On 15th July 2019 , Xtract Resources announced via RNS the " Kalengwa Processing Copper Project Zambia (“Kalengwa”) Agreement " .
Today’s preliminary sampling by Xtract within the Kalengwa mine tailing’s dumps yields an average grade of 1.03% Cu, 4.44ppm Ag . Also confirmed within the RNS : further systematic sampling will be required to more accurately define the tailing’s resource, while test work has already commenced to define the optimum copper/silver recovery route for a new processing operation . Hence phase 1 of the due diligence completed with phase 2 commenced already .
Going back to the 15th July 2019 RNS whereby Xtract and KPZ have agreed a 90-day due diligence period . If everything works out as historic data portrays Xtract Resources will have a huge revenue stream of 33.33% of net profits from the operations . Which all sounds fantastic until you read more of the RNS following paragraph taken from RNS https://www.ii.co.uk/news/kalengwa-processing-copper-project-agreement-rnsLSE20190715124604_14149660
On signing the agreement, we will recommence operations and advance to the initial operation. The initial operation will be upgraded to a mechanised sophisticated ore sorting system. During this initial phase, the Company will explore for extensions of the open pit both North and South. The results from the exploration will determine the size and operating requirements of a larger operation. We will also assess the possibility of de-watering the former open pit with a view to access the high-grade ore left at the bottom .
Hence it’s not only a 90 day due diligence to evaluate feasibility of processing tailing’s at the Kalengwa Copper Project but also assess through an exploration programme previously reported potential strike extensions to the North and South of the historic open pit determining potential for a new open pit operation .
Well worth while reading both RNS’s to get a true picture not only of the tailing’s revenue stream possibility but the potential for a new open pit operation . Which after due diligence is done would soon be capable of providing Xtract Resources with another ever increasing revenue stream just like the Manica Prospect in Mozambique .
As per usual Mr.Colin Bird has entered this 90 day due diligence agreement with many safeguards protecting Xtract Resources share holders from any unforeseen pitfalls .