Xtract Resources plc Eureka 3-D geological modelling (6842P)

TIDMXTR

RNS Number : 6842P

Xtract Resources plc

11 June 2020

For immediate release

11 June 2020

Xtract Resources Plc

("Xtract" or the "Company")

3-D Geological Modelling Extends Target Zone at Eureka

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to provide a further update on the positive outcome of a 3-D modelling and interpreting exercise at the Eureka copper-gold project on small scale mining licence number 22134-HQ-SML (" Eureka Licence") located in the Central part of The Republic of Zambia ("Eureka Project").

Highlights

   --    Modelling reveals immediate targets for follow-up 

-- Near-surface oxide resource potential identified below the current pit and along strike to the northwest - shallow drill testing recommended

-- Mineralised zone bifurcates in the northwest of the pit and both limbs remain open, aligned with strong copper soil anomaly trends

   --    Deposit also remains open down-plunge 

-- Pitting programme initiated on geochemical and geophysical anomalies prior to planned drilling follow-up

Colin Bird, Executive Chairman said: "The Company commissioned Addison to carry out the independent modelling to capture the previous drilling data and our own drilling in order to get a three dimensional assessment of the ore body profile. The outcome has been very positive and suggests the ore body bifurcates into geophysical and geochemical anomalies previously established. We now intend to drill test the new targets generated by the modelling, but prior to drilling, we will be undertaking a programme of pitting over the anomalies to hopefully confirm mineralisation. We are pleased with the outcome of phase one of our reconnaissance programme and look forward to adding further value."

Summary of 3-D Modelling Results at Eureka

Addison Mining Services (UK) was contracted to undertake a 3-D modelling study on the Eureka main pit copper-gold deposit, combining historic drilling with the results of Xtract's recent drill programme. Among the conclusions were:

Ø There appears to be both immediate resource potential within remaining oxide material below, and adjacent to, the current pit, and potential for a larger sulphide deposit along strike.

Ø The +0.2% Cu envelope is well developed in the northwest of the pit and remains open, appearing to bifurcate.

Ø The main limb trends to the northwest of the pit with approximately 400m of strike potential within the licence, while a subordinate limb trends west-northwest with strike potential of approximately 800m. The latter trend is coincident with a spur of the main copper anomaly in soils.

Ø Mineralisation is also open down-plunge, below the relatively shallow intercepts drilled to date.

Ø Towards the east-southeast the mineralised zone appears to weaken, however it may re-develop further along strike where the coincident soil anomalies become stronger.

The Company is strongly encouraged by the results of its initial drilling programme and the 3-D modelling study. Based on these results planning is in hand to follow-up with additional drilling and testing of soil and geophysical anomalies to further extend the Eureka deposit and to drill test the Eureka West target.

Images from the recent drill programme and 3-D modelling are available to view on the Company's website.

Eureka Project background

As previously announced, a shallow open pit mine was developed at Eureka by a local operator in 2008 within a strong, 3km long copper-gold soil anomaly, when about 1,000 tonnes of ore at 3% Cu was reportedly recovered. R ecent drilling by Xtract was carried out to confirm and extend the deposit as originally defined by limited historic drilling. Intercepts up to 32m @ 1.58% Cu, 0.07g/t Au, including 19.0m @ 2.08% Cu, 0.08g/t Au (Hole EX-01) were cored in the recent drill programme. The deposit 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 copper 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.

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,           [phone] 
                               Executive Chairman    www.xtractresources.com 
 Beaumont Cornish Limited     Roland Cornish        [phone] 
  Nominated Adviser and        Michael Cornish       www.beaumontcornish.co.uk 
  Joint Broker                 Felicity Geidt 
 
   Novum Securities Limited     Colin Rowbury         [phone] 
   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 
 
 "Cu"               Copper 
 
 "geophysical"      Of measurement of physical characteristics 
                     of the earth 
 
 "mineralisation"   Process of formation and concentration of 
                     elements and their chemical compounds within 
                     a mass or body of rock 
 
 "oxide resource"   Mineral resource comprised substantially of 
                     oxide minerals. 
 
 "soil anomaly"     A concentration of one or more elements in 
                     soil that is markedly higher than background 
 
 "sulphide"         A metallic compound of sulphur. 
 
 
 

ENDS

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June 11, 2020 06:00 ET (10:00 GMT)