Xtract Resources upbeat on informal report on Eureka

Xtract Resources announced on Friday that its technical consultants had provided an informal report on the integration of the previous exploration databases, and undertaken an interim review of drill targets over the Eureka project on the copper-gold small scale mining licence 22134-HQ-SML in the central part of the Republic of Zambia.

The AIM-traded firm said the historic data overview confirmed targets for fast-track drilling, with two copper and gold soil anomalies highlighted - the largest extending for three kilometres.

It said the main anomaly peaked at 1,315 parts per million copper and 540 parts per billion gold, in the vicinity of a previously-worked shallow open pit mine.

The drilling review indicated mineralisation in the Eureka pit area remained open, with “particular focus” to the south east and to depth.

A parallel soil anomaly coincided with the Eureka West target, where undrilled high-grade copper mineralisation was exposed in a trial pit, the board explained.

Several further geophysical targets were not tested.

Xtract said near-term drill targets were selected, subject to the surveying of historic drill hole collars and preparatory ground work.

“We are pleased by the outcome of the interim review of the extensive exploration dataset that we have acquired for Eureka,” said Xtract Resources executive chairman Colin Bird.

“The more we examine the historic information the more we are convinced that the strong structural and geochemical trends, along with significant drill intercepts and past mining history, can be indicators of substantial copper-gold orebodies on the property.

“Our exploration programme will be directed towards large scale oxide deposits, with sulphides at deeper levels. Initial shallow drilling will test the presence and configuration of these copper bodies.”

Bird said the occurrences of gold was “encouraging”, and was in line with the board’s belief that there was potential iron oxide copper gold , “Olympic Dam-style” mineralisation.

“Our strategy is different to that of the explorers in the 1960s, in that we are interested in the large scale copper oxide occurrences as well as deeper sulphide material.

“I look forward to fast-tracking the testing of selected targets and reporting the results to our shareholders.”