Roseby Copper Project

Roseby Copper Project
Executive Summary
Definitive Feasibility Study
April 2008

Executive Summary
3
4
6
7
Introduction.............................................................................................................................. 3
1.1
Project Summary Conclusions........................................................................................... 3
1.2
Project Concept.................................................................................................................. 4
1.3
DFS Contributors ............................................................................................................... 5
1.4
Project Location and Existing Infrastructure ..................................................................... 5
1.5
Project Description............................................................................................................. 6
1.6
Land Ownership and Access............................................................................................ 11
1.6.1
Mining Lease Application Process .......................................................................... 14
1.6.2
Mining Lease Applications ...................................................................................... 14
1.6.3
Native Title .............................................................................................................. 16
Cashflow and Financial Analysis.......................................................................................... 18
2.1
Revenue............................................................................................................................ 19
2.2
Cashflows and Metrics..................................................................................................... 19
2.3
Capital and Operating Costs ............................................................................................ 20
2.4
Taxation and Royalties .................................................................................................... 21
2.5
Cashflow and KPI Metrics Analysis................................................................................ 22
2.6
Sensitivity Analysis ......................................................................................................... 24
2.7
Risk Analysis ................................................................................................................... 24
2.8
Range Analysis ................................................................................................................ 24
2.9
Probability Analysis......................................................................................................... 26
Engineering............................................................................................................................. 27
3.1
Capital Cost...................................................................................................................... 27
3.2
Operating Cost Estimate .................................................................................................. 28
Metallurgy .............................................................................................................................. 29
4.1
Copper Recovery ............................................................................................................. 29
4.2
Comminution ................................................................................................................... 30
4.3
Flotation Processing......................................................................................................... 30
Geology.................................................................................................................................... 32
5.1
Mineral Resources ........................................................................................................... 32
5.2
Ore Reserves .................................................................................................................... 33
5.3
Tenements ........................................................................................................................ 34
Hydrogeology.......................................................................................................................... 36
Environmental........................................................................................................................ 38
File: 01-01 Roseby Copper DFS - Executive Summary Rev 1 .doc
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Executive Summary
INTRODUCTION
This report of the Roseby Copper Project (RCP) Definitive Feasibility Study (DFS) is an
interdisciplinary collaborative document with most components of the DFS compiled for
Universal Resources Limited (URL or Universal) by Como Engineers Pty Ltd (Como) and
other independent consultants. Each consultants report is included in its entirety and the
executive summaries of those reports have been included in this overall Executive
Summary of the project.
1.1
Project Summary Conclusions

Based on the assumptions made, and the inputs developed for the Roseby Copper Project
during the DFS, the project is:
Both technically and financially viable.
Insensitive to capital and operating cost variations.
Sensitive to copper recovery, copper price and exchange rate.
The Base Case model which is derived from forward curve values for exchange rate,
copper price and gold price is robust and indicates the following values over an initial
minelife of 12.5 years:
Net cashflow of $715 million.
Net operating surplus of $1,037 million.
NPV at 8.5% discount rate of $319 million
IRR of 36%
C1 costs of US$1.24 per pound of copper.
Maximum working capital of $200 million
Pay back from commencement of production of 2.2 years.
Breakeven recovered grade of copper of 0.32%.
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Executive Summary
At the DFS recovered grade of copper, the breakeven price for copper, including
capital cost, is US$1.92 a pound.
1.2
Project Concept
The following concept was developed by Universal for the RCP and is the basis of this
DFS to examine:
An initial 4 million tonnes per annum (Mtpa) mining and processing operation
(Phase 1) with both capital and operating costs estimated to an accuracy of +/15%;
Mill feed based on a blend of oxide (native copper) and sulphide ores;
Initial capital costs minimised, with desirable but non-essential items of equipment
installed at a later date and paid for out of operating cash flows;
Accomodation village supplied by a third party on an own and operate basis;
Mining undertaken by contractor;
Power provided from the Mt Isa local area grid via a powerline from Chumvale
(near Cloncurry) to the Plant-site at Roseby;
An estimate of costs based on hired on-site power generation should grid power not
be available on time for commissioning of the plant;
A scoping study, with capital and operating costs estimated to an accuracy of +/30%, to be undertaken on the basis of expanding the operation up to
approximately 8 Mtpa (Phase 2) following assessment of orebody and operating
plant performance in the first six months of operations.
Based on:
Current Mineral Resources and Ore Reserves;
Mining and metallurgical studies undertaken; and
The results of previous feasibility studies of the Project
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Executive Summary
1.3
DFS Contributors
The following consultants and individuals have contributed to the DFS:
DISCIPLINE
Geology, drilling and assaying
Mineral Resource estimations
Ore Reserve estimations
Hydrology and hydrogeology
Geotechnical assessment
Mine design
Mine scheduling
Metallurgy
Statistical analysis (recovery
algorythm)
Engineering design and cost
estimates
Powerline route and costs
Environmental assessment
Mining Lease approvals
Land access and compensation
Financial and cashflow
modelling
1.4
CONSULTANT/COMPANY
Universal Resources Limited (URL) (M W H Hoyle)
McDonald Speijers Pty Ltd (MS)
Arbitrage Consulting Pty Ltd (Arbitrage)
KH Morgan and Associates (KHM)
George Orr and Associates (GOA)
Arbitrage Consulting Pty Ltd (Arbitrage)
Cutback Consulting Pty Ltd (Cutback)
NeoProTec Pty Ltd (NPT)
Mineral Engineering Technical Services Pty Ltd
(METS)
Geostats Pty Ltd (Geostats)
Como Engineers Pty Ltd (Como)
H M A Consulting (HMAC)
Australasian Resource Consultants Pty Ltd (AARC)
URL (M W H Hoyle)
URL (M W H Hoyle)
Southern Mining Consultants Pty Ltd (SMC)
Project Location and Existing Infrastructure

