REG - Xtract Resources plc - Ascot Prospect Maiden Mineral Resource
19/12/2022 11:45
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RNS Number : 1852K Xtract Resources plc 19 December 2022
For immediate release
19 December 2022
Xtract Resources Plc
("Xtract" or the "Company")
Ascot Prospect Maiden Mineral Resource
The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to
announce the maiden Mineral Resource Estimate for the Ascot Prospect, on the
Bushranger Copper-Gold Project in central New South Wales, Australia,
following the discovery of a new porphyry system at the Ascot Prospect in
December 2021. The maiden Ascot Inferred Mineral Resource adds a further
approximately 190,000 tonnes of copper equivalent metal to the 1.1Mt reported
previously at the Bushranger Project.
Highlights
· A maiden Inferred Mineral Resource Estimate for the Ascot Prospect at
the Bushranger Project is reported by independent consultants Measured Group
Pty Limited ("Measured Group") as 87Mt @ 0.22% CuEq*, at a cut-off of 0.1%
CuEq, containing 0.19Mt of copper equivalent metal and classified as Inferred
in accordance with JORC (2012)
· The Ascot Prospect copper-gold mineralisation and the Racecourse
Prospect copper-gold mineralisation to the north (refer to RNS 23 November
2022), together contain approximately 1.3Mt of contained copper-equivalent
metal
· The copper-gold mineralisation at the Ascot Prospect comes to surface
and contains a higher-grade section of 34Mt @ 0.33% CuEq, reported at a
cut-off of 0.2% CuEq
· When combined with the shallower higher grade zone previously
reported for Racecourse, this gives a total of 225Mt @ 0.33% CuEq of
potentially open pittable mineralisation for the Bushranger Project
· With the maiden Mineral Resource defined for the Ascot Prospect and
the updated Mineral Resource estimated for the Racecourse Prospect, Xtract has
now engaged independent consultants, Optimal Mining Solutions (Pty) Ltd of
Australia, to update the July 2021 open pit mining study for the Bushranger
Project, to determine the economics of a 25Mtpa open pit mining operation,
utilising the Mineral Resources at both the Racecourse and Ascot prospects
· The Ascot Prospect remains open down-dip and to the south, where an
untested IP geophysical anomaly occurs
*CuEq % = (Cu%) + (Au g/t * 0.6577) + (Ag g/t * 0.008769)
Cu Price = US$8800/t, Au Price = US$1800/Oz, Ag Price = US$24/Oz
Colin Bird, Executive Chairman said: "A 17% increase in the total copper
equivalent tonnes to 1.3Mt CuEq with the addition of Ascot is a significant
increase in the Bushranger Mineral Resource, particularly when dealing with
large tonnage, moderate grade deposits of this nature. The combined resource
of 225Mt @ 0.33% copper equivalent mineralisation in the shallower parts of
Racecourse and Ascot deposits is comparable with many operating deposits
around the world, providing the basis for real impetus for the recently
commissioned Open Pit Mining Study. These resources could potentially be
scheduled for production during the important early years of production,
supporting a 9-year mining operation at a projected rate of 25Mtpa. When we
acquired the Project, we had a resource of approximately 300kt copper metal
and we have now increased the resource to approximately 1.3Mt of copper
equivalent metal. Racecourse remains open to further extension whilst Ascot
remains open ended down-dip and to the south, which bodes well for further
resource expansion."
Bushranger Copper-Gold Project Racecourse and Ascot Mineral Resources
http://www.rns-pdf.londonstockexchange.com/rns/1852K_1-2022-12-19.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1852K_1-2022-12-19.pdf)
Ascot Project Cross-Section (6,250,500 N)
http://www.rns-pdf.londonstockexchange.com/rns/1852K_2-2022-12-19.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1852K_2-2022-12-19.pdf)
Ascot Project Long Section NW-SE
http://www.rns-pdf.londonstockexchange.com/rns/1852K_3-2022-12-19.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1852K_3-2022-12-19.pdf)
Ascot Prospect Mineral Resource Estimate
From July 2021 until July 2022, Xtract completed a Phase 2 diamond drilling
programme totalling 49 drill holes for 32,695m of drilling at the Racecourse
and Ascot prospects on the Bushranger Project in central New South Wales,
Australia. This included 17 holes for 9,697.4m of drilling into the new Ascot
Prospect, where the discovery hole BRDD-21-035 returned a best interval of 64m
@ 0.58% CuEq from 552m downhole.
The Ascot mineralisation extends north-west from the discovery drill hole
and terminates approximately 200m south-east of the southern limit of the
Racecourse Mineral Resource. Mineralisation is open to the south, where an IP
anomaly remains untested. To the west of the Ascot Prospect, a second untested
IP anomaly also occurs. The Ascot mineralisation also is open down-dip.
