Summo steps up work Down Under

Denver — Upon completing its acquisition of 48% of Australia’s Matrix Metals, Summo Minerals (SMA-T) has begun drilling at the Mt. Watson copper target in northwestern Queensland.

The Denver-based company intends to complete 2,500 metres of rotary air-blast drilling in an effort to test three parallel zones of oxide mineralization.

The zones vary up to 15 metres in width and stretch over a strike length of more than 1,500 metres.

Mt. Watson represents a potential expansion of reserves at the Mt. Cuthbert open-pit copper mine, 25 km to the south, which produces 5,600 tonnes copper annually.

Summo picked up the majority stake in the Australian producer and added two seats to the board in early June, while lining up a US$10-million financing in the form of a special warrants placement arranged through Griffiths McBurney & Partners.

Meanwhile, Summo and two partners have terminated a study on the feasibility of producing electrolytic copper powder at the Lisbon Valley project in Utah.

Instead, the company will act in accordance with a 2000 feasibility study for the production of 40 million lbs. of cathode copper using heap leaching and solvent extraction-electrowinning. With capital costs of US$57 million, the open-pit operation would produce copper at cash operating costs of US48 per lb. over a mine life of more than eight years.