AUKING MINING LIMITED — Call Transcript 2011

Jan 11, 2011

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ASX/Media Announcement

12[th] January 2011

CHINA YUNNAN COPPER AUSTRALIA LIMITED (CYU) provides the opportunity to listen to an audio broadcast with Richard Hatcher, Exploration Manager in a presentation titled "Heavy REE and Copper Cobalt Sulphide Discovery – Mt Dorothy" .

To listen copy the following link into your web browser : brr.com.au/event/72740

The presentation details are as follows:

• Heavy Rare Earth Element and Copper Cobalt Sulphide Discovery – Mt Dorothy" .

• • Wednesday, 12[th] January 2011 9:30am AEST

• A transcript of the broadcast is included below

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RADIO INTERVIEW WITH RICHARD HATCHER, EXPLORATION MANAGER, CHINA YUNNAN COPPER AUSTRALIA CONDUCTED ON WEDNESDAY, 12[th] JANUARY 2011

• Q1 Hello, and welcome to Boardroomradio. I’m speaking with Richard Hatcher who’s the Exploration Manager of China Yunnan Copper Australia. Richard, thanks for your time and good to have you on the line today.

• A1 Oh, thank you, James.

• Q2 Now, the Company has put out a great release from your Mary Kathleen JV with Goldsearch. You’ve got some good Rare Earth Element and also copper results. Before we touch on that, Richard, can you tell me about the target that you were drilling and what were your expectations going into it?

A2 Thanks, James. Well, we initially looked at the Mount Dorothy Project as an iron oxide copper gold deposit, similar in style to Ernest Henry, so we originally started drilling there in July with a small three-hole program and it came up with a good result of 35 metres at 1.5 % copper. So, in this phase 2 round of drilling, we went back to chase up this copper and cobalt zone and we drilled another five diamond holes and have come up with an interesting Heavy Rare Earth Element discovery as well.

• Q3 Turning to the release, the results look pretty good. Can you talk me through how you’re interpreting the hits and tell me about some of the highlights in there?

• A3 Well, at the moment, it’s all still early days yet. We’ve only drilled about eight holes into it, but the hits at the moment seem all to be contained within an iron oxide breccia that seems to be rich in the copper minerals of chalcocite, chalcopyrite and also cobalt minerals. Within this breccia zone as well we are seeing some Yttrium and Heavy Rare Earth Elements grading over 1000 ppm which leads us to believe that we’re getting a zonation through these iron breccia structures.

• Q4 Can I get you just to expand a little bit more on how the results help your understanding of the mineralisation in the area and, from here, how do you work up the Project or how do you build on these results?

A4 We’ve concentrated on the main area of Wee Wyeems and we’ve stepped out 40 metres to the north and we’ve also been chasing it down dip as well. So, in effect now, we’ve chased it down to about 100 metres below depth and we’ve traced it 40 to 50 metres along strike. Now, the mineralised zone all seems to be contained within this breccia, so we’ve been chasing the structure, which is visual on the surface in a small 10 by 20 metre surface expression, but we’ve been chasing it under cover to the north and down dip as well. Now, we’re seeing cobalt numbers coming in just as we’re getting into the sulphide, the chalcocite, the chalcopyrite zone as well, so we’re able to use the increase in cobalt to better define when we’re getting into copper zones as well. And the Heavy Rare Earth seem to be coincidence with the cobalt copper zones as well but, saying that, it’s still early days at the moment.

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Q5	Okay. And in terms of the follow-up work program, what is planned?
A5	We’ve got a rig earmarked at the moment. It’s actually planned to start drilling
	this weekend, and we are looking again to stepping out further, probably
	another 50 metres, and also chasing it down even deeper. We’re looking at the
	150 to 200 metre mark as well. But, saying that as well, we still have another
	kilometre of strike length on the low-grade east/west trending structure and
	we’re targeting other zones of north-west – north – a splay coming off that area
	as well – some scout holes.
Q6	Okay. Great. Well, it sounds like an active work program on this Project to
	follow up what were some initial good results. We look forward to seeing what
	you’re able to turn over in the field and wish you the best with your program.
A6	All right. Well, thank you very much, James.

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