First drill assay results - Bushranger Project

RNS Number : 7902S

Xtract Resources plc

19 March 2021

 

For immediate release

19 March 2021

Xtract Resources Plc

("Xtract" or the "Company")

First Drill Assay Results from the Bushranger Copper-Gold Project

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to advise that laboratory assays have been received from the first drill hole (BRDD-20-001) completed on the Phase One 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 from the first drill hole (BRDD-20-001) of the Phase One Drilling Programme at the Racecourse deposit returned an overall intersection of 920m @ 0.3% Cu, 0.02g/t Au and 1.45g/t Ag (0.33% CuEq) from 110m

· Higher-grade zones within the overall mineralised envelope include 156m @ 0.48% Cu, 0.04g/t Au & 2.44g/t Ag (0.52% CuEq) from 110m and 44m @ 0.50% Cu, 0.05g/t Au & 1.92/t Ag (0.55% CuEq) from 504m

· The assay results confirm that the mineralisation at Racecourse forms a very substantial copper-gold mineral system and there is significant potential to expand the Mineral Resource, which is currently estimated as 71Mt @ 0.44% Cu & 0.064g/t Au, at a 0.3% cut-off and classified as Inferred in accordance with JORC (2012)

· The higher-grade sections of mineralisation correspond well those reported from drilling undertaken by Anglo American Exploration Australia Pty Ltd ("Anglo") in 2014 and 2015 suggesting good lateral continuity to the higher-grade zones

· The overall mineral intersection and higher-grade zones in drill hole BRDD-20-001 compare very favourably with intercepts reported by Alkane Resources Limited ("Alkane") for their Boda copper-gold discovery located 170km from Bushranger

· The occurrence of molybdenum values in BRDD-20-001 ranging up to 95.2ppm throughout the mineralised interval provides further indications of an extensive porphyry system in the area

· Assay results from the second hole (BRDD-21-002) of the drilling programme at the Racecourse deposit are expected shortly

· The final hole of the Phase One Drilling Programme (BRDD-21-006) is currently in progress at about 75m depth, with initial pyrite/chalcopyrite mineralisation of porphyry style seen at 45m

Table 1 - Assay Results from Drill Hole BRDD-20-001

From (m)	To (m)	Interval (m)	Cu (%)	Au (g/t)	Ag (g/t)	CuEq (%)*
110	1,030	920	0.30	0.02	1.45	0.33
Incl.
110	266	156	0.48	0.04	2.44	0.52
And
366	552	186	0.37	0.03	1.82	0.40
Incl.
504	548	44	0.5	0.05	1.92	0.55

*CuEq Formula: CuEq = Cu% + 0.62xAu (g/t) + 0.0093xAg (g/t)

Colin Bird, Executive Chairman said: "The assay results from the first hole at the Racecourse deposit are exciting in that they confirm mineralisation for almost a kilometre down-plunge. The overall grade of 0.33% CuEq is very pleasing and I am particularly encouraged by the grade uniformity over the entire intercept. Results from the remaining holes will give us more information about the thickness and across-strike continuity of the mineralisation. The assay results from the initial hole compare very favourably with results reported from Alkane's Boda project and the bias towards copper at Racecourse is welcome, as it is a metal forecast to be in strong demand for years to come. I am also encouraged by the spread of molybdenum values throughout the drill interval - while these might not represent a financial credit to the project, they are good evidence for extensive development of porphyry systems in the region.

The Phase One Drilling Programme has indicated the potentially significant scale of the Racecourse deposit and we will shortly be entering a phase of 3-D modelling and will undertake further geophysical surveying to aid planning for the Phase Two drilling programme. The initial assay results have excited the team and we are now working on permissions for the geophysical survey and further drilling as we work towards our target of 2Mt of contained copper."

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

The Phase One drilling programme at the Racecourse Mineral Resource was designed to follow up on the strong results obtained by Anglo in 2014 and 2015 (refer to RNS released on 01 June 2020).  The objective of the programme is to continue to extend the highest-grade copper-gold intersections to the northwest, beyond the limits of previous drilling and to investigate the copper-gold zonation within the Racecourse Mineral Resource. The programme has been expanded from an initial three holes to six holes due to the encouraging mineralisation and intersection lengths encountered in the initial holes.

Drill hole BRDD-20-001 intersected an intercalated sequence of andesitic volcanics and volcaniclastics of the Rockley Volcanics, which are equivalent to the Forrest Reefs Volcanics, host to Newcrest's Cadia Valley porphyry Cu-Au mine. At Racecourse the sequence is intruded by porphyritic diorites exhibiting potassic hydrothermal alteration with extensive vein-hosted and disseminated chalcopyrite, pyrrhotite and pyrite mineralisation, suggestive of a large mineralised hydrothermal system.

The overall copper-gold intersection and higher-grade zones in drill hole BRDD-20-001 compare very favourably with the recently announced intersections from Alkane's Boda porphyry copper discovery, which occurs approximately 170km NNW of the Racecourse Prospect.  Recent intersections from Boda announced by Alkane (see ASX release, 18 December 2020) include:

o  832m @ 0.17% Cu & 0.38g/t Au (0.37% CuEq) in hole KSDD028

o  366.8m @ 0.11% Cu & 0.27g/t Au (0.25% CuEq) in hole KSRC033D

Alkane has announced that the Boda discovery strikes to the northwest, which is also the strike of the Racecourse Mineral Resource, suggesting that Boda and Racecourse could have similar structural geological settings.

Assay results are expected to be received for the second hole (BRDD-21-002) of the Racecourse Prospect Phase One drilling programme shortly.  This hole was drilled across the interpreted strike of the northwest trending zone of copper-gold mineralisation and will provide information relating to the thickness and lateral continuity of the mineralisation.

Note to editors:

At 71Mt @ 0.44% Cu and 0.064g/t Au, at a 0.3% Cu cut-off, the Racecourse Mineral Resource within the Bushranger Project, is one of the largest undeveloped porphyry copper-gold deposits in the Lachlan Fold Belt of New South Wales, Australia.

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

This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014 on market abuse. 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:

"alteration zone"	a zone exhibiting change in mineralogical composition of a rock commonly brought about by reactions with hydrothermal solutions
"andesitic"	of an igneous rock with 52% to 66% silica
"Au"	Gold
"chalcopyrite"	a copper-iron sulphide mineral, CuFeS2, often found in copper ores
"Cu"	Copper
"CuEq"	copper equivalent grade, calculated using assumed metal prices for copper, gold and other metals
"diorite"	a coarse-grained plutonic intermediate igneous rock consisting of plagioclase felspar and ferromagnesian minerals.
"exploration"	method by which ore deposits are evaluated
"hydrothermal"	descriptive of hot magmatic emanations rich in water
"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
"intercalated"	where two separate depositional environments in close spatial proximity migrate alternately across a contact
"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
"pyrite"	Iron sulphide mineral, FeS2
"pyrrhotite"	an iron sulphide mineral, Fe1-XS, often magnetic
"soil sampling"	systematic collection of soil samples at a series of different locations in order to study the distribution of soil geochemical values
"volcaniclastic"	Geologic materials composed of broken fragments (clasts) of volcanic rock

ENDS

 

END

 

 

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