Mining recommences at Eloise Copper Mine, Queensland

Breakaway Resources Limitedhas announced the recommencement of underground mining operationsat thquarry company in chinae Eloise Copper Mine, located 70 kilometres south-east of Cloncurry in North West Queensland. Eloise is 100%-owned and operated by FMR Investments Pty Ltd, while Breakaway has 30% net profit interest in the mine.

FMR advised last year that it intended to restart mining operations at Eloise, which has been on care and maintenance since December 2008 – when a localised hanging wall rock failure coupled with low copper prices at the time saw mining activities terminated in order to maximise the mine’s future value. While Breakaway does not factor in any payments from its 30% net profit interest for the 2011 calendar year, the re-opening of Eloise coupled with strong copper prices and the robust outlook for the copper market provides significant impetus to “kick start” forthcoming copper exploration programs on Breakaway’s 100%- owned Eloise Exploration Project, which lies adjacent to the mine.

Breakaway has identified multiple bedrock high-grade copper targets on the Eloise Exploration Project within a 20km radius of the Eloise Copper Mine and milling facility. The targets are typically characterised by +1% copper intercepts (up to 4.7% copper), highly anomalous gold results and limited deep drilling – with excellent potential to extend the known mineralisation along strike and
down dip. In addition, there are several significant surface geophysical and geochemical anomalies in close proximity to the bedrock targets which also represent attractive targets for follow up.

Breakaway is now preparing to commence ground-based follow up of the targets in early 2011 after the northern wet season ahead of likely geophysics and drill testing in the June and September Quarters of 2011.