REG - Xtract Resources plc - Bushranger Project Assay Results

Xtract ResourcesAnnouncement

19/01/2022 15:50

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RNS Number : 9971Y  Xtract Resources plc  19 January 2022

 

For immediate release

19 January 2022

 

Xtract Resources Plc

("Xtract" or the "Company")

Bushranger Project Assay Results

 

 

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to
announce that the second drill hole (BDDD-21-035), drilled into the newly
discovered Ascot Prospect, on the Bushranger porphyry copper-gold project in
New South Wales Australia, has delivered a significant intersection of copper
and gold confirming Ascot as a high potential discovery. Drilling is ongoing
to define the extents of the Ascot intrusion and to better understand the
distribution of copper and gold mineralisation.

 

Highlights

 

·    Drill hole BRDD-21-035 intersected several intervals of copper and
gold mineralisation over a wide 520m downhole zone from 166m to 686m depth,
confirming the Ascot prospect as a new discovery of high potential, located
1.5km to the south-east of the existing Racecourse deposit.

·    BRDD-21-035 delivered a best interval of 64m at 0.58% CuEq from 552m,
within a broader zone of 164m at 0.34% CuEq from 552m (full detail are in
Table 1 below)

·    The mineralisation intersected in BRDD-21-035 is amongst the widest
and highest-grade copper-gold intersections recorded to date on the Bushranger
Project.

·    The Ascot prospect appears to be enhanced in gold compared to the
Racecourse deposit, suggesting that Ascot is a separate mineralised porphyry
intrusion to Racecourse, further enhancing its potential.

·    Drilling is ongoing at Ascot with the objective of defining the
extents of the mineralisation and the distribution of copper and gold
associated with the intrusion.  Drilling and a MIMDAS geophysical survey is
also being planned for the 1.5km section between Racecourse and Ascot to
determine how the two intrusions relate spatially.

·    Drill holes BRDD-21-018 and BRDD-21-022 testing the north-western
extension of the Racecourse porphyry body at depth, returned wide intervals of
copper mineralisation, including:

§ 170m at 0.22% CuEq from 528m in BRDD-21-018 including 12m at 0.41% CuEq
from 648m (full details are in Table 2 below)

§ 144m at 0.28% CuEq from 522m in BRDD-21-022 (full details are in Table 3
below)

·    BRDD-21-017, targeting an outlying IP anomaly to the north-east of
the main Racecourse porphyry, intersected sporadic copper mineralisation up to
0.19% Cu

 

Colin Bird, Executive Chairman said: "Drill hole BRDD-21-035 is the first hole
to follow up drill hole BRDD-21-033, which was the discovery hole at Ascot,
and has delivered one of the widest and highest-grade copper-gold
intersections on the Bushranger Project.  Importantly, Ascot appears to have
enhanced levels of gold in comparison to the Racecourse Prospect and this
further increases the potential of the Ascot prospect.  Given Ascot's
potential we are extending our Phase 2 drilling programme with the objective
of defining the limits of Ascot.  We also want to determine how Ascot relates
to Racecourse, 1.5km to the north, and whether the region between the two
intrusions is continuously mineralised as we suspect it could be. 2022 could
not have started in a better way for Xtract given the results which the
overall Bushranger Project continues to deliver."

Ascot Prospect Drill Hole Assay Results

Drill hole BRDD-21-035 was the second hole drilled into the Ascot discovery,
situated 1.5km to the south-east of the Racecourse Prospect and followed up
the encouraging results recorded in drill hole BRDD-21-033, the discovery hole
at Ascot.  BRDD-21-035 was drilled at an inclination of -60 degrees towards
the west and was completed at a final depth of 750m, whereas drill hole
BRDD-21-033 was drilled at an inclination of -70 degrees towards to the east
and was completed at a final depth of 783.7m.

 

BRDD-21-035 hole returned substantial intervals of copper and gold
mineralisation with a best intercept of 164m at 0.35% CuEq from 552m, which
includes 64m at 0.58% CuEq from 552m. These first drill assay results from
Ascot indicate the potential for significant gold enhancement associated with
the copper mineralisation and the Company awaits with interest further drill
hole results.

Table 1 -Assay Results from Drill Hole BRDD-21-035*

 Hole ID      From (m)  To (m)  Interval (m)  Cu (%)    Au (g/t)  Ag (g/t)  CuEq (%)
 BRDD-21-035  166.00    232.00  66            0.19      0.09      2.08      0.26
 Including    194.00    212.00  18            0.30      0.13      2.76      0.39
              356.00    408.00  52            0.19      0.10      0.61      0.26
 Including    394.00    402.00  8             0.36      0.25      1.70      0.52
              552.00    716.00  164           0.24      0.17      1.43      0.35
 Including    552.00    616.00  64            0.38      0.30      2.26      0.58
              676.00    686.00  10            0.31      0.16      2.28      0.43

Notes:

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

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

*** Variable cut-off used >0.15 CuEq%

 

The enhanced gold mineralisation in drill hole BRDD-21-035, suggests that
Ascot and Bushranger are separate intrusions, and this enhances the overall
potential of Ascot, which is potentially open in all directions.
Furthermore, results reported by the Company in 2021 for drilling at the
southern section of the Racecourse Prospect indicate that Racecourse is open
to the south, opening up the possibility that there could be continuous
copper-gold mineralisation in the 1.5km gap between Ascot and Racecourse.
 Xtract is extending the Phase 2 drill programme to test this hypothesis.

