Chinalco Yunnan Copper Resources (CYU)

[Huang Chung]

Currently called China Yunnan Copper, but a name change is on the way.

I've held a few for a short while, but topped up on the news that CYU were going to farm into 2 Rio Tinto copper projects in Chile (Palmani, Caramasa) . I assume Rio don't think these projects will be the top shelf stuff that they would keep for themselves. However, Rio seem confident/comfortable enought to let CYU do the running, but retain the rights to take over management and limit CYU's ability to increase their stake if things turn out really well. Looks like a couple of well structured JVs, that could make both camps winners.

Lots of other projects as well, covering copper, gold, cobalt and REE in the Mt Isa / Cloncurry region, as well as building a presence in Laos, focusing on copper/silver. They also have another copper project in Chile (Humitos).

Overall, seems like an interesting company, with some powerful backers.

Some interesting reading:

Rio deal - http://stocknessmonster.com/news-item?S=CYU&E=ASX&N=231421

Quarterly Activities Report - http://stocknessmonster.com/news-item?S=CYU&E=ASX&N=231449

[Huang Chung]

CYU release from yesterday:

Bottom of page 2....

I think the initial analysis of the first drill hole into the copper zone is worth thinking about.

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01188005

[stevo1]

Yes does look interesting but for me from the perspective of holding JV partner GSE and the strong possiblities of HREE s.
CYU are a great JV partner and have deep pockets and a hunger for rescources .

[trackers]

CYU release from yesterday:

Bottom of page 2....

I think the initial analysis of the first drill hole into the copper zone is worth thinking about.

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01188005

Geez that second plate has a fair amount of chalcopyrite in it huh?

If the bottom metals here in the picture here contain 10% copper on average then.... http://www.cycal.com.au/irm/content/projects_marykathleen.html

... Probably have to wait about 4 weeks for the lab though?

Any ideas when the RIO JV kick off in earnest HC>? "Three holes of approximately 500 metres each will be drilled at the Caramasa porphyry target once permitting and access construction is complete."

[Huang Chung]

I got my metallurgist mate to have a look at the pictures of the core. He said they looked pretty interesting, and even spotted what could be chalcopyrite in the gangue on the left of plate 2. He said even the disseminated core looked pretty good. Big caveat is how representative the photos are of the whole core (and being a metallurgist, he also gave the usual metallurgical caveats, which of course apply to any base matals resource). I simply like the info that nearly the whole core looks to be of interest.

Time will tell I guess.

PS... I understand that the MD is in Chile right now, so I'm hoping that the drilling over there kicks off pretty soon.

[Huang Chung]

Presentation to the Rare Earths and Strategic Metals Conference:

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01191101

[Huang Chung]

Shareprice seems to be recovering in a business like fashion. A number of pictures of core in recent announcements (and some minor commentary).

I might be wrong, but think they're giving us a clue here.....

[trackers]

Looking the goods (you're right about the core samples and I thought at the time that was the message they were trying to convey), wish I hadn't dilly dallyed around with my entry - I'll be buying before the end of the month, possibly today as initial excitement fades... I'm also looking for some volume

You have to wonder as to the quality of the cores when you decide to double the length of the hole as you're drilling it...

[Huang Chung]

MD Jason Beckton is presenting at Noosa on Friday arvo, so maybe we'll get some something more by then.

[Huang Chung]

Encouraging news from the Elaine Dorothy project near Mt. Isa. Planned depth for holes MKED005 and MKED008 were essentially doubled due to them encountering disseminated sulphides, containing rare earths, thorium and visible copper. Both holes were still encountering disseminated sulphides at total depth, due to the drill rig and supporting equipment reacing their limit.

Being disseminated, I'm not expecting fantastic grades, but this could end up being a decent sized deposit.

http://www.stocknessmonster.com/news-item?S=CYU&E=ASX&N=233265

[trackers]

Great results!! Glad I got in at 22c... Lucky

122.9m @ 0.87 % Cu equivalent*(0.56% Cu, 317ppm Co), MKED007 from 487m depth.
• Within 346.9m @ 0.50% Cu equivalent* (0.28 % Cu and 220ppm Co) from 263m depth.
• Hole finished in copper sulphide mineralisation at 609.9m.
• MKED007 copper and cobalt assays reported. Final Rare Earth Element (REE) results pending with reassaying of higher grade zones underway.
• MKED008 copper REE and cobalt results pending.

[Huang Chung]

One drill hole does not make or break a project, but very interesting none the less, especially as "Elaine was previously considered only a REE uranium prospect". REE assays yet to come.

Market liked the news.

http://www.stocknessmonster.com/news-item?S=CYU&E=ASX&N=233354

[trackers]

Heya HC, yes its wait and see of course... But to my inexperienced eyes, the announcement of the 12th had very similar commentary for both today's hole MKED007, and MKED008 (assays pending):

1. A decision to extend the third drill hole (MKED007) beyond the target of 300 meters depth after encountering sulphide veining with visible copper from 200 meters depth. The hole was eventually terminated in disseminated sulphides at a depth of 609 meters when the drill rig and supporting equipment reached their maximum depth capability. Light Rare Earth Elements and Thorium were also detected in this hole with a hand held XRF device.

