Independence studies MatrixMichael QuinnWednesday, February 23,...

Independence studies Matrix
Michael Quinn


Wednesday, February 23, 2005
INDEPENDENCE Group will continue assessment of copper hopeful Matrix Metals before deciding to increase its stake or sell out, according to Independence's managing director Chris Bonwick.

Speaking at the RIU Explorers Conference in Fremantle, Western Australia, Bonwick remained confident of the potential of Matrix, hit hard late 2004 after a feasibility study showed development of its White Range SX-EW heap leach copper oxide project in the Mount Isa region wasn't viable.

The negative feasibility study had been preceded two months earlier by Independence buying just under 20% of Matrix on market for $11.85 million. Shares in Matrix have nearly halved against the average price Independence paid.

Bonwick compared the potential for oxide copper deposits in the Mount Isa region to that held by the Kalgoorlie region for opencut oxide gold mines 20-30 years ago.

He also said criticism of his company over the deal had similarities to the reaction when Independence bought the Long nickel project from WMC in 2002. That operation has since generated free cash flow of $60 million, and Bonwick believes Matrix projects have the potential to spin off $20-40 million in cash for 6-8 years.

Disclosure: The reporter holds interests in Independence and Matrix