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 plans 2,500 metres of rotary air-blast drilling to test three parallel zones of oxide mineralization.
The zones are up to 15 metres in width and stretch over a strike length of more than 1,500 metres.
Mt. Watson has the potential to increase reserves at the Mt. Cuthbert open-pit copper mine, which currently produces 5,600 tonnes copper annually.
Summo picked up the majority stake in the Australian producer and gained two seats on the board in early June, while also lining up a US$10-million financing through a special warrants placement via Griffiths McBurney & Partners.
Summo and two partners have also terminated a study on the feasibility of producing electrolytic copper powder at the Lisbon Valley project in Utah.
The company now falls back on a 2000 feasibility study for the production of 40 million lbs. cathode copper, using heap leaching and solution extraction-electrowinning.
With capital costs of US$57 million, this open-pit operation would produce copper at cash operating costs of US48 per lb. over a mine life of more than eight years.
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