REG - Xtract Resources plc - Ascot Prospect Drill Results Summary

Xtract ResourcesAnnouncement

31/05/2022 11:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220531:nRSe4067Na&default-theme=true

RNS Number : 4067N  Xtract Resources plc  31 May 2022

 

For immediate release

31 May 2022

 

Xtract Resources Plc

("Xtract" or the "Company")

Ascot Prospect Drill Results Summary

 

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to
provide an update and overview of the results achieved to date at the Ascot
Prospect on the Bushranger Copper-Gold Project in central New South Wales,
Australia.

 

Highlights

 

·    To date 12 diamond drill holes for 8,526m have been completed at
Ascot and results have been released for 6 holes

·    Copper-gold mineralisation has been intersected over a strike length
of greater than 750m at the Ascot prospect located to the south of the
Racecourse Inferred Mineral Resource which is open both along strike and at
depth

·    In comparison to the currently defined Racecourse Inferred Mineral
Resource (71Mt @ 0.44% Cu and 0.064 g/t Au at a cut-off of 0.3% Cu), Ascot
contains several intersections of higher-grade gold, which are encouraging,
and work is underway to understand the economic benefits of the gold intervals

·    The best intersections announced to date on the Ascot Prospect are
summarised in Table 1, with the most significant as follows:

§ 32m at 0.92g/t Au from 510m in drill hole BRDD-22-039

o  including 14m at 1.96g/t Au from 510m

§ 64m @ 0.58% CuEq (0.38% Cu & 0.3g/t Au) from 552m in drill hole
BRDD-21-035

§ 2m @ 15.5g/t Au from 191m in drill hole BRDD-21-033

§ 104m @ 0.24% CuEq from 79m in drill hole BRDD-21-038

o  Including 8m @ 1.46% CuEq (1.17% Cu & 0.37g/t Au) from 175m

·    Drilling continues at Ascot to further define the extent of the
mineralisation and determine a relationship to the Racecourse deposit

 

Colin Bird, Executive Chairman said: "The discovery of copper-gold
mineralisation at the Ascot prospect is highly significant as the widths and
grades of the mineralisation we have intersected to date suggest that Ascot is
a new greenfields porphyry-copper discovery comparable to Alkane's Boda
discovery in 2019. The picture emerging at Ascot is that it is somewhat
different to the Racecourse porphyry copper deposit to the north, as Ascot has
higher grade gold intersections, such as 14m at 1.96 g/t Au in hole
BRDD-22-039 which could have significant positive economic benefits for
Ascot.

The Bushranger Project Phase 2 drilling programme has been highly successful
in defining a mineralised trend of multiple porphyry copper-gold intrusions,
over 3km of strike length from Racecourse to Ascot, with Ascot being open to
the south and at depth.  Our assessment of the drilling results from Ascot is
ongoing and we will focus on the potential to extend the gold intersections to
shallower depths."

Ascot Prospect Drill Results

Table 1. Summary of significant drill intercepts at Ascot announced to date

 Hole ID      From (m)  To (m)  Interval (m)  Cu (%)    Au (g/t)  Ag (g/t)  CuEq (%)
 BRDD-21-031  586       638     52            0.22      0.05      3.0       0.27
 Including    600       612     12            0.7       0.16      9.9       0.88
 BRDD-21-033  191       193     2             0.01      15.5      1.6       N/A
 BRDD-21-035  552       716     164           0.24      0.17      1.43      0.34
 Including    552       616     64            0.38      0.3       2.26      0.58
 BRDD-21-038  79        183     104           0.18      0.08      1.1       0.24
 Including    175       183     8             1.17      0.37      8.7       1.46
 BRDD-21-038  589       591     2             0.01      2.3       0.6       1.40
 BRDD-22-039  510       542     32            0.02      0.92      1         N/A
 Including    510       524     14            0.02      1.96      1.6       N/A
 BRDD-22-044  388       440     52            0.16      0.06      1.88      0.21

*Assays undertaken by Bureau Veritas Minerals Pty. Ltd. Laboratory, Adelaide,
Australia

**CuEq Formula: CuEq = Cu% + 0.5978xAu (g/t) + 0.0074xAg (g/t)

 

Copper and gold mineralisation has been identified over a strike length of
750m at the Ascot Prospect to date, which represents a significant new
discovery in the Macquarie Arc.

