Kalengwa - any possibility of revenue in the short term?4 Jan 2022 10:42
Going back to the post initiated yesterday by Jamiescakes on copper revenue from Zambia asset which was mentioned very briefly by Colin during the interview at c17 min. As mentioned it sounded like Colin said Chongwe which was is AFP exploration.
Do we have any possibility of revenue incoming from Kalengwa in the short term.?
I have not really looked at this in much detail recently but there appear to be 2 elements to Kalengwa - production and exploration.
Snippet from Xtract website is below. The 8 months reference doesn't have an obvious start date!
https://xtractresources.com/kalengwa-copper-project/
•Xtract has conditionally been appointed as contractor to oversee and commence initial production from the Kalengwa dumps of approximately 1.34 million tonnes with a potential to contain 25,000 tonnes of copper metal
•Xtract and KPZ have agreed a 90-day due diligence period following completion of which, should Xtract wish to proceed to act as contractor, Xtract will pay USD200,000 to KPZ to be settled through the issuance of new Xtract ordinary shares
•Kalengwa Mine produced in the 1970s and is believed to have been one of the highest grade copper deposits in Zambia
•High grade ore in excess of 26% Cu are reported to have made up approximately 20% of the ore body which was trucked for direct smelting at copper belt mines
•Xtract intends to commence a simple ore sorting programme, building up to a more significant ore processing operation within the next 8 months, with an annual production target rate of 6,000 tonnes of copper metal
•Xtract will receive, if it elects to proceed as Contractor, 33.33% of net profits from the operations and will incur the further estimated capital cost as set out below
•An exploration programme will determine the extent of previously reported potential strike extensions to the North and South of the historic open pit to determine the potential for a new open pit operation
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