Cape Lambert acquires Qld copper project

Cape Lambert Resources has completed a $7.7 million acquisition of the Leichhardt Copper Project in Queensland from Matrix Metals.

Matrix went into voluntary administration in November 2008, with receivers and managers appointed by the secured creditor.

The Leichhardt Copper Project is located about 100 kilometres north east of Mt Isa and is currently on care and maintenance.

Cape Lambert plans to commence systematic evaluation of the exploration dataset, with the objective of identifying drill targets and commencing drill programs to define additional oxide copper inventory.

See full company statement below:

Australian resources and investment company, Cape Lambert Resources Limited ("Cape Lambert" or the "Company") (ASX: CFE) today through its wholly owned subsidiary, Cape Lambert Leichhardt Pty Ltd, completed the acquisition of the Leichhardt Copper Project ("Project") from Matrix Metals Limited (Receivers and Managers Appointed) (In Liquidation) ("Matrix").

Payment on completion amounted to A$6.75M in addition to the deposit of A$1M paid in November 2009.

Matrix went into voluntary administration on 11 November 2008, with receivers and managers subsequently appointed by the secured creditor.

The Project is located approximately 100km north east of Mt Isa in the highly prospective Mt Isa Inlier and comprises:
* The Leichhardt process plant at Mt Cuthbert - a heap leach, solvent extraction and electrowinning facility with installed production capacity of 9,000 tpa of copper cathode,
* A granted tenement package (43 tenements) totaling approximately 850km2 located within the highly prospective Mt Isa Inlier,
* A further 500km2 of tenement applications (11 applications) also located within the Mt Isa Inlier, and
* The established Mt Watson oxide, open pit located approximately 30km north of the Leichhardt process plant.

The Project is currently on care and maintenance. The Company plans to commence systematic evaluation of the exploration dataset, with the objective of identifying drill targets and commencing drill programs to define additional oxide copper inventory.

The acquisition of the Project is in line with Cape Lambert's strategy of investing in undervalued or distressed assets or companies, adding value through technical and corporate support, before looking for ways to realise the investment.

Commenting on completion of the transaction, Tony Sage, Executive Chairman, said "Given this is a highly prospective tenement package in a world class base metals province, we believe our latest acquisition can return significant value to Cape Lambert and its shareholders in the medium term."