REG - Xtract Resources plc - Bushranger assay results and drilling update

Xtract ResourcesAnnouncement

19/11/2021 11:45

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RNS Number : 9967S  Xtract Resources plc  19 November 2021

 

For immediate release

19(th)  November 2021

 

Xtract Resources Plc

("Xtract" or the "Company")

Bushranger Project Assay Results and Phase 2 Drilling Update

 

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to
report on independent laboratory assays for drill hole BRDD-021-016 and two
further holes completed on the Phase 2 diamond drilling programme at the
Bushranger copper-gold exploration project.

 

Highlights

 

·    Drill hole BRDD-21-016 has returned promising intersections of copper
and gold mineralisation near the southern limits of the currently estimated
Racecourse Inferred Mineral Resource

·    Assay results include 14m at 0.39% CuEq from 250m depth within a
wider zone of 142m at 0.21% CuEq from 170m (details in Table 1 below)

·    Elevated gold values (40m @ 0.23g/t Au from 596m) below the main
Racecourse porphyry body, along with a coincident IP anomaly, suggest that a
secondary porphyry body may occur at depth below the main Central Porphyry
Intrusion

·    Drillhole BRDD-021-026 tested the extension of mineralisation at
depth on the western side of the central part of the Racecourse deposit. Based
on preliminary logging and subject to laboratory assays, variable strength
chalcopyrite mineralisation occurs over a 282.5m interval from 367m downhole

·    Drillhole BRDD-021-027 was the second hole of the Phase 2 drilling
programme drilled with a westerly azimuth and is interpreted to have passed
close to the high-grade "crown" at the top of the intrusion. Based on
preliminary logging and subject to laboratory assays, the hole intersected a
371m down hole interval of variable strength visible copper mineralisation
from 97m depth

Colin Bird, Executive Chairman said: "The results of hole BRDD-21-016 have
again showed good runs of copper grade, with mineralisation over a 142m
interval, of interest was a secondary zone of gold intercepted at 596m, which
graded up to 8m at 0.66 g/t Au. The mineralisation in hole 16 was intersected
at depth and below the crown, although it appears that gold manifests at
deeper levels. The recent drilling results suggest that the copper
mineralisation extends further south than indicated by the mineral resource
model and the results give us increased encouragement for the potential of the
orebody to progress further south, or indeed, new porphyry systems to be
discovered."

Phase Two Bushranger Prospect Assay Results - Drill Hole BRDD-21-016

 

Table 1 - Assay Results from Drill Hole BRDD-21-016*

 Hole ID       From (m)  To (m)  Interval (m)  Cu (%)    Au (g/t)  Ag (g/t)  CuEq (%)
 BRDD_021-016  34        44      10            0.23      0.01      1.80      0.25
               134       140     6             0.32      0.06      0.70      0.36
               170       312     142           0.20      0.01      0.10      0.21
 Including     178       190     12            0.36      0.01      0.50      0.37
 and           250       264     14            0.38      0.01      0.40      0.39
               596       636     40            0.01      0.23      0.90      0.15
 Including     628       636     8             0.01      0.66      0.30      0.41

 

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

**CuEq Formula: CuEq = Cu% + 0.5884xAu (g/t) + 0.0078xAg (g/t)

 

 

Drillhole BRDD-021-016 was designed test the extension of mineralisation in
the modelled Racecourse deposit towards the south and was drilled at an
inclination of -70 degrees towards the east (refer to RNS dated 14 September
2021). Assay results have confirmed an overall interval of 142m grading at
0.21% CuEq from 170m downhole, at today's metal prices, and, within the larger
interval, the copper values grade up to 14m at 0.39% CuEq from 250m downhole.

 

A relatively broad zone of elevated gold was also intersected at depth,
including a 40m downhole interval which graded 0.23g/t Au and included 8m at
0.66 g/t Au from 628m downhole. This zone occurs on the eastern side of the
Central Racecourse mineralised porphyry body and has not been significantly
drill tested to date. The area is proximal to an induced polarisation
resistivity low anomaly and could signify that a second mineralised porphyry
body is close by at depth. Further drilling to test this zone has been planned
as part of the second stage of the Phase 2 drilling programme (Refer to RNS
dated 13 October 2021).

 

Bushranger Phase Two Drilling Update - Drill Holes BRDD-21-026 &
BRDD-21-027

Drill hole BRDD-21-026 was drilled at an inclination of -60 degrees towards
the east and was completed at a final depth of 678.4m. The hole was drilled
into the side of the Central porphyry body and it was designed to test the
extension of the mineralisation at depth in the main central zone of the
Racecourse porphyry deposit. Based on preliminary logging and subject to
laboratory assays, visible chalcopyrite was first logged from 177m downhole,
with a 282.5m downhole interval of variable strength copper mineralisation
occurring from 367m downhole.

Drill hole BRDD-021-027 was the second drillhole of the Phase 2 programme
drilled with a westerly azimuth. The hole was designed to test the high-grade
"crown" at the top of the Racecourse porphyry system and the along strike
continuation of the Racecourse deposit further to the south. The hole was
drilled at an inclination of -80 degrees and completed at a final depth of
580m. Based on preliminary logging and subject to laboratory assays a 371m
down hole interval of variable strength visible copper mineralisation was
intersected from 97m downhole. This is interpreted to extend the
mineralisation drilled in hole BRDD-021-024 by 300m further to the southeast
(refer to RNS 9(th) November 2021).

Further holes have been planned to test the along-strike continuation of the
Racecourse porphyry system further towards the south and these holes are
currently in progress.

 

Bushranger Prospect Drill Hole Location Plan

 

http://www.rns-pdf.londonstockexchange.com/rns/9967S_1-2021-11-19.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9967S_1-2021-11-19.pdf)

 

Drill Hole BRDD-21-013 and BRDD-21-016 Cross Section

 

http://www.rns-pdf.londonstockexchange.com/rns/9967S_2-2021-11-19.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9967S_2-2021-11-19.pdf)

 

Racecourse Prospect Summary of Mineralised Intersections

 

http://www.rns-pdf.londonstockexchange.com/rns/9967S_3-2021-11-19.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9967S_3-2021-11-19.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 (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

 "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
 "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

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