REG - Xtract Resources plc - Bushranger Pre-Concentration Test Results

Xtract ResourcesAnnouncement

20/07/2023 09:15

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RNS Number : 6536G  Xtract Resources plc  20 July 2023

 

For immediate release

20 July 2023

 

Xtract Resources Plc

("Xtract" or the "Company")

Bushranger Pre-Concentration Test Results

 

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to
announce the results from a study to determine the applicability of the
"TOMRA" method to pre-concentrate copper-gold mineralisation from the
Racecourse Mineral Resource on the Bushranger Copper-Gold Project ("Project")
in central New South Wales, Australia.

 

Highlights

 

·    Completion of initial metallurgical test work with pre-concentration
ore sorting of Racecourse samples using "TOMRA" ore sorting technology
involving X-Ray Transmission and machine learning to sort mineralisation into
a pre-concentrated ore product and waste.

 

·    All samples processed with TOMRA achieved upgrades to the copper
content of the pre-concentrated material, with results in recovery varying
depending on the quantity of sulphide in each sample.

 

·    A higher-grade sample assaying 0.56% Cu upgraded well with TOMRA
treatment however with low metal recovery due to higher metals content in
waste fractions, suggesting that pre-concentration may not be beneficial for
higher-grade ore.

 

·    Excluding the higher-grade sample, the average input grade of typical
grade copper-gold mineralisation was 0.23% Cu, which was upgraded to 0.35% Cu,
giving a grade uplift of 52%.

 

·    The average mass yield was 36%, indicating that 64% of the original
mass of the samples was rejected into the waste product, suggesting that ore
sorting has the ability to increase the ore grade whilst reducing the mass to
be treated.

 

·    Pre-concentration results for gold also showed a grade uplift using
the TOMRA system, however the results are of limited significance to the
overall project.

 

·    TOMRA recommended additional testing on different sample material,
particularly higher-grade material to gauge amenability to ore sorting.

 

·    Xtract has engaged Optimal Mining Solutions (Pty) Ltd of Australia
("Optimal Mining") to incorporate the most recent TOMRA results into an
updated economic model for the overall Bushranger Project.

 

Colin Bird, Executive Chairman said: "We are pleased with the results from the
TOMRA pre-concentration study which demonstrate that we could achieve
significant upgrades to copper mineralisation in the pre-concentrated product,
while rejecting a lot of the initial material into waste. The higher-grade
sample did not benefit from ore sorting suggesting that the first 4 to 5 years
of open pit development when grades are significantly higher than the Project
average grade may not require pre-concentration.

The continuing economic study by independent consultants Optimal Mining will
model the impact of TOMRA pre-concentration on the overall economics of the
Project, while we also consider other pre-concentration routes for Bushranger
ore and we look forward to releasing an updated economic model for the
Bushranger Project."

 

Bushranger Project TOMRA Pre-Concentration Study

Following conclusion of the Phase 2 drilling programme on the Bushranger
Copper-Gold Project in central New South Wales, Australia, and the
finalisation of the upgraded Mineral Resource for the Racecourse Prospect,
Xtract undertook pre-concentration test work on five composite samples from
four drill holes. Pre-concentration of mineralisation reduces the amount of
material needed to be milled and placed through a flotation processing plan,
which in turn can reduce pre-production capital and operating costs, with
subsequent improvements in the overall economic performance of a project.

Xtract engaged TOMRA Sorting Solutions ("TOMRA") of Sydney, Australia, to
undertake the pre-concentration test work on the five samples. Data was
collecting using TOMRA's COM X-Ray Transmission ("XRT") system. The COM XRT
system detects mineralised particles and then sorts the material into a
pre-concentrated product and waste using amplified mechanical, hydraulic or
pneumatic processes. The sorter is set up / trained using images taken of the
samples.  The images are then analysed using proprietary TOMRA image
processing software. Based upon the images sorting task specific algorithms
are then developed and applied to sorting the mineralised material.

The Racecourse Prospect samples were submitted for TOMRA pre-concentration
test work as detailed in Table 1.

Table 1 - Bushranger Prospect Drill Samples Submitted for TOMRA Analysis

 

 Run  Drill Hole     From (m)  To (m)  Interval (m)  Cu%
 1    BRDD_21_036    61.00     89.00   28.00         0.20
 2    BRDD_21_010    180.00    198.00  18.00         0.24
 3    BRDD_21_022    290.00    308.00  18.00         0.25
 4    BRDD_21_021_B  227.00    243.00  16.00         0.56
 5    BRDD_21_021_A  173.00    187.00  14.00         0.21

 

For the training of the XRT sorter, samples were exposed to high energy
X-rays, which project an image onto a sensor. The X-ray sensor signal depends
on atomic density and material thickness and gives information on the inner
composition of the particles. By combining two energy levels simultaneously,
it is possible to differentiate particles by their atomic densities and then
separate material into a pre-concentrated product and waste.

