12 Aug Bushranger drilling update and licence renewal
Xtract Resources Plc
(“Xtract” or the “Company”)
Bushranger Drilling Continuation and Licence Renewal Grant
The Board of Xtract Resources Plc (“Xtract” or the “Company”) is pleased to report on the continuing progress of the Phase Two diamond drilling programme with the completion of the third and fourth holes at the Bushranger copper-gold porphyry exploration project in New South Wales, Australia, as well as positive news on the renewal of the Racecourse exploration licence.
· The third and fourth angled holes of the Phase Two programme have been completed, confirming the occurrence of wide zones of copper mineralisation on both the western and eastern flanks of the Racecourse porphyry intrusion
· Hole BRDD-21-009 passed through the main (western) zone with visible chalcopyrite copper mineralisation over a 236.2m downhole interval from 171.5m to 407.7m and a further 132.9m interval from 587.0m to 719.9m in the eastern zone
· Hole BRDD-21-010 intersected chalcopyrite mineralisation over a 356m downhole interval from 159m to 515m (main western zone) and also over a 168m interval from 600m to 768m (eastern zone)
· Logging and splitting of core from hole BRDD-21-008 has been completed and samples prepared for dispatch to the analytical laboratory; similar work is progressing satisfactorily on the remaining holes
· Drilling of the fifth and sixth holes of the programme (BRDD-21-011 & BRDD-21-012) is already well under way
· The Company was pleased to be informed by the New South Wales licensing authority that it is proposed to renew the exploration licence covering the Racecourse deposit and adjoining prospects for a further three years until June 2024
Colin Bird, Executive Chairman said: “We are pleased to announce that a further two holes have been completed at Racecourse confirming extensive mineralised zones which remain to be assayed. The intercepts cover both sides of the conceptual open pit and, as such, the new results are potentially very exciting. The next two holes are already well in progress.
We are also very pleased that the New South Wales authorities have indicated their intention to grant renewal of the Racecourse exploration licence to June 2024. This will allow us to undertake all the work necessary to define the conceptual open pit and to identify further deposit extensions, as well as investigating other prospects within the licence area.”
Phase 2 Drilling Progress
Two further holes have been completed at Racecourse from the same drill pads utilised for the first two holes. Both holes were drilled at -80 degrees towards the east-northeast and each drilled through two copper-mineralised zones on the western and eastern flanks of the Racecourse porphyry intrusive.
Hole BRDD-21-009 was drilled to 735.4m final depth, passing through the main (western) zone with visible chalcopyrite copper mineralisation over a 236.2m downhole interval from 171.5m to 407.7m. Copper mineralisation in the eastern zone was encountered over a 132.9m interval from 587.0m to 719.9m. Chalcopyrite occurs mainly as disseminations and fracture/vein fill, associated with pyrite and pyrrhotite.
BRDD-21-010 was drilled to 769m depth, with chalcopyrite observed over a 356m interval from 159m to 515m (main western zone) and also over a 168m interval from 600m to 768m downhole (eastern zone). The strongest mineralisation in the hole was logged from 340m to 358m, with mineral style similar to that reported for hole BRDD-21-009.
Both rigs have now moved and have commenced drilling on the next two holes of the programme.
Detailed core logging and cutting are continuing at site to prepare samples for laboratory analysis, with the first batch of samples from BRDD-21-008 ready for dispatch.
Exploration Licence Renewal
Licence number EL5574, which covers the Racecourse deposit, and EL8585 have been in the renewal process and the Company has been informed by the New South Wales licensing authority that it proposes to renew both licences for a further three-year period until 4 June 2024 and 5 June 2024 respectively. The renewal will preserve Xtract’s rights to the Racecourse deposit and allow time to evaluate more fully the development potential of Racecourse and other targets within the licence block.
The New South Wales mineral licensing system allows the opportunity for subsequent renewals, usually subject to the relinquishment of part of the licence area.
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.
|Xtract Resources Plc||Colin Bird,
|+44 (0)20 3416 6471|
|Beaumont Cornish Limited
Nominated Adviser and Joint Broker
|+44 (0)207628 3369|
Novum Securities Limited
+44 (0)207 399 9427
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.
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.
The following is a summary of technical terms:
|“chalcopyrite”||A copper-iron sulphide mineral, CuFeS2, often found in copper ores|
|“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|
|“pyrrhotite”||An iron sulphide mineral, Fe1-XS, often magnetic|