President’s Letter to Shareholders
To Consolidated Woodjam Copper Corp. Shareholders:
I would like to thank all of our Consolidated Woodjam Copper shareholders who have been with us over the years with predecessor companies Fjordland Exploration Inc. and Cariboo Rose Resources Ltd. and also welcome any new shareholders we may have.
This has been a year of exciting developments regarding our flagship Woodjam North and South projects, located 50 km east of Williams Lake, BC. As I write this letter to review our progress over the past year, I would like to note that there are currently two drills turning on the Woodjam projects. The budget this year is CDN$5.5 million, which includes 20,000 m of diamond drilling, divided equally between the Woodjam projects. During 2011, preliminary cost analysis, “high-level” preliminary engineering assessments including water and meteorological monitoring and stakeholder engagement programs were conducted and will continue during 2012. We look forward to additional discoveries, all funded by Gold Fields.
Consolidated Woodjam Copper commenced trading on December 5th, 2011. The company was created out of a plan of arrangement with the purpose of preserving the interests of shareholders of Fjordland and Cariboo Rose in the Woodjam projects by transferring them to Consolidated Woodjam Copper, a stand-alone corporate entity focused on the exploration and development of the projects. Shareholders of both predecessor companies received shares in the new company.
Shortly after commencement of trading, in January 2012, Gold Fields vested a 51% interest in both the Woodjam North and South projects. Further, Gold Fields gave notice to Consolidated Woodjam Copper that it will exercise its right to earn a further 19% interest in each of the projects. To earn this additional interest Gold Fields will be required to spend $12 million and US$8 million on the Woodjam North and South projects respectively, over the next four years. In addition, Gold Fields is required to complete a comprehensive feasibility study on the Woodjam South project.
In March 2012, Gold Fields completed a NI 43-101 compliant pit-constrained resource for Woodjam South’s Southeast Zone, which is one of several zones of mineralization currently being explored by Gold Fields. This resource provides a glimpse of the overall potential of the Woodjam projects. The resource estimate is based on data from 80 diamond drill holes with a total of 31,712 m of drilling. The inferred resource for the Southeast Zone is 146.5 million tonnes of 0.33% copper for 1.06 billion pounds of copper. The resource also contains a gold grade of 0.06 g/t gold, a portion of which may be recovered as by-product.
Our company has approximately $200,000 of working capital and no debt. We will endeavor to keep share issuances low and increase the value of the Woodjam North and South projects in partnership with Gold Fields, who is funding all exploration.
Best Regards,
Bill Morton
President and CEO
Consolidated Woodjam Copper Corp.
