Aim-listed Xtract Resources has entered into an option and joint venture (JV) agreement with Oval Mining, which is in cooperation with Cooperlemon Consultancy, to earn an up to 70% interest in the Silverking copper mine and its accompanying exploration licence.

The exploration licence covers an area of 81.7 km² and is located in the Mumbwa district of Zambia.

Xtract has confirmed that Silverking’s mineralisation is characterised by deep levels of intense oxidation; breccia-, vein- and stockwork-hosted copper mineralisation; and is distinguished by high-grade supergene enrichment – similar to the nearby Kitumba deposit.

The former Silverking openpit and underground mine extends to a mining depth of only 70 m.

Based on historical drill data, it is believed that the mineralisation remains open along strike and down-dip. Some of the historical data includes intercepts of 50 m grading 5.47% copper from 55 m.

Additionally, a wide-spaced geochemical soil survey supplemented by ground geophysical surveys undertaken by Glencore in 2012 identified a number of high-priority targets warranting follow-up.

In particular, Xtract says a second breccia pipe located 800 m from the main Silverking mineralised body was identified and has not been explored, with evidence at surface suggesting possible stockwork or disseminated copper mineralisation between the two breccia pipes.

Xtract’s exploration work will focus on testing the depth extension of the Silverking breccia pipe, the second pipe and the general licence area. 

Xtract chairperson Colin Bird says the Mumbwa district has a long history of small-scale mining and is recognised as a region that may host large-scale copper deposits.

JV TERMS

Xtract has an option period of 18 months to earn an initial 51% interest in the licence, provided it spends $500 000 on exploration in the period.

The JV will then be formally established between Xtract and Cooperlemon.

Xtract may increase its interest in the licence to 70% by spending a further $1-million over two years on exploration and development of the licence, subject to Cooperlemon’s right to maintain its interest in the licence through an option to earn back up to 70% by participating in ongoing expenditure.

Should an inferred resource greater than 500 000 t of contained copper be reported, any subsequent sale of the project to a third party will result in an equal share of the disposal proceeds between the parties.