For immediate release

19 December 2022

Xtract Resources Plc

("Xtract" or the "Company")

Ascot Prospect Maiden Mineral Resource

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to announce the maiden Mineral Resource Estimate for the Ascot Prospect, on the Bushranger Copper-Gold Project in central New South Wales, Australia, following the discovery of a new porphyry system at the Ascot Prospect in December 2021. The maiden Ascot Inferred Mineral Resource adds a further approximately 190,000 tonnes of copper equivalent metal to the 1.1Mt reported previously at the Bushranger Project.

Highlights

·    A maiden Inferred Mineral Resource Estimate for the Ascot Prospect at the Bushranger Project is reported by independent consultants Measured Group Pty Limited ("Measured Group") as 87Mt @ 0.22% CuEq*, at a cut-off of 0.1% CuEq, containing 0.19Mt of copper equivalent metal and classified as Inferred in accordance with JORC (2012)

·    The Ascot Prospect copper-gold mineralisation and the Racecourse Prospect copper-gold mineralisation to the north (refer to RNS 23 November 2022), together contain approximately 1.3Mt of contained copper-equivalent metal

·    The copper-gold mineralisation at the Ascot Prospect comes to surface and contains a higher-grade section of 34Mt @ 0.33% CuEq, reported at a cut-off of 0.2% CuEq

·    When combined with the shallower higher grade zone previously reported for Racecourse, this gives a total of 225Mt @ 0.33% CuEq of potentially open pittable mineralisation for the Bushranger Project

·    With the maiden Mineral Resource defined for the Ascot Prospect and the updated Mineral Resource estimated for the Racecourse Prospect, Xtract has now engaged independent consultants, Optimal Mining Solutions (Pty) Ltd of Australia, to update the July 2021 open pit mining study for the Bushranger Project, to determine the economics of a 25Mtpa open pit mining operation, utilising the Mineral Resources at both the Racecourse and Ascot prospects

·    The Ascot Prospect remains open down-dip and to the south, where an untested IP geophysical anomaly occurs

*CuEq % = (Cu%) + (Au g/t * 0.6577) + (Ag g/t * 0.008769)

  Cu Price = US$8800/t, Au Price = US$1800/Oz, Ag Price = US$24/Oz

Colin Bird, Executive Chairman said: "A 17% increase in the total copper equivalent tonnes to 1.3Mt CuEq with the addition of Ascot is a significant increase in the Bushranger Mineral Resource, particularly when dealing with large tonnage, moderate grade deposits of this nature. The combined resource of 225Mt @ 0.33% copper equivalent mineralisation in the shallower parts of Racecourse and Ascot deposits is comparable with many operating deposits around the world, providing the basis for real impetus for the recently commissioned Open Pit Mining Study. These resources could potentially be scheduled for production during the important early years of production, supporting a 9-year mining operation at a projected rate of 25Mtpa. When we acquired the Project, we had a resource of approximately 300kt copper metal and we have now increased the resource to approximately 1.3Mt of copper equivalent metal. Racecourse remains open to further extension whilst Ascot remains open ended down-dip and to the south, which bodes well for further resource expansion." 

Bushranger Copper-Gold Project Racecourse and Ascot Mineral Resources

http://www.rns-pdf.londonstockexchange.com/rns/1852K_1-2022-12-19.pdf

Ascot Project Cross-Section (6,250,500 N)

http://www.rns-pdf.londonstockexchange.com/rns/1852K_2-2022-12-19.pdf

Ascot Project Long Section NW-SE

http://www.rns-pdf.londonstockexchange.com/rns/1852K_3-2022-12-19.pdf

Ascot Prospect Mineral Resource Estimate

From July 2021 until July 2022, Xtract completed a Phase 2 diamond drilling programme totalling 49 drill holes for 32,695m of drilling at the Racecourse and Ascot prospects on the Bushranger Project in central New South Wales, Australia. This included 17 holes for 9,697.4m of drilling into the new Ascot Prospect, where the discovery hole BRDD-21-035 returned a best interval of 64m @ 0.58% CuEq from 552m downhole.

 The Ascot mineralisation extends north-west from the discovery drill hole and terminates approximately 200m south-east of the southern limit of the Racecourse Mineral Resource. Mineralisation is open to the south, where an IP anomaly remains untested. To the west of the Ascot Prospect, a second untested IP anomaly also occurs. The Ascot mineralisation also is open down-dip.  Given there are untested IP anomalies and with the Ascot Prospect mineralisation being open to the south and down-dip, there is potential to further increase the resource base at the Ascot Prospect.

Following the completion of the Phase 2 drilling programme on the Bushranger Project, an initial 3-dimensional geological model was defined for the Ascot Prospect. Geochemical assay data, along with the initial Ascot geological model, were used to estimate a maiden Mineral Resource for the Ascot Prospect.

The maiden Mineral Resource estimate for the Ascot Prospect, which has been prepared at different cut-off grades by independent consultants, Measured Group, based in Brisbane, Australia, is detailed in Tables 1 and 2 below and was prepared in accordance with JORC (2012) and in compliance with Appendix 3 of the AIM Note for Mining and Oil & Gas Companies - June 2009.

Measured Group have reported a Mineral Resource estimate 87Mt @ 0.22% CuEq*, reported at a cut-off of 0.1% CuEq, containing 0.19Mt of copper equivalent metal in accordance with JORC (2012) and classified as Inferred.

Table 1 - Ascot Prospect Mineral Resource Estimate

Notes:

1.     Xtract owns 100 per cent. of ProspectOre Ltd, the operator of the Bushranger Project and gross and net attributable resources are therefore the same. 

