Xtract upbeat on assays from first hole at Racecourse

Xtract Resources said on Friday that laboratory assays had been received from the first drill hole, BRDD-20-001, completed on the phase one diamond drilling programme at the Racecourse Mineral Resource, on the Bushranger copper-gold project, located in the Lachlan Fold Belt of New South Wales, Australia.

The AIM-traded firm said the results returned an overall intersection of 920 metres at 0.3% copper, 0.02 grams of gold per tonne and 1.45 grams of silver per tonne from 110 metres.

It said higher-grade zones within the overall mineralised envelope included 156 metres at 0.48% copper, 0.04 grams of gold and 2.44 grams of sewer per tonne from 110 metres, and 44 metres at 0.5% copper, 0.05 grams of gold and 1.92 grams of silver per tonne from 504 metres.

The board said the assay results confirmed that the mineralisation at Racecourse formed a “very substantial” copper-gold mineral system, adding that there was “significant potential” to expand the mineral resource, which was currently estimated as 71 million tonnes at 0.44% copper and 0.064 grams of gold per tonne, at a 0.3% cut-off and classified as inferred under JORC 2012.

Xtract said the higher-grade sections of mineralisation corresponded well to those reported from drilling undertaken by Anglo American Exploration Australia in 2014 and 2015, suggesting good lateral continuity to the higher-grade zones.

The overall mineral intersection and higher-grade zones in hole BRDD-20-001 compared favourably with intercepts reported by Alkane Resources for its Boda copper-gold discovery, the company added, which is 170 kilometres from Bushranger.

It explained that the occurrence of molybdenum values in BRDD-20-001 ranging up to 95.2 parts per million throughout the mineralised interval provided further indications of an extensive porphyry system in the area.

Assay results from the second hole of the programme, BRDD-21-002, were expected shortly.

The final hole of the phase one drilling programme, BRDD-21-006, was currently in progress at a depth of about 75 metres, with initial pyrite and chalcopyrite mineralisation of porphyry style seen at 45 metres.

“The assay results from the first hole at the Racecourse deposit are exciting in that they confirm mineralisation for almost a kilometre down-plunge,” said executive chairman Colin Bird.

“The overall grade of 0.33% copper equivalent is very pleasing, and I am particularly encouraged by the grade uniformity over the entire intercept.

“Results from the remaining holes will give us more information about the thickness and across-strike continuity of the mineralisation.”

Bird said the assay results from the initial hole compared “very favourably”, with results reported from Alkane's Boda project, adding that the bias towards copper at Racecourse was “welcome”, as it is a metal forecast to be in strong demand in the coming years.

“I am also encouraged by the spread of molybdenum values throughout the drill interval - while these might not represent a financial credit to the project, they are good evidence for extensive development of porphyry systems in the region.”

At 1144 GMT, shares in Xtract Resources were down 0.29% at 6.94p.