Source - LSE Regulatory
RNS Number : 5785K
Xtract Resources plc
02 September 2021
 

 

For immediate release

2 September 2021

Xtract Resources Plc

("Xtract" or the "Company")

Further Drilling Progress Update at Bushranger

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to report progress on angled holes BRDD-21-013 and 014 of the Phase Two diamond drilling programme at the Bushranger copper-gold porphyry exploration project in New South Wales.

 

Highlights

·    Hole BRDD-21-014, sited to test a new IP geophysical target to the southeast of the Racecourse Indicated Mineral Resource, intersected a wide alteration zone with pyrrhotite/pyrite mineralisation and associated copper sulphides

·    Preliminary data from a drone-mounted magnetic survey indicates that BRDD-21-014 may be located within the margin of a new segment of the Racecourse porphyry system, with detailed modelling of the survey results and drillhole data to direct further drilling on this target

·    Hole BRDD-21-013, drilled at -50 degrees within the south-eastern part of the conceptual Racecourse open pit, was completed at 855.5m having intersected intervals of chalcopyrite mineralisation over about 305m length from 84m depth

·    Logging and splitting of core from holes BRDD-21-007, 008 and 009 has now been completed and samples have been dispatched to the analytical laboratory, with work continuing on the remaining holes

·    Processing/modelling of the drone-mounted magnetic survey at Racecourse will continue, with a focus on the new south-eastern target indicated by hole BRDD-21-014

 

Colin Bird, Executive Chairman said:

"These most recent holes help to confirm our prognosis for a large open pit in that hole BRDD-21-013 intersected the first copper mineralisation quite near surface, extending over a substantial interval of more than 300m.

BRDD-21-014 encountered a wide interval of sulphide mineralisation suggesting that the airborne geophysics programme has identified a new zone or possibly a sheared zone from the Racecourse deposit. Recently received magnetic survey results suggest that the hole was on the margin of a new system and as such we are excited about the further potential. These two holes will be modelled and the continuing Phase 2 drilling programme will focus on open pit extensions and further testing of this newly emerging zone."

 

Phase 2 Drilling Progress

Hole BRDD-21-014 was sited to the southeast beyond the limit of the current Racecourse Inferred Mineral Resource and the conceptual open pit area to test a new MIMDAS IP target not investigated by previous drilling at Racecourse. The hole was drilled at -55 degrees towards the northeast and reached a final depth of 816.5m. It intersected what appears to be a new segment of the Bushranger porphyry complex, with significant widths of pyrrhotite-pyrite mineralisation and associated copper sulphides.

Preliminary results received for a drone-mounted airborne magnetic survey in the area suggest that the hole may have cut the margin of the new zone and the final processed magnetic data will be utilised to assist with planning further holes, in tandem with full log and assay data from BRDD-21-014.

The second rig at Bushranger has completed hole BRDD-21-013 within the south-eastern part of the conceptual open pit. The hole was collared at -50 degrees drilling towards the northeast and progressed to a final depth of 855.5m. The main mineralised target zone was intersected at about 84m downhole depth and ran through intervals of moderate to strongly developed copper mineralisation to about 389m depth. After passing through a zone of unaltered and unmineralised black shales, the hole hit a further deep zone of weak potassic alteration with pyrrhotite, pyrite and associated chalcopyrite copper mineralisation at around 800m. 

Detailed logging and sampling of drill core continues at site, with core from BRDD-21-007, 008 and 009 now at the assay laboratory.

Following completion of hole BRDD-21-014, the first drill rig has now moved to the northwest and commenced drilling BRDD-21-015.

Phase 2 Drilling Programme at the Racecourse Mineral Resource - Background

The Bushranger porphyry copper-gold project is located in the highly prospective Lachlan Fold Belt ("LFB") of New South Wales, Australia. The current JORC (2012)-compliant Inferred Mineral Resource on the Racecourse deposit is estimated as 71Mt @ 0.44% Cu and 0.064g/t Au, at a 0.3% Cu cut-off, without inclusion of data from the Phase One drilling programme which was recently concluded and reported.

The Phase Two programme is designed primarily to follow up on the results obtained by Anglo American Exploration Australia Pty Ltd ("Anglo") in 2014 and 2015 and to define further the shallower part of the Resource with a view to possible development of a large open pit. A total of approximately 8,000m of drilling is planned in the first block of 13 holes using two drill rigs, focussing primarily on further definition of the potentially open-pittable, higher-grade copper-gold zone in the central part of the resource area.

 

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,

Executive Chairman

+44 (0)20 3416 6471

www.xtractresources.com

Beaumont Cornish Limited

Nominated Adviser and Joint Broker

Roland Cornish

Michael Cornish

Felicity Geidt

+44 (0)207628 3369

www.beaumontcornish.co.uk

Novum Securities Limited

Joint Broker                  

Jon Belliss

Colin Rowbury 

+44 (0)207 399 9427

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:

 

"Au"

Gold

"chalcopyrite"

A copper-iron sulphide mineral, CuFeS2, often found in copper ores



"Cu"

Copper

"Induced Polarisation" or "IP"

Induced Polarisation (IP) surveys measure the electrical properties (resistivity and chargeability) of sub-surface rocks. measurements are made by introducing a controlled electrical current into the ground using two current electrodes, thus energizing the ground, and then measuring the induced potential-field gradient voltage at (between) two non-polarizable receiver electrodes. The distance between the pair of current electrodes and the pair of potential-field electrodes determines the depth of investigation (the measured data).  Resistivity and chargeability measurements are routinely used in exploration for porphyry copper deposits.

"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

"mineralisation"

Process of formation and concentration of elements and their chemical compounds within a mass or body of rock

"porphyry"

A deposit of disseminated copper minerals in or around a large body of intrusive rock

"potassic alteration"

Descriptive of alteration of rocks through the introduction of potassium

"pyrite" 

Iron sulphide mineral, FeS2.

"pyrrhotite"

An iron sulphide mineral, Fe1-XS, often magnetic

 

 

ENDS

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