Given there are untested IP anomalies and with the Ascot Prospect
mineralisation being open to the south and down-dip, there is potential to
further increase the resource base at the Ascot Prospect.
Following the completion of the Phase 2 drilling programme on the Bushranger
Project, an initial 3-dimensional geological model was defined for the Ascot
Prospect. Geochemical assay data, along with the initial Ascot geological
model, were used to estimate a maiden Mineral Resource for the Ascot Prospect.
The maiden Mineral Resource estimate for the Ascot Prospect, which has been
prepared at different cut-off grades by independent consultants, Measured
Group, based in Brisbane, Australia, is detailed in Tables 1 and 2 below and
was prepared in accordance with JORC (2012) and in compliance with Appendix 3
of the AIM Note for Mining and Oil & Gas Companies - June 2009.
Measured Group have reported a Mineral Resource estimate 87Mt @ 0.22% CuEq*,
reported at a cut-off of 0.1% CuEq, containing 0.19Mt of copper equivalent
metal in accordance with JORC (2012) and classified as Inferred.
Table 1 - Ascot Prospect Mineral Resource Estimate
Average Values Contained Metal
Resource Classification Mass (kt) Cu (%) Au (g/t) Ag (g/t) CuEq (%) Cu (tonnes) Au (t.oz) Ag (t.oz) CuEq (tonnes)
Inferred 87,041 0.15 0.09 1.39 0.22 128,125 246,365 3,944,078 189,110
Notes:
1. Xtract owns 100 per cent. of ProspectOre Ltd, the operator of the
Bushranger Project and gross and net attributable resources are therefore the
same.
2. Mineral Resources are reported in accordance with JORC guidelines.
Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability.
3. All figures are rounded to reflect appropriate levels of
confidence.
4. Apparent differences in totals may occur due to rounding.
5. A cut-off grade of 0.1% CuEq has been used applying a copper price
of US$8,800/t, a gold price of US$1,800/Oz and a silver price of US$24/Oz
6. The Mineral Resource estimate is based on information reviewed by
Measured Group, with an effective date of 16 December 2022.
7. CuEq Formula : CuEq % = (Cu%) + (Au g/t * 0.6577) + (Ag g/t *
0.008769)
Table 2 - Ascot Prospect Grade vs Tonnage estimates using CuEq cut-offs
CuEq** Cu (%) Au (g/t) Ag (g/t) CuEq** (%) Tonnage CuEq
Cut Off (%) (Kt) (Contained Tonnes)
0 0.13 0.08 1.24 0.19 105,969 203,716
0.05 0.13 0.08 1.25 0.19 104,852 203,333
0.1 0.15 0.09 1.39 0.22 87,041 189,110
0.15 0.18 0.11 1.61 0.27 56,159 150,596
0.2 0.22 0.14 1.98 0.33 33,984 112,276
0.25 0.27 0.19 2.58 0.42 18,713 78,097
Notes:
1. Xtract owns 100 per cent. of ProspectOre Ltd, the operator of the
Bushranger Project and gross and net attributable resources are therefore the
same.
2. Mineral Resources are reported in accordance with JORC guidelines.
Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability.
3. The Mineral Resource estimate is based on information reviewed by
Measured Group, with an effective date of 16 December 2022.
4. CuEq Formula: CuEq % = (Cu%) + (Au g/t * 0.6577) + (Ag g/t *
0.008769)
The Ascot Prospect copper-gold mineralisation extends to surface and has been
drilled to a vertical depth of approximately 650m. A higher-grade section of
the Ascot Prospect mineralisation contains 34Mt @ 0.33% CuEq, reported at a
cut-off of 0.2% CuEq, which is equivalent to the cut-off used by Alkane
Resources Limited for the maiden Mineral Resource for the Boda Prospect, and
has the potential to positively impact the economics of any open pit mining
operation on the Bushranger Project. The Ascot Mineral Resource uses a cut-off
grade of 0.1% Cu, based on analysis of the Grade vs Tonnage curve, prevailing
commodity prices, the 2021 Optimal Mining report for the adjacent Racecourse
deposit which suggested that mining to 0.15% Cu cut-off at Bushranger could
produce a positive economic return, and to facilitate direct correlation with
the Racecourse resource estimate.
Further Plans
Now that the maiden Ascot Prospect Mineral Resource has been estimated and the
Racecourse Prospect Mineral Resource updated with all the Phase 2 drilling
data, Xtract has again contracted independent consultants Optimal Mining
Solutions (Pty) Ltd to update the Bushranger Project open pit mining study.
The update to the open pit mining study will examine the economics of a 25Mtpa
open pit mining operation extracting both the Ascot and Racecourse Mineral
Resources. Xtract estimates that the update to the open pit mining study will
be completed early in 2023. Following the updating of the open pit mining
study, Xtract will determine the optimum way to further advance the Bushranger
Project and advise shareholders and the market early in 2023 of the Company's
plans for the Project.
