(Sharecast News) - Xtract Resources reported encouraging assay results from the first three diamond drill holes completed at its Silverking Project in Zambia's Mumbwa District on Tuesday, highlighting the potential for high-grade copper and silver mineralisation.
The AIM-traded firm said the project is subject to a joint venture with Oval Mining, under which Xtract can earn up to a 70% stake.
It said the most significant intercept came from borehole SKIDD003, which returned 4.15% copper and 42.91 grams per tonne silver over 29.7 metres from a depth of 93 metres.
Borehole SKIDD002 intersected 3.18% copper and 40.32 grams per tonne silver over 54.1 metres from 56.9 metres, while SKIDD001 reported 0.74% copper and 8.33 grams per tonne silver over 23 metres from 113 metres depth.
The holes were drilled into the original mineralised structure and are part of a broader programme aimed at defining the limits of mineralisation through step-out drilling.
Peak copper grades in individual intercepts reached up to 41.96%, with associated silver values frequently exceeding 15 grams per tonne and in some cases surpassing 200 grams per tonne.
Drilling had so far tested mineralisation to around 200 metres depth, with plans to extend to approximately 400 metres.
In parallel, metallurgical testing is underway at an independent laboratory in southern Africa to evaluate and optimise flotation recovery.
The current campaign targeted the first of several identified prospects within the Silverking licences, with further work planned to assess additional targets and establish the potential for a significantly larger mineral resource.
"Our early excitement at the discovery of significant intercepts of massive sulphide mineralisation in drill core has been confirmed with impressive copper grades in the first three holes," said executive chairman Colin Bird.
"High copper grades are backed up by significant silver assays peaking at grades in excess of 200 grams of silver per tonne which at current silver prices, represent a by-product value potentially sufficient to cover the majority of future mining costs.
"The exploration team has stepped out from the initial target and has commenced drilling to test possible extensions and also the depth extent of the body."
Bird said that in addition, new previously-unrecognised structures that may also host copper-silver mineralisation were being evaluated.
"Preliminary modelling of an open pit has commenced, and the model will be adjusted depending on the results of deeper drilling.
"We will continue to update Shareholders as new assays are received and in the event that the expansive exploration programme makes additional discoveries."
At 1526 BST, shares in Xtract Resources were up 22.5% at 0.98p.
Reporting by Josh White for Sharecast.com.
Xtract (XTR)
