REG - Xtract Resources plc - Bushranger results of metallurgical test work

Xtract ResourcesAnnouncement

15/08/2022 13:19

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RNS Number : 0570W  Xtract Resources plc  15 August 2022

 

 

For immediate release

15 August 2022

 

Xtract Resources Plc

("Xtract" or the "Company")

Bushranger Project - Results of Scoping Metallurgical Test Work Programme

 

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to
report the results of a scoping metallurgical test work programme carried out
on four samples from the Racecourse and Ascot deposits at Bushranger.

 

Highlights

 

·    Altrius Consulting ('ACPL') developed and managed a scoping
metallurgical test work programme to assess the metallurgical response of the
copper-gold mineralisation from the Bushranger Project on behalf of the
Company

·    Four master composite samples of quartered drill core were prepared,
based upon a geographic location within the Racecourse and Ascot deposits,
namely Racecourse Central, Racecourse North-West, Racecourse South-East and
Ascot

·    The samples were representative of the anticipated average copper
grade of the deposit, ranging from 0.33-0.48% Cu, with minor silver (1.1g/t to
3.3g/t) and trace gold (0.007g/t to 0.04g/t), other than the more gold-rich
Ascot sample which assayed 0.30g/t Au

·    The test work completed to date has yielded encouraging copper
recovery results generally running at 89-90%, other than for the Racecourse
North-West sample (76% recovery) where further work is recommended to better
understand the different metallurgical response from this area

·    Initial test work was focussed on copper recovery not gold, however,
the Ascot sample also yielded payable gold and silver in the Cu concentrate

·    At Racecourse, sampled intervals were not from areas where gold grade
was relatively high, however it was considered that due to the metallurgical
performance observed in these areas, that payable gold would probably be
achieved with additional optimisation of the recovery circuit and/or in areas
where gold grade was slightly higher. Further sampling and test work needs to
be completed to confirm this hypothesis

·    All concentrates produced payable silver grades. Further work was
also recommended targeted at recovering molybdenum

·    Test work indicates that the concentrates produced contained no
significant penalty elements, with these concentrates considered "clean" and
therefore should be readily saleable

 

Colin Bird, Executive Chairman said: "The results of the test work are
considered typical of metal recoveries for deposits on the Lachlan Fold Belt.
The Ascot overall gold grade has yet to be determined, so metallurgical work
here is still at an early stage. The new report will be used to update the
Bushranger concept study and was necessary to further advance the Racecourse
project. We are pleased to note that there are no significant penalty elements
and concentrate is regarded as clean and saleable.

No test work has been directed specifically at molybdenum recovery. Some
nearby mines on the Lachlan Fold Belt are recovering molybdenum and, in one
case a new circuit has been installed specifically for recovery of the metal.
At Bushranger, molybdenum recovery will be disregarded for the concept study
for now but could make a contribution to a future mining operation."

 

Test Work Details

Samples for the Bushranger Project sighter metallurgical test work programme
were selected and sampled (¼ core) from the remaining drill core from the
Phase II drilling campaign, conducted within the Racecourse and Ascot
deposits. The samples were selected (

Table 1), such that four master composite samples were formed, based upon a
geographic location within the deposits and representative of the anticipated
average copper resource grades, as detailed below:

 

Table 1 - Core Sample Selection Summary

 Drill Collar  Composite   From  To   Assay                       Weight
               (m)               (m)  Cu (%)  Au (g/t)  Ag (g/t)  (kg)
 BRDD_21_008   Central     206   274  0.48    0.040     3.3       93.4
 BRDD_21_011   North-West  308   370  0.34    0.020     1.1       65.5
 BRDD_21_013   South-East  142   208  0.33    0.007     1.6       65.4
 BRDD_21_035   Ascot       552   616  0.38    0.30      2.3       66.1

 

The weighted mean assay results for the sampled intervals indicate the
presence of predominantly copper (0.33% to 0.48%) with minor silver (1.1g/t to
3.3g/t) and trace gold (0.007g/t to 0.04g/t), with the exception of the Ascot
sample which returned a gold grade of 0.30g/t. A sequential copper analysis on
the Bushranger samples concluded that for all the samples tested, the
predominant copper mineral is chalcopyrite.