The project is located in north western Queensland, about 65 km north north-west of
Cloncurry (76 km by road), a town of about 5,000 inhabitants and about 95 km (194 km by
road) from Mt Isa, the regional mining centre, which has about 22,000 inhabitants. Figure
1 shows the project location in relation to other deposits in the region.
The Burke Development Road, running north from Cloncurry to Burketown and
Normanton on the Gulf of Carpentaria, passes within 10 km to the east of the proposed
operations area and is full width and sealed for the entire distance to Cloncurry, where it
meets the Barkly Highway running between Townsville and Mt Isa. Cloncurry is located
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Executive Summary
on the railway line to Townsville and has container handling facilities, an airport capable of
receiving commercial aircraft and a regional fuel depot.
Quamby, located approximately 50 kilometres north of Cloncurry on the Burke
Development Road, is a tiny hamlet with a roadhouse and a Telstra communications tower.
The railway line which used to run south through Quamby to Cloncurry is now a disused
easement still owned by Queensland Transport, however, it shows on maps of the area as
extant.
Figure 1
1.5
Project Location
Project Description
Over 10 copper deposits are included in the RCP. These are all located within a 25 km
north to south corridor. Blackard, Little Eva and Scanlan are the three largest deposits and
are the subject of this DFS. Blackard and Scanlan are deposits where the major economic
copper species is native copper. These deposits are generally termed oxide deposits.
Little Eva has a shallow oxide component with only minor economic mineralisation. Its
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Executive Summary
major economic copper mineral is chalcopyrite, a sulphide of copper and iron, and is
therefore characterised as a sulphide deposit. Blackard and Little Eva are located in the
northern third of the project area, while Scanlan is located further south.
The process plant will be located between the Blackard and Little Eva pits, which are the
main sources of ore for the majority of the mine life and to the south of the water pipeline
(Figures 2 and 3). The tailings storage facility will be located against the side of the hill
immediately behind the plant.
An accommodation village will be located to the north of the access road and east of hills
separating the village from the operational areas.
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Executive Summary
Figure 2
Project Area Tenements
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Executive Summary
A general view of the location of the proposed plant site is shown in Figures 3 & 4, in
which the view in Figure 4 is from the Green Hills, looking south west towards the
Knapdale Range. The water pipeline from Lake Julius to the Ernest Henry mine, owned
and operated by SunWater, crosses the lease area from west to east, seen in the foreground
of Figure 4.
No permanent rivers or streams cross the site. The Dugald River to the east and southwest
of the operations area is the major watercourse and flows after rains. Similarly, Cabbage
Tree Creek in the northwest also flows after rains. Numerous other minor ephemeral water
courses cross the operations area.
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Executive Summary
Figure 3
Rose Copper Project General Site Plan
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Executive Summary
Figure 4
View of the Proposed Plant Site

Plant Site
1.6
Land Ownership and Access

The area covered by the RCP covers an area of 1,648 sq km held under a variety of titles
including EPMs, MLs, MDLs and MF. Five Mining Leases applied for by Universal
within the RCP are the subject of this DFS and cover an area of 143 sq km (Figure 5).
Access to the site is from the sealed Burke Development Road via a turn-off to an unsealed
gravel road running NW to the various copper deposits and the proposed plant site. The
current turn-off is located approximately 11 km northerly of Quamby.
Future access to the village and plant site will be via a new access road (formed but not
sealed) turning to the west off the Burke Development Road from a point just north of the
Dugald River crossing.
The area has historically been held under various tenures by a number of exploration and
mining companies, including CRA Exploration Pty Ltd (CRAE), now part of the Rio Tinto
group. The RCP was sold to Pasminco Australia Limited (now Zinifex Limited) in 1998.
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Executive Summary
Universal acquired the Project from Zinifex in August 2001 and on-sold a 50% interest to
Bolnisi Logistics Pty Ltd (Bolnisi), a wholly owned subsidiary of Bolnisi Gold NL. A two
part joint venture was established, but in December 2004 Universal bought Bolnisi from
Bolnisi Gold NL, thereby giving Universal an effective 100% ownership of the tenements.
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Executive Summary
Figure 5
Mining Lease Applications and Copper Deposits
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Executive Summary
CRAE spent over $10 million on exploration and mining studies at Roseby and outlined a
total resource base of over 60 million tonnes of primarily native copper mineralisation
grading 0.75% copper and 8 million tonnes of mainly sulphide copper-gold mineralisation
grading 0.79% copper. Zinifex undertook a modest amount of exploration, including some
drilling at the Lady Clayre deposit.
Universal has subsequently carried out an extended drilling programme as part of this DFS.
In March 2005, Universal entered into an agreement with Mt Isa Mines Limited (Xstrata
Copper) pursuant to which Xstrata Copper may, in certain circumstances, earn into and/or
acquire a 51% interest in the RCP.
1.6.1
Mining Lease Application Process

