TIDMXTR
RNS Number : 8882N
Xtract Resources plc
26 January 2023
For immediate release
26 January 2023
Xtract Resources Plc
("Xtract" or the "Company")
Kakuyu Copper Project Zambia Update
The Board of Xtract Resources Plc is pleased to provide
shareholders with an update on the Kakuyu copper joint venture
project located approximately 53km north-west of the town of
Mumbwa, Central Province of Zambia.
Highlights
-- Exploration undertaken in and around the Kakuyu open pit has
defined several copper targets offering potential for extension of
the existing in-pit mineralisation and a significant increase in
the projected life of mine
-- On the southern side of Kakuyu Hill an approximate combined
800m west and east striking extension of copper mineralisation has
been postulated that requires validation through sampling and
drilling.
-- On the northern side of Kakuyu Hill, a substantial copper in
soil anomaly extending over a strike length east to west of
approximately 1.4 kilometres has been defined. The target is
coincident with a hydrothermal breccia of the same composition as
that hosting mineralisation in the open pit
-- An assessment of waste dumps by the grade control team is
under way to identify potential additional mineral resources
presumed by previous operators to be low-grade or waste material. A
programme of sampling is in progress and additional feedstock may
be generated
-- A detailed assessment and inventory of ore currently stored
on the ROM pad is in progress to develop a grade control and ore
blending plan to ensure the delivery of consistent tonnage and
grade output
-- Work is under way to push back the existing ramp access to
the pit to expose in-pit extensions of higher-grade (targeting
>2.0% Cu) ore providing additional feedstock whilst
simultaneously improving pit access
-- A 250t bulk sample has been delivered to the Kabwe Refinery
for drying, crushing and sampling ahead of negotiations for the
future processing of ore production. Samples have also been
delivered to an external processing consultant for metallurgical
test work
-- The Company is now sourcing a drill rig to test the potential
extensions to mineralisation associated with the existing open pit
together with the substantial soil anomaly delineated along the
northern boundary of Kakuyu Hill.
Colin Bird, Executive Chairman said: " I am very pleased with
progress to date on the Kakuyu project. On acquisition, we were
confident that a relatively small operation could be sustained for
two years or possibly more. We have been very active on the ground
and our conclusions now are that the initial prognosis could
potentially extend to 4 or 5 years but, more importantly, there
exists the potential opportunity to build a larger operation which
could justify its own processing capability. In the short-term it
is our intention to maximise cash flow from the operation to
finance a larger exploration programme and we will keep
shareholders informed of our progress and ultimate direction for
the Kakuyu project. "
Kakuyu Project
The Kakuyu Project is located approximately 53km north-west of
the town of Mumbwa, Central Province of Zambia, in a region
well-known for mining including the nearby mines and occurrences of
Sable Antelope, True Blue, Crystal Jacket, Maurice F Gifford, Lou
Lou, Silverking and Kamiyobo. The most recent discovery is the Iron
Oxide Copper Gold (" IOCG ") Kitumba project (BHP/Blackthorn
Resources).
The Kakuyu Project is covered by two mineral licences, one
small-scale mining licence 29805-HQ-SML issued to Kakuyu Mining
Limited which is valid until 7 November 2031 covering an area of
201.78 hectares and a second small-scale mining licence currently
under application by Kakuyu Mining Limited over an adjoining area
of similar size.
The Kakuyu Project has been operated at various times in the
past by both small-scale commercial and artisanal miners. There has
been limited exploration to date of the Kakuyu Project which
provides Xtract with an opportunity to make fresh discoveries in an
under-explored but prospective region. The Kakuyu Project is
centred around the Kakuyu Hill pit and a large hematitic lens
(approximately 800 by 200 metres) found in a fault-controlled
setting which is understood either to be a shear hosted Cu-Au
deposit or an oxidised post orogenic IOCG deposit, or a combination
thereof. The extension of the lens feature with depth is not
currently known although the hematitic lens may extend to the west,
along strike of the mapped iron unit. Field investigations showed
similar features, structures and alteration in the western
diggings, outside of the larger Kakuyu Hill pit. There is also a
potential for mineralisation to the north of the hill as the area
is highly faulted with a smaller wedge of older dolomites sitting
within the younger meta-sediments which could form fluid traps.
