TIDMXTR
RNS Number : 7879T
Xtract Resources plc
29 March 2021
For immediate release
29 March 2021
Xtract Resources Plc
("Xtract" or the "Company")
Reconnaissance Drilling Results on Kalengwa Near-Mine Target
Xtract (AIM: XTR), the copper-gold exploration and development
company, is pleased to provide information on results of
reconnaissance diamond drilling adjacent to the historic Kalengwa
high-grade copper-silver open pit ("Kalengwa Project") located in
the North-Western Province of The Republic of Zambia.
Highlights
-- Compilation of historic mine drilling data identified a
shallow zone of semi-consolidated copper oxide mineralisation
located just south of the old open pit.
-- A reconnaissance diamond drilling programme of six short
vertical holes was completed by Xtract.
-- Based on preliminary testing by hand-held XRF, the most
interesting hole, KXD-006, was initially selected for laboratory
assay, returning results as follows:
69.0m @ 0.88% Cu, 2.59g/t Ag from 9.0m depth, including
sub-intervals of 12m @ 1.01% Cu and 17m @ 1.07% Cu.
-- KXD-006 is located about 100m from the open pit and the
intersection is approximately twice the thickness reported in
historic holes.
-- Core from the remaining holes is still being processed. The
Company will review results from KXD-006, along with information
from the remaining holes, to plan for further delineation of the
mineralised zone.
Colin Bird, Executive Chairman said: "Our JV agreement for the
Kalengwa pit area allows us to mine and process material 500m
either side of the old open pit. The results from the hole
completed and analysed are very encouraging - the material
encountered may be free-digging, without the need to blast, thereby
reducing extraction costs. Once fully processed, the results will
be assessed with a view to establishing the extent of the
mineralised zone and follow-up required to more fully delineate it.
"
Summary of Kalengwa Target and Reconnaissance Drilling
The Company compiled historic exploration information for the
Kalengwa Project area with a view to identifying priority targets
for reconnaissance drill testing. This work highlighted a shallow,
fault-controlled zone of copper oxide mineralisation of significant
thickness sitting just below surface immediately south of the old
open pit. This unmined spur of the main Kalengwa open pit ore zone
extends for over 100m to the south-southwest of the open pit based
on very limited historic drilling. Historic drill intercepts by
previous licence holders include 38.1m @ 0.69% Cu and 29.0m @ 1.27%
Cu. The shallow mineralisation and morphology of the deposit
suggest that it could be amenable to low-cost open pit mining.
Although known to the original mine operators in the 1970s, this
zone would most likely have been considered below cut-off grade for
their operations that were based on exceptionally high ore
grades.
To test this zone, Xtract completed a limited programme of six
shallow reconnaissance vertical diamond drillholes totalling 415m.
The completed holes encountered a profile of deep bedrock
oxidation, comprising a variety of clays and weathered bedrock. The
holes were stepped out at 50m spacing on two traverses, oriented
NE-SW (along strike) and NW-SE (across strike). As copper oxide
mineralisation is often difficult to recognise in such core, a
portable XRF instrument was used to provide preliminary information
regarding the presence and grade of copper. XRF results indicated
copper values over a wide interval in the final hole of the
programme, KXD-006, located about 100m south of the Kalengwa pit
margin, with disseminated chalcocite-malachite mineralisation
identified in a conglomerate unit towards the base of the
section.
Assay results for split core from KXD-006 were received from the
SGS laboratory at Kalulushi in Zambia, confirming the initial XRF
readings, returning consistent copper results over an interval of
69.0m as set out in Table 1. Full logging and testing of the
remaining holes has yet to be completed.
Table 1: Kalengwa Near-Mine Drilling - Laboratory Assay
Results Summary
Hole No. From (m) To (m) Interval Cu% Ag (g/t)
(m)
----------- --------- ---------- ----- ----------
KXD-006 9.0 78.0 69.0 0.88 2.59
----------- --------- ---------- ----- ----------
Incl. 21.0 33.0 12.0 1.01 0.83
----------- --------- ---------- ----- ----------
and 60.0 77.0 17.0 1.07 5.44
----------- --------- ---------- ----- ----------
The mineralised zone encountered is substantially thicker than
indicated by historic drilling and the results from the
reconnaissance drill programme will be reviewed to develop a plan
to more fully delineate the zone.
