Perth-based gold explorer Zambezi Resources Ltd has announced plans to list on the ASX by June 2007 in order to accelerate its exploration and development activities over the year.
Perth-based copper, gold and uranium explorer Zambezi Resources Ltd has announced plans to list on the ASX by June 2007 in order to accelerate its exploration and development activities over the year.
The Alternative Investment Market-listed company said the Australian move would broaden its shareholder base and increase stock liquidity.
The company said the size of the proposed capital raising had not yet been finalised.
The full text of a company announcement is pasted below
Perth-based, London-listed Zambezi Resources Limited (AIM: ZRL) has announced plans to undertake a dual listing on the Australian Stock Exchange and Australian Initial Public Offering (IPO) to accelerate exploration and development of its quality portfolio of copper-gold projects in Zambia. The announcement follows a series of significant developments within the Company's portfolio including an initial copper resource estimate for its flagship Cheowa Project, which is subject to a Joint Venture with Glencore International AG.
The proposed dual listing is designed to broaden the Company's international shareholder base through the introduction of Australian institutional and retail investors, increase liquidity in the stock, improve analyst coverage and raise additional funds to accelerate its exploration and development activities during 2007 and beyond.
The decision to undertake an Australian dual listing represents one of the most significant developments for Zambezi since it listed on the London Alternative Investment Market (AIM) in July 2004 and represents a further significant step towards its corporate objective of establishing a significant portfolio of copper-gold assets in Zambia, either in joint venture or 100%-owned.
Zambezi has established a very large portfolio of copper-gold, gold and uranium projects in Zambia, covering areas that have been devoid of exploration for over 30 years. The Company's first-mover advantage in what is regarded as a favoured exploration and mining destination in Africa has attracted a strong institutional investor base and quality joint venture partner in Glencore.
The mechanism and details of the Australian IPO and dual listing, including the size of the proposed capital raising, have not yet been finalised. Zambezi is aiming to complete and lodge a Prospectus for the IPO with the Australian Securities and Investments Commission (ASIC), with the objective of listing on the ASX by June 2007.
The proposal - which was approved by Zambezi's Board of Directors in Cape Town in early February - follows a series of recent significant milestones within the Company's Zambian project portfolio, including the initial Cheowa copper resource, encouraging exploration results, and significant results from the Company's extensive suite of uranium projects.
INITIAL 26,000t COPPER RESOURCE ESTABLISHED AT CHEOWA
Following successful drilling programs in 2006, Zambezi has announced its maiden Zambian copper resource estimate for the flagship Cheowa Project, which is expected to become the cornerstone of the Company's plans to develop a substantial copper-gold mining operation in Zambia. The Inferred Resource estimate is 1.7 million tonnes at 1.5% copper and 0.5g/t gold for 26,000 tonnes of contained copper metal and 29,000 ounces of contained gold (using a 0.5% copper-cut-off grade).
Zambezi's Managing Director, Mr Julian Ford, said the strategically located resource covered a relatively small portion of the broader mineralised structures being tested by Zambezi and its joint venture partner, Glencore International AG. "The initial resource covers a 700m strike length and extends to a depth of 200m below surface drilled in 2006, however, the mineralisation remains open at depth, with VTEM targets identified over 8km along strike. So far the drilling of VTEM anomalies has resulted in a 100% intersection of copper mineralisation," he said.
"The work completed to date has enabled us to establish a theoretical target potential of 10 million tonnes at 1.5% copper for the Cheowa Project, assuming similar mineralised potential over the remaining 7km of untested strike and to a depth of 200m, with minimal consideration given for the presence of parallel lodes of mineralisation or credits from gold."
Mr Ford said the 2006 program had confirmed the potential for a very substantial copper-gold resource inventory to be established at Cheowa Project, making the Project strategically important for the Company and its joint venture partner. Glencore - which has recently completed construction of a new Isasmelt in Zambia, Africa's largest copper smelter. Glencore can earn a 51% interest in the Cheowa Project by spending US$10 million on exploration, with a minimum commitment of US$4 million.
Two new purpose-built track-mounted RC rigs and two man portable low environmental impact DC rigs have been commissioned for the 2007 drilling campaign at Cheowa, which will enhance drilling productivity and economics. The objective of this year's program is to deliver on the theoretical target potential.
KANGALUWI-CHISAWA PROJECT DELIVERS SIGNIFICANT RESULTS
In addition to the Cheowa resource, Zambezi has announced further exciting results from its newly announced copper discovery at Kangaluwi-Chisawa, which last year returned excellent drilling results including 21m @ 1.88% copper, 16m @ 1.95% copper and 14m @ 1.13% copper at Kangaluwi, and 25m @ 1.34% copper at Chisawa.
Mr Ford said further soil geochemical sampling at a line spacing of 200m and sample spacing of 25m had extended the surface expression of anomalous copper to a strike length in excess of 15km at values greater than 200ppm copper.
"Last year's program represented the first systematic drill program to be carried out in the area, and it only sparsely tested 800m of strike at Kangaluwi and 3,600m of strike at Chisawa," he said. "Since then, geological interpretation and geochemical sampling has further defined a series of priority targets, with an estimate total strike potential of mineralised horizon interpreted to be in excess of 20km."
"This has confirmed the exploration potential of this 100%-owned project which, is located 8km east of the historic Chakwenga Gold Mine, our priority gold project in Zambia," he added. "Kangaluwi-Chisawa will be an important focus for us in 2007 alongside the Cheowa Project, with RC drilling continuing and exploration activities set to expand during 2007 in this exciting emerging copper district."
MAJOR NEW URANIUM ANOMALIES IDENTIFIED
Elsewhere, Zambezi has recently completed regional high-resolution, radiometric surveys at its Mulungushi and Mpande uranium projects, and also announced the results of preliminary processing of an ultra-high resolution helicopter-borne radiometric survey of its advances Oryx Uranium Project.
The Company said five areas of anomalism had been identified from the survey at Mpande and five areas at Mulungushi, including four prominent bullseye-style targets surface radiometric anomalies at Mpande ranging from 1.25km2 to 1.5 km2. At the Company's more advanced Oryx Project, several strong anomalies have been defined approximately 1km to the west of the area that was previously trenched during the 2006 field season.
Mr Ford said the recent results had confirmed the uranium potential of Zambezi's portfolio of projects, with exploration to date covering only 20% of its total portfolio area of 17,000 square kilometres. "As part of our plans to dual list in Australia, we will give consideration to the best mechanism for accelerating exploration and development of our uranium portfolio," Mr Ford commented. "This could include the possibility of a spin-off of the uranium assets into a separately listed vehicle."
