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Positive first assay results for Copper Development Corp

Published: 13:38 25 May 2011 BST

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Copper Development Corporation (LON: CDC) reported that the first assay results from its Basay Project in Negros, Philippines confirm the presence of significant copper-molybdenum-silver-gold mineralisation.

The first diamond drill hole has completed more than 4,000 metres of an 18,615 metre drill programme consisting of five drill rigs on site operating 24 hours per day. This programme is expected to be completed by the fourth quarter of this year with the company expecting to release a JORC-compliant resource at Basay before the end of the year.

Results from the hole, so far, include 348 metres at 0.6 per cent copper, 0.014 per cent molybdenum, 1.8 grams per ton of silver and 0.028 grams per ton of gold. Another 192 metres has 0.86 per cent copper, 0.017 per cent molybdenum, 2.4 grams per ton of silver and 0.044 grams per ton of gold, while 111 metres grades 1.01 per cent copper, 0.013 molybdenum, 2.6 grams per ton of silver and 0.045 grams per ton of gold.

“The high grade results from this first hole demonstrate the exciting world-class potential of the Basay Project,” said Mitch Alland, CDC’s executive chairman. “We are extremely excited by the project as these results confirm not only the high grade of copper, but also the presence of significant by-product credits in molybdenum, silver and gold”

Broker Fox Davies reiterated its buy recommendation, pointing out that the fact that mineralisation starts practically from the surface indicates that there may be minimal stripping required at the deposit and so the first 108 metres, although relatively low in grade (0.27 per cent copper) may well pay for any initial stripping. Then, through the middle of the hole, the grade increases to “a very acceptable 0.86 per cent copper”.

The broker added that the first hole indicates “enormous potential” for a large, bulk tonnage deposit.

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