Granting of a Mining Lease commences with the submission of Mining Lease Applications
(MLAs) and requires the satisfactory completion of a number of legal processes which are
currently well advanced.
1.6.2
Mining Lease Applications

Universal Resources applied to the Department of Natural Resources and Mines on 1 April
2005 for 5 mining leases as detailed in Table 1.
Table 1
Mining Lease Applications
Tenement
Number
Tenement
Name
MLA 90162
Scanlan
MLA 90163
Holder
Applicant
Area
Date Applied
For
Area
Hectares
Sq Km
URL/BOL
01 April 05
2097.0
21.0
Longamundi
URL/BOL
01 April 05
1411.3
14.1
MLA 90164
Blackard
URL/BOL
01 April 05
5131.1
51.3
MLA 90165
Little Eva
URL/BOL
01 April 05
5030.0
50.3
MLA 90166
Village
URL/BOL
01 April 05
616.1
6.2
50/50
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Executive Summary
The Roseby ore-bodies are situated in MLAs 90162 to 90165 as shown in Figure 5. MLA
90166 has been applied for as the site for infrastructure such as the village. The whole of
the Roseby project therefore will be located within these leases including pits, treatment
plant and infrastructure, except for the access road from the Burke Development Road.
The 5 MLAs total 143 sq km and are situated across 2 pastoral land holdings, these being
Roseby Station (belonging to Mr H McMillan) Coolullah Station (belonging to the North
Australian Pastoral Company (NAPCO)). In addition to these there are several other lots,
easements and reserves.
Roseby Station
All five of the Universal MLAs impact on the Roseby Station pastoral holding. Universal
is at an advanced stage of negotiating a package of compensation payments and other
matters that would allow mining on the property and would result in the owners not
objecting to the ML applications or the grant of the EA. A compensation assessment has
been made of the Roseby Station, as summarised in Table 2. However, it is likely the
negotiated compensation package will exceed this amount by around $1 million.
Table 2
Roseby Station Compensation Valuation
Item
Basic compensation per valuation
Statutory Premium (10%)
Additional Premium (50%)
Pastoralists Professional Fees
Owners Time
Miscellaneous
Total
Amount $
808,800
80,880
404,400
35,000
10,000
50,000
$1,389,080
Coolullah Station
The mining leases encumber the extreme south eastern corner of Coolullah Station adjacent
to the unsealed road to Kajabbi and cover Cabbage Tree creek paddock. Compensation
assessment for this station has been estimated on the same basis as the Roseby station as
shown in Table 3.
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Executive Summary
Table 3
NAPCO Compensation
Item
Basic compensation per valuation
Statutory Premium (10%)
Additional Premium (50%)
Total
Amount $
149,580
14,958
22,437
$186,975
Lot 37
Lot 37 was part of a deceased estate for which the owners could not be traced. Universal
has acquired the title to this lot through an arrangement with the former Lands and
Resources Tribunal (LRT) as Trustee of the Lot.
1.6.3
Native Title
Universal successfully negotiated an agreement with the Kalkadoon People whose native
title claim area included the area of the MLAs. A deed of the type required under Section
31 of the NTA (Section 31 Deed) and an ancillary agreement were signed by URL and
appropriate representatives of the Kalkadoon People on 15 June 2006. The State of
Queensland executed the Section 31 Deed on 29 June 2006. Arbitration was not required.
The ancillary agreement covers a number of obligations on the part of URL and the
Kalkadoon People and sets out the commercial arrangements.
The ancillary agreement includes 3 important components of benefit to the Kalkadoon
People:
It provides monetary compensation for the effect of the Mining Leases and the
mining lease activities on the native title of the Kalkadoon People.
It provides a compensation structure for ongoing cultural heritage services.
It contains a Cultural Heritage Management Plan which defines the protocols for
cultural heritage surveys and protection within the lease area.
It contains a commitment to provide job training and employment opportunities for
Kalkadoon People as well as commitments to positively encourage the
engagement of Kalkadoon entities in any future mining operations and associated
activities at the RCP.
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Executive Summary
URL benefits from the arrangements in the following ways:

The Kalkadoon People consent to the grant of the Mining Leases.
The Kalkadoon People agree and consent to the continued exploration,
development, construction and ongoing operation of the RCP.
The execution of the Section 31 Deed and the ancillary agreement and the provision of the
documents to the NNTT mean that the native title processes required for the grants of the
Mining Leases have been completed.
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Executive Summary
CASHFLOW AND FINANCIAL ANALYSIS

