REG - Xtract Resources plc - Zambia Copper Exploration Update

Xtract ResourcesAnnouncement

19/11/2019 14:00

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RNS Number : 9380T
Xtract Resources plc
19 November 2019
 
 
For immediate release
 19 November 2019
 
Xtract Resources Plc
("Xtract" or the "Company")
Zambia Copper Exploration Update
 
The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to
provide an update on drill planning on the copper-gold-silver exploration
projects in The Republic of Zambia which include  the mining licence number
8370-HQ-SML located at Kajevu, Kasempa, North Western Province ("Matrix
Project"), as well as the mining licence number 22134-HQ-SML located in the
Central part of The Republic of Zambia ("Eureka Project") and the mining
licence number 24401-HQ-LEL  located in the Central part of The Republic of
Zambia ("Kalengwa Project")
 
 
Highlights
 
·     Contract signed for not less than 1,600m of reverse circulation
drilling
·     Drilling programme at all sites will target depth and strike
extensions of current pits as well as significant strike extensions not yet
tested
·     Site visit to the Matrix Project confirms the presence of
significant stockpiles of partially sorted copper ore from previous mining,
available to any future ore processing operation
·     At Eureka project, limited historic drilling of open-ended copper
zone will be extended along strike and a second target tested at Eureka West
·     The Kalengwa project has significant stockpiles with approximately
2 million tonnes of tailings
·     Drilling to commence at Matrix during the course of this week
 
Colin Bird, Executive Chairman said: "This is an exciting period in the
development of the Company. All of the 3 targets are brownfield targets, with
previously demonstrated history of mineralisation which has small-scale
extraction. These occurrences are widespread and give much support to our
belief and academia's belief that significant Olympic Dam style mineralisation
may be present in the Central regions of Zambia.
Meanwhile significant test work is continuing on the Kalengwa licence to
determine processing characteristics of the various dumps, as well as to
determine the most appropriate processing route. We will update the market on
the drilling program and results over the coming weeks."
 
Summary of work plan
At the Matrix Project, the Company completed integration of historic and newly
generated exploration data and will drill for extensions to shallow
mineralisation beneath and along strike from recent small-scale open pits
developed in copper mineralisation with accompanying gold. A further
geochemical target highlighted by earlier Xtract soil sampling will also be
tested. Reverse circulation ('RC') drilling will be employed to provide quick
progress at reasonable cost.
 
During a drill planning visit to site it was apparent that considerable
stockpiles of copper ore remain unprocessed from the work of the previous
mining company. These require to be quantified and are available for any
future copper processing operation.
 
At the Eureka Project, overview of extensive prior exploration data available
to the Company has shown that earlier shallow open pit mining on the main
Eureka copper zone did not reach the core of the mineralisation identified by
historic drilling. In addition, the zone remains open along strike to the
southeast and has also not been closed off to the northwest. RC drilling here
will test the extent of this target within a broader soil geochemical anomaly.
 
A second copper-mineralised zone at Eureka West, about 1km from the Eureka pit
will also be drill tested as part of the planned programme.
 
The drill rig is expected to mobilise in the coming days. Approximately 800m
of drilling is planned at each locality and assay results from both properties
will be reported as they come through during the next few weeks.
 
Project background
 
At Kajevu a small open pit trial mine approximately 150 metres long and 15
metres deep was previously developed over a steeply dipping, hydrothermally
altered copper-gold bearing quartz vein zone. Strong visible copper
mineralisation in the form of malachite and chalcocite is exposed at the
western end of the pit over a 3-5m width. As previously announced, selective
composite grab samples taken by the Company returned values ranging 3.99-7.28%
Cu, 1.0-3.42g/t Au. Historic records report trenching results of 2.86% Cu over
a width of 36m, indicating potential for wider copper intervals within the
target zone.
 
Bulk sample material from the open pit was stockpiled at surface for possible
future ore processing - this includes considerable stacks of partially sorted
high-grade copper mineralisation.
 
At Eureka, as previously announced limited historical drilling within an
extensive copper soil anomaly intersected up to 25.7m @ 3.30% Cu and 0.25g/t
Au, including 9.7m @ 5.9% Cu and 0.26g/t Au. A shallow open pit was developed
by a local operator within this resource in 2008, when about 1,000 tonnes of
ore at 3% Cu was reportedly recovered. Mineralisation intersected by historic
drill holes and partially mined remains open in several directions. In
particular, mineralisation is open to the southeast of the pit as well to
depth. Additional drill testing of this zone at more optimal drilling angles,
as well as the strike extrapolation of the zone will be a priority for the
planned drilling programme.
 
A second sub-parallel copper anomaly in soils about 600-700m long occurs at
Eureka West, 1km to the southwest of the main Eureka pit. A small pit at this
locality was operated by artisanal miners - composite grab sample taken by the
Company from hand-sorted boulder piles at the site returned 9.81% Cu, 1.94g/t
Au, 13.77g/t Ag. This is a further priority drill target for the Company.
 
Kalengwa
 
As previously announced in July earlier this year, the Kalengwa Copper Mine is
believed to have been one of the highest-grade copper mines in Zambia. A
mineralised high-grade supergene core was reported to have yielded an average
grade of 27% Cu, making up approximately 20% of the ore body which was trucked
unprocessed to Kitwe for direct smelting. Total production of 1.9 Mt of 9.44%
Cu and 50 g/t Ag was reported from the open pit resulting in circa 15,000
tonnes of copper production per annum for 12 years of production. Kalengwa
Mine was owned and managed by Roan Consolidated Mines Ltd. from 1970 to 1982.
 
 
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 No. 596/2014 on market abuse. 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 (http://www.xtractresources.com)
 Beaumont Cornish Limited                           Roland Cornish       +44 (0)207628 3369
 Nominated Adviser and Joint Broker                 Michael Cornish      www.beaumontcornish.co.uk (http://www.beaumontcornish.co.uk)
                                                    Felicity Geidt
 Novum Securities Limited                           Colin Rowbury        +44 (0)207 399 9427
 Joint Broker                                                            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:
 
 "alteration zone"  a zone exhibiting change in mineralogical composition of a rock commonly
                  brought about by reactions with hydrothermal solutions
 "Au"               Gold
 "Cu"               Copper
 "exploration"      method by which ore deposits are evaluated
 "mineralisation"   process of formation and concentration of elements and their chemical
                    compounds within a mass or body of rock
 "soil sampling"    systematic collection of soil samples at a series of different locations in
                    order to study the distribution of soil geochemical values.
 
ENDS
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