Name and Location
Cloncurry copper/gold project, Queensland, Australia.

Client
Altona Mining.

Project Description
The Cloncurry project has a resource of 287-million tonnes at 0.6% copper, 0.04 g/t of gold for 1.65-million tonnes contained copper and 400 000 oz of gold.

The aim is to develop a mine at Little Eva, the largest of 11 deposits located within the Cloncurry project.

A definitive feasibility study (DFS) announced by Altona in March 2014 for the Little Eva development envisages the construction of a seven-million-tonne-a-year openpit mine and flotation plant capable of producing 39 000 t/y of copper and 17 000 oz/y of gold over an initial mine life of 11 years.

Net Present Value/Internal Rate of Return
According to the DFS, the project has a real pretax net present value, at a 7.5% discount rate, of A$346-million and an internal rate of return of 29%.

Value
According to the DFS, the development of Little Eva will cost A$294-million.

Duration
Not stated.

Latest Developments
Altona has concluded a binding framework agreement with Sichuan Railway Investment Group (SRIG).

The parties have agreed to establish an incorporated joint venture (JV) holding Altona’s Cloncurry project, with SRIG to contribute cash of $214.46-million and have a 60% interest in the JV.

Altona will retain a 40% interest in the JV and will contribute the Cloncurry project and $38-million in cash.

The transaction values the Cloncurry project on a precash contribution basis at $105-million.

Altona can meet its immediate obligations under the agreement from its existing A$47-million of cash resources.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Altona Mining, tel +61 8 9485 2929, fax +61 8 9486 8700 or email altona@altonamining.com.