2.     Mineral Resources are reported in accordance with JORC guidelines. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

3.     All figures are rounded to reflect appropriate levels of confidence.

4.     Apparent differences in totals may occur due to rounding.

5.     A cut-off grade of 0.1% CuEq has been used applying a copper price of US$8,800/t, a gold price of US$1,800/Oz and a silver price of US$24/Oz

6.     The Mineral Resource estimate is based on information reviewed by Measured Group, with an effective date of 16 December 2022.

7.     CuEq Formula : CuEq % = (Cu%) + (Au g/t * 0.6577) + (Ag g/t * 0.008769)

Table 2 - Ascot Prospect Grade vs Tonnage estimates using CuEq cut-offs

Notes:

1.     Xtract owns 100 per cent. of ProspectOre Ltd, the operator of the Bushranger Project and gross and net attributable resources are therefore the same. 

2.     Mineral Resources are reported in accordance with JORC guidelines. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

3.     The Mineral Resource estimate is based on information reviewed by Measured Group, with an effective date of 16 December 2022.

4.     CuEq Formula: CuEq % = (Cu%) + (Au g/t * 0.6577) + (Ag g/t * 0.008769)

The Ascot Prospect copper-gold mineralisation extends to surface and has been drilled to a vertical depth of approximately 650m. A higher-grade section of the Ascot Prospect mineralisation contains 34Mt @ 0.33% CuEq, reported at a cut-off of 0.2% CuEq, which is equivalent to the cut-off used by Alkane Resources Limited for the maiden Mineral Resource for the Boda Prospect, and has the potential to positively impact the economics of any open pit mining operation on the Bushranger Project. The Ascot Mineral Resource uses a cut-off grade of 0.1% Cu, based on analysis of the Grade vs Tonnage curve, prevailing commodity prices, the 2021 Optimal Mining report for the adjacent Racecourse deposit which suggested that mining to 0.15% Cu cut-off at Bushranger could produce a positive economic return, and to facilitate direct correlation with the Racecourse resource estimate.

Further Plans

Now that the maiden Ascot Prospect Mineral Resource has been estimated and the Racecourse Prospect Mineral Resource updated with all the Phase 2 drilling data, Xtract has again contracted independent consultants Optimal Mining Solutions (Pty) Ltd to update the Bushranger Project open pit mining study. The update to the open pit mining study will examine the economics of a 25Mtpa open pit mining operation extracting both the Ascot and Racecourse Mineral Resources. Xtract estimates that the update to the open pit mining study will be completed early in 2023.  Following the updating of the open pit mining study, Xtract will determine the optimum way to further advance the Bushranger Project and advise shareholders and the market early in 2023 of the Company's plans for the Project.

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, Executive Chairman and Director.

Enquiries:

Maiden Mineral Resource Estimate for the Ascot Prospect - Qualified Person

The information in this announcement that relates to the maiden Mineral Resource Estimate for the Ascot Prospect has been prepared by Mr Christopher Grove of Measured Group and who has acted as the Qualified Person. Mr Christopher Grove, who has reviewed and confirmed the statements related to the mineral resource estimate set out herein, is a Competent Person as defined by the JORC Code 2012 Edition, having at least five years of experience that is relevant to the style of mineralisation and type of deposit described in the mineral resources report, and to the activity for which he accepts responsibility. Mr Christopher Grove is a Member of The Australasian Institute of Mining and Metallurgy (AusIMM) and a full-time employee of Measured Group and has more than 25 years of experience in the estimation of mineral resources both in Australia and overseas. This expertise has been acquired principally through exploration and evaluation assignments at operating mines and exploration areas.

Mr Christopher Grove has reviewed the information in this announcement that relates to the mineral resource estimate and has confirmed that the information so presented in this announcement is balanced and complete and not inconsistent with Measured Group's audit and review of the maiden Mineral Resource Estimate.

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.

Mineral Reserves and Resources

The Company estimates and discloses mineral reserves and resources using the definitions adopted by JORC.  Further details are available at www.jorc.org.  See the "Glossary of Geological and Mining Terms" for complete definitions of mineral reserves and mineral resources.

About Mineral Resources

Mineral resources are not mineral reserves and do not have demonstrated economic viability but do have reasonable prospect for economic extraction.  They fall into three categories: measured, indicated, and inferred. The reported mineral resources are stated inclusive of mineral reserves.  Measured and indicated mineral resources are sufficiently well-defined to allow geological and grade continuity to be reasonably assumed and permit the application of technical and economic parameters in assessing the economic viability of the mineral resource. Inferred mineral resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied.  Inferred mineral resources are too speculative geologically to have economic considerations applied to them. There is no certainty that mineral resources of any category will be upgraded to mineral reserves.

Important Information about Mineral Reserve and Resource Estimates

Whilst the Company takes all reasonable care in the preparation and verification of the mineral reserve and resource figures. the figures are estimates based in part on forward-looking information. Estimates are based on management's knowledge, mining experience, analysis of drilling results, the quality of available data and management's best judgment. They are, however, imprecise by nature, may change over time, and include many variables and assumptions including geological interpretation, commodity prices and currency exchange rates, recovery rates, and operating and capital costs. There is no assurance that the indicated levels of metal will be produced, and the Company may have to re-estimate the mineral reserves based on actual production experience. Changes in the metal price, production costs or recovery rates could make it unprofitable to operate or develop a particular deposit for a period of time.

Forward Looking Statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

TECHNICAL GLOSSARY

The following is a summary of technical terms:

ENDS