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Hi Ben
Of them last lot of holes in phase 2, Holes 47 through to 52 tested the ground between Ascot and Racecourse, the southern extents of Ascot (52), and further defined the structure and extent of mineralisation in the central mineralised zone surrounding hole 35. >>They all intersected extensive zones of altered volcanics with trace, to locally weak to strong porphyry-related mineralisation throughout. << Then we had the couple of extra infill drills into RC that assays were turned around quick for, followed up by the very last hole into Ascot that was to test for the extension of mineralisation beneath hole 35 at depth, which subject to assays could add 100m of mineralisation with higher copper and gold tenor to the current known depth.

Going by the core analysis that was given, they don’t appear to be disappointing or not great. I also believe it would have been thought that maybe the very last hole in the programme was going to be the one down the throat, but they appear not to have done that exactly, maybe concentrating more on the structure of the main body with the gold shoots found in hole 39 maybe suspected to extend at depth below, and what has been tagged with hole 55?

We do know that a follow up phase however, will target the higher grade gold intersections, which would include the deep system (39) the outlying anomaly that assayed 2m @ 15.5g/t Au (33) along with the gold at shallower depths at both RC and Ascot.

Sorry, not exactly relevant to xtract directly, but more toward the future of the mining industry. Particularly in Australia, that although are very tolerant of mining, they also have some of the most stringent environmental legislation in the world. It is this type of energy transition solution that will be a requirement for permits to be authorised in the coming years.

>>Certainly one way is through innovations in renewables and battery storage solutions, on site modular electrolysers up to 100MW that convert water to Hydrogen using renewable energy from on site wind and solar power, could well be one solution that will fuel the machines that extract and transfer the ore and also fuel the production processes and facilities.<<

The very latest technologically advanced modular units use ‘only’ renewable energy. One in particular with it’s very own patented technology, ‘Proton Exchange Membrane.’ An advanced technology that converts to green Hydrogen in either Gas or liquid form. So it can even be used for grid balancing too by release into the gas pipeline, used as clean vehicle fuel, or in a host of industrial processes, significantly reducing emissions in logistics and heavy industry. As they can be switched on within seconds, PEM electrolysers have the edge in being able to rapidly react to fluctuations typical of renewable power generation. In comparison, the start-up time for alkaline water electrolysis is around an hour, making the latest technology ideally suited for grid balancing and meeting energy deficits too. A big tick toward those approvals.

The tech does not need to play catch-up to meet the clean energy demands of different industries, it is already in place now and appears to be a perfect solution for the mining industry.

The April May June target was kind of blown out the water with the analysis of Ascot showing multi porphyry potential. As it did too in relation to, supporting the earlier analysis from some assays at RC that showed deeper intersections of copper, pointing to further porphyry below the main body there.

It’s not difficult to understand the decision to extend drilling in phase 2 in what is an evolving understanding of the geology and what that implies to how they go about the resource building to get the project in the best possible position to achieve maximum value down the line.

Talking about a sale is a bit premature anyway considering we haven’t had the updated for RC and the initial resource estimate for Ascot yet. So it ‘is’ fair to be realistic in just hoping the company deliver on that first.

Let’s see where it sits first, then we can all reset once again. Looking forward to the ‘told you so’s and of course, the Doh’s’ But at least will all be on the same page………. well, for a day or two at least.

That would be a little misleading to suggest some believe it will be sold in October. His comments just support that maybe, they will be actively getting the modelling finished to get it in front of AA and as per Steve’s AGM feedback notes to get their first rights of refusal options out the way as soon as they can. I’m sure there are some that are ‘hopeful’ of a sale in Q4, Colin is still probably one of them! But believing is a bit different to be fair.

Realistically what we can hope for at this stage after waiting all this time, is there are no delays in the models finally being released.

Colin with Zak on Friday on one of his other company updates. He speaks openly on copper and china. Stating the Chinese, ‘They couldn’t suppress it for very long , and I see it now creeping forward now at 8.2 8.3 and that’s a very healthy price, and it’ll do for me in any of our projects…………… anything over 8000 in todays economics is a good price.”

It’s a strong signal at least, they are comfortable to actively market Bushranger as implied in year report when modelling is ready for the market after a full phase 2 assessment and evaluation.

Come midweek, that’s August done and dusted, where did that go!? We are talking in weeks not months now to see the results of all the hard work over the past 18 odd months. Finally, where the project sits in terms of scale and the overall quality of the data that will be presented.