Three cashflow models have been produced by Southern Mining Consultants at the request
of URL; the Base Case is based on a forward curve for the price of copper, gold and
foreign exchange. The average life of mine price of copper for the forward curve is US$
2.76 per pound. The Lowest Price case has an average life of mine copper price of US$
2.50. The Upside Price case has an average life of mine copper price of US$ 3.50.
SMC relied on data inputs from reports provided by various consultants specifically for the
Roseby Copper Project to the standard of a definitive feasibility study (DFS) with capital
and operating costs estimated to an accuracy of 15%.
The cashflow model is based on reserves from the Blackard and Scanlan native copper
deposits, also referred to as oxide copper deposits, and the Little Eva sulphide copper
deposit. There are seven additional resources located within the Roseby tenement area that
have not yet been converted to Ore Reserve status and therefore not included in the DFS
cashflow model.
Ore Reserves, Waste and Strip Ratio
Tonnes Ore (Million)

Tonnes Pre-Strip & Overburden
Tonnes Waste (Million)
Strip Ratio (W : O)
Strip Ratio (W + OB : O)
Recovered Copper Grade
Gold Head Grade(g/t)
Blackard
22.854
34.763
35.188
1.54
3.06
0.427%
Scanlan
9.618
8.651
12.764
1.33
2.23
0.442%
Little Eva
15.456
8.044
48.885
3.163
3.68
0.746%
0.131 g/t
Feed
47.927
51.458
96.837
2.02
3.09
0.533%
0.042 g/t
The seven satellite resources located within the Roseby tenement area as well as potential
to develop resources at the three included mines either along strike or at depth are expected
to provide additional feed to extend the mine-life or allow for an increase to the plant
throughput.
Como has prepared a capital and process operating expenditures and construction
programme for a plant to process 4 million tonnes of feed per annum (Mtpa). The ore feed
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Executive Summary
that has been scheduled is 2.9 Mtpa oxide ore and 1.1 Mtpa of sulphide ore for a total of
4.0 Mtpa with a scheduled mine-life of 12.45 years.
At the feed blend of 72.5% oxide ore and 27.5% sulphide ore the concentrate copper grade
is 32.1% which produces 0.804 million tonnes of concentrate. The gold grade of the
concentrate is 2.30 grams of gold per tonne. The concentrate contains 562 million pounds
of copper and 59 thousand ounces of gold.
2.1
Revenue
Revenue received for each of the pricing scenarios studied after smelter costs are listed
below:
Gross Revenue
LME Copper Price / lb

Gold Price / oz
Exchange Rate Au$/US$
NSR Value of Copper $ Million
NSR Value of Gold $ Million
Total NSR Value $ Million
2.2
US$ 2.50
US$ 3.50
US$ 800
1.25 (0.80)
$ 1,610
$ 32.9
$ 1,643
US$ 800
1.25 (0.80)
$ 2,288
$ 32.9
$ 2,321
Base Case Fwd

Curve
Fwd Curve
Fwd Curve
$ 1,941
$ 60.0
$ 2,001
Cashflows and Metrics

The following table summarises the cashflows, NPVs, payback year and IRR. The
working capital is the maximum negative cashflow and indicates the total cash to be
covered by equity or borrowings.
Cashflows, NPV, Payback Year and IRR
All $ Values in millions

Cash Inflow
Cash Outflow
Net Cashflow
Operating Cashflow
Working Capital
NPV @ Discount
US$ 2.50 / lb
8.5%
10.0%
12.0%
14.0%
$ 1,654.590
$ 1,278.725
$ 375.865
$ 697.837
$ 199.649
$ 117.930
$ 92.159
$ 63.342
$ 39.686
US$ 3.50 / lb
$ 2,332.228
$ 1,308.016
$ 1,024.212
$ 1,346.184
$ 199.649
$ 464.402
$ 406.498
$ 340.933
$ 286.266
Base Case Fwd

Curve
$ 2,012.120
$ 1,296.635
$ 715.485
$ 1,037.457
$ 199.649
$ 319.432
$ 277.950
$ 230.801
$ 191.322
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Executive Summary
Payback Year
IRR
4.7
19%
2.0
43%
2.2
36%
Year Ending
2.3
Capital and Operating Costs

Total pre-production capital required to complete construction of the plant, camp,
infrastructure, grid power connection and pre-strips is $195.690 million including a
contingency of $18.217 million.
The timing of expenditure of the Pre-Production Capital is:
$ Million
Year -2
$
41.229
Year -1
$
154.461
Total production capital over the life of mine is $ 118.327 million.
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Executive Summary
Mining costs have been based on a schedule provided by an independent mining contractor
and the processing costs are based on a schedule generated by Como and minor
contractors.
Operating Costs
Average LOM $/Tonne
Cost
Mining Ore
$ 3.50
Mining Overburden
$ 1.99
Mining Waste
$ 2.37
Total Processing + Others
$ 10.09
Total Cost / Tonne Ore
$ 18.29
An allocation of $0.650 million per annum has been made for mining lease annual rates
and rents, once granted.
2.4
Taxation and Royalties

