TIDMXTR
RNS Number : 1852K
Xtract Resources plc
19 December 2022
For immediate release
19 December 2022
Xtract Resources Plc
("Xtract" or the "Company")
Ascot Prospect Maiden Mineral Resource
The Board of Xtract Resources Plc ("Xtract" or the "Company") is
pleased to announce the maiden Mineral Resource Estimate for the
Ascot Prospect, on the Bushranger Copper-Gold Project in central
New South Wales, Australia, following the discovery of a new
porphyry system at the Ascot Prospect in December 2021. The maiden
Ascot Inferred Mineral Resource adds a further approximately
190,000 tonnes of copper equivalent metal to the 1.1Mt reported
previously at the Bushranger Project.
Highlights
-- A maiden Inferred Mineral Resource Estimate for the Ascot
Prospect at the Bushranger Project is reported by independent
consultants Measured Group Pty Limited ("Measured Group") as 87 Mt
@ 0.22% CuEq*, at a cut-off of 0.1% CuEq, containing 0.19Mt of
copper equivalent metal and classified as Inferred in accordance
with JORC (2012)
-- The Ascot Prospect copper-gold mineralisation and the
Racecourse Prospect copper-gold mineralisation to the north (refer
to RNS 23 November 2022), together contain approximately 1.3Mt of
contained copper-equivalent metal
-- The copper-gold mineralisation at the Ascot Prospect comes to
surface and contains a higher-grade section of 34Mt @ 0.33% CuEq,
reported at a cut-off of 0.2% CuEq
-- When combined with the shallower higher grade zone previously
reported for Racecourse, this gives a total of 225Mt @ 0.33% CuEq
of potentially open pittable mineralisation for the Bushranger
Project
-- With the maiden Mineral Resource defined for the Ascot
Prospect and the updated Mineral Resource estimated for the
Racecourse Prospect, Xtract has now engaged independent
consultants, Optimal Mining Solutions (Pty) Ltd of Australia , to
update the July 2021 open pit mining study for the Bushranger
Project, to determine the economics of a 25Mtpa open pit mining
operation, utilising the Mineral Resources at both the Racecourse
and Ascot prospects
-- The Ascot Prospect remains open down-dip and to the south,
where an untested IP geophysical anomaly occurs
*CuEq % = (Cu%) + (Au g/t * 0.6577) + (Ag g/t * 0.008769)
Cu Price = US$8800/t, Au Price = US$1800/Oz, Ag Price =
US$24/Oz
Colin Bird, Executive Chairman said: "A 17% increase in the
total copper equivalent tonnes to 1.3Mt CuEq with the addition of
Ascot is a significant increase in the Bushranger Mineral Resource,
particularly when dealing with large tonnage, moderate grade
deposits of this nature. The combined resource of 225Mt @ 0.33%
copper equivalent mineralisation in the shallower parts of
Racecourse and Ascot deposits is comparable with many operating
deposits around the world, providing the basis for real impetus for
the recently commissioned Open Pit Mining Study. These resources
could potentially be scheduled for production during the important
early years of production, supporting a 9-year mining operation at
a projected rate of 25Mtpa. When we acquired the Project, we had a
resource of approximately 300kt copper metal and we have now
increased the resource to approximately 1.3Mt of copper equivalent
metal. Racecourse remains open to further extension whilst Ascot
remains open ended down-dip and to the south, which bodes well for
further resource expansion."
Bushranger Copper-Gold Project Racecourse and Ascot Mineral
Resources
http://www.rns-pdf.londonstockexchange.com/rns/1852K_1-2022-12-19.pdf
Ascot Project Cross-Section (6,250,500 N)
http://www.rns-pdf.londonstockexchange.com/rns/1852K_2-2022-12-19.pdf
Ascot Project Long Section NW-SE
http://www.rns-pdf.londonstockexchange.com/rns/1852K_3-2022-12-19.pdf
Ascot Prospect Mineral Resource Estimate
From July 2021 until July 2022, Xtract completed a Phase 2
diamond drilling programme totalling 49 drill holes for 32,695m of
drilling at the Racecourse and Ascot prospects on the Bushranger
Project in central New South Wales, Australia. This included 17
holes for 9,697.4m of drilling into the new Ascot Prospect, where
the discovery hole BRDD-21-035 returned a best interval of 64m @
0.58% CuEq from 552m downhole.
