XTR Xtract Resources Plc

6 March 2025

For immediate release

Xtract Resources Plc

("Xtract" or the "Company")

Silverking Project Commencement of Drilling

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to announce the start of a diamond drill programme at Silverking (Licence 26673-HQ-LEL). The programme has set a number of objectives aimed at advancing the development of the project. Silverking is subject to an option and joint venture agreement ("Joint Venture") with Oval Mining Limited, enabling Xtract to earn-in up to a 70% interest in the Silverking copper mine and accompanying exploration licence located in the Mumbwa District of the Central Province of Zambia. 

Highlights

·      Drilling objectives include:

o  Testing the depth extension of the main high-grade pipe.

o  Establishing the true mineralised width of the main pipe (where historic drilling ended in mineralisation).

o  Testing wall rock alteration around the more massive high-grade copper sulphide body to establish the scope for future lower grade bulk tonnage copper-bearing mineralisation.

o  Evaluating a second pipe structure where very limited historic drilling failed to intersect the pipe structure.

o  Identifying the source of ground magnetic anomalies locate close to the main pipe which may represent mineralised offshoots from the main structure.

o  Testing a new anomaly that was until recently located outside of the expanded licence area.

·      To facilitate development planning, drilling is also expected to generate sufficient spatial data to allow for a high-level estimate of the potential cumulative tonnage of mineralisation.

Colin Bird, Executive Chairman said "We are fortunate to have a project that features small-scale historic mining activity where the highest grade most easily accessible copper mineralisation was extracted to shallow depths determined by water level. We therefore have had an opportunity to study the mineralised body, to understand the geological and physical features that resulted in the pipe structure and to roll this knowledge out across the licence to find similar targets for evaluation. At this juncture the final depth of mineralisation on the main pipe is unknown and the purpose of this first hole is to determine the trending shape and depth continuity for a guide to potential future mine development which we intend to fast-track.  We perceive a simple high-grade open pit to be the outcome and if practical depth is exceeded, we will consider underground extension from the open pit. Open dimensions will be driven principally by grade, tonnage and the orebody morphology. We look forward to providing updates as the drill programme continues".

Silverking Project

As announced on 3 April 2024, Xtract entered into a joint venture agreement with Oval Mining in relation to the Silverking Project and licence. Silverking mineralisation is characterised by deep levels of intense oxidation, breccia, vein and stockwork hosted copper mineralisation and is distinguished by high-grade supergene enrichment, also diagnostic of the nearby Kitumba deposit.

The former Silverking open pit and underground mine extends to a mining depth of only 70m and based on underground mapping and historic diamond and reverse circulation ("RC") drilling is believed to remain open both down-dip and along strike.

Historic Peak Silverking reported drill intercepts including 50m @ 5.47% Cu in borehole SVKRC002 from 55m to 105m depth. The hole stopped in mineralisation. Mineralised intercepts peaked at 52.2% Cu over a 1m drilled interval.

A wide-spaced geochemical soil survey supplemented by magnetic and IP ground geophysical surveys undertaken by Glencore identified a number of high priority targets warranting follow-up. In particular a second breccia pipe located 800m from the main Silverking mineralised body was identified and has not been explored. Evidence at surface suggested possible stockwork or disseminated copper mineralisation between the two breccia pipes. Xtract's proposed exploration work will focus on testing the depth extension of the Silverking breccia pipe, the nearby pipe and general licence exploration. 

Further background details on the licence and the Joint Venture were announced on 3 April 2024, a copy of which is available from the Company's website. 

Other

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 Regulation (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, Executive Chairman and Director.

 Enquiries:

Qualified Person:

Colin Bird: The technical information contained in this announcement has been reviewed, verified, and approved by Colin Bird, C.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.

Forward Looking Statements

Certain statements in this announcement are or may be deemed to be forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'' ''could'' "should" ''envisage'' ''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth results of operations performance future capital and other expenditures (including the amount. Nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward looking statements.

Notice

Beaumont Cornish Limited ("Beaumont Cornish"), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting as nominated adviser to the Company in connection with this announcement and will not regard any other person as its client and will not be responsible to anyone else for providing the protections afforded to the clients of Beaumont Cornish or for providing advice in relation to such proposals. Beaumont Cornish has not authorised the contents of, or any part of, this document and no liability whatsoever is accepted by Beaumont Cornish for the accuracy of any information, or opinions contained in this document or for the omission of any information. Beaumont Cornish as nominated adviser to the Company owes certain responsibilities to the London Stock Exchange which are not owed to the Company, the Directors, Shareholders, or any other person.

Glossary

ENDS