TIDMXTR
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
Beaumont Cornish Limited Roland Cornish +44 (0)207628 3369
Nominated Adviser and Michael Cornish www.beaumontcornish.co.uk
Joint Broker 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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END
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