/May 2014 CYU commenced an initial 7 hole RC (reverse circulation) exploration drilling program in April 2014 comprising: 4 holes at Millennium 2 holes at Jubilee (near the historic Jubilee shaft) 1 hole at Blue Caesar (north of the 2013 drill holes). Excellent results were achieved from each of these prospects. Jubilee The Jubilee prospect is approximately 900m to the west of CYU's Blue Caesar Prospect and 5.5km south of the historic Mary Kathleen uranium mine. Jubilee was the subject of mining in the 1920s and 1970s. The Jubilee prospect is part of the Mt Frosty Joint Venture and consists of a north trending linear zone of historic workings, presumably shear-controlled, that is mapped by a 1km long copper-in-soil anomaly. Two holes were drilled under the historic Jubilee mine shaft as part of CYU's recent seven hole RC exploration drilling program. The drilling targeted the down-dip extension of the historic workings. Drillhole Q-019 intersected copper sulphide mineralization occurring from 36m down hole depth and hole Q-020 intersected copper sulphide mineralization from 78m down hole depth. Final analytical results from drillholes Q-019 and Q-020 have now been received and are highlighted by: Q-019 6m @ 1.01% Cu and 0.9 g/t Au from 40m including: 2m @ 2.42% Cu and 2.96 g/t Au Q-020 11m @ 1.76% Cu and 0.44 g/t Au from 78m including: 4m @ 4.29% Cu and 1.17 g/t Au and 1m @ 10.7% Cu and 1.37 g/t Au The assays indicate mineralization over at least a 10m wide zone which is comparable to early drilling results at the Barbara deposit to the north. Clearly these outstanding early results at Jubilee warrant further exploration drilling by CYU over the coming months to test the depth and strike extent of this newly identified mineralized lode. Millennium The Millennium prospect is CYU's principal drill target for 2014. Shallow RC drilling in late 2013 identified broad zones (up to 90m wide) of low-grade mineralization carrying 5-10m wide lodes of higher grade mineralization within a westerly-dipping structural zone. CYU's recent drilling program included four RC holes (Q-014 to Q-017) targeting the mineralization both along strike and down dip. The depth of these holes ranged from 180m to 320m. Unfortunately Q-017 was terminated above the target zone due to drilling problems. Follow up diamond drilling is planned for later in the year. Final analytical results from these drillholes have further reinforced the interpretation that the Millennium prospect may hold a large mineralized body. Highlights of the assay results are: Q-014 13m @ 0.53% Cu, 0.30% Co, 0.24 g/t Au and 3 g/t Ag from 104m including: 5m @ 0.98% Cu, 0.29% Co, 0.5 g/t Au and 5 g/t Ag Q-015 21m @ 0.35% Cu, 0.13% Co, including: 8m @ 0.58% Cu, 0.11% Co and 3m @0.47% Cu, 0.27% Co Q-016 5m @ 0.35% Cu, 0.1 g/t Au Of particular interest is the presence of a broad zone (up to 60m in Q-014 and at least 20m in hole Q-016) characterised by geochemical anomalism in a range of metallic elements Ag, As, Cu, Ni, U, Zn, Ce, Au, Co, La. This geochemical signature is interpreted as reflecting the presence of deep crustal or mantle fluids which have migrated along the Pilgrim Fault and which may form economic mineralization in the right geological environment. A deep-penetrating IP geophysical survey will be undertaken by CYU later in the year to map the mineralization and provide targets for further drilling at Millennium. Blue Caesar Also forming part of the Mt Frosty Joint Venture, CYU's drilling at Blue Caesar in 2013 made three potentially economic intersections of chalcopyrite-rich mineralization at shallow depths. Analysis of the drill data suggests a south-plunging, easterly dipping structural zone is the host to the mineralization. Mapping and rock chip sampling conducted by CYU and Blue Caesar late in 2013 showed the potential for the strike of mineralization to extend for up to 1000m. Drillhole Q-018 was designed to test the up-plunge extent of the Blue Caesar mineralization to the north. Analytical results for drillhole Q-018 validated CYU's interpretation of a northern extension to the strike of chalcopyrite-pyrrhotite mineralization discovered in 2013, highlighted by the following assays: Q-018 4m @ 1% Cu from 16m 2m @ 0.95% Cu from 59m (forming part of a broader 27m zone @ 0.26% Cu) Other Mt Isa Prospects King Solomon This project forms part of the Mary Kathleen Joint Venture between CYU and Goldsearch Ltd (80:20) and has not been the subject of any significant exploration activity in recent times. Situated 35km east of Mount Isa and 3km north of the Barkly Highway, King Solomon lies on the western margin of the Corella Formation. Reconnaissance rock chip sampling from this area has returned strong copper and gold anomalies, which warrants further investigation. Some of the assay results for the King Solomon samples included: Sample 411839 4.8% Cu, 1.7g/t Au and 3.2 g/t Ag Sample 411843 20.9% Cu and 0.16 g/t Au Sample 411844 9.6% Cu and 0.18 g/t Au These