For immediate release

26 January 2022

Xtract Resources Plc

("Xtract" or the "Company")

Metallurgical test work planned at Bushranger

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to advise that representative drill core samples from the Racecourse and Ascot prospects are being prepared for dispatch to an independent laboratory for metallurgical test work on the Bushranger copper-gold porphyry exploration project.   

Highlights

·    Four representative samples for metallurgical testing are being prepared for dispatch to an independent test facility in Australia to establish optimum processing and metal recovery routes for a potential future mining operation at Bushranger

·    Three samples have been chosen from the Racecourse deposit which include representative samples across the deposit from north to south, along with one sample from the newly discovered Ascot prospect

·    The planned work includes comminution, flotation, projected flowsheet design and beneficiation analysis to ascertain metallurgical characteristics and saleability of copper concentrate for input to open-pit financial modelling at the Racecourse and Ascot prospects

·    A further focus will be on the recovery of precious metals (gold and silver), as well as molybdenum which are present within the Bushranger mineralised system, particularly at Ascot where initial indications from drilling suggest a higher content of these metals may be related to proximity to a mineral feeder system

Colin Bird, Executive Chairman said: "This metallurgical test work is fundamental and when completed will give us an insight in to the various metal recoveries and their contribution to concentrate revenue. The gold, silver and molybdenum will be assessed as to by-product contribution as well as test work for their individual recovery. In the case of Ascot we will analyse the deportment of gold with the view to assessing whether we produce a bulk copper-gold concentrate or separate concentrates. This metallurgical test work is the foundation stone for on-going feasibility work and the results will be integrated into the conceptual open pit study which will be commenced as soon as the Racecourse inferred resource is updated."

Bushranger Project Metallurgical Test Work Plan

Four samples are being prepared for dispatch to the independent Brisbane Metallurgical Laboratory of Brisbane, Australia, to undertake initial metallurgical test work in order to gain an understanding of the metallurgical characteristics of the Racecourse and Ascot mineralised bodies. The aim is to provide project specific assumptions for Xtract's early-stage open pit financial modelling at Bushranger.

The main objectives of the test work will be to:

-      Test whether the Racecourse mineralisation is amenable to a simple flotation flowsheet

-      Provide a flowsheet design for the projected copper recovery plant and indicate anticipated recoverable saleable copper concentrate 

-      Establish the importance of potential added value to the saleable copper concentrate from related accessory precious metals (gold, silver) and, possibly, molybdenum

-      Test the metallurgical variance between the Racecourse and Ascot deposits, with early drill assay indications that Ascot may contain higher levels of accessory metals

Recent developments at Newcrest Mining's Cadia-Ridgeway Mine elsewhere within the Lachlan Fold Belt of New South Wales include construction of a new molybdenum processing plant which will allow Newcrest to process molybdenum concentrate as a by-product from their main gold operation. Xtract believes that the molybdenum credits may have the potential to add value to Bushranger, in addition to gold and silver.

Racecourse Samples

To gain a broad understanding of the metallurgical characteristics of the Racecourse deposit, three samples were chosen that provide a range of mineralised tenors from the northern, central, and southern zones within the mineralised porphyry. The samples selected include a higher-grade intercept in sample BRDD-21-008 in the north, along with the two further samples which represent a more average grade across the deposit from BRDD-21-008 in the central part of the deposit and BRDD-21-013 in the south.

Ascot Sample

In addition to the test work at Racecourse, the Company will also submit one sample from drill hole BRDD-21-035 at the Ascot prospect. Ascot has so far returned results with significantly higher gold tenor than Racecourse which could indicate that it represents a distinct mineralised body within the Bushranger system and the Company intends to better understand any potential difference between the two deposits. Mineral textures observed within the Ascot drill core could indicate that Ascot sits closer to a feeder zone for the system and the company intends to model and test this theory with further test work and drilling.

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, Director.

Enquiries:

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:

ENDS