REG - Xtract Resources plc - Bushranger Project drilling update

Xtract ResourcesAnnouncement

02/03/2022 07:00

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RNS Number : 2991D  Xtract Resources plc  02 March 2022

 

For immediate release

2 March 2022

 

Xtract Resources Plc

("Xtract" or the "Company")

Bushranger Project Drilling Update

 

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to
report on further work completed in the area inclusive of the southern
extension of Racecourse and the Ascot prospects on the Bushranger copper-gold
porphyry exploration project.

 

Highlights

 

·    Seven further exploratory drill holes have been completed on the
project, which were all located in the southern area between the Racecourse
and Ascot prospects

·    Initial core logging suggests that the Ascot mineralised zone extends
for at least 300m along strike

·    Drill holes BRDD-21-038, BRDD-21-039 & BRDD-21-040 were designed
to test for northerly and southerly extensions of Ascot. All three holes
intersected porphyritic intrusives and strongly altered volcanics, with
multiple intervals of weak to locally moderate chalcopyrite mineralisation,
including some stronger zones in BRDD-21-038, located 200m south of the Ascot
discovery hole

·    Drill holes BRDD-21-041, BRDD-21-042 & BRDD-21-043 were angled
towards the west into the southern extension of Racecourse, all holes
intersected porphyritic intrusives and strongly altered volcanics, with wide
zones of visible weak to locally moderate chalcopyrite, including several
sub-intervals of stronger mineralisation, all with the potential to extend the
Racecourse mineralisation to the south

·    Drill hole BRDD-21-037, planned to test a separate resistivity target
some distance to the east of Racecourse, appears to have drilled the outer
perimeter of the deposit, with relatively weak alteration and copper
mineralisation

·    Structural information suggests that the Racecourse porphyry swings
towards a southerly strike direction as it moves towards the south and
follow-up holes will be collared from drill pads located further to the west,
for which approval is expected shortly from the NSW authorities

 

Colin Bird, Executive Chairman said: "The drilling speeds and operations at
site are progressing very satisfactory with a lot of core being generated, and
geological logging results being vital to future decisions, the suite of holes
in this RNS are all assisting our knowledge of the ore bodies and their
disposition. We continue to amass good intersections whilst testing the
perimeters, which is necessary for final modelling.

The current geophysics together with this information, and once granted, the
new drill pads will allow us to efficiently target and move toward our stated
objectives. The results continue to give us confidence in the conceptual open
pit at Racecourse and the potential of the Ascot discovery."

 

Bushranger Drilling Update

 

Seven further drill holes have been completed on the Bushranger copper-gold
exploration project. The holes have all been concentrated to the south of
Racecourse, with a focus on developing the new Ascot discovery and finding
mineralised trends in the area between Racecourse and Ascot.

 

Drill hole BRDD-21-037 was drilled to the east of Racecourse, targeting an IP
resistivity anomaly on the eastern perimeter of the Racecourse deposit. The
hole was drilled at -50 degrees to the east and completed at a final depth of
400.3m. Some intrusive volcanics were intersected, along with traces of
chalcopyrite.

 

Drill holes BRDD-21-038 and BRDD-21-039 were drilled from the same drill pad
200m to the south of the discovery hole at Ascot. Both holes were drilled
towards the west, with drill hole 38 drilled at -50 degrees and completing at
a final depth of 659.6m, and drill hole 39 drilled at a steeper angle of -65
degrees and completing at a final depth of 664.1m. Both holes intersected
variously altered intrusive volcanics, with evidence of disseminated and
vein-hosted chalcopyrite from 69m depth and 45m depth to the end of hole depth
respectively. Logging of BRDD-21-038 in particular, located 200m south of the
Ascot discovery hole, recorded intervals of stronger copper mineralisation.

 

Drill hole BRDD-21-040 was drilled from the same drill pad as the Ascot
discovery hole, but angled slightly more towards the NW, with the intention of
extending the Ascot mineralisation by approximately 100m along strike to the
north. The hole was drilled at -40 degrees towards the northwest and completed
at a final depth of 777.2m having intersected intervals of intrusive volcanics
and chalcopyrite mineralisation from 36m depth to 760m depth.

 

Based on preliminary logging, and subject to laboratory assays, all three of
these drill holes drilled to test for extensions of mineralisation north and
south from Ascot have delivered intersections of visible chalcopyrite
mineralisation which has the potential to extend the Ascot mineralisation
along strike by up to 300m.

 

Drill hole BRDD-21-041, drilled at a shallower angle from the same pad as
drill hole BRDD-21-032 (see announcement dated 17(th) December 2021), the hole
aimed to test for potential mineralisation above drill hole 32, which
intersected significant lengths of porphyritic alteration. The hole was
drilled at -55 degrees to the WSW, and completed at a depth of 691.9m. The
hole intersected strongly altered volcanics with intervals of weak to moderate
chalcopyrite mineralisation from 135m to 631m depth, suggesting that stronger
mineralisation could be situated further to the west.

 

Drill holes BRDD-21-042 & BRDD-21-043 were drilled from the same drill pad
above previous hole BRDD-21-027 (see announcement dated 19(th) November 2021)
beyond the southern extents of the Racecourse Inferred Mineral Resource. Both
drill holes were drilled towards the west at angles of -55 degrees and -65
degrees respectively and completed at depths of 653.6m and 750.7m. Both holes
intersected strongly altered volcanics with inclusions of intrusive volcanics
and weak to moderate zones of chalcopyrite mineralisation which have the
potential to extend the Racecourse mineralisation further south.

 

All of this follow-up drilling was originally sited to test historical IP
anomalies, however recent modelling suggests that the Racecourse
mineralisation swings towards a southerly strike in this southern area and
therefore the location of these recent drill holes may have been sub-optimal
to define extensions of the Racecourse mineralisation towards the south. The
approval of new drill pad locations is currently being processed and a
positive outcome is expected shortly.

 

http://www.rns-pdf.londonstockexchange.com/rns/2991D_1-2022-3-2.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2991D_1-2022-3-2.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                           Colin Rowbury        +44 (0)207 399 9427

 Joint Broker                                                            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:

 

 "Chalcopyrite"                A copper-iron sulphide mineral, CuFeS(2), often found in copper ores.

 "Induced Polarisation (IP)"   An electrical geophysical exploration technique which measures the
                               polarizability and resistivity of rocks below the surface

 "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

 "Porphyritic"                 A rock texture containing distinct crystals or crystalline particles embedded
                               in a compact groundmass

 "Resistivity"                 A geophysical exploration technique utilising the variable electrical
                               resistivity or conductivity of different rock types.

ENDS

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