encouraging early-stage exploration results have set the scene for a drilling program possibly later in the year or into early 2015. Pindora This prospect was the subject of a 15 RC drillhole program in April 2008 when owned by Goldsearch. The holes were drilled on 9 sections along 7km of strike of the Pindora Shear and were generally designed to test under historic mine shafts. The Pindora prospect lies within EPM 14019 which is also part of the Mary Kathleen joint venture with Goldsearch. Some significant copper mineralization was intersected in this 2008 program, highlighted by the following: MKRC012 4m @ 2.5%Cu 0.24g/t Au from 48m MKRC013 6m @ 0.87%Cu from 35m including 1m @ 2.5%Cu MKRC020 3m @ 0.99%Cu from 37m MKRC021 3m @ 7.85%Cu 0.55g/t Au from 1m 2m @ 4.00%Cu 0.37g/t Au from 17m 5m @ 1.60%Cu from 48m 3m @ 1.01%Cu from 57m These results provide significant encouragement to proceed with further exploration drilling with the aim of identifying significant tonnes of +1%Cu in multiple pits along the Pindora Shear. Initial follow-up drilling will be conducted by CYU either in late 2014 or early 2015, to test the down dip continuity on the original Goldsearch drilling sections. Exploration Expenditure for June 2014 Quarter Across CYU's different exploration projects, a total of $301,000 of expenditure was incurred for the March 2014 Quarter, a summary of which is as follows: Mary Kathleen JV - $9,298 on mostly tenure administration, geological consulting and related fees; Mt Frosty JV - $42,188 on drilling, assaying and geological consultants engaged in relation to the April/May drilling at Jubilee/Blue Caesar; Elementos farm-in - $129,793 on drilling and assays for the April/May drilling program at Millennium, desk top geological review, on-site soil sampling and mapping, landowner and tenure administration fees and Altona/Roseby Copper South farm-in - $120,378 on desk top geological review, on site soil sampling and mapping, landowner and tenure administration fees. Goldsearch - May Kathleen JV Dilution In late June 2014, CYU received notice of the election of its partner in the Mary Kathleen joint venture, Goldsearch Limited (ASX: GSE) to dilute its participating interest from 30% to 20%, with effect immediately. CYU's participating interest increases to 80% accordingly. Joint Venture with Yunnan Copper Exploration & Development On 29 April 2014, CYU announced a Memorandum of Understanding to enter a proposed joint venture agreement with Yunnan Copper Exploration & Development Co (YEX) in relation to certain areas within the Roseby South project. Under this proposed agreement YEX would have had the opportunity to earn certain interests in some of the Roseby South tenure, in the event of successful completion of agreed expenditure commitments on the areas. CYU recently received notice from YEX of its intention to indefinitely suspend participation in this proposed arrangement. As a consequence, CYU will seek to cover the proposed YEX exploration commitments from its own funding sources and thereby retain any project interests that are ultimately earned in the Roseby South project area pursuant to the September 2013 farm-in agreement with Altona Mining Ltd. Sale of Chilean Projects Having already withdrawn from the Sulfato and Palmani farm-in agreements in Chile, CYU has succeeded in securing sale agreements for the disposal of its remaining Humitos project interests. The Humitos tenures were separated into two packages for the sale and sold to two separate groups - one package sold for approximately US$45,500 to SolarReserve and the other package to Minera Inmet Chile S.A for US $50,000. It is expected that financial close on both these transactions will occur within the next couple of weeks. While effectively being sold at 'fire sale' values, the Board of CYU elected to proceed with these transactions instead of allowing the tenures to lapse for no value at all. The funds from these two deals will allow CYU to close its Chilean interests without drawing from any existing funds it has in Australia. Contact: Paul Williams Managing Director Chinalco Yunnan Copper Resources Ltd Tel: +61 419 762 487 Email: [email protected] About CYU Chinalco Yunnan Copper Resources Ltd (CYU) is a resource exploration and development company with project interests focused in the Mt Isa region of north Queensland. CYU's largest shareholder is China Yunnan Copper (Australia) Investment and Development Co Ltd ('CYC'), owning 47% of the total issued shares in CYU. CYC is a wholly-owned subsidiary of Kunming-based Yunnan Copper Industry (Group) Co Ltd, which is the third largest producer of smelted copper product in China. In turn, Yunnan Copper Group is a subsidiary of Aluminium Corporation of China (Chinalco) which is the largest producer of aluminium product in China and the second largest world-wide. CYU has offices in Brisbane and Mt Isa. The Company is listed on the ASX under the symbol 'CYU'. (c) 2014 Electronic News Publishing - |