2. The fourth and final drill hole (MKED008) also encountered sulphide veining with visible copper, and indications of Light Rare Earth Elements and Thorium. A decision was made to extend this hole beyond the target depth of 350 meters. Drilling was terminated in disseminated sulphides at a depth of 604 meters again when the drill rig and supporting equipment reached capacity.


MKED007:
http://iforce.co.nz/i/jbsvaoo3.21l.jpg
MKED008:
http://iforce.co.nz/i/2v0xkfdi.lvx.jpg

Will see what happens.

[Huang Chung]

I'm particularly interested in MKED005, after that picture of part of the core. No assays released on this one as yet.

Don't forget the farm in onto Rio Tinto's Chilean porphry copper tenements...drilling coming up in September.

[Huang Chung]

I met MD Jason Beckton and Exploration Manager Richard Hatcher at the Noosa Mining and Exploration Conference today. Also listened to Jason's presentation. I don't think there's much doubt that they are VERY excited by what MKED007 has thrown up. The key seems to be that the mineralisation is getting stronger the deeper they go, and they don't know how far the system extends. Elaine now definitely considered a copper prospect. They even had some of the core from these holes at their stand at the conference.

Should be a fair bit of news flow in the weeks and months ahead.

Irrespective of how Elaine eventually turns out, I've come away feeling very comfortable with the leadership at CYU.

[trackers]

Hey HC, good to know that presentation went well and coy is confident - Had a quick read of the presos and noted the exploration target they've set: Corporate Target 100 to 500Mt @ 0.5 to 1.0%

Thats 1/2million tonnes of copper (4.5bil IGV) they're hoping for at minimum, with REE credits on top? Still early days but looking very good at this stage imho

[Huang Chung]

BRR interview with MD Jason Beckton 10.15am today.

http://www.hotcopper.com.au/post_single.asp?fid=1&tid=1506173&msgid=8597884

[trackers]

BRR interview with MD Jason Beckton 10.15am today.

http://www.hotcopper.com.au/post_single.asp?fid=1&tid=1506173&msgid=8597884

Company sounds confident they've stumbled onto a mega tonnage, moderate grade copper find (with REE, Cobalt credits) - I like how Beckton said that the REE results haven't been reported yet because they have to be re-assayed because they've come in at high grade ("over range").

"MKED008 to be reported" sounds to me like they have the assays in hand? pure speculation from me

[Huang Chung]

BRR interview with MD Jason Beckton.

http://www.brr.com.au/event/82283/jason-beckton-managing-director

[trackers]

Quarterly out, good read on Elaine discovery - MKED007 and MKED008 grades increasing at depth and ending in mineralisation (600metres) - Gotta love it. Glad to hear there's some EM happening too.

Also,

"Final assay results for all four holes are expected to
be returned by the end of July 2011."

Very stoked. So not only will we see what MKED008 holds, but we might get the REE results from MKED007 and the results for MKED005 and 6 in the next couple days too. All good (patience has never been a virtue of mine) :D

[Huang Chung]

Sounds like we'll have some news in the next day or two Trackers.

[trackers]

These guys need to fire their mailman pronto.

[Huang Chung]

lol trackers.

I'll be patient.

Chilean drilling not far away now either.

[trackers]

Fair call HC I'm being patient but its not my style :) Like you say though, the longer the wait, the nearer the drilling of the Chile Rio Tinto JV

Maybe the coy wanted to give out the employee options before drilling results while the sp is low and far from strike price? :D

I topped up at 17c the other day, unfortunately didn't have a great deal of funds to do it with,but lowers my entry

[Huang Chung]

Results for MKED008 released today, along with more details on the REE hits.

I'm certainly encouraged enough to think that Elaine could be a goer. Lots of work to do to firm that up of course. Whilst the grades for copper, cobalt and REE would not excite on their own, the combination makes things interesting. Don't forget we're probably looking at a very large system.

I'll be waiting for the BRR interview, or shareholder update, to get a better feel for what Jason and Richard's take is on Elaine.

With a 30m mkt cap, the risk reward looks very attractive, especially considering their footprint in Chile, backing of Chinalco and Yunnan Copper, and an MD with a proven record of exploration success.

http://stocknessmonster.com/news-item?S=CYU&E=ASX&N=234119

[Huang Chung]

CYU enters its 3rd farmin with Rio Tinto for copper porphyry in Chile.

http://stocknessmonster.com/news-item?S=CYU&E=ASX&N=235061

This is developing into quite a relationship. Rio showing a lot of faith in CYU.

[trackers]

So dark my order at 19c didn't get filled yesterday :(

CYU front page at: http://www.theaustralian.com.au/business

Things will start hotting up for these guys in a few weeks. will be a very exciting play as its various programmes kick into next gear

[Huang Chung]

Thanks for the link Trackers.

