Xtract Resources plc Zambia Copper Exploration Update (9380T)

TIDMXTR

RNS Number : 9380T

Xtract Resources plc

19 November 2019

For immediate release

19 November 2019

Xtract Resources Plc

("Xtract" or the "Company")

Zambia Copper Exploration Update

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to provide an update on drill planning on the copper-gold-silver exploration projects in The Republic of Zambia which include the mining licence number 8370-HQ-SML located at Kajevu, Kasempa, North Western Province ("Matrix Project"), as well as the mining licence number 22134-HQ-SML located in the Central part of The Republic of Zambia ("Eureka Project") and the mining licence number 24401-HQ-LEL located in the Central part of The Republic of Zambia ("Kalengwa Project")

Highlights

   --     Contract signed for not less than 1,600m of reverse circulation drilling 

-- Drilling programme at all sites will target depth and strike extensions of current pits as well as significant strike extensions not yet tested

-- Site visit to the Matrix Project confirms the presence of significant stockpiles of partially sorted copper ore from previous mining, available to any future ore processing operation

-- At Eureka project, limited historic drilling of open-ended copper zone will be extended along strike and a second target tested at Eureka West

-- The Kalengwa project has significant stockpiles with approximately 2 million tonnes of tailings

   --     Drilling to commence at Matrix during the course of this week 

Colin Bird, Executive Chairman said: "This is an exciting period in the development of the Company. All of the 3 targets are brownfield targets, with previously demonstrated history of mineralisation which has small-scale extraction. These occurrences are widespread and give much support to our belief and academia's belief that significant Olympic Dam style mineralisation may be present in the Central regions of Zambia.

Meanwhile significant test work is continuing on the Kalengwa licence to determine processing characteristics of the various dumps, as well as to determine the most appropriate processing route. We will update the market on the drilling program and results over the coming weeks."

Summary of work plan

At the Matrix Project, the Company completed integration of historic and newly generated exploration data and will drill for extensions to shallow mineralisation beneath and along strike from recent small-scale open pits developed in copper mineralisation with accompanying gold. A further geochemical target highlighted by earlier Xtract soil sampling will also be tested. Reverse circulation ('RC') drilling will be employed to provide quick progress at reasonable cost.

During a drill planning visit to site it was apparent that considerable stockpiles of copper ore remain unprocessed from the work of the previous mining company. These require to be quantified and are available for any future copper processing operation.

At the Eureka Project, overview of extensive prior exploration data available to the Company has shown that earlier shallow open pit mining on the main Eureka copper zone did not reach the core of the mineralisation identified by historic drilling. In addition, the zone remains open along strike to the southeast and has also not been closed off to the northwest. RC drilling here will test the extent of this target within a broader soil geochemical anomaly.

A second copper-mineralised zone at Eureka West, about 1km from the Eureka pit will also be drill tested as part of the planned programme.

The drill rig is expected to mobilise in the coming days. Approximately 800m of drilling is planned at each locality and assay results from both properties will be reported as they come through during the next few weeks.

Project background

At Kajevu a small open pit trial mine approximately 150 metres long and 15 metres deep was previously developed over a steeply dipping, hydrothermally altered copper-gold bearing quartz vein zone. Strong visible copper mineralisation in the form of malachite and chalcocite is exposed at the western end of the pit over a 3-5m width. As previously announced, selective composite grab samples taken by the Company returned values ranging 3.99-7.28% Cu, 1.0-3.42g/t Au. Historic records report trenching results of 2.86% Cu over a width of 36m, indicating potential for wider copper intervals within the target zone.

Bulk sample material from the open pit was stockpiled at surface for possible future ore processing - this includes considerable stacks of partially sorted high-grade copper mineralisation.

At Eureka, as previously announced limited historical drilling within an extensive copper soil anomaly 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. In particular, mineralisation is open to the southeast of the pit as well to depth. Additional drill testing of this zone at more optimal drilling angles, as well as the strike extrapolation of the zone will be a priority for the planned drilling programme.

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 - 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.

Kalengwa

As previously announced in July earlier this year, the Kalengwa Copper Mine is believed to have been one of the highest-grade copper mines in Zambia. A mineralised high-grade supergene core was reported to have yielded an average grade of 27% Cu, making up approximately 20% of the ore body which was trucked unprocessed to Kitwe for direct smelting. Total production of 1.9 Mt of 9.44% Cu and 50 g/t Ag was reported from the open pit resulting in circa 15,000 tonnes of copper production per annum for 12 years of production. Kalengwa Mine was owned and managed by Roan Consolidated Mines Ltd. from 1970 to 1982.

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:

 
 "alteration zone"   a zone exhibiting change in mineralogical 
                      composition of a rock commonly brought about 
                      by reactions with hydrothermal solutions 
 "Au"                Gold 
 
 "Cu"                Copper 
 "exploration"       method by which ore deposits are evaluated 
 
 
 
 "mineralisation"    process of formation and concentration of 
                      elements and their chemical compounds within 
                      a mass or body of rock 
 
 
 "soil sampling"     systematic collection of soil samples at a 
                      series of different locations in order to 
                      study the distribution of soil geochemical 
                      values. 
 
 

ENDS

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November 19, 2019 09:00 ET (14:00 GMT)