Xtract Resources on Monday concluded a memorandum of agreement (MoA) with an unnamed consortium to jointly undertake exploration works on a small-scale copper/gold mining licence, in Zambia.
The parties hope to identify a copper/gold resource at the licence within 24 months.
The parties have agreed to incorporate a special purpose vehicle, Newco, to acquire the shares of Starshine Mineral Exploration, which holds the licence. The Newco project will be called Matrix.
Xtract will hold a 50% share in Newco with one of the two directors of Newco being a representative of Xtract.
The parties have agreed to jointly fund an exploration works programme up to $1-million in aggregate.
The Matrix project’s breccia vein system extends for at least 3 km, with an initial target section of 800 m within the licence.
Recent small-scale openpit mining recovered high-grade hand-picked copper, as well as alluvial gold nuggets.
Selective grab samples taken from the pit outcrop indicate values ranging between 3.99% to 7.28% copper and 1 g/t to 3.42 g/t gold.