The exploration firm said the agreement, which was signed with a consortium, would aim to identify a copper/gold resource at the site within a 24 month period, with funding to be provided jointly up to US$1mln.
Selective grab samples taken from the put outcrop had indicated values ranging between 3.99% to 7.28% copper and between 1% to 3.42% grams per tonne of gold.
A recent small scale open pit had also recovered high-grade hand-picked copper as well as alluvial gold nuggets, the company said.
Xtract added that it would acquire a 50% stake in the project, which will target an initial section of 800m of a 3km breccia vein system that ran through the Matrix project.
Colin Bird, executive chairman of Xtract, said the Matrix project was “high in potential” and that the group was investigating similar areas.
Shares were up 13% at 1p.