 

Key components of the sighter metallurgical test work programme included:

·    Comprehensive head analysis of each master composite sample

·    Comminution test work to assess ore hardness (Bond Ball Mill Work
Index)

·    Sequential copper speciation to provide an indication of copper
mineralogy

·    Rougher flotation test work at a pre-determined primary grind size,
to assess rougher copper recovery

·    Rougher flotation test work at two different reagent suites, aiming
to maximise rougher copper recovery

·    Bulk rougher flotation to generate concentrate for cleaner flotation
test work, with and without concentrate regrind

·    Mineralogical evaluation of flotation tails - diagnostic assessment
to assess nature and occurrence of gold losses

Ore hardness assessments, utilising Bond Ball Mill Work Index testing,
concluded that the samples are of an extreme hardness with an average work
index of 23.35 kWh/t.  Abrasion index testing classifies the ore as
moderately abrasive, with an average abrasiveness of 0.2985.

 

Table 2 - Cleaner Flotation Regrind Test Work Summary

 Sample     Cumulative Conc. Grade                Recovery (%)         Tails Grade                           Mass Yield

                                                                                                             (%)
            Au (g/t)  Ag (g/t)  Cu (%)  As (ppm)  Au     Ag     Cu     Au (g/t)  Ag (g/t)  As (ppm)  Cu (%)
 BR_Centre  0.9       181.6     23.3    210       23     85     89     0.02      0.3       8         0.03    2%
 BR_NW      0.6       58.1      20.4    409       37     54     78     0.01      0.6       10        0.05    1%
 BR_SE      0.3       81.1      18.8    155       19     50     87     0.02      1.2       10        0.02    2%
 BR_Ascot*  5.4       152.3     27.3    93        41     42     82     0.07      1.7       6         0.03    1%
 Average    1.8       118.3     22.5    217       30     58     84     0.03      1.0       9         0.03    1%

*Ascot requires no regrind

The regrind-cleaner flotation test work (coarse flotation followed by regrind
of coarse rougher concentrate and selective flotation or cleaning) indicated
that the average final copper concentrate grades would vary between 19% copper
and 27% copper, with a corresponding final copper recovery of between 78% and
89%.

When normalising the cleaner flotation results to produce a concentrate with a
20% copper grade, typical for saleable concentrates, the following copper
recovery is predicted:

o  Ascot - 90% (no regrind, three stages cleaner flotation)

o  BR_Centre - 90% (15µm regrind, three stage cleaner flotation)

o  BR_SE - 89% (15µm regrind, pH 10.5, three stage cleaner flotation)

o  BR_NW - 76% (15µm regrind, pH 10.5, three stage cleaner flotation)

Silver recovery to copper concentrates averaged 58%

These results are considered encouraging, with further study required on the
Racecourse North-West sample to understand the reason for the lower copper
recovery in this sample.

Regarding gold recovery, this initial test work was focussed on copper not
gold. No optimisation work was included to increase gold recovery at this
stage. However, the Ascot sample yielded payable gold in the Cu concentrate.
At Racecourse, even though these samples were not selected from relatively
high gold grade areas, it was considered that payable gold would probably be
achieved with additional optimisation of the recovery circuit and/or in areas
where gold grade was slightly higher. However, further sampling and test work
needs to be completed to confirm this hypothesis.

 

Similarly with molybdenum, the content of the cleaner was generally low,
however further investigation is considered warranted in subsequent test
programmes given that molybdenum recovery was not specifically targeted.

 

 

 

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 (http://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.

 

Marius Phillips, Engineering Director of Altrius Consulting, is a Chartered
Professional Engineer with over 25 years' experience. Mr Phillips has
developed a strong operational, managerial and technical base in minerals
processing and the extractive metallurgy of base metals, precious metals and
PGMs. Mr Phillips has reviewed and approved this announcement as a Qualified
Person.

 

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
 "Comminution"        Grinding of the rock
 "Flotation"          The separation of small particles of a solid by their different capacities to
                      float

 "kWh/t"              Kilowatt hours per tonne
 "Mineralisation"     Process of formation and concentration of elements and their chemical
                      compounds within a mass or body of rock

 "Molybdenum"         Ore mineral, MoS(2)
 "Rougher flotation"  Flotation designed to remove the maximum amount of the valuable mineral at as
                      coarse a particle size as practical

 

 

 

 

ENDS

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