With connections like these, it's no wonder doors are opening for CYU.

[trackers]

Well that was worth sticking around for...

26m @ 7.76 g/t Au intersected within mineralised system in first hole of current resource drilling program, from 508m in MKED009. Includes 5m @ 22.78g/t Au from 508m depth and 8m @ 10.88g/t Au from 526m depth.

• Partial base metal results collated with 32m @ 1.04% Cu, 688ppm Co, 0.28g/t Au, MKED009 from 568m depth (Open up hole with further assays pending).

Due to high levels of radiation detected, base metal, rare earth and uranium assaying is incomplete for the interval 470m-567m in MKED009 - reporting is not expected for at least another week for these samples.



And for perspective, "Previous drilling of this anomaly has returned significant copper intersections of 122.7m @0.56% Cu, 317 ppm Co, 0.08g/t Au, MKED007 from 487m depth and 188m @ 0.35% Cu, 174ppm Co, 0.02g/t Au, MKED008 from 415m depth."


Really really impressive gold grades at depth... Wonder what the CU/Co for the section will come in at.... Also good that all holes to date appear to have ended in mineralisation?

[Huang Chung]

Elaine is like a lucky dip ......reach down and pull up goodness knows what! Now we've got high grade gold in the system. Evelated uranium looks potentially interesting, although probably somewhat of a double edged sword. Did you see that XRF number on page 14 of the recent presentation Trackers.....5,850ppm U.....amazing!

[trackers]

Yep, amazing.. I read the transcript of the BRR interview yesterday and went out and tried to pick up some more as the share price dipped to 18c (unreal). No luck but may try again today

"we've intercepted a thick - in the order of over 100 metre - zone of significant copper mineralisation; 70 metres of that is still at the lab because of extremely elevated uranium numbers in the core of it as well, and obviously there will be some good numbers to follow from that in about a week's time. But we felt the need to disclose this very strong gold intercept of about 26 metres at 7.7 grams per tonne gold"

"it resembles a gold skarm system. There's not many of them around the place. We're trying to come up with analogies. But certainly this style of mineralisation at Mary Kathleen, for example, was more Rare Earth uranium. What we have at Elaine, six kilometres south on the same trend, is clearly a copper gold and then followed by that you've got elevated Rare Earths and cobalt and some uranium in there as well. So it's an IOCG and, as you see in other large IOCG systems, it's multi element. So we're very excited"

"Yeah, thank you, James. Certainly these are the best results in the Company's four-year history and we think they're the best results from that part of the world in Mount Isa for many years and we look forward to a spectacular new discovery being quantified in a resource in the New Year."



Been googling and trying to find out more info on this skarn system business (think its skarn not skarm as per transcript) :D Hope you're having a nice holiday (bet its better now)

[Huang Chung]

Got back last night Trackers.....nice to see the markets looking somewhat better than they were a week or two ago.

[Huang Chung]

Jut looking at the Wiki entry for IOCG systems, some comparisons in the cloncurry region are:

Ernest Henry : 122 Mt at 1.18 % Cu, 0.55 g/t Au[2] (http://www.sharetrader.co.nz/#cite_note-1)
Mt. Elliot : 475 Mt at 0.5 % Cu, 0.3 g/t Au[3] (http://www.sharetrader.co.nz/#cite_note-2)

Elaine looks far more complex, with REE, cobalt, high grade gold zone etc in the mix as well.

[trackers]

"Hello Trackers,

As Exploration Manager for CYU I can confirm that the uranium number is correct at 50,000 ppm. The company reassayed the interval by three different methods, the last an XRF technique providing the most accurate assay value."

http://hotcopper.com.au/post_single.asp?fid=1&tid=1574200&msgid=9066643

[Huang Chung]

More drilling results released today, including:

27m @ 1.11% CU, 190ppm Co and 0.21g/t Au from 147m
185m @ 0.59% Cu, 324ppm Co and 0.05g/t Au from 201m

Importantly, these hits are a lot shallower than earlier hits.

MD James Beckton: The key point is thst this exciting newly discovered Cu-Co-Au-REE-U mineralisation system is open in all directions in a highly mineralised province.

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01238196

[Huang Chung]

Excellent artile in the Herald Sun:

http://www.google.com.au/url?sa=t&rct=j&q=china%20co%20yunnan%20copper&source=newssearch&cd=2&ved=0CDIQqQIwAQ&url=http%3A%2F%2Fwww.heraldsun.com.au%2Fbusiness%2 Fin-the-black%2Fexploratory-partner-is-proving-more-than-just-a-credit-card%2Fstory-e6frfinf-1226196093526&ctbm=nws&ei=SyLETunqMeqamQWJlcT9Cg&usg=AFQjCNFyL5Os_lRD6ePcdoWb0uVlTzKHVA

[trackers]

Anyone still on this one? Still signing up hefty JVs and ticking a few boxes, but nothing's looking like a company maker at the mo....Sold out a few months ago but still watching