Xtract reports progress at Zambia joint venture

Xtract Resources updated the market on its copper exploration joint venture in Zambia with Cooperlemon Consultancy (CL) on Thursday, alongside its broader copper exploration strategy in the region.

The AIM-traded firm said the joint venture, which it first announced on 24 August 2023, was focussed on advancing exploration efforts within the promising large-scale exploration licences 29123-HQ-LEL and 30459-HQ-LEL in Northwest Zambia.

It highlighted the strategic positioning of the two exploration licences within the Western Foreland geological district, which also hosts the renowned Kamoa-Kakula deposit and the Central Fold and Thrust Belt in Northwest Zambia.

Covering a combined area of 107,000 hectares, the licences occupied a highly prospective region where competition for exploration rights is notably intense.

Licence 29123-HQ-LEL is situated to the west of the perceived boundary between the Western Foreland and Fold Belt, while licence 30459-HQ-LEL coincides with the boundary and could encompass part of the Fold Belt itself.

Xtract said it anticipated the potential discovery of high-grade Kamoa-style mineralisation at depth, alongside lower-grade Kolwezi-type mineralisation at or near the surface within the licences.

The start of exploration activities had been initiated through the recent acquisition of a significant historical database originally compiled by Anglo American.

Xtract said the database acquisition would enable it to execute a cost-effective and expedited exploration programme, facilitating efficient progress in its endeavours.

“We have recently embarked on an intensive exploration campaign targeting a discovery of commercial grade and tonnage of copper in a region of NW Zambia that is not only the subject of more intense competition than I have ever known for exploration ground but also the focus of attention for most of the world's major mining companies,” said executive chairman Colin Bird.

“NW Zambia is a proven host for large scale copper deposits and the geology of our joint venture ground is highly prospective.

“Zambia as a nation has set ambitious targets for copper production to underpin its economic progress and Xtract intends to become a part of that story initially by being the only junior company operating its own Joint Venture licences on a self-financing and independent basis.”

At 1332 GMT, shares in Xtract Resources were up 0.43% at 1.06p.

Reporting by Josh White for Sharecast.com.