TIDMXTR
RNS Number : 2477I
Xtract Resources plc
31 March 2020
For immediate release
31 March 2020
Xtract Resources Plc
("Xtract" or the "Company")
Eureka & Kajevu drilling programme results
The Board of Xtract Resources Plc ("Xtract" or the "Company") is
pleased to provide a further update on results of its preliminary
drilling programme at the Eureka project on the copper-gold small
scale mining licence number 22134-HQ-SML (" Eureka Licence")
located in the Central part of The Republic of Zambia ("Eureka
Project") and copper-gold small scale mining licence number
8370-HQ-SML located at Kajevu, Kasempa, North Western Province in
the Republic of Zambia ("Kajevu" or the "Matrix Project").
Highlights
-- Drilling confirms and extends historic copper-gold deposit at Eureka
-- Assaying of drill core from initial testing programme beneath
shallow open pit at the Eureka Project intersects 32m @ 1.58% Cu,
including 19.0m @ 2.08% Cu
-- Step-out and down-plunge holes intersect 15.4m @ 0.81% Cu and
14.0m @ 0.81% Cu respectively, including intervals up to 4.0m @
2.35% Cu, 0.53g/t Au
-- Deposit extends over more than 200m strike within a 3km
copper-gold soil geochemical anomaly, most of it not yet
drill-tested
-- Stratabound mineralisation style at depth suggests potential
for primary sulphide target below shallow oxide zone
-- Plan to complete assaying and 3D modelling to prepare for
second-stage drilling following the rainy season at both Eureka and
Eureka West targets
-- At Kajevu, core assaying confirmed that copper-gold
mineralisation is limited in strike and depth extent
Colin Bird, Executive Chairman said: "These significant
intercepts from the Eureka drilling program are very encouraging
and represent some of the better drilling results emerging from new
Zambian exploration activities. The presence of gold puts some
doubt on the occurrences being traditional copper belt
mineralisation with more similarity to the upper Katanga series
which is found in Zambia but more common in the DRC. The immediate
plan is to identify an oxide resource for short term oxide
production, whilst embarking on an exploration programme for a
greater target.
The licence area has a number of anomalies not tested by this
programme or with similar highly prospective possibilities.
Positive results from these areas could lead to a large-scale
copper resource. The Kajevu licence appears to be limited in
potential and will not be further pursued. We look forward to the
conclusion of the rains and, after further modelling, building in
the results of this programme and testing other targets."
Summary of drilling results at Eureka
Drilling by Xtract focussed on testing strike and depth
continuity of shallow mineralisation located by limited historic
exploration drilling and development of a small open pit within a
major regional copper-gold soil geochemical anomaly. In all, seven
angled diamond drill holes designated EX-01 to EX-07 were
completed, totalling 761 metres. Initial progress was announced by
the Company on 23 January 2020.
Since completion of the drill programme, drill core has been
photographed and logged, with selected intervals being cut by
diamond saw, sampled and sent for analysis to the SGS laboratory in
Kalulushi, Zambia. Analytical results have been received for five
of the seven holes, with sampling to be completed in one further
hole and the remaining hole being unmineralized.
Significant downhole mineralised intervals are summarised in the
table below:
Eureka Project, Zambia - Significant Drill
Core Analytical Intervals
Hole No. Depth Depth Width Cu% Au g/t
From (m) To (m) (m)
---------- -------- ------ ----- -------
EX-01 50.0 82.0 32.0 1.58 0.07
---------- -------- ------ ----- -------
Including 51.2 70.2 19.0 2.08 0.08
---------- -------- ------ ----- -------
EX-02 106.0 120.0 14.0 0.81 0.20
---------- -------- ------ ----- -------
Including 116.0 120.0 4.0 2.35 0.53
---------- -------- ------ ----- -------
EX-03 51.0 66.4 15.4 0.81 0.07
---------- -------- ------ ----- -------
Including 51.0 54.0 3.0 2.55 0.07
---------- -------- ------ ----- -------
EX-01 was drilled beneath the south-eastern end of the open pit
and confirmed the tenor of previously reported copper and gold
mineralisation over a significant width. The mineralisation occurs
in a gossanous structural zone with cavities within leached and
vuggy dolomites, with copper oxides at shallower levels giving way
to primary chalcopyrite sulphides at depth. EX-02 was sited 20m
behind EX-01 to check the down-plunge continuation of the steeply
dipping mineralised zone beneath previous drilling. This was
successfully demonstrated, with particular interest in the
occurrence of strongly disseminated and stringer chalcopyrite
mineralisation, along with gold values of interest, at the base of
the interval. This zone exhibits bedding-parallel mineral textures
just above a conglomerate footwall, similar in style and setting to
several of the main Copperbelt orebodies.