So I think from his comments at least it does suggest they are not likely to be dragging their heels to get to that position as was a suggestion that they might do while they wait for copper to recover back up to the levels before the slump.

From 8min30sec
Xtract are not mentioned at any time btw. But his comments above are no doubt toward all his other companies copper projects. Although I can’t help feeling he was thinking of BR to some degree!

https://podcasts.google.com?feed=aHR0cHM6Ly9hdWRpb2Jvb20uY29tL2NoYW5uZWxzLzUwNTExMzMucnNz&episode=dGFnOmF1ZGlvYm9vbS5jb20sMjAyMi0wOC0yNjovcG9zdHMvODE0NjUwOQ%3D%3

* I am not invested in any other Colin bird companies and have only posted the link to support my post.

Even the very industry that will be relied upon to delivery the huge rise in copper demand and other battery metals is driving the need for change to a cleaner, more efficient and sustainable alternative to fossil fuels.

Over the decades, global copper production has roughly doubled every 25 years since data started being recorded. To meet the increasing demands for metals has already made the mining industry one of the most energy-intensive industrial sectors. Let alone going into the next few decades of global electrification. According to the International Energy Agency, between 8% and 10% of the world total energy consumption is dedicated to the extraction of materials that society demands, and that number does not take into account metallurgical processes, transport and other mining-related activities.

That is an incredible statistic that I came across, that needs to be reduced in future mining projects if the new discoveries and even previously shelved mines, are going to socially and environmentally acceptable, above being viable.

Certainly one way is through innovations in renewables and battery storage solutions, on site modular electrolysers up to 100MW that convert water to Hydrogen using renewable energy from on site wind and solar power, could well be one solution that will fuel the machines that extract and transfer the ore and also fuel the production processes and facilities.

The industry will need to play its own part too if it is to supply the increasing demand to help the world decarbonise and achieve net-zero. Copper will be at the heart of it all.

Hi IWTO thank you for correcting me on that one was sure it didnt effect the resource estimate! It’s obviously the recoverable ore and not the total mass of rock.
Sometimes the obvious can be right in front of you but just don’t click. Cheers

I’m still hopeful of decent copper from the bulk of the lower grades. My theory is based on some research that suggests the disposition of the lower grades that ore in the higher grade crown are not proportional to its disposition within the lower graded parts of the resource. That is, the higher graded parts of the resource has more concentrate of higher grades than lower, particularly within the crown.

I’m hoping from the new modelling it shows a greater percentage increase over the conceptual study figures. Wether or not it will actually have a material effect on the amount of contained copper is to be seen, but in theory it should.

I have been doing some research on it for what seems like months and tbh I’ve lost the will to live! Every porphyry is different.
Cheers
Guy

Hi iWTO thank you for your reasoning. The 3D resource modelling has a greater impact as it follows the mineralisation trends throughout the resource so will make a big difference to the overall numbers. Otherwise if your were just going by the average grade for each hole you would just need a calculator. I’m not saying it will all be at .44 I never have btw. But I do think the final amount of contained copper may surprise a few. Or I certainly hope at least from my understanding.

Yes sorry the grade factor comment I made was not quite how I meant it lol. Read twice post once

Just one small point, reducing the cut off has no bearing or influence on the resource estimate (500mt) But hey, that’s huge amount of ore, and with the later holes into Ascot that saw an extra 100m plunge added and a final hole to the southern extent that could both potentially add heaps to the already identified resource. Could we be close to an estimated 1billion tonne combined?

Hi lucky let me please have one more crack at why RC grades will be potentially a lot higher than .33%Cu. from your post

>> Pleased with the 25@20! that's 1.65mt at .33 ?Add on ascot and we could have 2/2.5/3mt. ?Could be more ar RC if the grade is higher but I doubt it.?
Here’s a fact, The average grade of porphyry copper ore is about 0.4%Cu, with the ‘larger proportion’ of ore minerals being less than 2 percent of the total volume of the ore rock with progressively more ore the lower the grade.

You are still trying to determine the amount of in ground copper by guessing the average grade% When in fact it is the amount of economic recoverable copper within a defined resource that determines the average grade%. Not the other way round. As I have said before, there is substantially more copper in ground the lower the grades are reduced. This is why the low economic cut off of 0.15%Cu is key to this extra copper volume. And the grade factor (.44) is not a assay drill average but the percentage of recoverable copper within the resource.

Jeremy Reid clearly states in the Ascot discovery webinar right at the very end that they estimate 2mtCuEq will come from RC with a resource of about 450mt @ 0.44%Cu hopefully confirmed now with CB’s revaluation of a mine potential of 500mt (25yrs x20mtpa).

