LONDON (ShareCast) - (Sharecast News) - Xtract Resources said on Monday that an induced polarisation geophysical survey has identified potential extensions to the Racecourse Mineral Resource on the Bushranger copper-gold exploration project, in the Lachlan Fold Belt of New South Wales, Australia.
The AIM-traded firm said the disseminated copper-gold mineralisation comprising the Racecourse Mineral Resource was associated with a "strong" induced polarisation chargeability response on the southwestern side of the central porphyry intrusion, which was evident on all survey lines, along 2.5 kilometres of strike length.

It said the survey indicated that the Racecourse mineral resource had the potential to extend in several directions, including at least 800 metres to the northwest beyond the limit of the currently-defined mineral resource.

The deposit also appeared to be open to the southeast, with mineralisation previously detected by "very limited" drilling on the northeast side of the central porphyry body possibly more extensive than currently known.

Xtract said the survey results would be fully processed, and were expected to generate several drill targets for potential resource extensions and testing of possible new mineral zones as part of the planned phase two drilling programme.

An independent firm was being engaged to undertake technical and financial modelling for an initial open pit mine, examining several pit layout scenarios and economic parameters.

"The geophysical survey results are very encouraging, indicating an opportunity for further shallow mineralisation to the north-east of the main porphyry. Should this be confirmed by drilling, it could significantly increase the open pit potential in this area," said executive chairman Colin Bird.

"The deposit also appears to be open down-plunge to the south-east and to the north-west, further increasing the deposit size potential."

Bird said that overall, the geophysical survey had been "very informative", and supported the company's belief in the scope for a significant increase in tonnage at Racecourse.

"The phase one drilling programme was based on historical drilling information and projections with limited additional technical support, however the new information from the geophysical survey now gives us specific targets and extensions to follow in the phase two drilling programme.

"In addition, we have appointed an independent consulting firm to model various open pit development scenarios in the upper part of the porphyry system, using a range of grade cut-offs and copper price parameters."

At 0930 BST, shares in Xtract Resources were up 4.11% at 5.47p.

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