Universal Resources Limited believes they will pass the continuity of ownership tests
during the income years in which the project will generate income, to allow carried forward
revenue losses to be included in the consolidated taxation base.
The Company will be taxed according to the mining provisions and general provisions of
the Income Tax Assessment Act as it stands for the relevant year of income.
Royalties on minerals are paid yearly to the state government through the Department of
Natural Resources and Mines on an ad valorem (value) basis with various costs being
allowed as a deduction from sales value.
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Executive Summary
Royalty Payments
Mineral
% of Value
Copper
Ad valorem Fixed rate of 2.7% or variable rate from 1.5% to 4.5%
Gold
Ad valorem Fixed rate of 2.7% or variable rate from 1.5% to 4.5%
Royalties are to be paid to the Queensland government, vendors and indigenous people.
The total royalties paid are tabled below.
Royalties
Total Royalties Paid
2.5
US$ 2.50 / lb
US$ 3.50 / lb
$ 68.658 million
$ 97.948 million
Base Case
Fwd Curve
$ 84.078 million
Cashflow and KPI Metrics Analysis

The breakeven recovered grade and breakeven copper price are based on full capital
recovery as well as operating costs.
Breakeven Recovered Copper Grade
Recovered Grade Cu
Breakeven Grade Cu
US$ 2.50 / lb
US$ 3.50 / lb
0.53%
0.39%
0.53%
0.28%
Base Case
Fwd Curve
0.53%
0.32%
At a constant recovered grade of copper of 0.53% the breakeven price of copper is

US$1.92 per pound (including capital expenditure).
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Executive Summary
Value per Tonne of Ore Processed
Value of Metal
Cash Cost
Total Cost
US$ 2.50 / lb
US$ 3.50 / lb
$ 34.28
$ 19.72
$ 26.68
$ 48.42
$ 20.34
$ 27.29
Base Case
Fwd Curve
$ 41.74
$ 20.10
$ 27.05
Cost Per Equivalent Pound of Copper
Cash Cost
Total Cost
AU$
AU$
US$ 2.50 / lb
US$ 3.50 / lb
$ 1.65
$ 2.23
$ 1.71
$ 2.29
Base Case
Fwd Curve
$ 1.66
$ 2.24
Brook Hunt Methodology Costs
C1 US$/lb
C2 US$/lb
C3 US$/lb
US$ 2.50 / lb
US$ 3.50 / lb
$ 1.37
$ 1.82
$ 1.92
$ 1.37
$ 1.82
$ 1.97
Base Case
Fwd Curve
$ 1.24
$ 1.66
$ 1.78
The forward curve case varies from the two fixed price cases because the exchange rate
varies over time whereas the exchange rate is fixed for the life of the mine in the fixed
price cases.
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Executive Summary
2.6
Sensitivity Analysis
A sensitivity analysis was performed on all of the significant variables; the breakeven
column in the table below indicates the change to the variable that is required to bring the
net cashflow to $0.000. The elasticity indicates the rate of change a variable will have on
the net cashflow. For 1% change in the variable it will induce the elasticity metric change
on the net cashflow.
Sensitivity Analysis
US$ 2.50 / lb
Base Case
Fwd Curve
Breakeven
Elasticity
Breakeven
Elasticity
Breakeven
Elasticity
-26%
-24%
-24%
3.86
4.22
4.10
0.49
0.05
1.02
1.26
-48%
-45%
-45%
2.07
2.20
2.15
0.18
0.02
0.38
0.47
-40%
-37%
-38%
2.47
2.70
2.66
0.26
0.03
0.54
0.68
Recovered Grade Cu
Price of Copper
Foreign Exchange
Pre-Production Capex
Production Capex
Mining Cost
Processing Cost
2.7
US$ 3.50 / lb
98%
80%
Risk Analysis
A risk analysis or Monte Carlo Simulation was performed on the cashflow model where all
of the major variables were updated for each year by a randomly selected percentage
between two risk limit range values. A total of 10,000 iterations were performed and all of
the generated net cashflow values were statistically analysed.
Statistical Values
All $ Values in millions
US$ 2.50 / lb
US$ 3.50 / lb
Mean Net Cashflow

Minimum Net Cashflow
Maximum Net Cashflow
$ 279.886
$ 159.910
$ 399.928
$ 913.189
$ 766.746
$ 1,058.894
2.8
Base Case Fwd