EX-03 was sited 50m to the southeast of EX-01 and EX-02 and
demonstrated strike continuity of the mineralised zone beyond the
limit of the historic pit, drilling intersecting primarily oxidised
copper mineralisation at relatively shallow levels. EX-04 was
drilled beneath EX-03 to again check the deeper continuation of the
mineralisation. Sampling and assaying of this hole is currently in
progress, but visual examination confirms the presence of
disseminated chalcopyrite mineralisation.
Holes EX-05 to EX-07 were scout holes, stepped out further to
the southeast. Here pyrite was the main sulphide mineral
encountered, with just copper traces confirmed by analysis.
Geological interpretation based on drilling suggests that the
near-surface gossanous mineralisation at Eureka may be remobilised
from potentially more extensive stratabound sulphides. During the
current rainy season, work will concentrate on completion of core
sampling and assaying of hole EX-04. The logging and assay data,
including historic records for the Eureka deposit, will then be
modelled in 3D to direct additional follow up work after the end of
the rainy season. Such work is expected to include a significant
further drilling component.
Eureka Project background
At Eureka, as previously announced, limited historical drilling
within a 3km long copper-gold soil anomaly, peaking at 1,315ppm Cu,
540ppb Au, intersected up to 25.7m @ 3.30% Cu and 0.25g/t Au,
including 9.7m @ 5.9% Cu and 0.26g/t Au. A shallow open pit was
developed by a local operator within this resource in 2008, when
about 1,000 tonnes of ore at 3% Cu was reportedly recovered .
Mineralisation intersected by historic drill holes and partially
mined remains open in several directions.
A second sub-parallel copper anomaly in soils about 600-700m
long occurs at Eureka West, 1km to the southwest of the main Eureka
pit. A small pit at this locality was operated by artisanal miners
- a composite grab sample taken by the Company from hand-sorted
boulder piles at the site returned 9.81% Cu, 1.94g/t Au, 13.77g/t
Ag. This is a further priority drill target for the Company.
Summary of drill assay results for Kajevu Project
Completion of a programme of seven short angled diamond drill
holes was announced on 23 January 2020. Limited assaying was
carried out on split core from two of the holes, one of which,
KX-05A, recorded a mineralised interval as set out below:
Kajevu Project, Zambia - Drill Core Analytical
Interval
Hole No. Depth Depth Width Cu% Au g/t
From (m) To (m) (m)
----------- -------- ------ ----- -------
KX-05A 33.0 41.4 8.4 0.49 0.12
----------- -------- ------ ----- -------
This interval confirmed visual observations of supergene copper
mineralisation occurring within a quartz-hematite breccia, similar
to that seen at surface in a shallow open pit. However, the
remaining holes found only copper traces within the breccia zone,
showing that mineralisation is confined to shallow depths and with
very limited strike extent. No further work is currently planned at
this prospect.
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
This announcement contains inside information for the purposes
of Article 7 of EU Regulation No. 596/2014 on market abuse. 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 Colin Rowbury +44 (0) 207 399 9427
Joint Broker 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
"breccia" Rock fragmented into angular components
"chalcocite" A copper sulphide mineral, Cu(2) S, found
in zones of secondary enrichment of copper
ores
"chalcopyrite" A copper-iron sulphide mineral, CuFeS(2) ,
often found in copper ores
"conglomerate" Sedimentary rock formed by the cementing together
of water-rounded pebbles
"Cu" Copper
"Diamond drill Form of core drilling which uses a rotary
holes" drill with a diamond drill bit attached in
order to create precisely measured holes
"disseminated" Mineralization distributed throughout a rock
"dolomite" Calcium-magnesium carbonate mineral, (CaMg)CO(3)
, or a rock composed largely of the mineral
dolomite
"exploration" Method by which ore deposits are evaluated
"footwall" The mass of rock below a fault, vein or bed
of mineralization
"hematite" A mineral composed of ferric iron oxide
"gossanous" Referring to a surface capping of hydrated
oxides of iron formed from metallic sulphides
"malachite" A green copper carbonate mineral (Cu(2) (OH)(2)
CO(3) ) which forms by alteration of copper
sulphide minerals
"mineralisation" Process of formation and concentration of
elements and their chemical compounds within
a mass or body of rock
"oxide minerals" Minerals produced by natural weathering processes
at or near the earth's surface.
"pyrite" Iron sulphide mineral, FeS2
"quartz" A mineral composed of silicon dioxide, SiO(2)
"soil anomaly" A concentration of one or more elements in
soil that is markedly higher than background
"stratabound" Occurring within a particular strata or layer
"stringer" A narrow vein or irregular filament of mineral
traversing rock mass of different composition.
"sulphide" A metallic compound of sulphur.
"vuggy" Referring to a rock containing cavities sometimes
with a lining of crystalline minerals
ENDS
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END
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