Name of the Project
Kalengwa copper processing project.

Location
The project is located in the North-Western province of Zambia.

Project Owner/s
KPZ International.

Project Description
Kalengwa was one of the highest-grade copper mines in Zambia in the 1970s, with a mineralised high-grade core reported to have yielded an average grade of 27% copper.

Initial production from the Kalengwa dumps is estimated at 1.34-million tonnes with a potential to contain 25 000 of copper metal.

The project will involve the construction of a small-scale processing copper concentrate plant and, subsequently, the expansion to a mechanised sophisticated ore-sorting system, with a production target of 6 000 t/y of metal.

During this initial phase, the company will explore for extensions of the openpit north and south, with the results determining the size and operating requirements of the larger operation. The possibility of dewatering the former openpit will also be assessed to access the remaining high-grade ore at the bottom.

A memorandum of agreement was entered into between KPZ and Xtract Resources on July 12 this year.

Xtract has agreed to collaborate with KPZ on the Kalengwa project to process copper ores from the various dumps and in the in situ ore located within the Kalengwa mine processing licence for commercial sale.

Potential Job Creation
The redevelopment of Kalengwa should create job opportunities for the local community.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
KPZ and Xtraxt will decide no later than November 30, 2019, whether to commit to the construction of a large-scale processing plant. Should the parties mutually agree to proceed, the construction of the processing plant will start by no later than February 2020.

Latest Developments
Xtract Resources has conditionally been appointed as contractor to oversee and begin initial production from the Kalengwa dumps.

Xtract and KPZ have agreed to a 90-day due diligence period.

Should Xtract wish to proceed to act as contractor it will pay KPZ $200 000 in Xtract shares.

Xtract has estimated that its capital costs to act as contractor are up to $1-million.

Key Contracts and Suppliers
Xtract Resources (contractor).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Xtract Resources, tel +44 20 3416 6471 or email info@xtractresources.com.