Shuka Minerals (LSE:SKA) has completed the sixth and seventh drill holes, KBDD06 and KBDD07, at its Kabwe Zinc Mine in Zambia, with both holes successfully intersecting zinc mineralisation in the previously unmined Speaks and Mine Club areas. Located more than one kilometre northwest of the currently assessed Pit 2 zone, the drilling also confirmed the presence of the Kabwe host dolomites together with multiple mineralised zinc veins at several depths.
Drilling Programme Expanded to 2,500 Metres
Portable XRF analysis from the latest drill holes identified continuous zinc mineralisation, although average grades were lower than those recorded in earlier drilling. Several higher-grade intervals were also encountered, providing further evidence that the mineralised orebodies extend into the northern part of the project area.
Encouraged by the results, Shuka has expanded its initial drilling campaign to a total of 2,500 metres and has already begun drilling hole KBDD08. The additional work is intended to improve the geological understanding of the northern orebody and support future resource estimation and mine development planning.
Financial Challenges Continue to Weigh on Outlook
Despite the positive exploration update, Shuka’s investment outlook remains constrained by weak financial performance. The company continues to report losses, negative gross profit and recurring cash outflows, although its balance sheet has historically maintained relatively modest leverage.
Technical indicators also remain weak, with the share price trading below key moving averages and a negative MACD pointing to continued downward momentum. While oversold conditions are emerging, they have yet to provide a clear signal of a sustained recovery. Valuation also remains difficult to justify given the company’s loss-making position and the absence of a dividend.
More about Shuka Minerals Plc
Shuka Minerals Plc is an Africa-focused mining company listed on AIM in London, with a secondary listing on the AltX of the Johannesburg Stock Exchange. Its principal asset is the Kabwe Zinc Mine in Zambia, where it is exploring and developing deposits containing zinc, lead, copper, silver and vanadium oxide.
The Kabwe Project includes several mineralised zones, including Pit 2, Speaks and Mine Club, with mineral resources reported under NI 43-101 standards. The company is continuing to expand its drilling programme to better define the extent of mineralisation, support future mine planning and strengthen its position in the African base metals sector.
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