Curve
$ 605.083
$ 485.921
$ 729.268
Range Analysis
Given the large number of values generated in the risk analysis a range analysis was
performed on the mean values for the net cashflows at a 99.7% confidence level. This
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Executive Summary
analysis reproduces the anticipated real life scenario and predicts the minimum and
maximum values that can be expected from each case.
Range for the Mean Net Cashflow
US$ 2.50 / lb
Minimum
$ 190.817
Maximum
$ 368.955
US$ 3.50 / lb
Minimum
$ 800.030
Maximum
$ 1,026.349
Base Case
Fwd Curve
Minimum
Maximum
$ 503.062
$ 707.104
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Executive Summary
2.9
Probability Analysis
A probability analysis was undertaken to calculate the probability that the project would
have any particular net cashflow value with the following results.
Probability Analysis
US$ 2.50 / lb
Value
$ 221.000
$ 250.000
$ 270.000
$ 280.000
$ 310.000
$ 339.000
Probability
97.5%
84.1%
63.0%
50.0%
15.9%
2.5%
US$ 3.50 / lb
Value
$ 838.000
$ 875.000
$ 900.000
$ 913.000
$ 951.000
$ 989.000
Probability
97.6%
84.2%
63.7%
50.0%
16.2%
2.4%
Base Case
Fwd Curve
Value
Probability
$ 537.000
97.6%
$ 571.000
83.8%
$ 593.000
63.5%
$ 605.000
50.0%
$ 639.000
16.2%
$ 673.000
2.4%
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Executive Summary
ENGINEERING
URL requested Como Engineers Pty Ltd (Como) to prepare a Definitive Feasibility Study
to estimate the capital cost of the design, procurement and construction of a 4 Mtpa copper
ore treatment facility, with provisions to upgrade to 8 Mtpa and including related
infrastructure, at their Roseby Copper Project. In addition to this, an estimate for the
ongoing operating costs of the facility was required.
3.1
Capital Cost
The overall capital cost estimate for the process plant including all direct and indirect costs
is estimated at $161.5 million.
Capital Cost Estimate Summary (1st QTR 2008)
AREA DESCRIPTION
Materials
Labour
Freight
Sub Total
Contingency
TOTAL
TOTAL GLOBAL
2,808,309
- $
2,808,309 $
421,246 $
3,229,556
TOTAL SITE EARTHWORKS
10,844,670
- $
10,844,670 $
1,626,700 $
12,471,370
149,100 $
353,280 $
3,548,057 $
669,686 $
4,217,743
- $
11,606,191 $
1,944,367 $
13,550,557
TOTAL BUILDINGS
TOTAL CIVILS
11,606,191
3,045,677 $
$
TOTAL ELECTRICALS
10,105,422 $
3,325,219 $
- $
13,430,641 $
2,014,596 $
15,445,237
TOTAL STRUCTURAL STEELWORK
4,369,907 $
1,547,166 $
314,640 $
6,231,712 $
1,168,984 $
7,400,697
TOTAL PLATEWORK
2,416,991 $
1,150,635 $
213,035 $
3,780,661 $
702,008 $
4,482,669
TOTAL PIPEWORK
2,589,320 $
1,728,850 $
129,000 $
4,447,170 $
1,111,792 $
5,558,962
TOTAL EQUIPMENT SUPPLY + INSTALLATION
42,105,685 $
3,016,678 $
1,435,416 $
46,557,779 $
4,026,303 $
50,584,081
TOTAL FIRST FILLS
1,161,377 $
18,460 $
36,000 $
1,215,837 $
242,244 $
1,458,081
SUB TOTAL - Cons. Directs (Excluding Camp)
91,053,548 $
10,936,107 $
TOTAL CAMP SERVICES
SUB TOTAL - Cons. Directs (Including Camp)
$ 100,158,503 $
9,104,955
TOTAL EPCM
17,202,287
5,560
10,941,667 $
-
2,481,371 $ 104,471,026 $
33,120 $
9,143,635 $
2,514,491 $ 113,614,661 $
- $
13,927,928 $ 118,398,954
1,797,126 $
17,202,287 $
- $
17,202,287
14,949,064
32,151,351
ALLOWANCES
12,457,553
- $
12,457,553 $
2,491,511 $
SUB TOTAL - Cons. Directs
29,659,840 $
- $
- $
29,659,840 $
2,491,511 $
GRAND TOTAL
$ 129,818,343 $
10,941,667 $
10,940,761
15,725,054 $ 129,339,715
2,514,491 $ 143,274,501 $
18,216,564 $ 161,491,066
The capital costs were obtained from a definitive feasibility study carried out by Como
Engineers in February 2008. Cost estimates for the definitive feasibility study were based
on vendor supplied quotations, estimates compiled from drawings, electrical estimate from
single line diagrams, data from similar projects on the Como Engineers data base. The
Page 27 of 38

Executive Summary
contingency applied varies based on the source of the estimated costs, but averages to
approximately 13.8%.
3.2
Operating Cost Estimate
Grid Power Supply

