Xtract Resources (LSE:XTR)
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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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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March 31, 2020 08:10 ET (12:10 GMT)