Sindor drops Lisbon Valley lease in favor of outright purchase

Toronto-based Sindor Resources (TSE) has dropped its option to purchase a lease on the Lisbon Valley copper property in San Juan Cty., Utah, and has instead decided to purchase the property outright. Sindor cited a number of reasons for cancelling the leasing agreement including onerous payment terms, disappointing results from recent holes, and the potential costs of new environmental regulations.

Results from a recent environmental audit may delay Sindor’s purchase plans, however. The audit revealed elevated levels of contaminants in the surrounding water, and Sindor says it will need to study the property further before closing the purchase.

Meanwhile, Sindor is negotiating with MLP, the current lessee, for a sublease on the property. If negotiations are successful, Sindor will begin an environmental evaluation leading to a final feasibility study some time this year.

Last year, Sindor completed an internal feasibility study of Lisbon Valley which suggested that the property could sustain a profitable heap leach, solvent extraction, and electrowinning operation at a copper price of 70 cents per lb. The deposit, a former producer, contains preliminary reserves of nearly 10 million tons grading 0.73% copper.

Sindor continues to hold the Woods and Zuni claims to the south and west of the main Lisbon Valley property, and has leased and subleased about 320 acres of the Woods property.