The Board of Xtract Resources Plc provided shareholders with an update on the Kakuyu copper joint venture project located approximately 53km north-west of the town of Mumbwa, Central Province of Zambia. The Kakuyu Project is located approximately 53km north-west of the town of Mumbwa, Central Province of Zambia, in a region well-known for mining including the nearby mines and occurrences of Sable Antelope, True Blue, Crystal Jacket, Maurice F Gifford, Lou Lou, Silverking and Kamiyobo. The most recent discovery is the Iron Oxide Copper Gold Kitumba project.

The Kakuyu Project is covered by two mineral licences, one small-scale mining licence 29805-HQ-SML issued to Kakuyu Mining Limited which is valid until 7 November 2031 covering an area of 201.78 hectares and a second small-scale mining licence currently under application by Kakuyu Mining Limited over an adjoining area of similar size. The Kakuyu Project has been operated at various times in the past by both small-scale commercial and artisanal miners. There has been limited exploration to date of the Kakuyu Project which provides Xtract with an opportunity to make fresh discoveries in an under-explored but prospective region.

The Kakuyu Project is centred around the Kakuyu Hill pit and a large hematitic lens found in a fault-controlled setting which is understood either to be a shear hosted Cu-Au deposit or an oxidised post orogenic IOCG deposit, or a combination thereof. The extension of the lens feature with depth is not currently known although the hematitic lens may extend to the west, along strike of the mapped iron unit. Field investigations showed similar features, structures and alteration in the western diggings, outside of the larger Kakuyu Hill pit.

There is also a potential for mineralisation to the north of the hill as the area is highly faulted with a smaller wedge of older dolomites sitting within the younger meta-sediments which could form fluid traps. Copper occurs as both oxides and sulphides on fractures, in breccias and as stockworks. The Kakuyu Hill pit has been worked historically (although there is no historic data) to the extent that benches have been put in place to open up the pit.

There are also underground artisanal workings with tunnels and a collapsed shaft. Oval Mining has currently removed bulk samples of the potential higher-grade sulphide ores from the pit which have been hand-sorted and stockpiled on site, targeting grades of 3.5-4% Cu. A site has also been created south of the pit for the new waste rock dumps.

The deposit type and mineralisation mechanisms are not yet clear from initial field observations and Xtract plans an exploration programme to understand further the type of deposit and mineralisation potential at Kakuyu. This programme is likely to comprise initially a detailed ground IP and/or EM geophysics survey with follow up drilling on identified targets.