Zambezi Resources Limited (ZRL) –Focusing on Cheowa in Eastern Zambia for its First Company-Making Project

• Zambezi Resources appears to have at least 3 potential company-making projects in an area ~4 hours drive (or up to 200km) east of Lusaka in Zambia. The 3 projects in order of state of advancement (starting with the most advanced) are : Cheowa, Kangaluwi, and Mulofwe, with the exploration drilling currently focusing on Cheowa and Kangaluwi.
• Cheowa is a copper-gold project located north of the Cheowa Lodge on the Zambezi River about 100km east of Lusaka. Glencore is farming-in to earn a 51% interest in the project through spending US$10m which is expected to occur by mid-2008, and has already made an offtake agreement with ZRL (should the project be viable) for the resulting copper-gold concentrates.
• Cheowa is undertaking a scoping study focusing on initially a ~2mtpa plant possibly producing ~27,000tpa copper and ~27,000ozpa gold, completing a PFS in mid-2008, running into a BFS, and conceptual production by 2010. Revised resources to 180m depth over 1.2km (of the ~15km strike length) were reported in Dec 2007, with a further revision expected in April 2008, and indications of depth capabilities in the 400m to 800m zone being delineated in the MQ08 programme.
• At ZRL’s 100% held Kangaluwi, having defined a possible copper-gold stacked lode system (assays pending), exploration expects to use ~ 6 rigs to drill ~50,000m RC during 2008. Kangaluwi has a number of possible orebody district comparisons throughout the world, being folded both in plan and in section.
• Mulofwe is probably the next potentially promising project, with numerous (almost like a swarm) east-west striking quartz veins containing predominant/y copper-gold mineralisation. Mulofwe includes a number of target areas such as Mwapula (with its high lead [visible galena] values) and rock-chip samples up to 12% copper, 32% lead and 212g/t silver amongst old artisanal mine workings.
• ZRL has a number of possible gold production areas, having undertaken most of their studies at Chakwenga which lies amongst a number of old workings that followed narrow, high grade veins. Chakwenga was initially a higher priority target but has become lesser, due to the progress at Cheowa and Kangaluwi.