The processing operating costs estimates have been determined on the basis of the design
criteria, grid power costs, labour, FIFO and accommodation for the Roseby Copper Project.
The cost estimate includes costs from feeding the crusher to on-site storage of final
concentrate; the estimate includes costs of on-site management and administration.
The costs have been calculated at 4.0mt/a treating a blend of 72.5% Blackard oxide and
27.5% Little Eva sulphide ore with an estimated recovery of 74.1% at that blend.
The operating costs estimates for both the grid power and on-site diesel generated power
options have been calculated on the same basis except for the change in power costs.
The operating cost for the grid power option has been estimated to be $8.48 per tonne of
ore treated to an accuracy 15%. This figure includes an operating contingency of 15%
which equates to $1.11 per tonne of ore treated which results in a pre contingency
operating cost of $7.38 per tonne. Using a 0.69% Copper head grade and a 74.1% recovery,
20,598 tonnes of copper metal will be produced to concentrate per annum at a cost of
$1,648 per tonne.
Diesel Powered Electrical Generation
The operating cost has been estimated to be $13.92 per tonne of ore treated to an accuracy
15%. This figure includes an operating contingency of 15% which equates to $1.82 per
tonne of ore treated which results in a pre-contingency operating cost of $12.11 per tonne.
The cost of the diesel generated power has been calculated for a minimum period of 2
years, additional costs will be incurred for shorter lease periods.
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Executive Summary
METALLURGY
Since its incorporation in 2002 Universal Resources Limited (URL) has substantially
advanced the Roseby Copper Project and performed a series of testwork programs to
supplement twenty years of previous work. This has culminated in the latest metallurgical
test program included within the larger scoped study termed the Roseby Definitive
Feasibility Study (DFS).
The projects flotation knowledge base has developed from the hundreds of batch flotation
tests, fifteen locked cycle flotation tests and three pilot plant runs. The comminution
knowledge base has developed from the numerous Bond Work Index (BWI), SAG Mill
Comminution (SMC) tests, JK Drop Weight tests, Levin tests, and many other specialist
tests.
From recent testwork an innovative assay technique has been developed to determine
native copper values using a warm silver nitrate solution to oxidise the metallic copper, by
silver cementation, to solution so the native copper value could be determined. This
technique was used to track the performance of the native copper species in the oxidised
ore as silver nitrate reactive copper. About three thousand drill-hole and flotation product
assays were performed using this technique. This technique allowed the project team to
confirm that the flotation of the floatable material was better than initially considered.
To obtain samples for the study, URL performed a diamond drilling program on both the
Little Eva and Blackard ore bodies.
The following major conclusions resulted from the study.
4.1
Copper Recovery
A program of locked cycle flotation tests was performed, using two metallurgical
laboratories, to determine the performance of the two major ore bodies and a series of
blends of these ore bodies. This data was used to supplement the previous pilot plant and
bench scale work performed over the years. The definitive locked cycle test (LCT) results
for the individual ore bodies are supplied below.
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Executive Summary
Ore type
Little Eva Sulfide Ore
Blackard Oxide Ore
% Copper Grade
28.1
34.7
% Copper Recovery
96.4
60.7
Grade and recovery data on blends of the ores can be treated on a simple weighted means
basis.
An analysis of the definitive locked cycle test results were performed to allow the circuit to
come to a theoretical balance using multiple iterations. The mass balance estimates
unmeasurable recycle streams in the locked cycle circuit using the best fit to measure
streams. This analysis showed recovery can be expected to increase at the expense of the
concentrate grade. This is an expected result.
Ore type
Little Eva Sulphide Ore
Blackard Oxide Ore
4.2
% Copper Grade
27.3
33.5
% Copper Recovery
95.8
64.0
Comminution
The comminution information was supplied to Como Engineers for study by the specialist
consultant, Orway Mineral Consultants (OMC). It was decided that a single Stage SAG
Mill would be used by the project to process the initial 4 MTPA design tonnage.
The Little Eva sulphide ore body comminution energy requirement was found to be lower
than previously determined because coarser closing screens were used to represent the
coarser grinds.
The work performed on the Blackard ore body has confirmed that the ore is soft, in line
with previous work.
4.3
Flotation Processing
There is sufficient evidence of improved flotation performance to investigate the use of the
AM2 suite of reagents further, if it is an economical replacement for the sulphidising
reagent NaSH.
A sample of product concentrate was produced from the pilot plant concentrate stocks and
tested for concentrate transport properties, dewatering properties by a thickener and a filter
Page 30 of 38

Executive Summary
supplier. This information was sent to Como Engineers for their sizing of the relevant plant
equipment.
The three tailing samples tested in the analysis are non-acid forming (NAF) materials.
They will not generate acid drainage during the storage, when exposed to water and air.
They can be treated as regular mining waste and disposed safely following standard tailing
disposal method with minimum attention.
A brief program to assess the site water was performed. All the flotation tests were
performed using site water. A sample of the site water was analysed before and after
contact with the ore and process reagents to check for potential operational and
environmental concerns. No negative impacts could be determined.
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Executive Summary
GEOLOGY
The Roseby Copper Project falls within the Proterozoic Mt Isa Inlier, in the North West
Mineral Province in Queensland, Australia.
Universal Resources Limited (Universal) holds granted tenements in this area totalling
approximately 2,633 km2, comprising the Mt Isa regional exploration tenements ( 985
square kilometres) and the Roseby Copper Project tenements comprising 1,648 km2. The
latter secure a northerly-trending tract of country of 100 kilometres in strike length, centred
approximately 65 km north-west of Cloncurry and 80 kilometres north-east of Mt Isa.
The oxide resources comprise native copper and secondary chalcocite mineralisation
located within a central 2 - 3 km wide corridor, termed by previous explorers the Roseby
Copper Corridor, with a minimum strike length of 25 km, open at both ends. Additional
resources, comprising the copper-gold sulphide mineralisation, are distributed immediately
adjacent and peripheral to the corridor.
The Mineral Resources within the Roseby Copper Project, total 128.54 Mt @ 0..68%
Copper, 0.06 gpt gold as estimated by McDonald Speijers Pty Ltd.
The Roseby DFS area, the subject of this report, is located centrally within the Roseby
Copper Project area, and incorporates the Roseby Copper Corridor, adjacent resources and
infrastructure areas. Five Mining Lease Applications, MLAs 90162-90166, cover the DFS
area (Figure 6).
5.1
Mineral Resources
The total Mineral Resources for the Roseby Project at April 2008 are summarised below.
These Mineral Resources are inclusive of the Ore Reserves.
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Executive Summary
Roseby Mineral Resources at April 2008
5.2
Ore Reserves
Ore Reserves have been estimated by Arbitrage Consulting Australia Pty Ltd and are
summarised below.
Deposit
Blackard
Scanlan
Little Eva
Total
Ore Tonnes
22,853,573
9,617,516
15,456,057
47,927,146
Copper Ore
Grade
0.664%
0.712%
0.746%
0.700%
Copper Recovered
Grade
0.427%
0.442%
0.719%
0.533%
Gold Grade
0.131 g/t
0.042 g/t
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Executive Summary
5.3
Tenements
Current exploration tenements constituting the RCP are listed below. These surround the
various MLs, MDLs and MLAs.
Last Updated
Underlying Tenure
Exploration Permit
Exploration Permit
Exploration Permit
Exploration Permit
Exploration Permit
4 March
2008
Tenement
Number
EPM 8506
EPM 10266
EPM 14822
EPM 11611
EPM 12121
Grant Date
Expiry Date
26 Nov 91
20 Oct 94
10 Mar 06
9 Mar 06
9 Mar 06
25 Nov 08
31 Dec 09
9 Apr 11
8 Mar 11
8 Mar 11
Area Hectares
11,277.0
25,800.0
4,191.2
2,899.8
966.6
Page 34 of 38

