REG - Xtract Resources plc - Metallurgical test work planned at Bushranger

Xtract ResourcesAnnouncement

26/01/2022 07:05

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RNS Number : 6314Z  Xtract Resources plc  26 January 2022

 

For immediate release

26 January 2022

 

Xtract Resources Plc

("Xtract" or the "Company")

Metallurgical test work planned at Bushranger

 

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to
advise that representative drill core samples from the Racecourse and Ascot
prospects are being prepared for dispatch to an independent laboratory for
metallurgical test work on the Bushranger copper-gold porphyry exploration
project.

 

Highlights

 

·    Four representative samples for metallurgical testing are being
prepared for dispatch to an independent test facility in Australia to
establish optimum processing and metal recovery routes for a potential future
mining operation at Bushranger

·    Three samples have been chosen from the Racecourse deposit which
include representative samples across the deposit from north to south, along
with one sample from the newly discovered Ascot prospect

·    The planned work includes comminution, flotation, projected flowsheet
design and beneficiation analysis to ascertain metallurgical characteristics
and saleability of copper concentrate for input to open-pit financial
modelling at the Racecourse and Ascot prospects

·    A further focus will be on the recovery of precious metals (gold and
silver), as well as molybdenum which are present within the Bushranger
mineralised system, particularly at Ascot where initial indications from
drilling suggest a higher content of these metals may be related to proximity
to a mineral feeder system

 

Colin Bird, Executive Chairman said: "This metallurgical test work is
fundamental and when completed will give us an insight in to the various metal
recoveries and their contribution to concentrate revenue. The gold, silver and
molybdenum will be assessed as to by-product contribution as well as test work
for their individual recovery. In the case of Ascot we will analyse the
deportment of gold with the view to assessing whether we produce a bulk
copper-gold concentrate or separate concentrates. This metallurgical test work
is the foundation stone for on-going feasibility work and the results will be
integrated into the conceptual open pit study which will be commenced as soon
as the Racecourse inferred resource is updated."

 

Bushranger Project Metallurgical Test Work Plan

 

Four samples are being prepared for dispatch to the independent Brisbane
Metallurgical Laboratory of Brisbane, Australia, to undertake initial
metallurgical test work in order to gain an understanding of the metallurgical
characteristics of the Racecourse and Ascot mineralised bodies. The aim is to
provide project specific assumptions for Xtract's early-stage open pit
financial modelling at Bushranger.

 

The main objectives of the test work will be to:

 

-      Test whether the Racecourse mineralisation is amenable to a simple
flotation flowsheet

-      Provide a flowsheet design for the projected copper recovery plant
and indicate anticipated recoverable saleable copper concentrate

-      Establish the importance of potential added value to the saleable
copper concentrate from related accessory precious metals (gold, silver) and,
possibly, molybdenum

-      Test the metallurgical variance between the Racecourse and Ascot
deposits, with early drill assay indications that Ascot may contain higher
levels of accessory metals

 

Recent developments at Newcrest Mining's Cadia-Ridgeway Mine elsewhere within
the Lachlan Fold Belt of New South Wales include construction of a new
molybdenum processing plant which will allow Newcrest to process molybdenum
concentrate as a by-product from their main gold operation. Xtract believes
that the molybdenum credits may have the potential to add value to Bushranger,
in addition to gold and silver.

 

Racecourse Samples

 

To gain a broad understanding of the metallurgical characteristics of the
Racecourse deposit, three samples were chosen that provide a range of
mineralised tenors from the northern, central, and southern zones within the
mineralised porphyry. The samples selected include a higher-grade intercept in
sample BRDD-21-008 in the north, along with the two further samples which
represent a more average grade across the deposit from BRDD-21-008 in the
central part of the deposit and BRDD-21-013 in the south.

 

Ascot Sample

 

In addition to the test work at Racecourse, the Company will also submit one
sample from drill hole BRDD-21-035 at the Ascot prospect. Ascot has so far
returned results with significantly higher gold tenor than Racecourse which
could indicate that it represents a distinct mineralised body within the
Bushranger system and the Company intends to better understand any potential
difference between the two deposits. Mineral textures observed within the
Ascot drill core could indicate that Ascot sits closer to a feeder zone for
the system and the company intends to model and test this theory with further
test work and drilling.

 

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:

 

 "Ag"                         Silver
 "Beneficiation"              Treat a raw material to improve its properties
 "Au"                         Gold
 "Comminution"                The action of reducing a material, especially a mineral ore, to minute
                              particles or fragments.
 "Concentrate"                The clean product, with a high concentration of one particular mineral,
                              recovered from an ore using mineral separation techniques.
 "Cu"                         Copper
 "Flotation"                  A process generally used to concentrate sulphides of ore.

 "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

 "JORC Code"                  Australasian Institute of Mining and Metallurgy Joint Ore Reserves Committee
                              code on mineral resources and ore reserves

 "Metallurgy"                 The study of processes used in the extraction of metals from their host rock.

 "Mo"                         Molybdenum

ENDS

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