"Summit’s Constance Range project covers 1,480km2 in seven EPMs. The tenements are centred 30 kilometres southwest to 45 kilometres northwest of Zinifex’s Century zinc mine in far northwest Queensland. Two of the tenements (EPM’s 15129 and 15162) are subject to a joint venture where Summit as the right to earn an 85% interest. The Constance Range C, D, E and H iron ore deposits, the Babbling Brooke Hill and Riversleigh phosphate deposits along with the Musselbrook copper prospect, Stockyard Creek zinc and Star of the South copper lead prospects are located within project area.
Inferred resources from BHP Billiton’s Constance Range drilling in the 1960’s were over 200Mt of iron ore and, at Babbling Brooke Hill, 38Mt and Riversleigh 11Mt of phosphate rock.
Helicopter supported geological reconnaissance, GPS fixing of prospects, exploration sites and drill holes and preliminary rock chip sampling was completed in the June Quarter 2006.
Rock chip samples were collected from the Train Range Iron Formation and submitted for laboratory analysis. The sample results have identified several areas with greater than 50% Fe (maximum values of 59% Fe), silica between 8% and 17%, and with low Al and P contaminants. These results are seen to be very encouraging and a survey of the extent of the iron formations is currently in progress.
Summit has appointed an independent consultant to prepare a report on the Constance Range project for the board’s review.
Summit now intends to spin out its Constance Range iron ore and phosphate assets by de-merging them into a new ASX listed company, Pacific Mines Limited (“Pacific”) and distributing Pacific shares to existing Summit shareholders.
Pacific has been initially funded by Summit and it is intended that, following the approval of Summit shareholders of the demerger, Pacific will raise approximately $4 million by way of an IPO prospectus issue to new shareholders and list on the ASX by early 2007".
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)