 

Racecourse Prospect Drill Hole Assay Results

Drill Hole BRDD-21-018 was the first hole of a trio of holes drilled from the
same drill pad at the north-western limits of the Racecourse Inferred Mineral
Resource, investigating the extension of the Racecourse mineralisation to the
north-west. The hole was drilled at an inclination of -50 degrees towards the
E-NE and was completed at a final depth of 732.6m. Assay results from the hole
returned an intersection of 170m of 0.22% CuEq from 520m depth, which includes
a higher-grade interval of 12m at 0.41% CuEq from 648m downhole. BRDD-21-018
has the potential to extend the known Racecourse Inferred Mineral Resource to
the north-west and the company awaits the results of drill holes BRDD-21-020
& BRDD-21-023, which have further tested the north-west extension of the
Racecourse Inferred Mineral Resource.

 

 

 

 

Table 2 - Assay Results from Drill Hole BRDD-21-018*

 Hole ID      From (m)  To (m)  Interval (m)  Cu (%)  Au (g/t)  Ag (g/t)  CuEq (%)
 BRDD-21-018  528       698     170           0.16    0.09      0.74      0.22
 Including    642       686     44            0.25    0.05      1.05      0.29
 Including    648       660     12            0.33    0.11      1.33      0.41

Notes:

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

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

*** Variable cut-off used >0.15 CuEq%

 

Drill holes BRD-21-017 and BRDD-21-022 were drilled from one drill pad located
on the eastern limb of the Central Racecourse Intrusion, in the north-east
corner of the deposit.

 

Drill hole BRDD-21-022 drilled towards the W-SW at a steep angle of -80
degrees and was designed to test the down-plunge continuity of the eastern
limb of the Racecourse deposit. The hole returned promising results having
intersected a wide interval of consistent copper mineralisation from a
downhole depth of 209m to 718m, with copper mineralisation greater than 0.2%
CuEq reported in intervals over 289m of this 509m down hole length.

 

Table 3 - Assay Results from Drill Hole BRDD-21-022*

 Hole ID      From (m)  To (m)  Interval (m)  Cu (%)    Au (g/t)  Ag (g/t)  CuEq (%)
 BRDD-21-022  209.00    218.00  9             0.27      0.01      0.64      0.28
              244.00    266.00  22            0.19      0.01      0.40      0.20
 including    258.00    264.00  6             0.29      0.00      0.60      0.30
              278.00    284.00  6             0.24      0.00      0.73      0.25
              290.00    350.00  60            0.24      0.00      0.61      0.24
 including    290.00    320.00  30            0.30      0.00      0.72      0.30
              376.00    386.00  10            0.26      0.00      0.48      0.26
              522.00    666.00  144           0.25      0.02      1.39      0.28
              686.00    718.00  32            0.22      0.01      1.93      0.24

Notes:

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

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

*** Variable cut-off used >0.15 CuEq%

 

Drill hole BRDD-21-017 targeted an outlying IP anomaly to the north-east of
the main Racecourse porphyry mineralisation, the hole returned some anomalous
copper with selected 2m samples assaying up to 0.19% Cu, however this is not
considered to be an immediate follow-up drill target at this stage.

 

 

Bushranger Project Drill Hole Location Plan

 

http://www.rns-pdf.londonstockexchange.com/rns/9971Y_1-2022-1-19.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9971Y_1-2022-1-19.pdf)

 

Ascot Prospect Geological Cross Section for Drill Hole BRDD-21-035

 

http://www.rns-pdf.londonstockexchange.com/rns/9971Y_2-2022-1-19.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9971Y_2-2022-1-19.pdf)

 

Racecourse Prospect Geological Cross Section for Drill Hole BRDD-21-018

 

http://www.rns-pdf.londonstockexchange.com/rns/9971Y_3-2022-1-19.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9971Y_3-2022-1-19.pdf)

 

Racecourse Prospect Geological Cross Section for Drill Hole BRDD-21-022

 

http://www.rns-pdf.londonstockexchange.com/rns/9971Y_4-2022-1-19.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9971Y_4-2022-1-19.pdf)

 

Bushranger Project Copper-Gold Intersection Summary Table

 

http://www.rns-pdf.londonstockexchange.com/rns/9971Y_5-2022-1-19.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9971Y_5-2022-1-19.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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