Bushranger Project Phase Two Drill Planning

RNS Number : 8268E

Xtract Resources plc

12 July 2021

 

For immediate release

12 July 2021

Xtract Resources Plc

("Xtract" or the "Company")

Bushranger Copper-Gold Project Phase Two Drill Planning

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to report on plans for the Phase Two diamond drilling programme and results of additional geophysical surveying 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

· The Phase Two drilling programme at Racecourse is on track for commencement around 15 July 2021 as the necessary approvals have now been received from the NSW authorities

· A total of approximately 8,000m of drilling is planned in the first phase of 13 holes using two drill rigs, focussing primarily on further definition of the potentially open-pittable, higher-grade copper-gold zone in the central part of the resource area

· A report on modelling of various open pit scenarios commissioned from external mining consultants is expected shortly and the new drilling will complement this study

· In addition, further processing of the MIMDAS IP survey data has confirmed a substantial sub-parallel chargeability zone to the southeast of Racecourse covering an area at least as large as the original Racecourse anomaly. This could represent an extensive mineralised system on the eastern side of the central porphyry intrusion; initial drill testing of this target is also planned in Phase Two

Colin Bird, Executive Chairman said: "All logistics and preparations for the Phase Two drilling programme are in place - we are planning to commence drilling around 15 July, with the first part of Phase Two comprising about 8,000m of drilling. The geophysics programme has been very successful in highlighting the potential for additional shallow and deep mineralisation at Racecourse. The initial part of the drill programme will focus on the shallower part of the system with the objective to confirm and expand current models for a large open pit.

The Xtract team is excited to embark on this drilling programme to test our belief that a much larger porphyry system exists at Racecourse than currently known."

Phase 2 Drilling Programme at the Racecourse Mineral Resource - Bushranger Project

The Phase One drilling programme at the Racecourse Mineral Resource successfully traced the down-plunge extension of the porphyry copper-gold mineralisation to the north-west, beyond the limits of previous drilling, thereby potentially adding significant scale potential to the deposit. The current JORC (2012)-compliant Racecourse Inferred Mineral Resource 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.

The Phase Two programme is designed primarily to follow up on the results obtained by Anglo American Exploration Australia Pty Ltd ("Anglo") in 2014 and 2015 and to define further the shallower part of the Resource with a view to possible development of a large open pit. A total of 13 holes is planned initially, totalling about 8,000m. Two rigs will be mobilised to site in mid-July to expedite progress. Information from this programme will be integrated into a potential open pit mining plan - an independent firm which has been engaged to undertake technical and financial modelling for this scenario is expected to report shortly.

In addition to targeting the shallower parts of the Racecourse system, full review of the recently completed MIMDAS IP/resistivity survey has shown a substantial area of strong chargeability closely adjoining the south-eastern margin of the Racecourse deposit, with a footprint as least as large as the currently defined mineral resource. Xtract also proposes to drill test this target which might represent a mineralised eastern side of the central porphyry intrusion in an area which has seen little previous drilling.

The Company has formally filed a renewal application for the Racecourse exploration licence with the relevant authorities in Australia in line with regulations and the licence remains valid for continuing exploration during the renewal process, with drilling permits recently granted.

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:

"Au"	Gold
"Cu"	Copper
"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
"MIMDAS IP"	A deep-penetrating Induced Polarisation (IP) survey system that measures the electrical properties (resistivity and chargeability) of sub-surface rocks
"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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