Xtract Resources (LON: XTR) unveiled strong results from the first drill hole at its exciting Australian Bushranger project on Friday, confirming a considerable copper-gold mineral system.

These assay results are from the first hole, BRDD-20-001, of Xtract’s phase one drill programme at the Racecourse deposit and not only confirmed the presence of “a very substantial copper-gold mineral system” but also serious potential for expanding the mineral resource.

Keep in mind that the mineral resource for Racecourse is already estimated at 71 million tonnes (“Mt”) at 0.44% copper and 0.064 grams per ton (“g/t”) of gold, at a 0.3% cut-off.

BRDD-20-001 returned a 920 metres (“m”) overall intersection at 0.3% copper and 0.02g/t gold, plus 1.45g/t of silver - 0.33% copper equivalent grade (“CuEq”) – from 110m.

Higher grade zones inside the overall mineralised envelope include 156 metres at 0.48% copper, 0.04g/t gold, and 2.44g/t silver (0.52% CuEq) from 110m. Another is 44m at 0.50% copper, 0.05g/t gold & 1.92/t silver (0.55% CuEq) from 504m.

These higher-grade sections correspond well to Anglo American’s (LON AAL) 2014 and 2015 drilling, suggesting the “good lateral continuity” of these especially promising zones.

Not just that, but the overall mineral section plus the higher grade zones in BRDD-20-001 also “compare very favourably” to Alkane Resources’ (ASX: ALK) intercepts for their Boda copper-gold discovery. This discovery is 170 kilometres away from Bushranger.

Another great sign of an “extensive porphyry system in the area” is the presence of molybdenum values in BRDD-20-001, up to 95.2 parts per million, found throughout the mineralised interval.

Thankfully, Xtract said results from the second hole drilled at Racecourse, BRDD-21-002, are due soon.

The final hole of the phase one programme is still in progress, at around a 75m depth. So far, initial pyrite/chalcopyrite mineralisation of porphyry style seen at 45m. Chalcopyrite, also known as ‘fool’s gold’ for its shiny golden colour, is the most common copper mineral worldwide.

Executive chair Colin Bird expressed his excitement over results from BRDD-20-001 as “they confirm mineralisation for almost a kilometre down-plunge”. He was also pleased with the overall 0.33% CuEq grade and especially “encouraged by the grade uniformity over the entire intercept”.

Bird said results from the other holes will provide the company with “more information about the thickness and across-strike continuity of the mineralisation”. He called the copper-bias at Racecourse “welcome” since “strong demand” for the metal is expected in the years ahead.

The executive chair was further “encouraged by the spread of molybdenum values” as they provide solid evidence that there is “extensive development of porphyry systems in the region”.

A porphory copper deposit is a large body of rock containing chalcopyrite along with additional copper minerals and often hundreds of millions of metric tons of ore”.

With phase one having, as Bird said, “indicated the potentially significant scale of the Racecourse deposit”, Xtract will shortly enter a 3-D modelling phase alongside additional geophysical surveys. These will help plan a phase two drilling programme.

“The initial assay results have excited the team and we are now working on permissions for the geophysical survey and further drilling as we work towards our target of 2Mt of contained copper,” Bird concluded.

Author: Anna Farley

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