Shuka Minerals (LSE:SKA) has completed the eleventh and final drill hole of its initial exploration campaign at the Kabwe project in Zambia, identifying a new near-surface zinc orebody to the south of the Speaks and Mine Club zones.
Drill hole KBDD11 encountered two high-grade mineralised intervals, including a 27.1-metre section grading 19.6% zinc. Peak readings approached 70% zinc, while the drilling also returned notable concentrations of lead, copper and vanadium.
The results provide further evidence of significant mineralisation outside the previously established Kabwe zones and could expand the project’s overall mineralised footprint.
Discovery could represent extension of historic orebodies
Shuka believes the newly identified mineralisation may be geologically associated with Kabwe’s major No. 1 and No. 2 orebodies.
Initial interpretation suggests the discovery could form part of a steeply dipping, pipe-like mineralised structure. If confirmed by further drilling, this could materially increase the scale of the mineralised system currently being evaluated at Kabwe.
Management highlighted the potential importance of locating exceptionally high-grade zinc close to surface. Mineralisation that is both high grade and readily accessible could provide opportunities for earlier-stage development while improving the broader economic potential of the project.
The company plans to undertake a second phase of drilling once laboratory assays have been received to confirm the results generated using portable XRF equipment.
Kabwe catalysts offset financial challenges
Exploration progress at Kabwe and financing-related developments provide positive corporate catalysts for Shuka, while improving near-term technical momentum offers additional support.
However, the company’s broader outlook continues to be constrained by weak financial performance, including persistent losses, negative gross profit and recurring cash consumption alongside volatile revenue.
Traditional valuation measures also provide limited support while earnings remain negative and the company does not pay a dividend. As a result, progress at Kabwe and confirmation of the latest drilling results remain important factors for the investment case.
More about Shuka Minerals Plc
Shuka Minerals Plc is an Africa-focused mine operator and developer with a primary listing on London’s AIM market and a secondary listing on the JSE’s AltX market.
The company is advancing the Kabwe Zinc-Lead-Copper Project in Zambia, where it is targeting near-surface and deeper mineralisation containing zinc, lead, copper, silver and vanadium.
Kabwe includes the Speaks and Mine Club orebodies, which were previously covered by an NI 43-101 report containing multimillion-tonne indicated and inferred resources. Shuka’s current exploration programme is extending modern drilling into southern areas of the project to improve its geological models, establish mineralisation continuity and potentially expand the existing resource inventory.
Leave a Reply