Have another listen from about 23mins to end with Colin stating 2mt and shortly after Jeremy Reid confirms the point by also saying once all the assays are put into the model it determines the amount of copper. Which of course then, the copper % within the resource is then calculated.

https://youtu.be/QJ8b--rhvRI

Hi Andrew just one point worth a mention >>He said twice over the last 18 months that ore is just about to be put on the lorries and is being taken to be processed. <

They were test mining for some time running ore to plant when I believe (without checking) that some further met test work and drilling was done. With the last release mentioning operations will resume soon!

Sorry don’t have time to check facts at moment, I do agree with all your other points.

Thank you Steve and Ben too for your time and efforts.
That’s good to now have a better understanding of wether the agreement being in place is a potential deterrent. With the resource total for both RC and Ascot now in excess of 2mt (would hope) you could say it has played some part up until now, but then again it was inherited without the option for it to be not in place. But, It’s made it much more clear cut in terms of only needing to concentrate on the asset and not worrying about the share price without that perceived threat of any corporate actions going forward once we are free from its constraints if AA pass on their options.
The share price will take care of itself once modelling , income etc is released

Thanks Andy
My theory on possibly why they might not want to undertake a drilling program at Eureka to test the deep sulphides in the short to mid term is maybe they don’t want to start with some exploratory holes without being able to commit to and back it up with the funding that it will take to enter into a more comprehensive exploration programme to prove it up if there is an IOCG deposit there. It makes sense in understanding from your note 10.

Drilling a deep deposit is a big commitment in time and man hours that would potentially swallow a lot of cash, as it’s not like drilling a larger porphyry deposit , there’s a lot more risk.

The eureka pit is still open ended to the north-west to extend and also at depth so there will be steady income eventually, which was the priority there.

I certainly wouldn’t rule out the deep drilling in the future from the evidence already returned from the mineralisation style and assays. So maybe if and when the company is in a more stable and healthy position…

Does sound positive overall and as I have suggested they are not likely to go into the full phase 3 drilling. Potentially just the shallow high grade at RC to improve the early high grade recovery. That’s good news.

A final conclusion to bushranger could well be sooner than many are expecting after the announcement a phase 3 drilling campaign is ‘under consideration.’

If we actually ignore the idea that all is not well from the doomsday crew. There are quite a number of things that are pointing toward to the company pursuing an earlier conclusion.

- The objective of phase 2 was to get 2mtCuEq
- It is, and has always been the project objective to see what AA want to do once 2mt is reached.
- CB has spent since turn of the year telling the market that is the intent.
- CB mentioned October when expects or is hopefull of a recovery in global copper prices. What other relevance for a comment like this could there be?
- To ask shareholders just to have a bit more patience is certainly not indicative of going into a 3rd phase and a further 6-9 months wait.
- If they intend to hold back Q results for strategic release, why would that be necessary at all if the project is going into a further drilling campaign. Of course the first thing that will come to mind is for a further placement, but as we are led to believe, exploration will be paid for out of income. That is the whole point of growing the company to finally be self funding.
- If we do ‘not’ see any news of any significance today, which to me the idea to release something just to appease impatient shareholders in the hope of fending off some tough questions at AGM, when there is a more important near end game to consider so why waste good news. And furthermore, why hold it back now if it’s expected to be a further 6-9 months wait.
- There are the also RNS excerpt that states the project will be positioned in the global market

Ok there is some supposition there, but all these together paints a positive picture, if we try to second guess what the company are trying to do and more importantly why.

Hi JS
The board will do what ever is strategically necessary to maximise the impact when the time is right. Colin can be as frank, honest sincere and open as he normally does, but I was under the impression many don’t believe what he says anyway, so what are you actually expecting him to divulge that is not going to be dismissed in a few days as over optimism ;-)

The questions that Andmillsy has compiled to ask at agm (post 17aug @08.30) are sensible and would be good to get some feedback on those from the company.

You can see why Colin is said to be not keen on releasing ‘good’ news into the market at this time.

Unless it can be followed up with a stream of good news to sustain any initial rerate it’s inevitably going to get dragged back down as we have seen on many occasion. You can’t blame the BOD.

At a corporate level the low MC really isn’t so much a concern. With the potential of existing assets being far in excess in value of currently what the market values it at. The agreement in place is a good deterrent against any corporate actions. I’m certain once there is some sustained growth in the sector and the market in general, there will be a news drive that may also include the Q results to coincide when resource modelling with tonnages is ready to be released potentially from within a couple of months time. I think only then will it be safe to potentially be free from the agreement when a firm value can be placed on the company that will see maybe some institutional, or more wealthier investors arrive, particularly so if AA are not interested in moving into NSW, the company will not be so vulnerable.

