TIDMXTR

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    To (m)   Interval   Cu (%)   Au (g/t)   Ag (g/t)   CuEq (%)** 
                  (m)                (m) 
 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,           +44 (0)20 3416 6471 
                               Executive Chairman    www.xtractresources.com 
 Beaumont Cornish Limited     Roland Cornish        +44 (0)207628 3369 
  Nominated Adviser and        Michael Cornish       www.beaumontcornish.co.uk 
  Joint Broker                 Felicity Geidt 
 
   Novum Securities Limited     Jon Belliss           +44 (0) 207 399 9427 
   Joint Broker                 Colin Rowbury         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   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 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 
 
 
S

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END

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October 07, 2021 13:06 ET (17:06 GMT)

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