XTR Xtract Resources Plc

TIDMXTR

RNS Number : 1744V

Xtract Resources plc

09 December 2021

For immediate release

09 December 2021

Xtract Resources Plc

("Xtract" or the "Company")

New Porphyry Copper System Discovered on the Bushranger Project

The Board of Xtract Resources Plc ("Xtract" or the "Company") is very pleased to report the discovery of a new copper mineralised porphyry system on the Bushranger copper-gold exploration project. The discovery has been made by drilling an Induced Polarisation ("IP") geophysical anomaly undertaken as part of the ongoing Phase 2 diamond drilling programme.

Highlights

-- Two drill holes have intersected a new copper mineralised porphyry system associated with an IP geophysical anomaly generated by the Company during the period between the Phase 1 and Phase 2 drilling programmes

-- The new discovery, located 1.5km to the south-east of the boundary of the Racecourse Inferred Mineral Resource, has been named the "Ascot" prospect, with follow-up drilling already under way

-- Based on preliminary logging, hole BRDD-21-033, which was angled to the east, intersected a long interval of alteration and sulphides. Traces of copper mineralisation extended from a down hole depth of 85m until the end of hole at 783.7m, a total interval of 698.7m. This included a zone of stronger visible chalcopyrite and pyrrhotite mineralisation over a 110m interval from 670m downhole depth.

-- Follow-up hole BRDD-21-035, drilled from the same pad towards the west, confirmed the new discovery. Preliminary logging recorded traces of copper mineralisation from 60m downhole to the end of hole at 740.3m, with two zones of stronger visible copper mineralisation over intervals of 113m from 179.4m depth and 128m from 554m depth

-- Laboratory assays will be required to determine the intervals of potentially economic grade for BRDD-21-033 and BRDD-21-035

-- The mineralisation intersected in these two holes explains the IP anomaly in the area of the Ascot discovery, and further drilling is planned to test the larger cluster of anomalous IP signatures in the south-eastern area of the Bushranger prospect (Refer RNS 13 October 21)

Colin Bird, Executive Chairman said: "This is an exciting new discovery, and the team should be complimented for making such a discovery in an established geological setting. Based on preliminary logging and subject to laboratory assays, holes BRDD-21-033 and 035 represent two very meaningful intersections, similar to the main Racecourse deposit. The intention now is to test for up-dip mineralisation and to establish strike direction with a view to building up a further mineral resource at Ascot. We have also commenced a new hole to test another geophysical anomaly separate from Racecourse and Ascot. "

Bushranger Phase Two Drilling Update - Drill Hole BRDD-21-033

Drill hole BRDD-21-033 was drilled at an inclination of -70 degrees towards to the east and was completed at a final depth of 783.7m. The hole is situated 1.5km to the south-east of the main Racecourse Inferred Mineral Resource and is the first hole drilled into the south-eastern IP anomaly. The hole intersected extensive porphyry-type alteration and iron sulphides, with traces of chalcopyrite mineralisation at 85m down hole depth until the end of hole, a total interval of 698.7m, which included a stronger intersection of chalcopyrite and pyrrhotite mineralisation over a 110m interval from 670m downhole. This new discovery to the south-east of the Racecourse porphyry has been called the "Ascot" prospect.

Drill hole BRDD-21-035 was the first hole drilled to follow up the new Ascot discovery and was drilled towards the west at an inclination of -60 degrees from the same drill pad as the discovery hole. Preliminary logging recorded traces of copper mineralisation from 60m downhole to the end of hole at 740.3m, with two zones of stronger visible copper mineralisation over intervals of 113m from 179.4-292m depth and 128m from 554-612m depth.

The mineralisation and wide intervals of alteration intersected in these two holes at the Ascot prospect display very similar characteristics to that observed at the Racecourse Inferred Mineral Resource and the company intends to model the structural information available in these holes to define the potential strike continuity of the Ascot prospect in follow-up drilling. Laboratory assays will be required to determine the intervals of potentially economic grade for BRDD-21-033 and BRDD-21-035

The Ascot IP anomaly forms part of a larger cluster of anomalous IP signatures in the south-eastern area of the Bushranger prospect and further drill holes are planned to test these anomalies as part of the Phase 2 diamond drilling campaign (Refer RNS 13 October 21).

The company is pleased to include a link to some photographs of the copper mineralisation from drill holes BRDD-21-033 and BRDD-21-035.

Bushranger Prospect Drill Hole Location Plan

http://www.rns-pdf.londonstockexchange.com/rns/1744V_1-2021-12-9.pdf

Photo 1: BRDD-21-035 Pyrrhotite and chalcopyrite mineralisation in drill core at 606.5m depth

http://www.rns-pdf.londonstockexchange.com/rns/1744V_2-2021-12-9.pdf

Photo 2: BRDD-21-035 Pyrrhotite and chalcopyrite mineralisation in drill core at 642.5m depth

http://www.rns-pdf.londonstockexchange.com/rns/1744V_3-2021-12-9.pdf

Photo 3: BRDD-21-033 Chalcopyrite-pyrrhotite mineralisation within quartz vein in drill core at 751.4m depth

http://www.rns-pdf.londonstockexchange.com/rns/1744V_4-2021-12-9.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 
 "Chalcopyrite"          A copper-iron sulphide mineral, CuFeS(2) , 
                          often found in copper ores. 
 "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 
 "Pyrite"                Iron sulphide mineral, FeS2 
 "Pyrrhotite"            An iron sulphide mineral, Fe(1-X) S, often 
                          magnetic 
 
 

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December 09, 2021 09:52 ET (14:52 GMT)