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, Executive Chairman and 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
Maiden Mineral Resource Estimate for the Ascot Prospect - Qualified Person
The information in this announcement that relates to the maiden Mineral
Resource Estimate for the Ascot Prospect has been prepared by Mr Christopher
Grove of Measured Group and who has acted as the Qualified Person. Mr
Christopher Grove, who has reviewed and confirmed the statements related to
the mineral resource estimate set out herein, is a Competent Person as defined
by the JORC Code 2012 Edition, having at least five years of experience that
is relevant to the style of mineralisation and type of deposit described in
the mineral resources report, and to the activity for which he accepts
responsibility. Mr Christopher Grove is a Member of The Australasian Institute
of Mining and Metallurgy (AusIMM) and a full-time employee of Measured Group
and has more than 25 years of experience in the estimation of mineral
resources both in Australia and overseas. This expertise has been acquired
principally through exploration and evaluation assignments at operating mines
and exploration areas.
Mr Christopher Grove has reviewed the information in this announcement that
relates to the mineral resource estimate and has confirmed that the
information so presented in this announcement is balanced and complete and not
inconsistent with Measured Group's audit and review of the maiden Mineral
Resource Estimate.
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.
Mineral Reserves and Resources
The Company estimates and discloses mineral reserves and resources using the
definitions adopted by JORC. Further details are available at
www.jorc.org. See the "Glossary of Geological and Mining Terms" for complete
definitions of mineral reserves and mineral resources.
About Mineral Resources
Mineral resources are not mineral reserves and do not have demonstrated
economic viability but do have reasonable prospect for economic extraction.
They fall into three categories: measured, indicated, and inferred. The
reported mineral resources are stated inclusive of mineral reserves.
Measured and indicated mineral resources are sufficiently well-defined to
allow geological and grade continuity to be reasonably assumed and permit the
application of technical and economic parameters in assessing the economic
viability of the mineral resource. Inferred mineral resources are estimated on
limited information not sufficient to verify geological and grade continuity
or to allow technical and economic parameters to be applied. Inferred
mineral resources are too speculative geologically to have economic
considerations applied to them. There is no certainty that mineral resources
of any category will be upgraded to mineral reserves.
Important Information about Mineral Reserve and Resource Estimates
Whilst the Company takes all reasonable care in the preparation and
verification of the mineral reserve and resource figures. the figures are
estimates based in part on forward-looking information. Estimates are based on
management's knowledge, mining experience, analysis of drilling results, the
quality of available data and management's best judgment. They are, however,
imprecise by nature, may change over time, and include many variables and
assumptions including geological interpretation, commodity prices and currency
exchange rates, recovery rates, and operating and capital costs. There is no
assurance that the indicated levels of metal will be produced, and the Company
may have to re-estimate the mineral reserves based on actual production
experience. Changes in the metal price, production costs or recovery rates
could make it unprofitable to operate or develop a particular deposit for a
period of time.
Forward Looking Statements
Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''will'' or the negative of
those, variations or comparable expressions, including references to
assumptions. These forward-looking statements are not based on historical
facts but rather on the Directors' current expectations and assumptions
regarding the Company's future growth, results of operations, performance,
future capital and other expenditures (including the amount, nature and
sources of funding thereof), competitive advantages, business prospects and
opportunities. Such forward looking statements reflect the Directors' current
beliefs and assumptions and are based on information currently available to
the Directors. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking statements
including risks associated with vulnerability to general economic and business
conditions, competition, environmental and other regulatory changes, actions
by governmental authorities, the availability of capital markets, reliance on
key personnel, uninsured and underinsured losses and other factors, many of
which are beyond the control of the Company. Although any forward-looking
statements contained in this announcement are based upon what the Directors
believe to be reasonable assumptions, the Company cannot assure investors that
actual results will be consistent with such forward looking statements.
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 (IP)" A method of ground geophysical surveying which employs the passing of an
electrical current into the ground to test for indications of conductive
metallic sulphides
"Indicated Mineral Resource" That part of a Mineral Resource for which quantity, grade (or quality),
densities, shape and physical characteristics are estimated with sufficient
confidence to allow the application of Modifying Factors in sufficient detail
to support mine planning and evaluation of the economic viability of the
deposit. Geological evidence is derived from adequately detailed and reliable
exploration, sampling and testing gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes, and is
sufficient to assume geological and grade (or quality) continuity between
points of observation where data and samples are gathered. (JORC 2012)
"Inferred Mineral Resource" That part of a Mineral Resource for which 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 2012)
"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
"Mtpa" Million tonnes per annum
ENDS
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