TIDMXTR
RNS Number : 7490Y
Xtract Resources plc
17 May 2021
For immediate release
17 May 2021
Xtract Resources Plc
("Xtract" or the "Company")
Initial Results from Induced Polarisation (IP) Survey at the
Racecourse Prospect
The Board of Xtract Resources Plc ("Xtract" or the "Company") is
pleased to advise that an Induced Polarisation (IP) geophysical
survey has identified potential extensions to the Racecourse
Mineral Resource on the Bushranger copper-gold exploration project,
located in the Lachlan Fold Belt ("LFB") of New South Wales,
Australia.
Highlights
-- The disseminated copper-gold mineralisation comprising the
Racecourse Mineral Resource is associated with a strong IP
chargeability response on the southwestern side of the central
porphyry intrusion, which is evident on all survey lines, along
2.5km of strike length
-- The survey indicates that the Racecourse Mineral Resource has
the potential to extend in several directions, including at least
800m to the northwest beyond the limit of the currently defined
Mineral Resource
-- The deposit also appears to be open to the southeast and
mineralisation previously detected by very limited drilling on the
northeast side of the central porphyry body could be more extensive
than currently known
-- The survey results will be fully processed and are expected
to generate several drill targets for potential resource extensions
and testing of possible new mineral zones as part of the planned
Phase 2 drilling programme
-- An independent firm is being engaged to undertake technical
and financial modelling for an initial open pit mine, examining
several pit layout scenarios and economic parameters
Colin Bird, Executive Chairman said: "The geophysical survey
results are very encouraging, indicating an opportunity for further
shallow mineralisation to the north-east of the main porphyry.
Should this be confirmed by drilling, it could significantly
increase the open pit potential in this area. The deposit also
appears to be open down-plunge to the south-east and to the
north-west, further increasing the deposit size potential.
Overall, the geophysical survey has been very informative and
supports management's belief in the scope for a significant
increase in tonnage at Racecourse. The Phase 1 drilling programme
was based on historical drilling information and projections with
limited additional technical support, however the new information
from the geophysical survey now gives us specific targets and
extensions to follow in the Phase 2 drilling programme.
In addition, we have appointed an independent consulting firm to
model various open pit development scenarios in the upper part of
the porphyry system, using a range of grade cut-offs and copper
price parameters."
Racecourse Prospect IP Survey Location
http://www.rns-pdf.londonstockexchange.com/rns/7490Y_1-2021-5-14.pdf
Racecourse Prospect IP Stacked Sections
http://www.rns-pdf.londonstockexchange.com/rns/7490Y_2-2021-5-14.pdf
IP Survey at the Racecourse Prospect - Bushranger Project
The objective of the geophysical survey was to characterise the
IP response of the Racecourse Mineral Resource and then use the IP
data to look for potential extensions to the Resource.
The Racecourse Prospect hosts a copper-gold porphyry style
deposit which is currently estimated at 71Mt @ 0.44% Cu &
0.064g/t Au, at a 0.3% cut-off and classified as Inferred in
accordance with JORC (2012). The Mineral Resource trends in a
north-west direction along a drill-confirmed strike length of 1.7km
and remains open in several directions. Disseminated copper-gold
mineralisation related to porphyry intrusions has historically
responded well to Induced Polarisation (IP) surveys and thus an IP
survey was completed at Racecourse with the objective of mapping
potential extensions to the existing Mineral Resource. The IP
survey covered 2.5km of strike length at the Racecourse deposit,
commencing on 31 March 2021 and finishing on 2 May 2021.
The central porphyry intrusion and the associated Racecourse
Mineral Resource are evident in the IP data as resistivity and
chargeability anomalies respectively on all survey lines, along
2.5km of strike, suggesting that the porphyry and copper-gold
mineralisation may extend at least 800m to the north-west of the
currently defined resource limit. The central porphyry also appears
to extend to the south-east, suggesting potential to also extend
the Mineral Resource in that direction.
In addition, the IP data also exhibits a chargeability anomaly,
with characteristics similar to that associated with the
copper-gold mineralisation of the Racecourse Mineral Resource, on
the north-eastern side of the central porphyry intrusion. This
location is very poorly drilled, but several holes which drilled
through the central porphyry from the south-west to the north-east,
did intersect copper-gold mineralisation at depth. This suggests
that a significant body of copper-gold mineralisation could also
occur on the north-eastern side of the central porphyry intrusion,
opening up the overall tonnage potential of the Racecourse
prospect. Consequently, this region is now a priority drilling
target.
The IP survey has generated several quality drill targets. More
detailed modelling and interpretation of the IP data will now be
undertaken. Xtract's objective is to complete this modelling
speedily in order to allow drill holes to be defined for the Phase
2 drill programme to be undertaken at Racecourse. Subject to
government approvals it is planned to commence the Phase 2 drill
programme early in the 3(rd) Quarter of 2021 with the objective of
drilling out an Inferred Mineral Resource in excess of 2 million
tonnes of contained copper equivalent.
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").
Enquiries :
Xtract Resources Plc Colin Bird, +44 (0)20 3416 6471
Executive Chairman www.xtractresources.com
Beaumont Cornish Limited Roland Cornish +44 (0)207628 3369
Nominated Adviser and Michael Cornish www.beaumontcornish.co.uk
Joint Broker Felicity Geidt
Novum Securities Limited Colin Rowbury +44 (0) 207 399 9427
Joint Broker Jon Belliss 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:
"alteration zone" a zone exhibiting change in mineralogical
composition of a rock commonly brought about
by reactions with hydrothermal solutions
"Au" Gold
"Cu" Copper
"exploration" method by which ore deposits are evaluated
"Induced Polarisation" Induced Polarisation (IP) surveys measure
or "IP" 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 That part of a Mineral Resource for which
Resource" 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
ENDS
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