Shuka concludes LEM, Kabwe acquisition
Aim- and AltX-listed Shuka Minerals has completed the acquisition of Zambian mining company Leopard Exploration and Mining (LEM) and the Kabwe zinc mine after a protracted acquisition process.
Shuka now owns one of the world’s richest and most notable zinc mines, with grades of up to 43% zinc.
More than 14-million tonnes of ore have been extracted from the mine since first commercial production started in 1904.
Shuka confirms 5.7-million tonnes of resources are still contained in the mine, including 700 000 t of zinc and 100 000 t of lead, valued at more than $2-billion.
Following a recent equity raise of £1-million, Shuka plans to undertake confirmatory and step-out diamond drilling, airborne and ground magnetic surveys, geophysics and geotechnical studies and build a sample laboratory at the mine.
The company has already started with field work on site.
By the end of this year, Shuka aims to have further defined the orebodies at Kabwe and refined exploration targets beyond the existing licence.
Shuka CEO Richard Lloyd reaffirms the project’s Phase 1 development pre-tax cash flow expectation of $1.84-billion and net present value of $561-million.
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