The Ascot mineralisation extends north-west from the discovery
drill hole and terminates approximately 200m south-east of the
southern limit of the Racecourse Mineral Resource. Mineralisation
is open to the south, where an IP anomaly remains untested. To the
west of the Ascot Prospect, a second untested IP anomaly also
occurs. The Ascot mineralisation also is open down-dip. Given there
are untested IP anomalies and with the Ascot Prospect
mineralisation being open to the south and down-dip, there is
potential to further increase the resource base at the Ascot
Prospect.
Following the completion of the Phase 2 drilling programme on
the Bushranger Project, an initial 3-dimensional geological model
was defined for the Ascot Prospect. Geochemical assay data, along
with the initial Ascot geological model, were used to estimate a
maiden Mineral Resource for the Ascot Prospect.
The maiden Mineral Resource estimate for the Ascot Prospect,
which has been prepared at different cut-off grades by independent
consultants, Measured Group, based in Brisbane, Australia, is
detailed in Tables 1 and 2 below and was prepared in accordance
with JORC (2012) and in compliance with Appendix 3 of the AIM Note
for Mining and Oil & Gas Companies - June 2009.
Measured Group have reported a Mineral Resource estimate 87 Mt @
0.22% CuEq*, reported at a cut-off of 0.1% CuEq, containing 0.19Mt
of copper equivalent metal in accordance with JORC (2012) and
classified as Inferred.
Table 1 - Ascot Prospect Mineral Resource Estimate
Average Values Contained Metal
------- ------------------------------ ----------------------------------------------
Resource Mass Cu Au Ag CuEq Au CuEq
Classification (kt) (%) (g/t) (g/t) (%) Cu (tonnes) (t.oz) Ag (t.oz) (tonnes)
----------------- ------- ----- ------- ------- ----- ------------ -------- ---------- ----------
Inferred 87,041 0.15 0.09 1.39 0.22 128,125 246,365 3,944,078 189,110
----------------- ------- ----- ------- ------- ----- ------------ -------- ---------- ----------
Notes:
1. Xtract owns 100 per cent. of ProspectOre Ltd, the operator of
the Bushranger Project and gross and net attributable resources are
therefore the same.
2. Mineral Resources are reported in accordance with JORC
guidelines. Mineral Resources are not Mineral Reserves and do not
have demonstrated economic viability.
3. All figures are rounded to reflect appropriate levels of confidence.
4. Apparent differences in totals may occur due to rounding.
5. A cut-off grade of 0.1% CuEq has been used applying a copper
price of US$8,800/t, a gold price of US$1,800/Oz and a silver price
of US$24/Oz
6. The Mineral Resource estimate is based on information
reviewed by Measured Group, with an effective date of 16 December
2022.
7. CuEq Formula : CuEq % = (Cu%) + (Au g/t * 0.6577) + (Ag g/t * 0.008769)
Table 2 - Ascot Prospect Grade vs Tonnage estimates using CuEq
cut-offs
CuEq** Cu (%) Au (g/t) Ag (g/t) CuEq** Tonnage CuEq
Cut (%) (Kt) (Contained
Off (%) Tonnes)
------- --------- --------- ------- --------
0 0.13 0.08 1.24 0.19 105,969 203,716
--------- ------- --------- --------- ------- -------- ------------
0.05 0.13 0.08 1.25 0.19 104,852 203,333
--------- ------- --------- --------- ------- -------- ------------
0.1 0.15 0.09 1.39 0.22 87,041 189,110
--------- ------- --------- --------- ------- -------- ------------
0.15 0.18 0.11 1.61 0.27 56,159 150,596
--------- ------- --------- --------- ------- -------- ------------
0.2 0.22 0.14 1.98 0.33 33,984 112,276
--------- ------- --------- --------- ------- -------- ------------
0.25 0.27 0.19 2.58 0.42 18,713 78,097
--------- ------- --------- --------- ------- -------- ------------
Notes:
1. Xtract owns 100 per cent. of ProspectOre Ltd, the operator of
the Bushranger Project and gross and net attributable resources are
therefore the same.
