TESTING Chinalco Yunnan Copper Resources Ltd (“CYU” or “Company”) is a resource exploration and development company with project interests in the Mt Isa region of north Queensland, Chile and northern Laos.
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, Mt Isa and in Santiago. The Company is listed on the ASX under the symbol “CYU”.
A summary of CYU’s current project interests is as follows:
1. Australia - Mt Isa/Cloncurry
CYU has a substantial tenure holding in the highly prospective Mt Isa Inlier region of north-western Queensland. This is a known region of significant copper and related mineralization with a long history of mining. These tenure holdings are highlighted in red in the diagram below:
CYU’s project interests in this region comprise the following:
(a) Roseby South JV – farm-in agreement with Altona Mining Ltd (EPM 9056, 10833, 11004, 11611, 14365 and 14535);
(b) Millenium JV – farm-in agreement with Elementos Ltd (EPM 18402, 18773, 18793, 19014 and 19036, ML 2512, 2761, 2762, 7506 and 7507);
(c) Mary Kathleen/Mt Frosty JV with Goldsearch Ltd (EPM 14019 and 14022 – CYU 70% and Goldsearch 30%, EPM 14467 – 100% owned by Xstrata Mt Isa Mines);
(d) Mt Isa East – 80% owned CYU tenure (EPM 15248), with the balance 20% having been earned by affiliated company Yunnan Copper Mineral Resources Exploration and Development Co. Ltd (YEX); and
(e) Cloncurry – 90% owned CYU tenure (EPM 12205, 15084 and 15095), with the balance 10% having been earned by YEX.
A feature of the Mary Kathleen JV is the establishment of a 27.7Mt copper-gold inferred resource at the Elaine Project.
Exploration drilling programs have been conducted during 2013 at both Mt Frosty (Blue Caesar) and the Millenium projects.
2. Chile
CYU holds interests in the following copper projects in Chile:
(a) Humito – 100% (subject to a net smelter royalty in favour of Rey Resources), which is situated in central Chile in the Copiapo District, and about 10 kms south of the proposed Inca De Oro copper project of Codelco and Pan Australian Resources;
(b) Sulfato – farm-in agreement with a subsidiary of Chile’s Codelco, the largest producer of copper in the world, giving CYU the right to acquire up to a 51% project interest in three areas in the Sulfato project in northern Chile. The Sulfato project is situated near to the Collahuasi mine, the world’s fourth largest copper mine which is owned and operated by a JV including Anglo American and Xstrata; and
(c) Palmani – farm-in agreement with Rio Tinto, giving CYU the right to earn up to a 60% project interest. Palmani is situated in northern Chile in rugged mountainous terrain.
3. Laos – San Mu Joint Venture
CYU has acquired a 51% shareholding interest in Yunnan Copper San Mu Mining Industry Co. Ltd (“San Mu”). San Mu is a Chinese-registered corporation established for the purpose of exploring and developing mining projects in China and neighbouring countries.
YEX holds 7.35% of San Mu and Yunnan Copper Industry (Group) Co Ltd (“YCI”) holds the balance 41.65%. The sole assets of San Mu at the present time are the Xinzhai and Juizhai projects which are situated in northern Laos.
Earlier in 2013 a decision was made to sell the Laos assets as they did not meet CYU’s normal commercial target criteria for operating copper projects.
4. Project Acquisitions
CYU also has a stated corporate objective to acquire an interest (or interests) in resource projects that are either in production or at least at the feasibility study stage. Internal CYU review and discussion about such opportunities continues..
