[miningmx.com] – UK-listed Xtract Resources is to run a due diligence for a six month period on a 182,000 tonne copper dump in return for issuing three million shares in the company to the resource owner, Shirley Hayes IPK, a South African copper exploration firm.
The oxide material is on surface and IPK has estimated an average copper grade of 0.54%, which Xtract will evaluate and verify in its initial due diligence, said Xstract. If commercially viable, Xtract wil build a heap leach operation to treat the oxide material.
In terms of a heads of agreement signed between the companies, Xtract will be entitled to 75% of the gross revenues generated from the heap leach operation with IPK entitled to the remaining 25%.
“Similar heap leach operations in the area yield recoveries of over 75% and the capex required to build such an operation should not exceed $500,000,” said Jan Nelson, CEO of Xtract.
