Summo to develop Lisbon Valley copper

Denver-based Summo Minerals (SMA-T) has received approval to construct and develop the Lisbon Valley copper project in southeastern Utah.

The go-ahead stems from a decision, by Deputy Chief Administrative Judge Bruce Harris of the Interior Board of Land Appeals, to remove a stay on mining. The stay was originally issued in June 1997 in response to an appeal from the World Wildlife Federation and the Mineral Policy Centre that Summo had not taken proper steps to protect the ground water.

The new ruling allows the company to proceed with negotiations to raise project financing through St. Mary Land & Exploration. Under an agreement, not yet closed, St. Mary would provide US$2.9 million through to Dec. 31, 1998, to cover 55% of project expenditures.

Lisbon Valley will be developed as an open-pit, heap-leach operation with a minable reserve of 35 million tons averaging 0.464% copper. The stripping ratio is estimated to be 1.84-to-1.

On an annual basis, the mine is expected to produce 40 million lbs. of cathode copper at a cash cost of US47 cents per lb. over a mine life of at least eight years. Summo says the project has considerable exploration potential.