Portable X-ray fluorescence (pXRF) assay results for the first two batches of soil samples over targets within four Zambian exploration licences have yielded "significant copper anomalies", according to mining company First Quantum and exploration and resource development company African Pioneer.

First Quantum and African Pioneer previously entered into an option agreement and subsequent exploration programme to develop the targets.

The option agreement covers four Zambian exploration licences held by African Pioneer’s 80%-owned subsidiary African Pioneer Zambia and was signed on January 19. The licences are located in the Central Africa Copperbelt in north-west Zambia, home to the largest mineralised sediment-hosted copper province globally.

The licences are located less than 100 km from First Quantum's Sentinel copper mine and host similar aged rock types which have been proven to host the major copper deposits of the Copperbelt.

Pioneer noted in an August 23 update to the market that sufficient mapping and sampling had been completed on the initial anomalies to trigger immediate follow-up air-core drilling to pre-define targets for detailed diamond drilling.

“Targets defined to date represent a significant cumulative strike length of anomalous copper in soils. Targets are associated with rock types and regional structures diagnostic of Copperbelt-type mineralisation,” Pioneer said.

The company said the completion of soil geochemical surveys and mapping was under way and was expected to outline further targets of merit.

The planned work as part of the option agreement includes the completion of the soil geochemical surveys and associated pXRF in soils, continued mapping of new target areas, air-core drilling, as well as reverse circulation and diamond drilling.

"We are very pleased that our partner has commenced exploration and largely completed Phase 1 fieldwork and is already embarking on drilling. We look forward to receiving further results from the geochemical soil surveys and drilling results,” African Pioneer executive chairperson Colin Bird said.

NEW INCENTIVE SCHEME

Pioneer also announced a new incentive scheme for its directors, officers, employees and consultants, which was decided at the company annual general meeting held on August 23.

The company, which has projects in Namibia, Zambia and Botswana, has revealed that its new incentive scheme for providing for the payment of short-term, yearly and transaction incentive awards in cash or company shares has been approved.

The incentive scheme awards are not intended to replace the company's proposed share option scheme and will continue until the board puts an alternative incentive scheme to shareholders.

Eligible participants with direct involvement in meeting short-term operational targets – such as production or exploration targets – will be eligible for up to two times the participant’s salary, paid either in cash or company shares.

Yearly incentive awards will be awarded to those with about 25% of their awards being related to company performance and 75% related to individual key performance indicators. Here participants can receive as much as three times their salary.

Transaction incentive awards will be awarded based on the company completing a successful acquisition or disposal transaction and could amount to up to 5% of the transaction value.

In the event of a takeover or merger, general offer being made to shareholders, scheme of arrangement, member's voluntary winding up, change of control or other similar corporate event, participants will be deemed to have met their yearly incentive award.