Xtract Resources (XTR) Shares Edged 4% Higher on Further Testing of Drill Samples

Trade Xtract Resources Shares Your capital is at risk
Simon Mugo
Updated: 26 Jan 2022

Key points:

  • After submitting drilling samples for further testing, Xtract Resources shares edged 4% higher.
  • The metallurgical tests will be conducted at an independent lab in Brisbane.
  • The miner hopes to identify a way forward for its Bushranger project.

The Xtract Resources PLC (LON: XTR) share price rallied 4% after announcing that it had submitted four samples from its Ascot and Racecourse prospects for further metallurgical testing at an independent lab.

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The mining company revealed that it wanted to ascertain the best possible options for its mining operations at its Bushranger project in Australia. Investors cheered the move, as evidenced by today’s gains, but the reaction was not as high as it could have been.

Xtract submitted three samples from the Racecourse prospect and one from the Ascot deposit, which was recently discovered.

Also Read: The Best Copper and Copper Mining Stocks to Buy.

The independent lab will perform projected flow sheet design, flotation, comminution and beneficiation analysis to determine the metallurgical properties and saleability of the copper concentrate used as input at the two prospects.

The lab tests will also seek to determine the extent of the precious metal deposits, including gold, silver, and molybdenum recovered from Bushranger.

Xtract Resources revealed that the drilling activities at Ascot had identified a higher content of the above precious metals might be due to the proximity of the site to a mineral feeder system.

The company intends to discover if it can exploit the Racecourse mineralisation via a simple flotation flowsheet.

The tests should also generate a flowsheet design for a potential copper recovery plant and specify the anticipated copper concentrate that could be recovered and sold.

Colin Bird, Xtract Resources Executive Chairman, said: “This metallurgical test work is fundamental and when completed will give us an insight into 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 ongoing 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.”

Xtract shares are trading almost flat for the year and may seem attractive to long term investors. However, those who buy at current levels may be rewarded if the independent tests revealed significant precious metals deposits at Bushranger.

However, nothing is guaranteed in the markets, and we could easily get a significant selloff if the tests generate disappointing results.

*This is not investment advice. Always do your due diligence before making investment decisions.

Xtract Resources share price.

IG chart of Xtract Resources share price 26-01-2022
Source: IG

Xtract Resources share price rallied 4% to trade at 5.46p, rising from Tuesday’s closing price of 5.25p.

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