Joint Venture for Copper Exploration in Zambia
Cooperlemon Consultancy Limited (“Cooperlemon”) is excited to announce its role in facilitating a joint venture agreement (“Agreement”) on 2 April 2024, between Xtract Resources Plc (“Xtract” or the “Company”) and Oval Mining Limited (“Oval”). This strategic partnership allows Xtract to earn up to a 70% interest in the Silverking copper mine and its accompanying exploration licence 26673-HQ-LEL (“Silverking”). The Silverking project spans approximately 81.7km² in the Mumbwa District of Zambia’s Central Province.
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Joint Venture Agreement
Cooperlemon Consultancy Limited (“Cooperlemon”) is excited to announce its role in facilitating a joint venture agreement (“Agreement”) on 2 April 2024, between Xtract Resources Plc (“Xtract” or the “Company”) and Oval Mining Limited (“Oval”). This strategic partnership allows Xtract to earn up to a 70% interest in the Silverking copper mine and its accompanying exploration licence 26673-HQ-LEL (“Silverking”). The Silverking project spans approximately 81.7km² in the Mumbwa District of Zambia’s Central Province.
Key Highlights of the Silverking Project
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- Rich Mineralization: Silverking is noted for its intense oxidation, breccia, vein, and stockwork-hosted copper mineralization, with high-grade supergene enrichment similar to the Kitumba deposit.
- Expansion Potential: The former Silverking open pit and underground mine, reaching a depth of 70m, remains open both down-dip and along strike, based on underground mapping and historic drilling data.
- Significant Drill Intercepts: Historical drilling has revealed notable intercepts, including 50m @ 5.47% Cu in borehole SVKRC002 from 55m to 105m depth, with mineralized peaks of 52.2% Cu over a 1m interval.
- Geophysical Surveys: Previous wide-spaced geochemical soil surveys, along with magnetic and IP ground geophysical surveys, have identified several high-priority targets for further exploration.
- Unexplored Potential: An additional breccia pipe located 800m from the main Silverking mineralized body remains unexplored, showing potential for stockwork or disseminated copper mineralization.
Exploration and Development Strategy
Xtract’s proposed exploration will focus on testing the depth extension of the Silverking breccia pipe, the nearby pipe, and broader licence exploration. This initiative aligns with Cooperlemon’s mission to facilitate partnerships that unlock significant copper and gold potential in the region.
Geological and Historical Context
Mining activities in the Mumbwa district, particularly in the Karenda area for Pb, Zn, Cu, and Ag, began before 1964. Small-scale mining of Silverking preceded the discovery of major copper deposits in the region. A mid-1980s study by the Zambian and Japanese governments confirmed the presence of high-grade Cu mineralization, highlighting the region’s potential for large copper deposits.
In 2012, Glencore International, through Mopani Copper Mines, initiated an exploration program over part of the current Silverking Licence, including soil geochemistry, ground IP and magnetic surveys, and both diamond and RC drilling. Detailed surveys covered only 2.68km² of the main Silverking breccia pipe, with broader reconnaissance over the rest of the licence area.
Joint Venture Agreement Details
Under the joint venture agreement with Cooperlemon, the following key terms were established:
- Option Period: Xtract has 18 months to earn an initial 51% interest in the Licence by spending US$500,000 on exploration.
- Increased Stake: Post the initial earn-in period, Xtract can increase its interest to 70% by spending an additional US$1,000,000 over two years, subject to Cooperlemon’s option to maintain its interest by participating in the ongoing expenditure.
- Resource Estimates and Profit Sharing: If an inferred resource exceeds 300,000 tonnes of contained copper, Xtract’s interest remains at 70%. For resources over 500,000 tonnes, proceeds from any project sale will be shared equally, after deducting disposal costs.
- Small Mining Project: PIf the Licence cannot support an inferred resource of 300,000 tonnes, the parties may develop a small mining project, with Xtract holding a 70% interest and bearing all funding responsibilities.
Licence Management
Cooperlemon will manage and ensure compliance (both statutory and regulatory) of the Silverking licence. Licence No: 26673-HQ-LEL, spanning 7,840 hectares and expiring on 30 August 2025, is held by Oval. Oval has agreed to the terms of the JV Agreement with Cooperlemon, acting on its behalf.
For more details, visit the Company’s website, which provides comprehensive information about the project portfolio and this announcement: www.xtractresources.com.
The information contained in this announcement is considered inside information as defined by the Market Abuse Regulation (EU) No. 596/2014, part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 (“UK MAR”).
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