From RNS
>> Upon the return of all remaining assay results from the Phase Two Drilling Programme at Racecourse and Ascot, a new resource model for both prospects will be developed.

There will be a separate RC model with tonnages that could be released sooner, along with new conceptual pit but I think it’s fairly clear of their intent to evaluate what to do next from this RNS and some other comments in RNS’s that will be once ‘all’ the data is input when last of Ascot assays are finite.

There is an interesting theory, that the declining ore grades should not necessarily be interpreted as a sign of the depletion of existing large mines, nor as an indicator of reduced resource availability or the increasing scarcity of new discoveries. This is because changes in the average ore grades being mined can be attributed to other factors such as innovation and improvements in extractive technologies, extending the life of older mines over finding new ones. Moreover, there is evidence that for most metals, as ore grades decline, the deposit size grows faster than the very decline in ore grade meaning greater amounts of economically recoverable metals.

All swings and roundabouts at this time but we have seen projects mining at an economic cut off of 0.1%-0.15%Cu. With a brand new central extra large capacity, ultra high tech extraction and processing facility that will see close to 90% recovery rates of concentrate. Could it be feasible that the new owners will be mining economically down into sub 0.1%Cu grades?

Long term price for copper will play a large part but will the global demand still far outstrip the technological advancements that will see these older and new mines process the ever lower grades that are more abundant in those resources that will see their ore reserves increase?

I would certainly not disagree there lucky, the more they do to build the resource the more value it will add.

I would only point out though that the extended drilling in phase 2 that Colin apologised to the market for that saw the extra couple of months delay…(Mmmm) was so we wouldn’t have to see the project sold and in 6 months another Cadia is found!

So potentially from that it could well mean that already there is enough supporting evidence. So it certainly not a given that they will need to do further exploratory drilling to show ‘Cadia like’ potential.

But maybe don’t count on it though, it all hinges on the outcome of phase 2 evaluation so will see.

Hi lucky
>> a Phase Three drilling programme which will focus on in-fill and upgrade drilling of the current known resources; resource extension drilling; and testing of further IP/geochemical anomalies outside the Ascot and Racecourse prospects.<<

Hole 33 tested an outlying anomaly from IP survey to the east above the discovery hole of ascot, the assays were the very high grades (15.5 g/t Au ) this is for further drilling. Also the deep gold intersections south of the discovery hole too, was for further drilling, and potentially at shallower depths too. One of the last holes drilled (49) was to the east and very southern part of Ascot, this will be an isolated hole that tested the southern extent so I would guess that the extension drilling will be to join up strike to extend the current 750metres.

Where it states ‘infill and upgrade of the current ‘known’ resources’ implies phase 3 will be further upgrading the initial ‘expected’ inferred resource at Ascot to part indicated potentially where there are the shallower mineralised zones.

However in the bulleted points earlier in the RNS it states-
>> A Phase Three drilling programme is under consideration, with aims to;
* define the shallow, high-grade crown in the centre of the Racecourse Prospect;
* identify the extents of the Ascot Prospect;
* target the higher-grade gold intersections at both prospects, especially at shallower depths;
* drill test satellite IP/geochemical anomalies

So is a bit unclear exactly. But resource planning at Ascot will ultimately follow the same path as RC to a conceptual pit study for whoever and whenever the project gets taken over.

Need to remember phase 3 is only under consideration. Once the resource models with tonnages are released the decision could then be with Anglo one way or another.

Another really good point Cygnus about the resource class. The first pit study was based on the inferred resource so was really just an exercise to show potential. The new study will be based on an upgraded/part upgraded indicated resource that carries a higher degree of geological confidence that carries over to give credibility to the financial study that an inferred resource does not.

Another strong indication toward the decision to mine of which the infill drilling Colin suggested they would do in very early phase 2.

It again is supportive of the intent to proceed with the decision to mine long before it was suggested that they are only considering it to trigger the buy back because of the ‘perceived’ lack of tonnage from RC.

Another piece to the puzzle maybe. Does make sense.

Hi Cygnus yeah it really was either good fortune or the resulting effectiveness that the drone mounted EM surveying overlayed with the IP data. A technique they have been using with seemingly better success in targeting. This hole was an outlying anomaly to the east of Ascot. RNS 10th may hole 33