Bushranger Project Assay Results

RNS Number : 4254O

Xtract Resources plc

07 October 2021

 

For immediate release

7 October 2021

Xtract Resources Plc

("Xtract" or the "Company")

Bushranger Project Assay Results and Drilling Update

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to advise that laboratory assays have been received from the second drill hole (BRDD-21-007) completed on the Phase Two diamond drilling programme at the Racecourse Mineral Resource on the Bushranger copper-gold exploration project, located in the Lachlan Fold Belt ("LFB") of New South Wales, Australia.

Highlights

· Assay results for the second angled hole of the Phase 2 drilling programme at the Racecourse porphyry deposit have given further confirmation of the high-grade copper porphyry potential of the deposit, with the first two holes returning very encouraging results with thick copper intersections.

· Drill hole BRDD-21-007 returned an intersection of 155m @ 0.47% CuEq from a depth of 238.92m. The intersection in hole BRDD-21-007 follows that in hole BRDD-21-008 which intersected 184m @ 0.51% CuEq from a depth of 204m (refer to RNS 28 September 2021).

· Interval results of hole BRDD-21-007 are given in Table 1 below and summarised here;

o  155.08m at 0.47% CuEq (0.41% Cu, 0.06 g/t Au, and 2.65 g/t Ag) from 238.92m

§ Including 110.28m at 0.55% CuEq (0.48% Cu, 0.08 g/t Au, and 3.01 g/t Ag) from 238.92m

§ Including 38.08m at 0.69% CuEq (0.59% Cu, 0.14 g/t Au, and 2.19 g/t Ag) from 238.92m

· The highest intercept returned 2m at 1.14% CuEq (0.73% Cu, 0.66 g/t Au, and 1.40 g/t Ag) from 257m and is associated with sheared and brecciated mineralised volcanics

Colin Bird, Executive Chairman Said: "With the intersection in drill hole BRDD-21-007, Xtract has delivered two excellent holes from the start of the Phase 2 Bushranger drilling programme. We announced the intersection of 184m @ 0.51% CuEq in hole BRDD-21-008 last week, and drill hole BRDD-21-007 has delivered another thick and high-grade intersection. Our strategy of targeting the crown at the top of the porphyry system appears to be working well, as the intersections of such substantial thickness as we have delivered in holes BRDD-21-007 and BRDD-21-008 will quickly add valuable high-grade tonnes to the overall Racecourse Inferred Mineral Resource, at depths which will be able to be extracted via open pit mining (refer to RNS 26 July 2021). This is an extremely good start to our Phase 2 drilling programme, and we will now be able to release drill hole assays to the market on a regular basis as the flow of results from the laboratory picks up speed."

Phase Two Bushranger Assay Results

Drill hole BRDD-21-007   was drilled to test for extensions of mineralisation intersected in historical hole BRD009, which was completed by Anglo American Exploration Australia Pty Ltd in 2015 (refer to RNS 1 June 2020). BRDD-21-007 was also designed to intersect the top or "crown" of the porphyry system where copper grades are enhanced and at relatively shallow depths, hence could be mined via open pit methods (refer to RNS 26 July 2021).

Drill hole BRDD-21-007 was drilled to a total depth of 846.9m and intersected trace to strong copper mineralisation from 46m until the bottom of the drill hole at 846.9m. The best developed copper mineralisation occurred between 239 - 412m down hole depth.

Drill hole BRDD-21-007 was successful in intersecting the along strike continuation of the high-grade zone (169m @ 0.48% CuEq) previously intersected in drill hole BRD009, drilled by Anglo American Exploration Australia Pty Ltd and the high-grade intersection recorded by Xtract in hole BRDD-21-008 (184m @ 0.51% CuEq). The intersections from these holes confirm that the highest-grade section of the Racecourse porphyry system occurs at the top of the porphyry intrusion in the "crown" position.  This position continues to be targeted with the ongoing Phase 2 drilling programme, as shallower high grades zones of copper mineralisation will add significant value to the overall resource due to their ability to be extracted with lower cost open pit mining.

