Mukuba Resources Limited TSX-V - MKU is pleased to announce that it has signed an Option and Joint Venture Agreement with Benzu Resources Limited to explore and develop a copper and base metals project in the Democratic Republic of the Congo. The Project tenement is situated to the east in a region known as the Katanga Copper Belt and is adjacent to the Tenke-Fungurume mine operated by Freeport McMoRan, Lundin and Gécamines.
The Katanga Copper Belt is estimated to contain nearly 10% of the world's copper and almost 50% of the world's cobalt resources. This belt contains over roughly 90 known deposits that vary in size between approximately 90 Mt and 550 Mt and average around 3.6% Cu. Some of the resources are amongst the largest and highest grade in the world including the resources at Tenke-Fungurume reported to be roughly 550 Mt grading 3.5% Cu and 0.27% Co and resources at Kolwezi (KOV) containing approximately 760 Mt grading 4.4% Cu.
Trevor Richardson, Mukuba's President and Chief Executive Officer commented, ""[I]We are very pleased to have an opportunity to participate in what we believe to be a very interesting new exploration project. Geophysical work carried out by third parties has confirmed anomalies along the same trend as Tenke-Fungurume. We are looking forward to combining our regional knowledge with Benzu's in-country experience in the DRC. This joint venture allows Mukuba to access a new and exciting project while maintaining its current focus on exploring and developing Mukuba's Northcore Project and Nyimba Project in neighbouring Zambia[/I]."
Under the terms of the Agreement, Mukuba can earn up to a 51% interest in a company (the "JV Company") to be formed for the purposes of operating the Joint Venture pursuant to the terms of the Agreement. It is also required that Mukuba spend US$3 million on exploration and maintenance of the project within three years of the effective date of the Agreement and issue one million dollars worth of common shares of Mukuba to Benzu (to be priced based on Mukuba's next financial raise).
These shares are subject to a statutory hold period expiring four months and one day following the issuance of the shares. Further development of the Project would be funded by both parties on a pro-rata basis.
The JV Company will have a 70% interest in the Project and be the initial operator. Under the terms of the Agreement, the parties are subject to customary restrictions on transfer of their interest in the JV Company, including pre-emptive rights on transfers and other protective provisions. The Board of Directors of the JV Company will consist of four directors, two of whom shall be nominated by each of Mukuba and Benzu.
Mr. Chris Meyer, Pr.Sci.Nat., is a "qualified person" as defined by National Instrument 43-101 overseeing Mukuba's exploration programmes.
Mr. Meyer has not supervised the preparation of the technical information contained in this press release or verified the data disclosed, including sampling, analytical, and test data underlying the information or opinions, which was all obtained from publically available sources.
About the Company
Mukuba is a Canadian mining company focused on the exploration and development of the Northcore Project, which is located in the highly prospective Central African Copperbelt region of Central Zambia. Mukuba holds a 100% interest in the Northcore Project which is licensed for both copper and cobalt and encompasses approximately 2,274 square km of geologically prospective ground in the Domes Region of the Zambian Copperbelt. Geological mapping, soil sampling and investigation of the historical showings as well as ground-truthing of the geological surveying results have confirmed existing historical geological anomalies, and identified new anomalies. Encouraging intersections from numerous boreholes during the Company's 2010 exploration program confirmed the presence of copper mineralization.
Mukuba also has an exclusive Option Agreement between Lukusashi and Lunga Resources Limited ("Lunga"), a wholly owned subsidiary of Mukuba Resources Limited, to purchase an 85% interest in the Nyimba Project license rights (see Press Release dated September 16, 2010) located near the town of Nyimba approximately 300 km east of Lusaka, Zambia. The Nyimba Project is well advanced and substantial exploration work has been completed to date. The polymetallic deposits at Nyimba host zinc, with copper, lead, molybdenum, silver and gold and were systematically explored and partially drilled by Minex (Mindeco), a Zambian government department in the late 1970's and early 1980's and were later acquired by Rio Tinto-Zinc Corporation (RTZ-now Rio Tinto) in 1994. Mukuba continues to assess historic exploration records which indicate there are five defined areas of mineralization within the 500 square kilometre license area. The most prospective area appears to be Chipirinyuma, where soil sampling by Minex and Rio Tinto defined a surface anomaly measuring 3.5 km by 1.2 km and drilling by Mukuba confirmed base metal mineralization.