The Board of Xtract Resources Plc (“Xtract” or the “Company”) is pleased to announce that the Company has concluded a conditional Sale and Purchase Agreement (the “Acquisition Agreement” ) to acquire the entire issued share capital of ProsepectOre Ltd (“ProspectOre”) for a total consideration of £1.25 million, to be satisfied in new Xtract ordinary shares.
ProspectOre currently owns a 100% interest in the Bushranger Copper-Gold Project, located in the Lachlan Fold Belt (“LFB”), New South Wales, Australia’s world-class copper-gold province. The Lachlan Fold Belt has recently undergone a resurgence in mineral exploration following the discovery of new, large scale, porphyry systems such as Alkane Resources Limited Boda discovery which add to the existing mineral endowment of the LFB due to mines such as Newcrest’s giant Cadia-Ridgeway operation.
· The Bushranger Project represents a highly prospective copper-gold porphyry project in a world class mining district with excellent infrastructure in a low-cost jurisdiction
· There is renewed interest in The Lachlan Fold Belt following Alkane’s recent Boda discovery, including a 1,167m drill interval grading 0.25% Cu, 0.55g/t Au
· The Bushranger Project hosts the Racecourse deposit, a JORC (2012) compliant inferred resource estimated at 71Mt @ 0.44% Cu and 0.064g/t Au using a 0.3% Cu cut-off, which is open down plunge and along strike
· Most recent drilling at Racecourse intersected substantially wider mineralisation – 159m @ 0.37% Cu, 0.21g/t Au (Hole ID BRD001), including 16m @ 0.73g/t Au – and with gold grades increasing with depth
· Western portions of the Bushranger Project are prospective for high-grade gold mineralisation
· Several geophysical and geochemical targets, with characteristics of porphyry style mineralisation, are ready for drill testing
Colin Bird, Executive Chairman said : ” This acquisition represents entry into an asset with an inferred resource of over 350,000 tonnes of contained copper. The deposit is open ended in both directions and the propensity for future discovery is good. I am particularly encouraged by the fact that the gold contribution increases with depth. The geological trend has produced a number of historical mines, closed and operating, and of late there have been announcement of new discoveries both porphyry copper and epithermal gold.
The asset significantly enhances our current copper portfolio and provides a solid platform to our emerging copper exploration activities. I look forward actively progressing the Bushranger project together with our Zambian exploration portfolio.”
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