Coppermoly (COY)

Shares / Stock Code

COY

Stock Exchange / Sharemarket

ax

Coppermoly Limited (COY) is a newly formed copper-gold explorer that was established to evaluate advanced porphyry copper-molybdenum-gold projects in Papua New Guinea. The company has acquired two exploration tenements, Simuku and Nakru, on the island of New Britain in Papua New Guinea. Within two years from listing on the ASX, Coppermoly has successfully progressed its large projects to attract funding from Barrick, the world's largest gold producer.

The Company listed on the Australian Stock Exchange in January 2008, with advanced copper projects that are close to infrastructure including an operating deep water port that will be essential for future development. Barrick can spend A$20m to earn a 72% stake of all of Coppermoly's existing three tenements.

Major exploration and drilling programs were successfully completed in Coppermoly’s first year. Highly significant assay and exploration results were returned, that demonstrated excellent high-grade primary and secondary mineralised zones at the three prospect areas investigated. Drill highlights included 27.7m grading 1.90% copper including 6.7m at 3.8% copper from 25m depth in a high grade copper lens. This lens at Nakru-2 is associated with surface trench results of 19m grading 4.3% copper and an I.P. geophysical anomaly yet to be fully tested by drilling. Nakru-1 drilling intersected 28.4m grading 1.1% copper associated with a minor part of an I.P. anomaly ready to be drill tested. There exists a gold blanket above copper mineralisation of 0.3 to 0.5g/t.

At Simuku Coppermoly have an Inferred Mineral Resource of 200 million tonnes grading 0.47% copper equivalent (0.3% Cu.Eq. cut-off). A secondary enrichment blanket of near surface copper occurs in a number of drillholes including 16m thick at 1.0% copper. These areas occur in only one third of the Simuku mineralised system. Drilling will further quantify and progress these promising mineral deposits. Barrick plans to initially drill on the Nakru project in early 2010.