After receiving results of column testing of supergene ore from a copper prospect in Ecuador, Kookaburra Resources (TSE) decided to drop its option.
It had the right to earn a half interest in the Chaucha property from AG Armeno Mines & Minerals (VSE). But Kookaburra has determined that the projected time required to achieve higher recoveries does not justify its further involvement.
Jacob Kalpakian, vice-president of AG Armeno, said the company is awaiting results of Kookaburra’s metallurgical work. AG Armeno is reviewing its options for the property to determine the next step.
Kookaburra argues that copper prices may not recover to 1989-1992 levels for several years. As a result, it says it will not consider solvent extraction-electrowinning projects unless projected operating costs are substantially less than US50 cents per lb.
Kookaburra is completing an agreement to acquire a very high-grade copper project in Peru.
The company has about 13.2 million shares outstanding and is well-funded, with about $5 million in working capital and no debt.
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