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July 14, 2024
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Xtract Resources has announced a joint venture (JV) agreement with Oval Mining, in collaboration with Cooperlemon Consultancy, aimed at acquiring up to a 70% stake in Zambia’s Silverking copper mine and its associated exploration license.

The initial option period spans 18 months, during which Xtract is obligated to invest $500,000 in exploration activities to earn a 51% interest.

Upon completion of the earn-in period or upon reaching the investment threshold, the JV will be formally established between Xtract and Cooperlemon.

Xtract retains the option to increase its stake to 70% by committing an additional $1 million over two years towards further exploration and development efforts.

In the event that exploration efforts uncover an inferred resource exceeding 500,000 tonnes of contained copper, any future sale of the project will result in both parties equally sharing the proceeds.

The exploration license, situated in Zambia’s Mumbwa District within the Central Province, covers an area of approximately 81.7km².

Xtract has underscored the distinctive mineralization characteristics of the Silverking mine, highlighting deep oxidation and high-grade supergene enrichment akin to the nearby Kitumba deposit.

The historical operation at Silverking, encompassing both open-pit and underground mining, reached a depth of only 70m, with notable drill intercepts such as 50m at 5.47% copper (Cu).

Colin Bird, executive chairman of Xtract Resources, expressed enthusiasm about the agreement, stating, “This partnership aligns with the company’s strategic objective of acquiring exploration assets with significant copper prospects, substantial upside potential, and proximity to existing or potential mines. Silverking unequivocally meets all these criteria, and we are optimistic about the possibilities for future discovery.”

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