TIDMXTR
RNS Number : 7985Z
Xtract Resources plc
26 May 2021
For immediate release
26 May 2021
Xtract Resources Plc
("Xtract" or the "Company")
Further Drill Assay Results from the Bushranger Copper-Gold
Project
The Board of Xtract Resources Plc ("Xtract" or the "Company") is
pleased to advise that laboratory assays have been received from
the second and third drill holes (BRDD-21-002 & BRDD-21-003)
completed on the Phase One 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 and third angled holes of the
Phase 1 exploration drilling at the Racecourse porphyry deposit
confirm visual observation of extensive intervals of copper
mineralisation in both holes
-- Assay intervals include (see full interval details in Table 1 below):
BRDD-21-002
o 362m @ 0.20% CuEq from 422m
-- including 14m @ 0.36% CuEq from 500m
-- and 26m @ 0.32% CuEq from 638m
BRDD-21-003
o 200m @ 0.20% CuEq from 598m
-- including 68m @ 0.26% CuEq from 676m
-- and 16m @ 0.31% CuEq from 714m
-- Results from these two holes, along with results from the
first hole of the programme and historic drilling results indicate
that, as the Racecourse copper mineralisation extends northwest
beyond the existing Inferred Mineral Resource, it increases
significantly in width, however the higher-grade mineralisation
occurs at shallower depths, enhancing the open pit potential of the
deposit
-- As announced on 17 May 2021, the Company has engaged external
mining consultants to build a financial model to investigate the
economics of open pit extraction of the shallower ore
-- Assay results from the remaining two holes of the Phase 1 programme are awaited
-- The planned Phase 2 drilling programme at Racecourse is on
track for commencement early in Quarter 3, 2021 which will focus on
further definition of the shallower higher-grade zone and testing
of the deposit extensions to the south and east as suggested by the
recent IP geophysics survey
Table 1 - Assay Results from Drill Hole BRDD-21-002 &
BRDD-21-003*
Hole No. From To Interval Cu (%) Au (g/t) Ag (g/t) CuEq (%)**
(m) (m) (m)
BRDD-21-002 442 804 362 0.19 0.01 0.9 0.20
----- ----- --------- ------- --------- --------- -----------
incl. 468 520 52 0.25 0.01 1.7 0.27
----- ----- --------- ------- --------- --------- -----------
incl. 500 514 14 0.33 0.01 2.3 0.36
----- ----- --------- ------- --------- --------- -----------
and 638 664 26 0.30 0.02 1.0 0.32
----- ----- --------- ------- --------- --------- -----------
and 776 794 18 0.28 0.01 1.1 0.30
----- ----- --------- ------- --------- --------- -----------
incl. 784 794 10 0.31 0.02 1.2 0.33
----- ----- --------- ------- --------- --------- -----------
BRDD-21-003 598 798 200 0.18 0.01 1.2 0.20
----- ----- --------- ------- --------- --------- -----------
incl. 626 744 118 0.21 0.01 1.2 0.23
----- ----- --------- ------- --------- --------- -----------
incl. 676 744 68 0.24 0.02 1.3 0.26
----- ----- --------- ------- --------- --------- -----------
incl. 714 730 16 0.28 0.02 1.6 0.31
----- ----- --------- ------- --------- --------- -----------
*Assays undertaken by Bureau Veritas Minerals Pty. Ltd.
Laboratory, Adelaide, Australia
**CuEq Formula: CuEq = Cu% + 0.62xAu (g/t) + 0.0093xAg (g/t)
Colin Bird, Executive Chairman said: "The assay results from the
first three holes of the Phase One drilling programme at the
Racecourse Prospect have succeeded in extending the copper
mineralisation 350-450m to the northwest of the current limit of
the Mineral Resource and a significant distance down dip. In
comparison to previous drilling on the project by Anglo American,
our recent intersections are substantially wider, suggesting that
as the Racecourse mineralisation extends to the northwest it is
growing significantly in thickness. The higher-grade sections
appear to occur at shallower depths and form a "cap" of
higher-grade mineralisation over the top of the central porphyry
intrusion. We believe this enhances the ability to potentially open
pit mine the Racecourse copper mineralisation. Consequently, we
have engaged external mining consultants to build a financial model
of what an open pit mining operation could look like at Racecourse.
Also, as the drilling results received to date have met our
programme objective to demonstrate the extension to the northwest
of the Racecourse mineral deposit, we have committed to a Phase 2
drilling programme, to commence early in Quarter 3, to drill out
the Mineral Resource and test a number of exploration targets which
have been identified from the recently competed IP survey (see RNS
released 17 May 2021). The Racecourse prospect is entering an
exciting new phase and our objective is to define an
internationally significant mineral resource."
Phase One Drilling Programme at the Racecourse Mineral Resource
- Bushranger Project
The Phase One drilling programme at the Racecourse Mineral
Resource was designed to follow up on the strong results obtained
by Anglo American Exploration Australia Pty Ltd in 2014 and 2015
(refer to RNS released on 01 June 2020). The objective of the
programme was to explore the extent of the copper-gold mineralised
porphyry system to the northwest and at depth, beyond the limits of
previous drilling, thereby testing the potential extensions to the
northwest of the Racecourse Mineral Resource. At 71Mt @ 0.44% Cu
and 0.064g/t Au, at a 0.3% Cu cut-off, the existing Racecourse
Inferred Mineral Resource is believed to be one of the largest
undeveloped porphyry copper-gold deposits in the Lachlan Fold Belt
of New South Wales, Australia.
Following the success of the first hole of the programme,
BRDD-20-001, which substantially extended the known limits of the
deposit down-plunge to the north-west, subsequent holes in the
Phase 1 programme were drilled obliquely across the deposit to test
the width and grade of the mineralisation within the deposit
extension. All completed holes intersected wider mineralised zones
than anticipated in the form of disseminated and fracture-fill
chalcopyrite, accompanied by pyrrhotite and pyrite, as confirmed by
assays received for holes BRDD-21-002 and BRDD-21-003. While assay
results from the two remaining holes of the programme are awaited,
it is already apparent from the drilling results to date that there
is significant scope to expand the current Inferred Mineral
Resource at Racecourse. The new results, combined with historic
drilling, point towards a higher-grade mineralised 'cap' to the
deposit over the top of the central porphyry intrusion. Arising
from the ongoing appraisal of the results, an independent firm has
been engaged to undertake technical and financial modelling for an
initial open pit mine, examining several pit layout scenarios and
economic parameters.
The Phase 2 drilling programme at Racecourse, planned to
commence early in Quarter 3, 2021 will focus on additional
definition of the shallower higher-grade cap and testing of further
deposit extensions to the south and east as suggested by the recent
IP geophysics survey.
Assay results from the remaining two holes of the Phase 1
drilling programme will be reported when they are received and
collated.
Please see the following web links for the Racecourse Mineral
Resource drill hole location plan, cross section and long
section:
Bushranger Project Drill Hole Location Plan
http://www.rns-pdf.londonstockexchange.com/rns/7985Z_1-2021-5-25.pdf
Racecourse Mineral Resource Long Section
http://www.rns-pdf.londonstockexchange.com/rns/7985Z_2-2021-5-25.pdf
Racecourse Mineral Resource Cross Section
http://www.rns-pdf.londonstockexchange.com/rns/7985Z_3-2021-5-25.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
"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
"pyrite" Iron sulphide mineral, FeS2
"pyrrhotite" an iron sulphide mineral, Fe1-XS, often magnetic
ENDS
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