2. Mineral Resources are reported in accordance with JORC
guidelines. Mineral Resources are not Mineral Reserves and do not
have demonstrated economic viability.
3. The Mineral Resource estimate is based on information
reviewed by Measured Group, with an effective date of 16 December
2022.
4. CuEq Formula: CuEq % = (Cu%) + (Au g/t * 0.6577) + (Ag g/t * 0.008769)
The Ascot Prospect copper-gold mineralisation extends to surface
and has been drilled to a vertical depth of approximately 650m. A
higher-grade section of the Ascot Prospect mineralisation contains
34Mt @ 0.33% CuEq, reported at a cut-off of 0.2% CuEq, which is
equivalent to the cut-off used by Alkane Resources Limited for the
maiden Mineral Resource for the Boda Prospect, and has the
potential to positively impact the economics of any open pit mining
operation on the Bushranger Project. The Ascot Mineral Resource
uses a cut-off grade of 0.1% Cu, based on analysis of the Grade vs
Tonnage curve, prevailing commodity prices, the 2021 Optimal Mining
report for the adjacent Racecourse deposit which suggested that
mining to 0.15% Cu cut-off at Bushranger could produce a positive
economic return, and to facilitate direct correlation with the
Racecourse resource estimate.
Further Plans
Now that the maiden Ascot Prospect Mineral Resource has been
estimated and the Racecourse Prospect Mineral Resource updated with
all the Phase 2 drilling data, Xtract has again contracted
independent consultants Optimal Mining Solutions (Pty) Ltd to
update the Bushranger Project open pit mining study. The update to
the open pit mining study will examine the economics of a 25Mtpa
open pit mining operation extracting both the Ascot and Racecourse
Mineral Resources. Xtract estimates that the update to the open pit
mining study will be completed early in 2023. Following the
updating of the open pit mining study, Xtract will determine the
optimum way to further advance the Bushranger Project and advise
shareholders and the market early in 2023 of the Company's plans
for the Project.
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, Executive Chairman and
Director.
Enquiries :
Xtract Resources Plc Colin Bird, +44 (0)20 3416 6471
Executive Chairman www.xtractresources.com
Beaumont Cornish Limited Roland Cornish +44 (0)207628 3369
Nominated Adviser Michael Cornish www.beaumontcornish.co.uk
and Joint Broker Felicity Geidt
Novum Securities Limited Jon Belliss +44 (0) 207 399 9427
Joint Broker Colin Rowbury www.novumsecurities.com
Maiden Mineral Resource Estimate for the Ascot Prospect -
Qualified Person
The information in this announcement that relates to the maiden
Mineral Resource Estimate for the Ascot Prospect has been prepared
by Mr Christopher Grove of Measured Group and who has acted as the
Qualified Person. Mr Christopher Grove, who has reviewed and
confirmed the statements related to the mineral resource estimate
set out herein, is a Competent Person as defined by the JORC Code
2012 Edition, having at least five years of experience that is
relevant to the style of mineralisation and type of deposit
described in the mineral resources report, and to the activity for
which he accepts responsibility. Mr Christopher Grove is a Member
of The Australasian Institute of Mining and Metallurgy (AusIMM) and
a full-time employee of Measured Group and has more than 25 years
of experience in the estimation of mineral resources both in
Australia and overseas. This expertise has been acquired
principally through exploration and evaluation assignments at
operating mines and exploration areas.