Copper occurs as both oxides and sulphides on fractures, in
breccias and as stockworks.
The Kakuyu Hill pit has been worked historically (although there
is no historic data) to the extent that benches have been put in
place to open up the pit. There are also underground artisanal
workings with tunnels and a collapsed shaft. Oval Mining has
currently removed bulk samples of the potential higher-grade
sulphide ores from the pit which have been hand-sorted and
stockpiled on site, targeting grades of 3.5-4% Cu (although no
assays are available on in situ grades at this time). A site has
also been created south of the pit for the new waste rock
dumps.
The deposit type and mineralisation mechanisms are not yet clear
from initial field observations and Xtract plans an exploration
programme to understand further the type of deposit and
mineralisation potential at Kakuyu. This programme is likely to
comprise initially a detailed ground IP and/or EM geophysics survey
with follow up drilling on identified targets.
Joint Venture Agreement
Xtract has entered into a joint venture agreement with Oval
Mining Limited (" Oval ") relating to the exploitation of
small-scale production licence 29805-HQ-SML (the "Licence"). Under
the terms of the Agreement, Xtract and Oval have agreed that the
net profit of the Kakuyu Project will accrue as to 60% to Xtract
and 10% to Oval. Both Oval and the Licence Holder are Zambian-based
entities. The balance of 30% will accrue to Kakuyu Mining Limited
(the " Licence Holder ").
A fuller summary of the terms of the joint venture agreement
were set out in an RNS dated 15 December 2022.
Further information is available from the Company's website
which details the company's project portfolio as
well as a copy of this announcement: www.xtractresources.com
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act 2018.
The person who arranged for the release of this announcement on
behalf of the Company was Colin Bird, Director.
Enquiries :
Xtract Resources Plc Colin Bird, +44 (0)20 3416 6471
Executive Chairman www.xtractresources.com
Beaumont Cornish Limited Roland Cornish +44 (0)207628 3369
Nominated Adviser Michael Cornish www.beaumontcornish.co.uk
and Joint Broker Felicity Geidt
Novum Securities Limited Jon Bellis +44 (0)207 399 9427
Joint Broker Colin Rowbury www.novumsecurities.com
Qualified Person:
Information in this announcement relating to the exploration
works has been reviewed by Edward (Ed) Slowey, BSc, PGeo, a
consultant to Xtract. Mr Slowey is a graduate geologist with more
than 40 years' relevant experience in mineral exploration and
mining, a founder member of the Institute of Geologists of Ireland
and is a Qualified Person under the AIM rules. Mr Slowey has
reviewed and approved the geological content of this
announcement.
Qualified Person:
In accordance with AIM Note for Mining and Oil & Gas
Companies, June 2009 ("Guidance Note"), Colin Bird, CC.ENG, FIMMM,
South African and UK Certified Mine Manager and Director of Xtract
Resources plc, with more than 40 years' experience mainly in hard
rock mining, is the qualified person as defined in the Guidance
Note of the London Stock Exchange, who has reviewed the technical
information contained in this press release.
TECHNICAL GLOSSARY
The following is a summary of technical terms:
"breccia" Rock fragmented into angular components
"dolomite" Calcium-magnesium carbonate mineral, (CaMg)CO3,
or a rock composed largely of the mineral dolomite
"EM" (Electromagnetic Geophysical exploration method employing the
surveying) related electric and magnetic fields which can
be set up in a conductive body by an artificial
electric field at surface
"hematite" A mineral composed of ferric iron oxide
"IP" A method of ground geophysical surveying which
Induced Polarisation employs the passing of an electrical current
into the ground to test for indications of conductive
metallic sulphides
"IOCG" (iron Mineral deposits that typically occur at the
oxide copper-gold) margins of large igneous bodies which intrude
deposits into sedimentary strata, often forming pipe-like,
mantle-like or extensive breccia-vein sheets
within the host stratigraphy
"metasediment" A metamorphosed sediment
"orogenic" Pertaining to mountain building events in the
Earth's history
"oxide" Mineral produced by natural weathering processes
at or near the earth's surface
"ROM" Run of mine
"shear" Plane of failure in faulted body of rock
"stockwork" A large-scale ramifying series of fissures filled
with mineralized material
"sulphide" A metallic compound of sulphur
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