 

The results of the TOMRA pre-concentration are given in Table 2.

 

 

 

 

 

 

 

 

Table 2 - Bushranger Prospect Drill Samples Results of TOMRA Analysis

 

 Run Number                               1      2     3     4     5     Avg.  Avg. (excl. high grade run 4)
 Cu Grade of Original Sample (Cu%)        0.20   0.24  0.25  0.56  0.21  0.29  0.23
 Back Calc. Original Grade (Cu%)*         0.15   0.26  0.32  0.52  0.20  0.29  0.23
 Product Grade (Cu%) following Pre-Conc.  0.35   0.35  0.41  0.94  0.30  0.47  0.35
 Waste Grade (Cu%)                        0.067  0.20  0.23  0.50  0.16  0.23  0.16

 Original Mass (Kg)                       22.5   32.7  10.5  13.7  11.9  18.3  19.4
 Pre-Conc. Product Mass (Kg)              7.1    12.2  5.1   0.7   3.3   5.68  6.9
 Waste Mass (Kg)                          15.4   20.5  5.4   13    8.6   12.6  12.5

 Original Contained Cu (kg)               3.4    8.5   3.4   7.1   2.4   5.0   4.4
 Pre-Conc. Product Contained Cu (kg)      2.4    4.2   2.1   0.66  1.0   2.1   2.4
 Mass Yield (%)                           31.6   37.3  48.6  5.1   27.7  30.0  36.3
 Metal Recovery (%)                       72.6   49.6  62.1  9.3   32    45.1  54

*Back calculation of initial Cu grade from final product for mass balance
purposes

 

Table 2 details the masses and Cu assays for the pre-concentrated materials
produced from this set of test work, as well as the back-calculated initial
sample copper grades. The back-calculated copper grades are slightly different
to the original copper grades as detailed in Table 1, due to the natural
variability of the copper mineralisation.

 

The primary sorting task was to produce a high-grade product fraction by way
of sulphide classification and ejection in a single stage for each sample. All
runs conducted for this set of test work were "Dual-Energy" XRT runs. This
form of processing is designed to classify and eject relatively high-density
sulphides away from the relatively low-density host-rock. All samples were
screened to a 20-40mm particle size with the exception of Run 1
(BRDD21_010_Comp) which was run at 25-75mm.

 

All five samples processed with TOMRA achieved upgrades to the copper and gold
content of the pre-concentrated ore, while rejecting significant volumes of
waste material, with one higher grade sample (Run 4) being an outlier.
Excluding the outlier, the average original grade of the four samples of
copper-gold mineralisation was 0.23% Cu, while the average grade of the
pre-concentrated mineralisation was 0.35% Cu, which shows a grade uplift of
52%.  The average mass yield was 36%, meaning that 64% of the original mass
of the sample was rejected into the waste product, suggesting that it will be
possible to greatly reduce the volume of material needed to be processed
through the milling and floatation circuits of a processing plant.

 

The TOMRA pre-concentration results do exhibit a significant amount of
variability depending on the quantity of sulphides in the original composite
drill core samples. The outlier was Run 4, which had the highest original feed
grade material (0.52% Cu), achieved the highest sorted product grade (0.94%
Cu), but in a very low mass (mass yield of 5.1%). This suggests that
higher-grade material may not benefit from ore sorting to the same extent as
the more typical deposit grades and would be more suited to direct processing.

The results overall show the potential of the TOMRA system to significantly
increase the copper grade into a pre-concentrated product while rejecting
potentially over 50% of the original rock mass into waste. The variability of
the results indicate that more samples would need to be tested in order to
determine an accurate average overall effect for TOMRA pre-concentration.

 

The pre-concentration results are sufficiently positive for the effects of
TOMRA pre-concentration to be incorporated into the overall financial model
for the Bushranger Project.  Consequently, Xtract has engaged Optimal Mining
Solutions (Pty) Ltd of Australia ("Optimal Mining") to incorporate the TOMRA
results into an updated economic model for the overall Bushranger 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

 

 

 

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:

 

 "Cu"              Copper
 "mineralisation"  Process of formation and concentration of elements and their chemical
                   compounds within a mass or body of rock

ENDS

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