REG - Xtract Resources plc - Silverking Project Commencement of Drilling

Xtract ResourcesAnnouncement

06/03/2025 07:00

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RNS Number : 5398Z  Xtract Resources plc  06 March 2025

6 March 2025

For immediate release

 

Xtract Resources Plc

("Xtract" or the "Company")

Silverking Project Commencement of Drilling

 

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to
announce the start of a diamond drill programme at Silverking (Licence
26673-HQ-LEL). The programme has set a number of objectives aimed at advancing
the development of the project. Silverking is subject to an option and joint
venture agreement ("Joint Venture") with Oval Mining Limited, enabling Xtract
to earn-in up to a 70% interest in the Silverking copper mine and accompanying
exploration licence located in the Mumbwa District of the Central Province of
Zambia.

 

Highlights

 

·      Drilling objectives include:

o  Testing the depth extension of the main high-grade pipe.

o  Establishing the true mineralised width of the main pipe (where historic
drilling ended in mineralisation).

o  Testing wall rock alteration around the more massive high-grade copper
sulphide body to establish the scope for future lower grade bulk tonnage
copper-bearing mineralisation.

o  Evaluating a second pipe structure where very limited historic drilling
failed to intersect the pipe structure.

o  Identifying the source of ground magnetic anomalies locate close to the
main pipe which may represent mineralised offshoots from the main structure.

o  Testing a new anomaly that was until recently located outside of the
expanded licence area.

·      To facilitate development planning, drilling is also expected to
generate sufficient spatial data to allow for a high-level estimate of the
potential cumulative tonnage of mineralisation.

 

 

Colin Bird, Executive Chairman said "We are fortunate to have a project that
features small-scale historic mining activity where the highest grade most
easily accessible copper mineralisation was extracted to shallow depths
determined by water level. We therefore have had an opportunity to study the
mineralised body, to understand the geological and physical features that
resulted in the pipe structure and to roll this knowledge out across the
licence to find similar targets for evaluation. At this juncture the final
depth of mineralisation on the main pipe is unknown and the purpose of this
first hole is to determine the trending shape and depth continuity for a guide
to potential future mine development which we intend to fast-track.  We
perceive a simple high-grade open pit to be the outcome and if practical depth
is exceeded, we will consider underground extension from the open pit. Open
dimensions will be driven principally by grade, tonnage and the orebody
morphology. We look forward to providing updates as the drill programme
continues".

 

Silverking Project

As announced on 3 April 2024, Xtract entered into a joint venture agreement
with Oval Mining in relation to the Silverking Project and licence. Silverking
mineralisation is characterised by deep levels of intense oxidation, breccia,
vein and stockwork hosted copper mineralisation and is distinguished by
high-grade supergene enrichment, also diagnostic of the nearby Kitumba
deposit.

 

The former Silverking open pit and underground mine extends to a mining depth
of only 70m and based on underground mapping and historic diamond and reverse
circulation ("RC") drilling is believed to remain open both down-dip and along
strike.

 

Historic Peak Silverking reported drill intercepts including 50m @ 5.47% Cu in
borehole SVKRC002 from 55m to 105m depth. The hole stopped in mineralisation.
Mineralised intercepts peaked at 52.2% Cu over a 1m drilled interval.

 

A wide-spaced geochemical soil survey supplemented by magnetic and IP ground
geophysical surveys undertaken by Glencore identified a number of high
priority targets warranting follow-up. In particular a second breccia pipe
located 800m from the main Silverking mineralised body was identified and has
not been explored. Evidence at surface suggested possible stockwork or
disseminated copper mineralisation between the two breccia pipes. Xtract's
proposed exploration work will focus on testing the depth extension of the
Silverking breccia pipe, the nearby pipe and general licence exploration.

 

Further background details on the licence and the Joint Venture were announced
on 3 April 2024, a copy of which is available from the Company's website.

 

Other

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 Regulation
(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,
Executive Chairman and 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 Bellis           +44 (0)207 399 9427

 Joint Broker                                       Colin Rowbury        www.novumsecurities.com

 

 

 

Qualified Person:

Colin Bird: The technical information contained in this announcement has been
reviewed, verified, and approved by Colin Bird, C.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.

Forward Looking Statements

Certain statements in this announcement are or may be deemed to be forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'' ''could'' "should" ''envisage''
''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those
variations or comparable expressions including references to assumptions.
These forward-looking statements are not based on historical facts but rather
on the Directors' current expectations and assumptions regarding the Company's
future growth results of operations performance future capital and other
expenditures (including the amount. Nature and sources of funding thereof)
competitive advantages business prospects and opportunities. Such forward
looking statements reflect the Directors' current beliefs and assumptions and
are based on information currently available to the Directors. A number of
factors could cause actual results to differ materially from the results
discussed in the forward-looking statements including risks associated with
vulnerability to general economic and business conditions competition
environmental and other regulatory changes actions by governmental authorities
the availability of capital markets reliance on key personnel uninsured and
underinsured losses and other factors many of which are beyond the control of
the Company. Although any forward-looking statements contained in this
announcement are based upon what the Directors believe to be reasonable
assumptions. The Company cannot assure investors that actual results will be
consistent with such forward looking statements.

 

Notice

Beaumont Cornish Limited ("Beaumont Cornish"), which is authorised and
regulated in the United Kingdom by the Financial Conduct Authority, is acting
as nominated adviser to the Company in connection with this announcement and
will not regard any other person as its client and will not be responsible to
anyone else for providing the protections afforded to the clients of Beaumont
Cornish or for providing advice in relation to such proposals. Beaumont
Cornish has not authorised the contents of, or any part of, this document and
no liability whatsoever is accepted by Beaumont Cornish for the accuracy of
any information, or opinions contained in this document or for the omission of
any information. Beaumont Cornish as nominated adviser to the Company owes
certain responsibilities to the London Stock Exchange which are not owed to
the Company, the Directors, Shareholders, or any other person.

Glossary

 "Breccia"    Rock fragmented into angular components.
 "Cu"         Copper
 "IP"         Induces 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.

 "Supergene"  Descriptive of a mineral deposit, weathering or alteration formed by
              descending solutions

 

ENDS

 

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