KANGALUWI COPPER PROJECT
Zambezi Resources Limited ("ZRL") is an ASX listed Copper Exploration and Development Company focussed on its 100% owned Kangaluwi Copper Project ("KCP"), 180 km east of Lusaka, Zambia. The project is covered by a 245 km2 Mining Licence area ML 15547, issued on 16 March 2011 and valid for 25 years. The project covers the high quality copper deposits of Kangaluwi, Chisawa and Kalulu.
Numerous geophysical targets in the project area are yet to be evaluated, with only one quarter of the 28 km strike length drill tested to date.
The current Mineral Resource estimate for the project comprises 46 Mt @ 0.67% Cu for 300 kt contained copper from the Kangaluwi, Chisawa and Kalulu deposits at a 0.3% Cu cut-off grade.
The Company received an independent assessment by Dr A Sokolov as announced on the ASX on 25 September 2012 on the potential size of the KCP.
The report outlines, based on the available data, that Zambezi's initial exploration target1 is 100 Mt - 160 Mt @ 0.5% - 0.7% Cu.
Based on the August 2012 resource estimate an Open Pit Scoping Study for 7.5 Mt oxide ore was completed in 2012 with approximately AUD $5 million needed to finalise the BFS by 2014, following successful capital raising and EIS approval.
Targeting of 7,500 t/a copper cathode production by 2015 (subject to favourable feasibility study and project funding).
The decision on the Company's appeal to overturn the KCP EIS rejection has still not been handed down despite more than 13 months having elapsed since the appeal was lodged. While the delay in itself has been frustrating to the Company's plans to develop the project sooner than now, separate but unrelated events have contributed to the delay. (Refer to September 2013 Quarterly Report announced with ASX on 31 October 2013.
1The estimate of exploration target sizes should not be misunderstood as estimates of Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there has been insufficient results received from drilling to date to estimate a Mineral Resource in accordance with the JORC Code (2004). It is uncertain if further exploration will result in the determination of a Mineral Resource.
MPANDE LIMESTONE PROJECT
Mpande Limestone Limited ("MLL"), a wholly owned subsidiary of MRL (100% owned by ZRL) is a Zambian registered company that was formed in June 2008.
MLL has a 50% interest in the Limestone Joint Venture with Limestone Ventures Pty Ltd.
The Joint Venture proposes to construct and operate a cement and quick/hydrated lime facility within its 143.5 km2 licence area 13173-HQ-LPL, in Kafue District, Lusaka Province of Zambia.
Drilling results from the Mpande Limestone Project confirms a large limestone deposit of high quality material and suitable for cement production.
On 15 February 2013, MLL applied for a Large Scale Mining Licence. On completion of the Environmental Impact Study ("EIS") the Mines Department will consider the grant of the Mining Licence.
During the September 2013 quarter, the Company finalised the EIS and the Resettlement Action Plan ("RAP").
With the approval of the RAP, the draft EIS was lodged on 25 October 2013 with ZEMA for comments.
During the next quarter the Company expects the EIS to be approved and the Mining Licence title granted.
Incorporated JV with Glencore 51% and Zambezi 49% signed in December 2008 (conversion of unincorporated JV to incorporated JV with domicile in Bermuda