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Xtract Resources Share Price Gains On “Exciting” Assay Results

Sam Boughedda trader
Updated 22 Jul 2021

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Mine Drilling

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.

Xtract Resources LON: XTR

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.

Should you invest in Xtract Resources shares? Xtract Resources shares are traded on the AIM market of the London stock exchange (the alternative investment market) which is the sub market specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Xtract Resources shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.