TIDMXTR

RNS Number : 9967S

Xtract Resources plc

19 November 2021

For immediate release

19(th) November 2021

Xtract Resources Plc

("Xtract" or the "Company")

Bushranger Project Assay Results and Phase 2 Drilling Update

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to report on independent laboratory assays for drill hole BRDD-021-016 and two further holes completed on the Phase 2 diamond drilling programme at the Bushranger copper-gold exploration project.

Highlights

-- Drill hole BRDD-21-016 has returned promising intersections of copper and gold mineralisation near the southern limits of the currently estimated Racecourse Inferred Mineral Resource

-- Assay results include 14m at 0.39% CuEq from 250m depth within a wider zone of 142m at 0.21% CuEq from 170m (details in Table 1 below)

-- Elevated gold values (40m @ 0.23g/t Au from 596m) below the main Racecourse porphyry body, along with a coincident IP anomaly, suggest that a secondary porphyry body may occur at depth below the main Central Porphyry Intrusion

-- Drillhole BRDD-021-026 tested the extension of mineralisation at depth on the western side of the central part of the Racecourse deposit. Based on preliminary logging and subject to laboratory assays, variable strength chalcopyrite mineralisation occurs over a 282.5m interval from 367m downhole

-- Drillhole BRDD-021-027 was the second hole of the Phase 2 drilling programme drilled with a westerly azimuth and is interpreted to have passed close to the high-grade "crown" at the top of the intrusion. Based on preliminary logging and subject to laboratory assays, the hole intersected a 371m down hole interval of variable strength visible copper mineralisation from 97m depth

Colin Bird, Executive Chairman said: "The results of hole BRDD-21-016 have again showed good runs of copper grade, with mineralisation over a 142m interval, of interest was a secondary zone of gold intercepted at 596m, which graded up to 8m at 0.66 g/t Au. The mineralisation in hole 16 was intersected at depth and below the crown, although it appears that gold manifests at deeper levels. The recent drilling results suggest that the copper mineralisation extends further south than indicated by the mineral resource model and the results give us increased encouragement for the potential of the orebody to progress further south, or indeed, new porphyry systems to be discovered."

Phase Two Bushranger Prospect Assay Results - Drill Hole BRDD-21-016

Table 1 - Assay Results from Drill Hole BRDD-21-016*

 
                 From            Interval                                  CuEq 
 Hole ID          (m)   To (m)    (m)       Cu (%)   Au (g/t)   Ag (g/t)    (%) 
 BRDD_021-016      34       44         10     0.23       0.01       1.80   0.25 
                -----  -------  ---------  -------  ---------  ---------  ----- 
                  134      140          6     0.32       0.06       0.70   0.36 
                -----  -------  ---------  -------  ---------  ---------  ----- 
                  170      312        142     0.20       0.01       0.10   0.21 
                -----  -------  ---------  -------  ---------  ---------  ----- 
 Including        178      190         12     0.36       0.01       0.50   0.37 
                -----  -------  ---------  -------  ---------  ---------  ----- 
 and              250      264         14     0.38       0.01       0.40   0.39 
                -----  -------  ---------  -------  ---------  ---------  ----- 
                  596      636         40     0.01       0.23       0.90   0.15 
                -----  -------  ---------  -------  ---------  ---------  ----- 
 Including        628      636          8     0.01       0.66       0.30   0.41 
                -----  -------  ---------  -------  ---------  ---------  ----- 
 

*Assays undertaken by Bureau Veritas Minerals Pty. Ltd. Laboratory, Adelaide, Australia

**CuEq Formula: CuEq = Cu% + 0.5884xAu (g/t) + 0.0078xAg (g/t)

Drillhole BRDD-021-016 was designed test the extension of mineralisation in the modelled Racecourse deposit towards the south and was drilled at an inclination of -70 degrees towards the east (refer to RNS dated 14 September 2021). Assay results have confirmed an overall interval of 142m grading at 0.21% CuEq from 170m downhole, at today's metal prices, and, within the larger interval, the copper values grade up to 14m at 0.39% CuEq from 250m downhole.

A relatively broad zone of elevated gold was also intersected at depth, including a 40m downhole interval which graded 0.23g/t Au and included 8m at 0.66 g/t Au from 628m downhole. This zone occurs on the eastern side of the Central Racecourse mineralised porphyry body and has not been significantly drill tested to date. The area is proximal to an induced polarisation resistivity low anomaly and could signify that a second mineralised porphyry body is close by at depth. Further drilling to test this zone has been planned as part of the second stage of the Phase 2 drilling programme (Refer to RNS dated 13 October 2021).

Bushranger Phase Two Drilling Update - Drill Holes BRDD-21-026 & BRDD-21-027

Drill hole BRDD-21-026 was drilled at an inclination of -60 degrees towards the east and was completed at a final depth of 678.4m. The hole was drilled into the side of the Central porphyry body and it was designed to test the extension of the mineralisation at depth in the main central zone of the Racecourse porphyry deposit. Based on preliminary logging and subject to laboratory assays, visible chalcopyrite was first logged from 177m downhole, with a 282.5m downhole interval of variable strength copper mineralisation occurring from 367m downhole.

Drill hole BRDD-021-027 was the second drillhole of the Phase 2 programme drilled with a westerly azimuth. The hole was designed to test the high-grade "crown" at the top of the Racecourse porphyry system and the along strike continuation of the Racecourse deposit further to the south. The hole was drilled at an inclination of -80 degrees and completed at a final depth of 580m. Based on preliminary logging and subject to laboratory assays a 371m down hole interval of variable strength visible copper mineralisation was intersected from 97m downhole. This is interpreted to extend the mineralisation drilled in hole BRDD-021-024 by 300m further to the southeast (refer to RNS 9(th) November 2021).

Further holes have been planned to test the along-strike continuation of the Racecourse porphyry system further towards the south and these holes are currently in progress.

Bushranger Prospect Drill Hole Location Plan

http://www.rns-pdf.londonstockexchange.com/rns/9967S_1-2021-11-19.pdf

Drill Hole BRDD-21-013 and BRDD-21-016 Cross Section

http://www.rns-pdf.londonstockexchange.com/rns/9967S_2-2021-11-19.pdf

Racecourse Prospect Summary of Mineralised Intersections

http://www.rns-pdf.londonstockexchange.com/rns/9967S_3-2021-11-19.pdf

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 
 "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 
 "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 
 "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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November 19, 2021 06:42 ET (11:42 GMT)

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