Xtract Resources (LSE:XTR)
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RNS Number : 8901L

Xtract Resources plc

15 January 2021

For immediate release

15 January 2021

Xtract Resources Plc

("Xtract" or the "Company")

Bushranger Copper/ Gold Project Drilling Programme - Further Update

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to provide a further update 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"), New South Wales, Australia.

Highlights

-- Drilling of the first of three holes on the Phase One Drilling Programme at the Racecourse Mineral Resource on the Bushranger Project, has now progressed to a depth of 804m in drill hole BRDD-20-001

-- Copper mineralisation commenced in drill hole BRDD-20-001 at a depth of 110m and has become stronger as the hole has continued to the current depth of 804m

-- The copper mineralisation is predominantly disseminated chalcopyrite (copper sulphides) within a strongly altered quartz-feldspar porphyry intrusive body

-- Drilling operations are continuing to progress at a significant pace with drill hole BRDD-20-001 advancing at a rate of 80-90m per 24-hour period

-- As well-developed copper mineralisation in drill hole BRDD-20-001 is continuing towards the original planned hole depth of 815m, drilling will continue until the mineralisation is drilled through

-- The Phase One drilling programme will comprise three diamond drill holes for a total of 2,290m, with the objective of extending the copper-gold mineralisation beyond the current boundary of the Mineral Resource of 71Mt @ 0.44% Cu & 0.064g/t Au, at a 0.3% cut-off, which has been classified as Inferred in accordance with JORC (2012)

Colin Bird, Executive Chairman said: "The hole is continuing in strong mineralisation of various styles to the current depth, which is very encouraging for the scale of the porphyry system at Racecourse. We will continue to drill until we bottom out of the zone."

Hole BRDD-20-001 Drilling Results to Date

The Phase One drilling programme commenced on 16 December 2020 with angled hole BRDD-20-001 laid out to track the plunge of the copper-gold porphyry deposit to a planned finishing depth of 815m. Drilling has been advancing rapidly at a rate of 80-90m per 24-hour period. On 12 January 2021 it was announced that the hole had progressed to a depth of 607m and remained within the copper mineralised deposit envelope. The hole has now reached a depth of 804m and, as it continues to encounter strong potassic alteration and copper mineralisation, it will be extended until it passes out of the mineralised zone.

Copper mineralisation occurs as disseminated chalcopyrite (copper sulphides) accompanied by pyrite and pyrrhotite within a strongly altered quartz-feldspar porphyry intrusive body. Mineralisation was first intersected at a downhole depth of 110m and has been evident in core continuously to the current depth, increasing in intensity in the lower part of the interval.

The Company is using a hand-held pXRF Analyser to provide preliminary indications of copper content and samples for definitive geochemical assay will be submitted to the geochemical laboratory on a progressive basis.

Phase One Drilling Programme Plan at the Racecourse Mineral Resource - Bushranger Project

The Xtract Phase One drilling programme at the Racecourse Mineral Resource has been designed to follow up on the very encouraging results obtained by Anglo American Exploration Australia Pty Ltd ("Anglo") in 2014 and 2015 (refer to RNS released on 01 June 2020). The objective of the programme is to continue to extend the highest-grade copper-gold intersections to the north-west, beyond the limits of previous drilling and to investigate the copper-gold zonation within the Racecourse Mineral Resource. The initial phase of drilling will comprise three Priority 1 drill holes for 2,290m. Providing encouraging results are received from the Priority 1 drill holes, a further six Priority 2 holes will potentially be drilled for an additional 3,995m. At 71Mt @ 0.44% Cu and 0.064g/t Au, at a 0.3% Cu cut-off, the Racecourse Mineral Resource within the Bushranger Project, is one of the largest undeveloped porphyry copper-gold deposits in the Lachlan Fold Belt.

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:

 
 "alteration zone"   A zone exhibiting change in mineralogical 
                      composition of a rock commonly brought about 
                      by reactions with hydrothermal solutions 
 "Au"                Gold 
 "chalcopyrite"      A copper-iron sulphide mineral, CuFeS2, often 
                      found in copper ores 
 
 "Cu"                Copper 
 "disseminated"      Mineralization distributed throughout a rock 
 
 "exploration"       Method by which ore deposits are evaluated 
 "felspar"           A group of silicate minerals which are the 
                      main components of acid, intermediate and 
                      basic igneous rocks 
 
 "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 
 "potassic"          Descriptive of alteration of rocks through 
                      the introduction of potassium 
 
 "pyrite"            Iron sulphide mineral, FeS2 
 
 "pyrrhotite"        An iron sulphide mineral, Fe1-XS, often magnetic 
 
 "quartz"            A mineral composed of silicon dioxide, SiO2 
 
 
 

ENDS

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January 15, 2021 07:10 ET (12:10 GMT)