Table 1 - Assay Results from Drill Hole BRDD-21-007*

Hole No.	From (m)	To (m)	Interval (m)	Cu (%)	Au (g/t)	Ag (g/t)	CuEq (%)**
BRDD-21-007	238.92	464.00	225.08	0.32	0.06	1.92	0.37
incl.	238.92	394.00	155.08	0.41	0.06	2.65	0.47
incl.	238.92	349.20	110.28	0.48	0.08	3.01	0.55
incl.	238.92	277.00	38.08	0.59	0.14	2.19	0.69
and	257.00	259.00	2.00	0.73	0.66	1.40	1.14

*Assays undertaken by Bureau Veritas Minerals Pty. Ltd. Laboratory, Adelaide, Australia

**CuEq Formula: CuEq = Cu% + 0.6052xAu (g/t) + 0.0078xAg (g/t)

Phase Two Drilling Programme at the Racecourse Mineral Resource - Background

The Bushranger porphyry copper-gold project is located in the highly prospective Lachlan Fold Belt ("LFB") of New South Wales, Australia. The current JORC (2012)-compliant Inferred Mineral Resource on the Racecourse deposit is estimated as 71Mt @ 0.44% Cu and 0.064g/t Au, at a 0.3% Cu cut-off, without inclusion of data from the Phase One drilling programme which was recently concluded and reported.

The Phase 2 drilling programme at the Racecourse Mineral Resource is designed to follow up on the very encouraging results obtained from the Phase 1 Racecourse drilling programme which was concluded in April 2021 and historical drill results recorded by Anglo American Exploration Australia Pty Ltd ("Anglo") in 2014 and 2015. A total of approximately 8,000m of drilling is planned in the first block of 13 holes using two drill rigs.

Further information is available from the Company's   website which details the company's project portfolio as well as a copy of this announcement:  www.xtractresources.com

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

The person who arranged for the release of this announcement on behalf of the Company was Colin Bird, Director.

Enquiries :

Xtract Resources Plc	Colin Bird, Executive Chairman	[phone] www.xtractresources.com
Beaumont Cornish Limited Nominated Adviser and Joint Broker	Roland Cornish Michael Cornish Felicity Geidt	[phone] www.beaumontcornish.co.uk
Novum Securities Limited Joint Broker	Jon Belliss Colin Rowbury	[phone] www.novumsecurities.com

Qualified Person:

Information in this announcement relating to the exploration works has been reviewed by Edward (Ed) Slowey, BSc, PGeo, a consultant to Xtract. Mr Slowey is a graduate geologist with more than 40 years' relevant experience in mineral exploration and mining, a founder member of the Institute of Geologists of Ireland and is a Qualified Person under the AIM rules.  Mr Slowey has reviewed and approved the geological content of this announcement.

Qualified Person:

In accordance with AIM Note for Mining and Oil & Gas Companies, June 2009 ("Guidance Note"), Colin Bird, CC.ENG, FIMMM, South African and UK Certified Mine Manager and Director of Xtract Resources plc, with more than 40 years' experience mainly in hard rock mining, is the qualified person as defined in the Guidance Note of the London Stock Exchange, who has reviewed the technical information contained in this press release.

TECHNICAL GLOSSARY

The following is a summary of technical terms:

"Ag"	Silver
"Au"	Gold
"Cu"	Copper
"CuEq"	copper equivalent grade, calculated using assumed metal prices for copper, gold and other metals
"Inferred Mineral Resource"	That part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade (or quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes
"JORC Code"	Australasian Institute of Mining and Metallurgy Joint Ore Reserves Committee code on mineral resources and ore reserves
"mineralisation"	process of formation and concentration of elements and their chemical compounds within a mass or body of rock
"porphyry"	a deposit of disseminated copper minerals in or around a large body of intrusive rock

ENDS

 

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