Xtract Resources Expands Copper Exploration Joint Venture in Zambia
London-listed Xtract Resources has announced an addendum to its joint venture (JV) agreement with consulting firm Cooperlemon Consultancy, significantly expanding their copper exploration efforts in Zambia.
This expansion incorporates three additional large-scale exploration licenses in northwest Zambia into the existing JV framework.
Previously, the JV focused on large-scale exploration licenses 29123-HQ_LEL and 30459-HQ-LEL, both situated in northwest Zambia.
These licenses, along with the newly added ones, lie within the Western Foreland geological district, home to the Kamoa-Kakula deposit, and the central fold and thrust belt.
Combined, the five licenses cover an area of 173,586 hectares. Xtract noted on May 30 that this area is highly prospective, with significant competition for exploration rights.
Xtract sees potential for discovering high-grade Kamoa-style mineralization at depth and lower-grade bulk tonnage near the surface.
Limited exploration has been conducted on the new licenses thus far, with initial fieldwork scheduled for early in the second half of the year to identify potential drill targets.
“It is no secret that I am enthusiastic about both copper and Zambia as a mining jurisdiction. We are very pleased to add these three additional licenses to Xtract’s JV with Cooperlemon, particularly as they are adjacent to one of our original JV licenses with Cooperlemon.
All the JV licenses are well situated, and our intent is to commence fieldwork on the three additional licenses to identify potential drill targets for Kamoa-style mineralization and Kolwezi-style mineralization, which has the potential for near-surface copper and possibly cobalt mineralization,” said Xtract Chairperson Colin Bird.
Under the restated JV agreement, Xtract will earn a 65% interest in the additional licenses by funding at least $500,000 of exploration expenditure on each license over an initial two-year period.
This is in addition to the $2 million expenditure over two years required for the original licenses, bringing Xtract’s total commitment to $3.5 million.
If exploration yields positive results, a JV company will be established to further develop the licenses, aiming to identify a mineral resource of at least 500,000 tonnes of contained copper at economically recoverable grades.
In the event of a trade or sale of the additional licenses during the initial phase, Xtract will hold a 50% interest, with any sale requiring the agreement of both Xtract and Cooperlemon. Other terms of the original JV remain unchanged.
Xtract plans to fund the exploration expenditure from existing resources and ongoing operations.
