11th Feb 2019 14:32
LONDON (Alliance News) - Xtract Resources PLC said Monday it has concluded a memorandum of agreement with a consortium to jointly undertake exploration works on licence 8370-HQ-SML in Kajevu, Kasempa, North Western Province in Zambia.
The copper-gold licence at the Matrix project has a breccia vein system which extends for at least three kilometres, with an initial target section of 800 metres.
Xtract said the purpose of the agreement is to identify a cooper-gold resource within the next two years. The exploration works programme is expected to cost up to USD1 million, which will be jointly funded.
As part of the agreement, Xtract will also acquire a 50% stake in the project.
"The iron oxide copper gold exploration potential in Zambia has not been fully explored and several highly prospective opportunities exist. We have identified the Matrix project as being high in potential and are currently investigating other areas which possess similar potential," said Executive Chair Colin Bird.
Bird continued: "In developing our activities into Zambia, we are providing a country balance and also introducing copper as a commodity hedge against gold. The board of Xtract believes that the fundamentals for copper in the future are stronger than have been experienced for a considerable time."
Shares in Xtract Resources were up 6.3% Monday at 1.01 pence each.
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