Xtract Resources has signed a joint venture (JV) agreement with Cooperlemon Consultancy for copper exploration on two large-scale licences, 29123-HQ-LEL and 30459-HQ-LE, in north-west Zambia.

Covering a combined 107,000ha area, the two licences are located within the Western Foreland geological district that hosts the prolific Kamoa-Kakula deposit and the Central Fold and Thrust Belt.

They are estimated to hold high-grade Kamoa-style mineralisation at depth and lower-grade bulk tonnage closer to the surface.

As per the JV deal, Xtract will earn a 65% stake in the JV by funding exploration expenditure of at least $2m on the licences over an initial period of two years.

If phase one exploration results are successful and the tests indicate a resource of at least 500,000t of contained copper, the two companies will undertake phase two exploration work for two years.

Xtract will incur an exploration expenditure of $3m for phase two and serve as the operator of the licences during the agreement period.

If Cooperlemon chooses to sell the licences during phase one of the JV, then Xtract will be deemed to have a 55% stake in the venture.

Xtract said the two licences have undergone limited exploration work to date.

The company plans to start initial fieldwork on the licences in September 2023 to identify potential drill targets.

Xtract executive chairman Colin Bird said: “The two licences are well situated within the Western Foreland geological district that hosts potential Kamoa style mineralisation as confirmed by recent exploration and drilling on nearby licences.

“It is our intent to commence fieldwork with the objective of identifying potential drill targets for Kamoa style mineralisation and also for Kolwezi style mineralisation, which has the potential for near-surface copper and possibly cobalt mineralisation.”