Summo considers copper powder business

Denver — Summo Minerals (SMA-T) has commissioned a new feasibility study to assess the economics of a copper powder business at the Lisbon Valley project in southeastern Utah.

In September 2000, Summo completed a feasibility study which evaluated the economics of producing 40 million lbs. cathode copper annually at a capital cost of US$57 million. The study concluded that the open-pit, solvent extraction-electrowinning (SX-EW) operation would produce the red metal at a cash operating cost of US45 per lb. Total costs would be US73 per lb.

Although the project is fully permitted with state and federal authorities and has survived three environmental lawsuits aimed at blocking its development, the company was unable to raise the money for construction.

The new study, funded by Gould Electronics and MicroMet GmbH Pulvertoechnologie and conducted by The Winters Group, will evaluate the possibility of using a patented technology for making 20 million lbs. copper powder each year over a lifespan of 18 years. The copper would still be extracted using open-pit and SX-EW methods. Reserves, according to the 2000 feasibility study, stand at 36.7 million tons grading 0.51% copper, with a stripping ratio of 2.25-to-1.

The study is due in June. Should the results be positive, Gould and MicroMet can acquire a majority interest in the copper powder business in return for providing equity for mine development. They would also provide access to the patented ElectroCopper Products technology, plus certain bank guarantees and marketing expertise.

Summo retains a pro rata right to participate in equity financing for mine development. Any transaction would remain subject to the approval of the board of directors.

Gould produces printed circuit materials, passive optic components and integrated solutions, whereas MicroMet is a high-tech subsidiary of Norddeutsche Affinerie, the world’s fifth-largest copper refiner.