COPPER STRIKE LIMITED - ASX: CSE

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Description

Copper Strike (ASX:CSE) is a mineral exploration and development company focused on finding and developing copper and related base metals in eastern Australia. The company aims to create shareholder value through the development of its advanced multi-deposit project at Einasleigh in North Queensland. Copper Strike's main focus is on finalising its feasibility study for the project by expanding the copper resource. It is also actively exploring to expand the size and number of zinc-lead-silver deposits.

Einasleigh Project

At Einasleigh, located 350 kilometres northwest of Townsville in North Queensland, Copper Strike has discovered two copper?gold?silver deposits and four zinc?lead?silver deposits since 2004 and established resources on these discoveries.

A feasibility study examining the joint development of the copper and the zinc-lead deposits has recently been completed. The operation will treat up to 1.8 million tonnes pa of copper ore for up to eight years and about 700 kilo tonnes pa of zinc-lead ore for two years afterward. This will result in about 15,000 tonnes pa of copper in concentrate being produced. Total mine production for the first eight years is 100,000 tonnes of contained copper, 25,000 ounces gold and 3.5 million ounces silver. In the following two years the operation will produce 42,000 tonnes of contained zinc, 25,000 tonnes of lead and 2.2 million ounces of silver. The copper operations are based on an open cut at Kaiser Bill and underground operation at Einasleigh. The ore would be processed at separate plant and the concentrate trucked to Townsville for export. The concentrate is a clean concentrate and has attracted the interest of several potential purchases.

The company is completing base line environmental studies with the intention of obtaining a mining lease in 2011. In addition to above resources, airborne electromagnetic and magnetic surveys in 2006 and 2008 identified several excellent targets on the Einasleigh exploration licences. In particular there are five that require immediate drilling in that they most closely resemble the anomalies over the known ore deposits.

Walford Creek Project

At Walford Creek, located 300 kilometres NNW of Mt Isa in NW Queensland, an Inferred Resource has been estimated at 6.5 million tonnes @ 0.6% copper, 1.6% lead, 2.1% zinc, 25g/t silver and 0.07% cobalt.

At Walford Creek, located 300 kilometres NNW of Mt Isa in NW Queensland, an Inferred Resource has been estimated at 6.5 million tonnes @ 0.6% copper, 1.6% lead, 2.1% zinc, 25g/t silver and 0.07% cobalt.

Given the low density of drilling on this prospect, there is excellent potential to increase the size and grade of the resource. The deposit is shallow and amenable to open-cut extraction. Further drilling is planned to increase the resource. A joint venture partner, MM Mining Ltd (MMM), has been brought in to carry out the drilling. The junior explorer has signed a Joint Venture Agreement allowing them to earn up to 70% of the Walford Creek exploration licences by the expenditure of $4 million.

Mine For

copper, gold, silver, zinc, lead, cobalt

Location of operation(s)

Queensland

Address

Level 9 , 356 Collins Street
MELBOURNE, VIC, AUSTRALIA

Phone

(03) 9640 0955

Email

Website

http://www.copperstrike.com.au/

Last Updated

18/04/2011