The discovery of the Ascot prospect was made when Xtract resources tested a
large induced polarisation ("IP") geophysical anomaly 1.5km to the south of
Racecourse. Drill hole BRDD-21-033 tested this IP anomaly in the east of the
project and intersected a broad zone of porphyry-copper alteration, indicating
the potential for a new discovery near-by. The drill-rig was turned around and
drilled to the west from the same drill pad with drill hole BRDD-21-035, which
returned a significant interval of copper mineralisation of 164m @ 0.34% CuEq
from 552m, including a higher-grade interval of 64m @ 0.58% CuEq from 552m
(refer to RNS 19 January 2022).  Drill hole BRDD-21-035 represents the
discovery hole at the Ascot prospect and includes an intercept that is amongst
the highest grade and thickest intersections on the overall Bushranger Project
to date.

Drill holes BRDD-22-044 and BRDD-21-031 were drilled 250m and 475m along
strike to the north of hole BRDD-21-033 and discovery hole BRDD-21-035
respectively, both intersected consistent intervals of copper-gold
mineralisation which confirm that a downhole interval of more than 50m of
copper-gold mineralisation extends at least 475m north of the discovery
hole.

Drill holes BRDD-21-038 and BRDD-22-039 were drilled on the same section, 200m
south of hole BRDD-21-033 and discovery hole BRDD-21-035.  Drill hole
BRDD-21-038 intersected a wide interval of copper-gold mineralisation from
shallow depth returning 104m @ 0.24% CuEq from 79m downhole depth (refer to
RNS 17 May 2022).  Drill hole BRDD-22-039 was drilled down-dip and underneath
drillhole BRDD-21-038, in order to investigate the down-dip continuity of the
copper-gold mineralisation, and returned an extremely encouraging gold
intersection of 32m @ 0.92g/t Au from 510m, including 14m @ 1.96g/t Au, which
is the best gold intersection returned to date on the overall Bushranger
Project.

To date, 8,526m of diamond drilling has been completed at the Ascot prospect,
with assays still awaited for drill holes BRDD-22-040, BRDD-22-045,
BRDD-22-046, BRDD-22-049, BRDD-22-050, BRDD-22-051 and BRDD-22-052.

 

Conclusions

The Phase 2 Drilling Programme at the Racecourse and Ascot prospects has
intersected copper-gold mineralisation over 3km of strike length which forms a
copper-gold mineralised trend that compares favourably to the mineralised
porphyries at Newcrest's world-class Cadia mine and the Alkane's Boda-Kaiser
trend which also occur over 3km of strike (refer to ASX announcement by Alkane
Resources Limited 11 May 2022).

Ascot and Racecourse have similar widths of copper-gold mineralisation, with
Ascot containing thicker and higher-grade gold intersections in comparison to
Racecourse. Xtract is undertaking further assessment to understand the
economic potential of these thicker, higher grade gold intersections,
particularly at shallower depths. The Ascot mineralisation has currently been
drilled over 750m of strike length and is open to the south and at depth.
Geological data suggests that an equivalent to the best mineralised "crown"
position above the porphyry at the Racecourse prospect, has not yet been
intersected at Ascot. This provides further upside to what already one of the
most significant greenfields porphyry copper-gold discovery in the Lachlan
Fold Belt since the discovery of Boda in 2019.  Xtract's assessment of the
Ascot prospect is ongoing.

 

Bushranger Prospect Drill Hole Location Plan

 

http://www.rns-pdf.londonstockexchange.com/rns/4067N_1-2022-5-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4067N_1-2022-5-31.pdf)

 

 

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 Regulations
(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, Director.

 

 

Enquiries:

 

 Xtract Resources Plc                               Colin Bird,          +44 (0)20 3416 6471

                                                    Executive Chairman   www.xtractresources.com (http://www.xtractresources.com)

 Beaumont Cornish Limited                           Roland Cornish       +44 (0)207628 3369

 Nominated Adviser and Joint Broker                 Michael Cornish      www.beaumontcornish.co.uk (http://www.beaumontcornish.co.uk)

                                                    Felicity Geidt

 Novum Securities Limited                           Jon Belliss          +44 (0)207 399 9427

 Joint Broker                                       Colin Rowbury        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
 "CuEq"                  Copper equivalent grade, calculated using assumed metal prices for copper,
                         gold and other metals

 "Induced Polarisation"  A deep-penetrating Induced Polarisation (IP) survey system that measures the
                         electrical properties (resistivity and chargeability) of sub-surface rocks

 "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

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DRLGZGFKGMKGZZM