Mr Christopher Grove has reviewed the information in this
announcement that relates to the mineral resource estimate and has
confirmed that the information so presented in this announcement is
balanced and complete and not inconsistent with Measured Group's
audit and review of the maiden Mineral Resource Estimate.
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.
Mineral Reserves and Resources
The Company estimates and discloses mineral reserves and
resources using the definitions adopted by JORC. Further details
are available at www.jorc.org. See the "Glossary of Geological and
Mining Terms" for complete definitions of mineral reserves and
mineral resources.
About Mineral Resources
Mineral resources are not mineral reserves and do not have
demonstrated economic viability but do have reasonable prospect for
economic extraction. They fall into three categories: measured,
indicated, and inferred. The reported mineral resources are stated
inclusive of mineral reserves. Measured and indicated mineral
resources are sufficiently well-defined to allow geological and
grade continuity to be reasonably assumed and permit the
application of technical and economic parameters in assessing the
economic viability of the mineral resource. Inferred mineral
resources are estimated on limited information not sufficient to
verify geological and grade continuity or to allow technical and
economic parameters to be applied. Inferred mineral resources are
too speculative geologically to have economic considerations
applied to them. There is no certainty that mineral resources of
any category will be upgraded to mineral reserves.
Important Information about Mineral Reserve and Resource
Estimates
Whilst the Company takes all reasonable care in the preparation
and verification of the mineral reserve and resource figures. the
figures are estimates based in part on forward-looking information.
Estimates are based on management's knowledge, mining experience,
analysis of drilling results, the quality of available data and
management's best judgment. They are, however, imprecise by nature,
may change over time, and include many variables and assumptions
including geological interpretation, commodity prices and currency
exchange rates, recovery rates, and operating and capital costs.
There is no assurance that the indicated levels of metal will be
produced, and the Company may have to re-estimate the mineral
reserves based on actual production experience. Changes in the
metal price, production costs or recovery rates could make it
unprofitable to operate or develop a particular deposit for a
period of time.
Forward Looking Statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"will" or the negative of those, variations or comparable
expressions, including references to assumptions. These
forward-looking statements are not based on historical facts but
rather on the Directors' current expectations and assumptions
regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the
amount, nature and sources of funding thereof), competitive
advantages, business prospects and opportunities. Such forward
looking statements re ect the Directors' current beliefs and
assumptions and are based on information currently available to the
Directors. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking
statements including risks associated with vulnerability to general
economic and business conditions, competition, environmental and
other regulatory changes, actions by governmental authorities, the
availability of capital markets, reliance on key personnel,
uninsured and underinsured losses and other factors, many of which
are beyond the control of the Company. Although any forward-looking
statements contained in this announcement are based upon what the
Directors believe to be reasonable assumptions, the Company cannot
assure investors that actual results will be consistent with such
forward looking statements.
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
"Induced Polarisation A method of ground geophysical surveying which
(IP)" employs the passing of an electrical current
into the ground to test for indications of
conductive metallic sulphides
"Indicated Mineral That part of a Mineral Resource for which
Resource" quantity, grade (or quality), densities, shape
and physical characteristics are estimated
with sufficient confidence to allow the application
of Modifying Factors in sufficient detail
to support mine planning and evaluation of
the economic viability of the deposit. Geological
evidence is derived from adequately detailed
and reliable exploration, sampling and testing
gathered through appropriate techniques from
locations such as outcrops, trenches, pits,
workings and drill holes, and is sufficient
to assume geological and grade (or quality)
continuity between points of observation where
data and samples are gathered. (JORC 2012)
"Inferred Mineral That part of a Mineral Resource for which
Resource" 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 2012)
"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
"Mtpa" Million tonnes per annum
ENDS
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MSCGPGAWPUPPGGB
(END) Dow Jones Newswires
December 19, 2022 06:42 ET (11:42 GMT)
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