Summo Minerals working Colorado copper project

Exploration and definition drilling are under way at the Cashin copper property in Colorado.

Initially, Summo Minerals (VSE) plans to drill 25 holes totaling 8,000 ft., the objective of which is to expand and upgrade the current resource of 10.9 million tons grading 0.55% copper.

The first three holes returned an average of 160 ft. grading 0.55% copper. Intersections include: 60 ft. grading 0.42% copper plus 110 ft. grading 0.8% copper in hole 9501; 80 ft. grading 0.44% copper plus 55 ft. grading 0.55% copper in hole 9502; and 175 ft. grading 0.48% copper in hole 9503.

The company will conduct additional metallurgical testing to refine copper recoveries for heap leaching. Preliminary work indicates that overall recoveries of 85% can be expected from both oxide and sulphide zones in the deposit.

Meanwhile, 15 air miles southwest of Cashin in southeastern Utah, work is continuing on the feasibility study for a copper leaching operation at the Lisbon Valley project.

Summo expects to complete the study by the end of July and anticipates a positive production decision. Reserves stand at 39.4 million tons grading 0.49% copper, available at a stripping ratio of about 2.07-to-1.

Previous scoping studies estimated output from a 10,000-ton-per-day operation at 30 million lb. of copper per year over a 12-to-15-year mine life.

Cash production and capital cost estimates will be released with the feasibility study.

Summo is also conducting initial exploration on its Champion copper property in New Mexico. Preliminary estimates put the resource there at 18 million tons grading 0.4% copper.

Geologic mapping is under way and a drill site is being selected. An initial 12 holes will test the lateral extent of a copper-mineralized zone cut by an old adit. Sampling in the adit returned 305 ft. grading 1.17% copper.

Summo is well-funded for its current exploration work, with $2.6 million in working capital. There are 12.2 million shares outstanding, or 17.2 million on a fully diluted basis.