Shuka Minerals (LSE:SKA) is highlighting the significant potential of its Kabwe zinc project in Zambia following laboratory results confirming zinc grades of up to 49.7%, with further drilling planned to expand the resource and establish the scale of the opportunity.
The latest results represent an important development for the company, with CEO Richard Lloyd outlining how modern analytical techniques and additional drilling could help unlock further value from a historic mining asset.
High-grade results point to significant resource potential
Speaking to ADVFN, Lloyd described the latest zinc grades as exceptionally high, with laboratory analysis confirming intersections approaching 50% zinc. Initial field X-ray fluorescence (XRF) readings reached as high as 67%, highlighting the presence of very high-grade zinc mineralisation.
For context, Lloyd noted that zinc grades of around 5% can be sufficient for a viable mining operation, depending on the project’s broader economics. The latest results therefore provide an encouraging indication of the quality of mineralisation identified at Kabwe.
Importantly, the opportunity extends beyond individual high-grade intersections. Shuka is also investigating whether historical resource estimates could understate the project’s potential, partly because the laboratory technology available when earlier assessments were undertaken was less advanced than modern analytical methods.
Lloyd explained that historical work from the 1950s, 1960s and 1970s reported zinc grades of up to 20%. The company’s ongoing work is examining the mineralisation using modern techniques, alongside additional drilling, to improve its understanding of the resource.
Shuka’s stated ambition has been to increase the existing resource by 50%, with the latest results providing further encouragement as it works towards that objective.
Additional drilling identifies further high-grade mineralisation
The latest drilling has also returned substantial intervals of zinc mineralisation beyond the highest individual grades.
Lloyd highlighted an intersection of 20 metres averaging 29% zinc in Pit 2, alongside a 28-metre interval averaging 16% zinc in a newly identified mineralised body that he has nicknamed the “Sperm Whale”.
These results are significant because they combine exceptionally high grades with wider mineralised intervals. Establishing the continuity, extent and overall tonnage of this mineralisation will be important as the company develops its understanding of the project’s resource potential.
Shuka has reported a total resource of 6.8 million tonnes grading 13% zinc, while the area currently being targeted includes an estimated 5.7 million tonnes grading 12% zinc. The company’s next phase of work is focused on expanding the tonnage and determining how the latest drilling results can contribute to the wider resource.
Higher grades could potentially improve the amount of material that meets an economic mining cut-off, although the ultimate commercial benefit will depend on further technical work and the project’s development economics.
Fully funded drilling programme targets the next stage of development
Shuka’s immediate priority is to continue testing the extent of the mineralisation through a further 2,500 metres of drilling.
Lloyd emphasised the importance of a measured, staged approach, with each phase of drilling analysed before subsequent work is planned and budgets are reviewed. This allows the company to build its understanding of the deposit while directing exploration towards the most promising areas.
He also confirmed that the programme is fully funded, with Zambian partners supporting the work. This means the company is progressing its current drilling plans without needing to raise additional capital from the markets to fund this phase.
The next set of results should help Shuka assess the continuity of the high-grade zones, determine whether the resource can be expanded and refine its understanding of the project’s potential scale.
Kabwe offers Shuka a compelling exploration opportunity
The latest results place the quality of Kabwe’s zinc mineralisation firmly in focus. With laboratory-confirmed grades approaching 50%, additional wide mineralised intervals and further drilling planned, Shuka Minerals is building on its existing resource base as it investigates the project’s potential.
The key question now is how much of this high-grade mineralisation can be demonstrated across a larger, continuous resource. Establishing that scale, alongside the technical and economic requirements for development, will be central to assessing the project’s longer-term commercial prospects.
For Shuka, the combination of modern analytical techniques, a targeted drilling programme and funding already in place provides a platform for the next stage of evaluation at Kabwe.
As the company advances its work in Zambia, investors will be watching for further drilling results that could help clarify the scale of the opportunity and support the next steps towards unlocking the project’s potential.
For more information visit – https://www.shukaminerals.com/
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