Eureka Copper Project
Copper mineralisation at Eureka occurs within sedimentary rocks along a north-west oriented structural trend. A shallow historic open pit mine was developed by a local operator. Previously reported drilling by Xtract confirmed continuity of the shallow mineralised zone over about 300m of strike, with pockets of exceptionally high copper grades in a partially oxidised supergene zone. A second, possible stratabound mineral style may also represent a target of interest.
No further exploration was undertaken at Eureka during the period pending consideration of options for possible future development.
Kalengwa Copper Project
Kalengwa is located in the north-western province of Zambia 800 km north-west of Lusaka and 400 km south-west of Kitwe. The Kalengwa Copper Mine is believed to have been one of the highest-grade copper mines in Zambia. It paid for its own infrastructure which at the time was in a remote location south of the main Zambian Copper belt. A mineralised high-grade supergene core was reported to have yielded an average grade of 27% Cu, making up approximately 20% of the ore body, which was trucked unprocessed to Kitwe for direct smelting. Total production of 1.9 Mt of 9.44% Cu and 50 g/t Ag was reported from the open pit resulting in circa 15,000 tonnes of copper production per annum for 12 years of production. Kalengwa Mine was owned and managed by Roan Consolidated Mines Ltd. from 1970 to 1982, who were also the proprietors of Mufulira, Luanchya, Chambishi and Chibuluma Mines. The Project is not a priority whilst the Company is focusing elsewhere on bringing into production and acquiring other high-grade near-term cash flow opportunities in Zambia. The status of Kalengwa is regularly reviewed in the context of other Zambian copper projects held by the Company competing for the same development capital.
Oil and Gas Operations
The remaining oil and gas interests are a holding a in Global Oil Shale Group Limited (‘GOs’).
In December 2012, Xtract acquired the Australian Julia Creek Oil Shale in return for 6.0 million shares in GOS, with a further 1.5 million in the event of an IPO, which the Board views as a valuable balance sheet asset.
The disposal to GOS was completed in December 2012 and GOS is working to consolidate its position within the local and national government jurisdictions. GOS has advanced technical work and put in place a short-term programme designed to add significant incremental value prior to a proposed public market listing. GOS also continues to advance the other oil shale projects within its oil shale portfolio.
In July 2014, Xtract sold 5 million shares for a total consideration of £1,188,679. Xtract retains 2,371,365 shares and will be allotted a further 1.5 million shares immediately prior to a listing of GOS shares on a stock exchange or market, as per the original agreement.
