TIDMXTR

RNS Number : 8164R

Xtract Resources plc

09 November 2021

For immediate release

9 November 2021

Xtract Resources Plc

("Xtract" or the "Company")

Bushranger Project Phase 2 Drilling Update

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to provide an update regarding the ongoing Racecourse prospect Phase 2 drilling programme, with the completion of drill holes BRDD-21-024 and BRDD-21-025.

Highlights

-- Drillhole BRDD-21-024 tested the along strike southern continuation of mineralisation intersected in drillholes BRDD-21-013 & BRDD-21-016 and intersected a 453m interval of variable visible copper mineralisation, indicating the potential to extend thick sequences of copper mineralisation directly south of the existing limit of the Racecourse Inferred Mineral Resource. Follow up drilling is being undertaken.

-- Drillhole BRDD-21-025 was a step-out hole designed to test a large geophysical anomaly approximately 750m SE of the limit of the current Racecourse Inferred Mineral Resource. The hole intersected traces of visible copper mineralisation and lengthy zones of porphyry-related alteration with associated sheeted veining and some thin fingers of porphyry intrusions.

-- BRDD-21-025 may indicate the potential for a cluster of mineralised porphyry intrusions at Racecourse, as found at Newcrest's giant Cadia-Ridgeway mine elsewhere on the Lachlan Fold Belt.

Colin Bird, Executive Chairman Said: "Both of the new holes are significant in their own right. Hole BRDD-21-024 to the south adds further potential extensions to the conceptual open pit with an appreciable thickness of copper mineralisation on visual examination, including four zones of stronger mineralisation.

Hole BRDD-21-025 is the first hole into our own-generated geophysical target SE of the Racecourse resource area and is highly encouraging in that porphyry alteration and mineralisation has been encountered, but possible downsides have not - the hole could have drilled into pyritic black shale or, indeed, barren massive pyrite, either of which would have dampened our expectations. The geophysical signature is very large and the anomaly is distant from Racecourse, thus we are excited about the potential for discovery of further mineralised porphyries in this area."

Bushranger Phase Two Drilling Update - Drill Holes BRDD-21-024 & BRDD-21-025

Drill hole BRDD-21-024 was drilled at an inclination of -60 degrees towards the NW and completed at a final depth of 660.6m. The hole was designed to test the southern extension of mineralisation intersected in holes BRDD-21-013 & BRDD-21-016 (Refer to RNS dated 2 & 14September 2021). The hole intersected a 453m wide zone of variable strength visible chalcopyrite on the main eastern limb of the Racecourse porphyry system, from 73m downhole, and passed through four zones of more intense mineralisation associated with strongly altered porphyry & volcanic rocks from 83m to 151m, 236m to 246.5m, 343m to 360m and 408m to 452m, subject to laboratory assays.

The southern extremity of the current Racecourse Mineral Resource model includes only thin intersections of copper mineralisation from historical drilling. The intersection in hole BRDD-21-024 demonstrates that the thick sequence of copper mineralisation intersected in holes BRDD-21-013 and BRDD-21-016 does not pinch out as currently modelled, opening up the area directly south of the current Inferred Mineral Resource to host wide intersections of copper.

Drill hole BRDD-21-025 was the first step-out hole drilled into a large MIMDAS (IP) combined chargeability and resistivity anomaly to the SE of the Racecourse deposit. As part of the second stage of the Phase 2 drilling programme (Refer to RNS 1 dated 3 October 2021), a series of holes were designed to test a number of co-incident MIMDAS (IP) and magnetic anomalies with the potential to define new areas of mineralisation in the vicinity to the Racecourse deposit. BRDD-21-025 was drilled at -60 degrees towards the NE and was completed at a final depth of 648.6m. The hole intersected two zones of characteristic porphyry related alteration and associated sheeted veining and some thin fingers of porphyry intrusions , including trace amounts of disseminated and vein-hosted chalcopyrite with pyrrhotite/pyrite. The hole is interpreted to have possibly drilled above two copper porphyry mineralisation zones, with the porphyry fingers and indications of mineralisation suggesting that the main porphyry intrusion could be below. A number of further holes planned as part of the current programme will be drilled into this new prospect in order to identify if the potential exists to define a new mineralisation zone SE of Racecourse.

Bushranger Prospect Drill Hole Location Plan on Induced Polarisation Image

http://www.rns-pdf.londonstockexchange.com/rns/8164R_1-2021-11-9.pdf

Racecourse Prospect Geological Cross Section for Drill Hole BRDD-21-024

http://www.rns-pdf.londonstockexchange.com/rns/8164R_2-2021-11-9.pdf

Phase Two Drilling Programme at the Racecourse Mineral Resource - Background

Refer to RNS dated 7 October 2021 for a summary of the Bushranger Phase Two Drilling Programme.

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:

 
 "Chalcopyrite"           A copper-iron sulphide mineral, CuFeS(2) , 
                           often found in copper ores 
 "Induced Polarisation"   A method of ground geophysical surveying which 
                           employs the passing of an electrical current 
                           into the ground to test for indications of 
                           conductive metallic sulphides 
 "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 
 "MIMDAS IP"              A deep-penetrating Induced Polarisation (IP) 
                           survey system that measures the electrical 
                           properties (resistivity and chargeability) 
                           of sub-surface rocks 
 
 "Mineralisation"         process of formation and concentration of 
                           elements and their chemical compounds within 
                           a mass or body of rock 
 "Pyrrhotite"             An iron sulphide mineral, Fe(1-X) S, often 
                           magnetic. 
 "porphyry"               A deposit of disseminated copper minerals 
                           in or around a large body of intrusive rock 
 ENDS 
 

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END

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November 09, 2021 07:30 ET (12:30 GMT)

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