The North West Queensland Properties are located in the highly prospective Proterozoic Mount Isa Inlier of northwest Queensland. The Mount Isa Inlier contains several world-class metal deposits including Mount Isa (Cu and Pb-Zn-Ag), Century (Zn-Pb-Ag) and Ernest Henry (Cu-Au). The Mount Isa Inlier contains a range of mineral deposit styles, reflecting the complex geological history of the region (Figure 1). CYU has developed and implemented robust exploration programmes based on a clear understanding of the geological controls of the following various deposit styles.

1) Iron Oxide Copper Gold (IOCG) Model (e.g. Ernest Henry Deposit). Within Australia the large Ernest Henry (167Mt @ 1.1% Cu, 0.54g/t Au) and the giant Olympic Dam deposits (7,738 Mt at 0.87% Cu, 0.029% U3O8, 0.3 g/t Au and 1.19 g/t Ag) are classified within this group. Within the Cloncurry terrain other examples include Selwyn (5.4Mt @ 2.6% Cu, 5.2g/t Au), Osborne (11.3Mt @ 2.9% Cu, 1.2g/t Au) and Eloise (3.1Mt @ 5.5% Cu, 1.4g/t Au). Exploration for this deposit style in the Cloncurry region during the past decade has enhanced CYU's understanding of the controls on ore emplacement. The deposits formed when high temperature saline fluids were pumped along deep crustal faults adjacent to granitic intrusive bodies. The eastern part of the Cloncurry North Project Area, lying near to the Ernest Henry deposit, contains favourable geology for this style of deposit. This region is covered by extensive recent sediments and requires thorough assessment using modern geophysical and structural methods.

2) Shear-Hosted Copper-Gold Model (e.g. Mount Roseby Deposit - 61Mt @ 0.77% Cu). In the Mount Roseby mineral system, extensive deposits of oxide copper and native copper are related to deep weathering of primary copper-gold mineralisation emplaced along major north-trending shear zones (Mount Roseby Fault). This mineralised trend extends into the western part of CYU's EPM 12205 where a coincident splay fault enhances the probability of higher grade near surface mineralisation.

3) Sediment-Hosted Uranium Model (e.g. Mary Kathleen). Uranium mineralisation at the Mary Kathleen deposit (9.5Mt @ 1.3kg/t U3O8) is hosted by metasediments of the Corella Formation. This skarn-hosted mineralisation was possibly formed by infiltration of metamorphic fluids along the Mary Kathleen Shear Zone. Minor amounts of uranium mineralisation have also been reported within sedimentary rocks of the Mesozoic Gilbert River Formation at the Malakoff prospect in the Cloncurry North Project. This mineralisation occurs as roll-front style deposits.

4) Sediment-hosted Lead-Zinc-Silver Model (e.g. Mount Isa Pb-Zn, Dugald River). This mineralisation occurs mainly within fine-grained sedimentary rocks of Cover Sequence 3 in the Western Fold Belt and include the Mount Isa Pb-Zn (89Mt @ 7.1% Pb, 6.1%, 160g/t Ag), Century (118Mt @ 1.5% Pb, 10.2% Zn, 35g/t Ag) deposits. Sediment-hosted base metal mineralisation also occurs within Cover Sequence 3 equivalents at the Dugald River (40Mt @ 1% Pb, 10% Zn, 30g/t Ag) deposit in the Eastern Fold Belt located 3 kilometres west of CYU's EPM 12205.

5) Brecciated sediment-hosted Copper Model (e.g. Mount Isa Copper, Rocklands). These deposits occur mainly within rocks of Cover Sequence 2 and include the Mount Isa copper (255Mt @ 3.3% Cu) deposit. Within Cover Sequence 3 equivalents at the Rocklands (25Mt @ 1.5% Cu) deposit in the Eastern Fold Belt. Mineralisation is commonly hosted by brecciated dolomitic, pyritic and carbonaceous sedimentary rocks or brecciated sandstone proximal to regional fault/shear zones.

The Mount Isa Project consisting of EPM 15248 and EPMA 17935 is in a region highly prospective for copper-gold and base metal mineralisation (Figure 3). All tenements are 100% owned by CYU. The project area covers parts of the highly mineralised Kalkadoon-Ewen and Eastern Fold Belt Provinces of the Mount Isa Inlier and there is potential for the discovery of buried IOCG deposits similar to the magnetite bearing Ernest Henry or the hematite bearing Olympic Dam deposits. In addition there is potential for medium sized low-grade oxidised and supergene copper-gold resources, mainly as extensions of known mineralisation. These types of deposits are fault or shear controlled and often amenable to heap and vat leaching, using solvent extraction and electrowinning treatment methods. Potential also exists for the discovery of shear-hosted uranium deposits associated with Corella Formation rocks and the emplacement of the Burstall Granite and in the highly radioactive Argylla Formation, as well as stratabound uranium in metamorphosed basic volcanics and sediments of the Eastern Creek Volcanics.

 
A compilation of previous exploration results shows there are many regions in the project area with highly significant copper-gold stream geochemistry. A few of the anomalous areas drain abandoned mines and workings, but most cannot be adequately explained and may be due to geochemical haloes or leakage around buried or poorly exposed copper-gold occurrences. Mapping of known mineralised structures has commenced on EPM15248 with significant rock-chip results being returned at the Huggins Lookout (3.38% Cu, 6.43g/t Au) and Little Isa (7.97% Cu, 0.20g/t Au) prospects. Portions of EPM 15248 surround the Mount Colin deposit (currently held by Exco Resources Ltd). CYU is currently investigating possible strike extensions of the Mount Colin deposit into EPM 15248 utilising geochemical and geophysical methods. Mount Colin currently contains 667,200 t @ 3.43% Cu (no reported gold content). Recent drilling completed by Exco near the tenement boundary reported intersections of 11 meters @ 3.45% Cu, 6.31g/t Au from 7 metres and 36 metres @ 4.03% Cu, 0.62 g/t Au from 151 metres including 8 metres @ 5.60% Cu, 1.56g/t Au from 162 metres and 10 metres @ 6.84% Cu, 0.78g/t Au from 177 metres.

The Mount Isa project is relatively new, having been granted one year ago. A number of undrilled copper occurrences are being developed to allow drilling in the current calendar year. An additional Exploration Permit Application (EPMA 17935) has been lodged to cover the Angel and Delta prospect. These prospects were available on open ground between Mt Isa and Cloncurry.