The Zambian Minister of Mines has approved the environmental-impact assessment (EIA) that provides for a subsidiary of KoBold Metals to earn into Tertiary Minerals Zambia’s exploration licence over the Konkola West Copper project.

The KoBold subsidiary, Mwinilunga Exploration, will start drilling on the licence later this month.

The Konkola West project covers an area of 72 km² and is located 18 km north-west of Chingola in the Central African Copperbelt.

The project targets projected deep down-dip and along-strike extensions of three deposits – Lubambe, Mingomba and Konkola – that are located to the east of the licence and extend north into the Musoshi mining complex in the Democratic Republic of Congo.

Together these deposits comprise a 15-km-long contiguous zone of mineralisation that contains an endowment of more than 775-million tonnes grading between 2% and 3% copper.

Konkola West, which is located about 2 km south-west of the Mingomba deposit has historic resource estimates of nine-million tonnes of contained copper.

In turn, the Mingomba deposit lies between the Kokola and Lubambe mines.

KoBold is a US-based company exploring for critical metals. It is backed by technology investors such as Breakthrough Energy – which was founded by Bill Gates – and institutional investors such as the Canadian Pension Plan Investment Board.

Tertiary has interests in five copper exploration projects in Zambia, including Konkola West.

Initially, KoBold will complete at least two drill holes for a total of 2 000 m of drilling within 14 months of starting, which, following completion, will see KoBold, Tertiary and Tertiary’s project partner Mwashia Resources forming a joint venture company to hold the licence.

The initial ownership will be KoBold with 51%, Tertiary with 39% and Mwashia with 10%. Mwashia’s equity interest will be free carried by KoBold and can be purchased by KoBold at any time for $3.5-million.

Tertiary may elect to contribute to the further costs of the venture pro-rata with its shareholding or dilute its interests.

Should Tertiary’s interest dilute down to 10% in the venture, then it will convert to a 1% net smelter return royalty payable for a 13-year period following the start of commercial production.

KoBold and Tertiary will each make an initial payment of $30 000 to Mwashia. Tertiary’s existing option agreement with Mwashia for the Konkola West project has been terminated by the EIA.