London-listed Xtract Resources has entered into an addendum to restate its existing joint venture (JV) agreement with consulting firm Cooperlemon Consultancy, expanding their joint copper exploration efforts in Zambia.
The addendum incorporates three additional large-scale exploration licences in north-west Zambia into the JV.
The existing JV concerns large-scale exploration licences 29123-HQ_LEL and 30459-HQ-LEL, both located in northiwest Zambia. These, along with the new licences, lie within the Western Foreland geological district, which hosts the Kamoa-Kakula deposit, and the central fold and thrust belt.
Together, the five licences cover a combined area of 173 586 ha. The area is highly prospective and there is significant competition for exploration licences, Xtract said on May 30.
Xtract says there is potential for discovering high-grade Kamoa-style mineralisation at depth and lower-grade bulk tonnage near the surface. Limited exploration has been conducted on the additional licences so far, with initial fieldwork planned for early in the second half of the year to identify potential drill targets.
“It is no secret that I am enthusiastic on both copper and Zambia as a mining jurisdiction. We are therefore very pleased that we have been able to add the three additional licences to Xtract's JV with Cooperlemon, particularly given that they are adjacent to one of our original JV licences with Cooperlemon.
“All the JV licences are well situated … [and] it is our intent to commence field work on the three additional licences, with the objective of identifying potential drill targets for Kamoa-style mineralisation and also for Kolwezi-style mineralisation which has the potential for near-surface copper and possibly cobalt mineralisation," Xtract chairperson Colin Bird said.
Under the restated JV agreement, Xtract will earn a 65% interest in the additional licences by funding at least $500 000 of exploration expenditure on each licence over an initial two-year period.
This is in addition to the $2-million expenditure over two years required for the original licences, bringing Xtract's total commitment to $3.5-million.
Should positive results be obtained, a JV company will be formed to further develop the licences, with the ultimate aim to establish a mineral resource of not less than 500 000 t of contained copper at economically recoverable grades.
In the event of a trade or sale of the additional licences during the initial phase, Xtract will be deemed to hold a 50% interest, with any sale requiring the agreement of both Xtract and Cooperlemon. Other terms of the original JV remain unchanged.
Xtract expects to fund the exploration expenditure from existing resources and ongoing operations.