Shares of diversified metals and minerals producer Xtract Resources are gaining on Friday after the company revealed “exciting” assay results from the first drill hole completed on the Phase One diamond drilling programme at the Racecourse Mineral Resource on the Bushranger copper-gold exploration project in the Lachlan Fold Belt of New South Wales, Australia.
Xtract Resources share price is currently trading 6.67% higher at 7.42p.
The company said the assay results confirm that the mineralisation at Racecourse forms a “very substantial” copper-gold mineral system, and there is potential to expand the mineral resource.
Xtract went on to say that the higher-grade sections of mineralisation match up well with those reported from drilling undertaken by Anglo American Exploration Australia Pty Ltd in 2014 and 2015, which suggests “good lateral continuity to the higher-grade zones”.
The overall mineral intersection and higher-grade zones in drill hole BRDD-20-001 compare favourably to intercepts from Alkane Resources Limited for their Boda copper-gold discovery located 170km from Bushranger.
The Phase One Drilling Programme's final hole is in progress at 75m depth, while assay results from the second hole are expected soon.
“The assay results from the first hole at the Racecourse deposit are exciting in that they confirm mineralisation for almost a kilometre down-plunge. The overall grade of 0.33% CuEq is very pleasing and I am particularly encouraged by the grade uniformity over the entire intercept,” commented Colin Bird, Executive Chairman of Xtract.
“The Phase One Drilling Programme has indicated the potentially significant scale of the Racecourse deposit and we will shortly be entering a phase of 3-D modelling and will undertake further geophysical surveying to aid planning for the Phase Two drilling programme,” added Bird.
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Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.