Xtract reports progress at Zambia joint venture

8th Feb 2024 13:56

(Sharecast News) - Xtract Resources updated the market on its copper exploration joint venture in Zambia with Cooperlemon Consultancy (CL) on Thursday, alongside its broader copper exploration strategy in the region.

The AIM-traded firm said the joint venture, which it first announced on 24 August 2023, was focussed on advancing exploration efforts within the promising large-scale exploration licences 29123-HQ-LEL and 30459-HQ-LEL in Northwest Zambia.

It highlighted the strategic positioning of the two exploration licences within the Western Foreland geological district, which also hosts the renowned Kamoa-Kakula deposit and the Central Fold and Thrust Belt in Northwest Zambia.

Covering a combined area of 107,000 hectares, the licences occupied a highly prospective region where competition for exploration rights is notably intense.

Licence 29123-HQ-LEL is situated to the west of the perceived boundary between the Western Foreland and Fold Belt, while licence 30459-HQ-LEL coincides with the boundary and could encompass part of the Fold Belt itself.

Xtract said it anticipated the potential discovery of high-grade Kamoa-style mineralisation at depth, alongside lower-grade Kolwezi-type mineralisation at or near the surface within the licences.

The start of exploration activities had been initiated through the recent acquisition of a significant historical database originally compiled by Anglo American.

Xtract said the database acquisition would enable it to execute a cost-effective and expedited exploration programme, facilitating efficient progress in its endeavours.

"We have recently embarked on an intensive exploration campaign targeting a discovery of commercial grade and tonnage of copper in a region of NW Zambia that is not only the subject of more intense competition than I have ever known for exploration ground but also the focus of attention for most of the world's major mining companies," said executive chairman Colin Bird.

"NW Zambia is a proven host for large scale copper deposits and the geology of our joint venture ground is highly prospective.

"Zambia as a nation has set ambitious targets for copper production to underpin its economic progress and Xtract intends to become a part of that story initially by being the only junior company operating its own Joint Venture licences on a self-financing and independent basis."

At 1332 GMT, shares in Xtract Resources were up 0.43% at 1.06p.

Reporting by Josh White for Sharecast.com.