Executive Summary
Figure 6
Roseby Mining Lease Applications and Copper Deposits
Page 35 of 38

Executive Summary
HYDROGEOLOGY
A phased mining programme is to be initiated on the Blackard copper-oxide resources and
the Little Eva copper-gold resource. This programme has an estimated replaceable annual
water requirement of 2.5 million kilolitres to provide for milling, dust suppression and
potable water needs.
Annual rainfall at Roseby, approximately 470 millimetres, falls mainly in the summer
months of December to March often in short duration intensive storm events.
Potential annual evaporation of 3700 millimetres exceeds rainfall by a factor of nearly
eight times, limiting the use of shallow surface water facilities
Topography is a subdued eroded plateau with wide valleys and steep escarpment faces
ranging in elevation from 157 metres at Little Eva to 356 metres at Mt Maggie on the
Knapdale Range which forms a central spine through the Project area
The principal rivers and creeks within the Roseby Project: Dugald River, Cabbage Tree
Creek and Pinnacle Creek have their northerly courses strongly controlled by regional rock
structures. These drainages join the main rivers: the Leichardt River and Cloncurry River,
which flow into the Gulf of Carpentaria
Intensive, short duration storm events are a characteristic of the summer season and can
result in rapid generation of stream runoff from escarpment slopes and provide
groundwater recharge of low salinity groundwater. Rivers and streams flow only for short
durations (hours to weeks) following rain, after which river beds become dry or contain
only isolated pools
Groundwater within the regolith in the Roseby Project is present in the following
geological structures:
fractured crystalline rock
oxidised and leached crystalline rock with storage and hydraulic conductivity developed
in palimpsest structures of the crystalline rock
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Executive Summary
Phanerozoic sedimentary graben on the western side of the Project, bounded by the
Pinnacle and Coolullah faults; and
shallow alluvial deposits along water courses
Groundwater in the lower lying land occurs at depths 2 to 20 metres below ground level.
Yields from fractured rocks are generally low (0.1Ls-1 to 5Ls-1) and yields from saprolite
and alluvial deposits are also very low, usually less than 0.5Ls-1.
Salinity ranges from 45mgL-1 to 3160mgL-1 total dissolved solids. The waters are hard,
high in calcium, magnesium and bicarbonate, typical of immature water close to recharge
sources.
The principal impact of the Project on the groundwater system will be from pit dewatering,
initially from Blackard and Little Eva resources The rate of removal of water by pit
dewatering is estimated to be 712m3d-1 to 4400m3d-1. . Pits will be dewatered to depths up
to 200 metres below ground level or to the base of the aquifers, approximately 90 metres
below ground level, within two years of commencement of dewatering pumping.
Country rocks have low to very low water transmissive properties, resulting in a steep
dewatering gradient with little or no impact on the groundwater system at a distance
beyond 500 metres from a dewatered pit.
Complete water level recovery in the pits is unlikely due to low groundwater inflow rates
and high evaporation.
Pit dewatering will have a highly localized effect on the regional groundwater system;
effects will be confined to within the Roseby Project area. Pit dewatering will not impact
on local water requirements and will not have an effect on recharge to the Great Artesian
Basin.
Page 37 of 38

Executive Summary
ENVIRONMENTAL
An environmental Impact Statement (EIS)) has been prepared for the Roseby Copper
Project, according to the requirements of the Environmental Protection Act 1994. As part
of this process, the baseline environmental conditions of the Project site were studied and
described. Potential impacts on the environment due to construction and operation of the
Project were assessed, and appropriate mitigation strategies outlined to minimise
environmental harm. The EIS was submitted in April 2007 and has been advertised for
public comment. Responses to public submissions have been submitted to finalise the EIS
process.
Page 38 of 38

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Definitive Feasibility Study