Xtract Resources has concluded a memorandum of agreement with KPZ International (KPZ) for Xtract to act as contractor for the Kalengwa processing project on the large-scale copper mining licence number 24401-HQ-LEL located in the central part of the Republic of Zambia.
The historic Kalengwa copper mine was one of the highest-grade copper mines in Zambia with a mineralised high-grade core reported to have yielded an average grade of 27% copper.
Xtract has conditionally been appointed as contractor to oversee and begin initial production from the Kalengwa dumps of about 1.34-million tonnes with a potential to contain 25 000 t of copper metal.
Xtract and KPZ have agreed a 90-day due diligence period following completion of which, should Xtract wish to proceed to act as contractor, it will pay KPZ $200 000 in Xtract shares.
Xtract intends to begin a simple ore sorting programme, building up to a more significant ore processing operation within the next eight months, with a production target rate of 6 000 t/y of copper metal.
Xtract will receive, if it elects to proceed as contractor, 33.33% of net profits from the operations and will incur the further estimated capital cost.
An exploration programme will determine the extent of previously reported potential strike extensions to the north and south of the historic openpit to determine the potential for a new openpit operation.
“I am pleased to have completed this processing arrangement which makes immediately available to us relatively high-grade dump material for processing,” commented Xtract executive chairperson Colin Bird.
He indicated that the company would also start an exploration programme to identify the possible extensions of the openpit ore both on strike and depth.
The results from the exploration will determine the size and operating requirements of a potential larger operation.
The company will also assess the possibility of dewatering the former openpit with a view to accessing the high-grade ore left at the bottom.
“The redevelopment of Kalengwa should create job opportunities for the local community. The resumption of operations will be much assisted by local knowledge and a strong desire to see the Kalengwa mine once again flourish.”