Hoping for a few bad days to capitalise.Summit reveals estimates...

Hoping for a few bad days to capitalise.

Summit reveals estimates

Rebecca Lawson
Monday, 2 April 2007

FOLLOWING criticism for delaying its resource estimates for its Mt Isa uranium joint venture, takeover target Summit Resources has released inferred resource estimates for two of its deposits. Additionally, Summit says its shareholders have received "intrusive" telephone calls from an apparent campaign run by bidder Paladin Resources.



Summit Resources managing director Alan Eggers getting his hands dirty at the company's Mount Isa uranium project

In a market statement, Summit announced that inferred resource estimates had been reached for both its Andersons and Watta deposits, which the company said will enable it to start preliminary mine planning, mine design and treatment plant design studies that will lead on to a bankable feasibility study.

The inferred resource estimate for Andersons stands at 2 million tonnes at a grade of 2.31 pounds per tonne uranium oxide while Watta came in at 4.2Mt at a grade of 0.9lb/t uranium oxide. Both estimates used a cut-off grade of 0.50lb/t uranium oxide.

Summit said the Watta resource extends from surface to 150m depth and remains open along strike to the north and, at depth, down plunge.

Meanwhile, Andersons' resource extends from surface to 360m depth and remains open down plunge to the east.

The company said further drilling at both deposits will take place.

Additionally, Summit said it had received number of complaints from its shareholders over "what they regard to be an intrusive telephone campaign being run by Paladin".

Summit said in a statement the calls asked a number of questions in relation to Paladin's offer.

Summit stands by its recommended rejection offer over what it calls a "hostile" takeover bid by Paladin, where the latter said it would trade one of its shares for every 2.04 Summit share. The takeover offer is worth around $1 billion.

Summit has outlined the takeover bid as "opportunistic" and "inadequate" and last month indicated that it may be waiting on a higher bid from Paladin.

Paladin chairman Rick Crabb told MiningNews.net last month that there was no reason to increase the bid.

Shares in Summit shed 3c to $4.92 while shares in Paladin dropped 9c to $9.64 in early afternoon trading today.

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