REG - Xtract Resources plc - Bushranger Project Phase 2 Drilling Update

Xtract ResourcesAnnouncement

09/11/2021 12:30

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RNS Number : 8164R  Xtract Resources plc  09 November 2021

 

For immediate release

9 November 2021

 

Xtract Resources Plc

("Xtract" or the "Company")

Bushranger Project Phase 2 Drilling Update

 

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to
provide an update regarding the ongoing Racecourse prospect Phase 2 drilling
programme, with the completion of drill holes BRDD-21-024 and BRDD-21-025.

 

Highlights

 

·    Drillhole BRDD-21-024 tested the along strike southern continuation
of mineralisation intersected in drillholes BRDD-21-013 & BRDD-21-016 and
intersected a 453m interval of variable visible copper mineralisation,
indicating the potential to extend thick sequences of copper mineralisation
directly south of the existing limit of the Racecourse Inferred Mineral
Resource. Follow up drilling is being undertaken.

·    Drillhole BRDD-21-025 was a step-out hole designed to test a large
geophysical anomaly approximately 750m SE of the limit of the current
Racecourse Inferred Mineral Resource. The hole intersected traces of visible
copper mineralisation and lengthy zones of porphyry-related alteration with
associated sheeted veining and some thin fingers of porphyry intrusions.

·    BRDD-21-025 may indicate the potential for a cluster of mineralised
porphyry intrusions at Racecourse, as found at Newcrest's giant Cadia-Ridgeway
mine elsewhere on the Lachlan Fold Belt.

 

Colin Bird, Executive Chairman Said: "Both of the new holes are significant in
their own right. Hole BRDD-21-024 to the south adds further potential
extensions to the conceptual open pit with an appreciable thickness of copper
mineralisation on visual examination, including four zones of stronger
mineralisation.

Hole BRDD-21-025 is the first hole into our own-generated geophysical target
SE of the Racecourse resource area and is highly encouraging in that porphyry
alteration and mineralisation has been encountered, but possible downsides
have not - the hole could have drilled into pyritic black shale or, indeed,
barren massive pyrite, either of which would have dampened our expectations.
The geophysical signature is very large and the anomaly is distant from
Racecourse, thus we are excited about the potential for discovery of further
mineralised porphyries in this area."

 

Bushranger Phase Two Drilling Update - Drill Holes BRDD-21-024 &
BRDD-21-025

Drill hole BRDD-21-024 was drilled at an inclination of -60 degrees towards
the NW and completed at a final depth of 660.6m. The hole was designed to test
the southern extension of mineralisation intersected in holes BRDD-21-013
& BRDD-21-016 (Refer to RNS dated 2 & 14September 2021). The hole
intersected a 453m wide zone of variable strength visible chalcopyrite on the
main eastern limb of the Racecourse porphyry system, from 73m downhole, and
passed through four zones of more intense mineralisation associated with
strongly altered porphyry & volcanic rocks from 83m to 151m, 236m to
246.5m, 343m to 360m and 408m to 452m, subject to laboratory assays.

The southern extremity of the current Racecourse Mineral Resource model
includes only thin intersections of copper mineralisation from historical
drilling. The intersection in hole BRDD-21-024 demonstrates that the thick
sequence of copper mineralisation intersected in holes BRDD-21-013 and
BRDD-21-016 does not pinch out as currently modelled, opening up the area
directly south of the current Inferred Mineral Resource to host wide
intersections of copper.

Drill hole BRDD-21-025 was the first step-out hole drilled into a large MIMDAS
(IP) combined chargeability and resistivity anomaly to the SE of the
Racecourse deposit. As part of the second stage of the Phase 2 drilling
programme (Refer to RNS 1 dated 3 October 2021), a series of holes were
designed to test a number of co-incident MIMDAS (IP) and magnetic anomalies
with the potential to define new areas of mineralisation in the vicinity to
the Racecourse deposit. BRDD-21-025 was drilled at -60 degrees towards the NE
and was completed at a final depth of 648.6m. The hole intersected two zones
of characteristic porphyry related alteration and associated sheeted veining
and some thin fingers of porphyry intrusions, including trace amounts of
disseminated and vein-hosted chalcopyrite with pyrrhotite/pyrite. The hole is
interpreted to have possibly drilled above two copper porphyry mineralisation
zones, with the porphyry fingers and indications of mineralisation suggesting
that the main porphyry intrusion could be below. A number of further holes
planned as part of the current programme will be drilled into this new
prospect in order to identify if the potential exists to define a new
mineralisation zone SE of Racecourse.

 

Bushranger Prospect Drill Hole Location Plan on Induced Polarisation Image

 

http://www.rns-pdf.londonstockexchange.com/rns/8164R_1-2021-11-9.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8164R_1-2021-11-9.pdf)

 

Racecourse Prospect Geological Cross Section for Drill Hole BRDD-21-024

 

http://www.rns-pdf.londonstockexchange.com/rns/8164R_2-2021-11-9.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8164R_2-2021-11-9.pdf)

 

 

 

Phase Two Drilling Programme at the Racecourse Mineral Resource - Background

 

Refer to RNS dated 7 October 2021 for a summary of the Bushranger Phase Two
Drilling Programme.

 

 

 

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:

 

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

 "MIMDAS IP"                  A deep-penetrating Induced Polarisation (IP) survey system that measures the
                              electrical properties (resistivity and chargeability) of sub-surface rocks

 "Mineralisation"             process of formation and concentration of elements and their chemical
                              compounds within a mass or body of rock
 "Pyrrhotite"                 An iron sulphide mineral, Fe(1-X)S, often magnetic.
 "porphyry"                   A deposit of disseminated copper minerals in or around a large body of
                              intrusive rock
 ENDS

 

 

 

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