Exploration drilling by Australian-based Matrix Metals at the Mt. Watson prospect, near Cloncurry in Queensland, Australia, has outlined a resource that could significantly extend the life of Matrix’s Mt. Cuthbert copper operation.
In an 87-hole campaign of air-moderated reverse-circulation drilling at the Mt. Watson prospect, 43 holes intersected mineralization with grades of 0.5% copper or higher. The copper mineralization is in oxides, as is the mineralization now being mined at Mt. Cuthbert, 15 km away.
The resource at Mt. Watson has been calculated at 837,000 tonnes at a grade of 1.3% copper, and includes only mineralization down to a 25.5-metre depth.
At the end of 2000, Mt. Cuthbert had reserves of 2 million tonnes grading 1.1% copper. At current production rates of 5,500 tonnes copper metal annually, the reserve is good for about three more years. Mt. Cuthbert, which had experienced early metallurgical problems, is now producing above its designed daily rate of 15.5 tonnes copper.
Summo bought a 48% interest in Matrix Metals, the company operating Mt. Cuthbert, from Australian companies Murchison United and Majestic Resources in June. Summo had paid A$5.9 million for the interest and provided a line of credit amounting to A$3.25 million, and retains an option to buy a further 3% of Matrix.
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