Website: www.zambeziresources.comExploration Update - Zambia...

Website: www.zambeziresources.com

Exploration Update - Zambia Copper Projects:

http://sa.iguana2.com/cache/07ca5b4ee3ec5c...-ZRL-367924.pdf

Zambezi Resources 45c shares open at 52.5c, now 53.5c
13:32, Thursday, 5 July 2007

Sydney - Thursday - July 5: (RWE Australian Business News) -
Zambezi Resources Ltd (ASX code: ZRL) became the latest company to join
the sharemarket lists when its 45c shares opened this afternoon at
52.5c, touched 55c and settled at 53.5c.
Almost 1.6 million shares changed hands in the first hour.
Zambezi has a portfolio of copper projects in southern Zambia.
Five drilling rigs operational at three projects and the company
is targeting a progressive ramp-up to eight rigs by October.

Australian investors swamp Zambezi’s ASX dual listing IPO

An Australian-driven AIM board company with big targets in Zambia appears to be threefold oversubscribed in its quest to help Australianise the company.

Author: Ross Louthean
Posted: Friday , 15 Jun 2007

PERTH -

A prospectus to raise $A15 million (£6.37 M) for Zambezi Resources Ltd to dual list on the Australian Stock Exchange has virtually closed on opening after two Australian stockbrokers and a resource banker were rapidly put into a heavy oversubscription mode.

The dual listing for AIM Board listed Zambezi provides the opportunity for Australian investors to gain almost a 17% stake in the company which has a major focus on iron oxide copper gold (IOCG) deposits in Zambia as well as distinctive copper and gold targets and polymetallic prospects with uranium potential.

When the Australian funds can be added to Zambezi's coffers the company will have cash reserves of $A45 million (£19.123 M) plus a flow of $A20 M (£8.49 M) from joint venture commitments from metals house Glencore AG.

In the coming fiscal year Zambezi will have an aggressive drilling programme in Zambia, planning to drill about 100,000 metres utilising eight drill rigs, of which five are already operating on company leases.

Managing director Julian Ford told Mineweb that the company was now one of the most active explorers in Africa, with a team that includes 28 geologists.

One of the most advanced is Cheowa in the southern sector of the Lusaka East Group near the Zimbabwe border where a small part of a 15 kilometre long system has provided a JORC Code resource of 1.7 million tonnes grading 1.5% copper and 0.5 grams/tonne gold.

Glencore can earn a 51% stake by spending $US10 M on exploration and, if elected by Zambezi, can earn a further 19% by spending $US10 M or completing a bankable feasibility study. A preliminary feasibility is expected by mid 2008 and Ford said that given positive results a bankable feasibility may be completed by the end of that year.

The target could be to build up to a reserve of between 8-12 Mt at between 1-2% copper and 0.5 g/t gold, however, if there was significant depth and lateral extension then the objective would be to prove up a contained 500,000t of copper metal and 500,000 oz gold.

The 100% owned Kangaluwi block takes in distinctive gold (Moiya and Chakwenga) and distinctive copper projects (including Kangaluwi, Kalulu and Chisawa) and first phase drilling at Kangaluwi has given significant copper intercepts including 21m @ 1.88% and another hole with 3m @ 0.59% followed by 25m @ 1.34% Cu.

The Oryx prospect, in which another AIM-listed company Zambezi Nickel Ltd is earning 51%, takes in an airborne radiometric geophysical anomaly in which hydrothermal uranium has been detected.

Zambezi Resources holds a 35.3% interest in Zambezi Nickel, and Ford said his company would consider at some stage an in specie distribution of the Zambezi Nickel stake (a company likely to change its name to reflect a change in its metal priorities course). However, Zambezi Resources would retain its equity in Oryx and other joint ventured Zambian properties.

Another major project is Chipata near the Malawi border and adjoining blocks that also go into Mozambique.

The company sais two gold camps - Madzimoyo and Cymric - have been demonstrated in the Chipata tenements. Artisanal miners operated in this region until recently and the last full scale mining finished in the 1940s.

Ford said the relationship with Glencore may prove invaluable as it was the big investor in the new Isasmelt plant at Mopani Copper Mines' Mufulira smelter. Another investor in this smelter is another West Perth-based but Canadian listed Zambian copper miner First Quantum.

http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=22253&sn=Detail

Zambezi Resources to raise A$15m ahead of ASX listing

Zambian-focused exploration company Zambezi Resources (Zambezi) on Tuesday announced that its Australian public share offer of 33,3-million shares at 45c each to raise A$15-million would open on Wednesday ahead of its dual listing on the Australian Securities Exchange at the end of the month.

Listed on the Aim market of the London Stock Exchange since July 2004, Zambezi has assembled an extensive 16 300 km2 tenement position, primarily in southern Zambia, comprising copper-gold and uranium projects with strong growth and development potential, the company said in a statement.

Zambezi, which expected to make its debut on the ASX on June 29, said that the offer was scheduled to close within just six days, on or before June 19.

Following completion of the offer, Zambezi would have a total of 185-million shares in issue as well as 9,5-million options, and 1,9-million warrants, with a market capitalisation at the issue price of some A$85-million.

If full subscription was achieved, Zambezi would have a total of A$26,25-million of cash on hand, to enable it to pursue an aggressive exploration and development programme in its Zambian portfolio.

The two-year program would include total exploration expenditure of $21,15-million – including up to 100 000 m of planned drilling in 2007, 80% of which would target resource drill-out programmes.

“The vast majority of this planned expenditure will go directly into the ground, which we believe is the best possible way to achieve a substantial value-uplift for our shareholders. We have already received an overwhelming response to the offer from institutional and retail investors in Australia, and we expect to be able to close within a few days,” commented Zambezi’s MD Julian Ford.

He added that the purpose of the dual listing was to broaden the company’s international shareholder base, increase liquidity in its shares, improve analyst coverage and raise additional funds to accelerate exploration and development activities.

A key activity focus would be the flagship Cheowa Copper project, which was expected to become the cornerstone of the company’s plans to develop a substantial copper-gold mining operation in Zambia.

http://www.miningweekly.co.za/article.php?a_id=110806