Kalengwa Project Background
The Kalengwa Project comprises the processing area, the tailings
dumps and the flooded open pit (the "Flooded Pit") and the area 500
metres to the north of the Flooded Pit and 500 metres to the south
of the Flooded Pit (the "Kalengwa Project"), details of which are
set out in the announcement dated 15 July 2019.
The Kalengwa Project is located in the North-Western province of
Zambia 800km northwest of Lusaka and 400km south-west of Kitwe. The
licence holder, KPZ, has been awarded a large-scale exploration
permit 24401-HQ-LEL, which was issued on 2 April 2019 and is valid
for an initial period of 4 years.
The Kalengwa Copper Mine is believed to have been one of the
highest-grade copper mines in Zambia. It paid for its own
infrastructure which at the time was in a remote location south of
the main Zambian Copper belt. A mineralised high-grade supergene
core was reported to have yielded an average grade of 27% Cu,
making up approximately 20% of the ore body, which was trucked
unprocessed to Kitwe for direct smelting. Total production of 1.9Mt
of 9.44% Cu and 50g/t Ag was reported from the open pit resulting
in circa 15,000 tonnes of copper production per annum over 12
years. The Kalengwa Mine was owned and managed by Roan Consolidated
Mines Ltd. from 1970 to 1982, which also operated the Mufulira,
Luanchya, Chambishi and Chibuluma Mines.
The Board of Xtract believe that mining operations terminated at
Kalengwa when Roan Consolidated Mines exhausted the high-grade
supergene core. Previous drilling of the orebody down-plunge and on
the north-east and south-west flanks of the open pit have
demonstrated that further resources may potentially remain
unexploited in these areas.
Further information is available from the Company's website
which details the company's project portfolio as well as a copy of
this announcement: www.xtractresources.com
This announcement contains inside information for the purposes
of Article 7 of EU Regulation No. 596/2014 on market abuse. The
person who arranged for the release of this announcement on behalf
of the Company was Colin Bird, Director.
Enquiries :
Xtract Resources Plc Colin Bird, +44 (0)20 3416 6471
Executive Chairman www.xtractresources.com
Beaumont Cornish Limited Roland Cornish +44 (0)207628 3369
Nominated Adviser and Michael Cornish www.beaumontcornish.co.uk
Joint Broker Felicity Geidt
Novum Securities Limited Jon Belliss +44 (0) 207 399 9427
Joint Broker Colin Rowbury www.novumsecurities.com
Qualified Person:
Information in this announcement relating to the exploration
works has been reviewed by Edward (Ed) Slowey, BSc, PGeo, a
technical consultant to Xtract. Mr Slowey is a graduate geologist
with more than 40 years' relevant experience in mineral exploration
and mining, a founder member of the Institute of Geologists of
Ireland and is a Qualified Person under the AIM rules. Mr Slowey
has reviewed and approved the geological content of this
announcement.
Qualified Person:
In accordance with AIM Note for Mining and Oil & Gas
Companies, June 2009 ("Guidance Note"), Colin Bird, CC.ENG, FIMMM,
South African and UK Certified Mine Manager and Director of Xtract
Resources plc, with more than 40 years' experience mainly in hard
rock mining, is the qualified person as defined in the Guidance
Note of the London Stock Exchange, who has reviewed the technical
information contained in this press release.
TECHNICAL GLOSSARY
The following is a summary of technical terms:
"Ag" Silver
"Cu" Copper
"JORC Code" Australasian Institute of Mining and Metallurgy
Joint Ore Reserves Committee code on mineral
resources and ore reserves
"mineralisation" Process of formation and concentration of
elements and their chemical compounds within
a mass or body of rock
"Mt" Million tonnes
"supergene" Descriptive of a mineral deposit, weathering
or alteration formed by descending solutions
ENDS
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