REG - Xtract Resources plc - Fourth quarter 2022 production update

Xtract ResourcesAnnouncement

06/04/2023 07:00

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RNS Number : 5568V  Xtract Resources plc  06 April 2023

 

 

For immediate release

6 April 2023

 

Xtract Resources Plc

("Xtract" or the "Company")

Fourth Quarter 2022 Production Update

 

The Board of Xtract Resources Plc ("Xtract" or the "Company") announces the
preliminary unaudited results for all alluvial and other hard rock mining
contractors for the Manica Concession as well as production at Fair Bride, for
the three-month period ended 31 December 2022 (the "Period").

 

Highlights

·    Total mining contractor gold production excluding Fair-Bride of
49.83Kg for the Period, equivalent to approximately 1,602 ounces

·    Total of 8.37Kg (equivalent to approximately 269 ounces) attributable
to Explorator

·    Value of Explorator share of gold produced US$462,292

·    Explorator share of gold sales in period of 433 ounces

·    Combined attributable revenue to Explorator from gold sales and other
income for the Period amounted to US$740,280

·    Mining contractor gold production from the Fair Bride deposit of
79.15Kg for the quarter, equivalent to approximately 2,546 ounces (Increase of
43.84Kg from the prior quarter)

·    Preliminary mining contractor gold production from Fair Bride deposit
of 123.68kg for Q1 2023, equivalent to 3,976 ounces)

 

 

Colin Bird, Executive Chairman said: "Alluvial production is now almost coming
to an end which is coinciding with the ramp-up of production from the Fair
Bride operation. Our income from Fair Bride will be well in excess of alluvial
income, and we look forward to the ramp-up proceeding to plan. We are
currently identifying fringe resources of oxides and embarking on district
exploration both for oxides and sulphides. We have commenced a study to extend
the plant to treat all sulphides which will give us the flexibility to treat
all materials and exploit the Fair Bride deposit to maximum effect. Now that
the Fair Bride operation has settled and the capital investment has been
completed, we plan from the 2(nd) Quarter (i.e., the three months ending 30
June 2023) to report quarterly on Fair Bride's operation and financial
results."

 

Production summary

Preliminary unaudited results for both the alluvial and hard rock mining
contractors for the Manica Concession for the three-month periods ended 31
December 2022, September 2022, 30 June 2022 and 31 March 2022, are set out in
the table below.

 

The Company is also pleased to report on significant progress at the recently
completed plant in Manica, Mozambique.  On 21 July 2022, the Company
announced that Mutapa Mining and Processing, LDA ("MMP") poured the first gold
from ore that they mined at the Fair Bride concession. A total of 79.15Kg was
produced during the fourth quarter of 2023. The Company remains confident for
a positive 2023 as the Fair Bride operation matures and stabilises.

 

In addition to the information included in the table below, the notes provide
a further breakdown of costs between operational costs, production tax and
land resettlement costs. The table includes the unaudited financial results
from the alluvial as well as the hard rock operations (other than Fair Bride
hard rock operation in which Xtract has a 23 per cent. net profit share and
which will from Q2 2023 be reported on a quarterly basis).

 

                                                                           4th Quarter      3rd Quarter      2nd Quarter  1st Quarter

                                                                           ended             ended            ended        ended

                                                                           31 December      30 September     30 June      31 March

                                                                           2022             2022             2022         2022

 Production (ex-Fair Bride)
 Total contractor gold production -alluvial (equivalent ounces) (Note 1)   769              1,074            1,344        1,370
 Total contractor gold production- hard rock (equivalent ounces) (Note 2)  833              1,060            397          805
 Total contractor gold production (equivalent ounces)                      1,602            2,134            1,741        2,176
 Total Explorator share of gold produced (equivalent ounces)(Note 3)       269              382              344          425
 Production - Fair Bride
 Total gold production - Fair Bride (equivalent ounces)                    2,546            1,136            -            -

 Sales and income (ex- Fair Bride)
 Value of Explorator share of gold produced (value in US$)(Note 5)         U$462,292        U$651,641        US$639,271   US$794,797
 Explorator share of gold sold (equivalent ounces) (Note 4)                433              343              465          384

 Explorator attributable revenue from gold sales                           US$740,280       US$534,899       US$642,115   US$617,422
 Other Income                                                              -                -                -            US$37,866
 Direct Operational Production Costs (ex-Fair Bride)
 Explorator total direct operational production costs (Note 1)             US$189,986       US$161,789       US$179,969   US$172,460
 Total Costs (ex-Fair Bride)
 Explorator total direct production costs (Note 2)                         US$235,917       US$285,426       US$321,401   US$251,045

 Cost per ounce of gold produced                                           US$876           US$747           US$934       US$590

 

 

 

Notes:

 

Note 1:

 

 Total contractor gold production-alluvial (equivalent ounces)  4th Quarter     3rd Quarter      2nd Quarter  1st Quarter ended

                                                                ended           ended            ended        31 March   2022

                                                                 31 December     30 September     30 June

                                                                2022            2022             2022
 3990C *                                                        177             512              852          986
  7569L **                                                      593             562              491          385

 

*Licence 3990C Mining Concession (Alluvial & hard rock), Manica Province.

**Licence 7569L Mining Concession (Alluvial), Manica Province.

 

Note 2:

 

 Total contractor gold production-hard rock (equivalent ounces)  4th Quarter     3rd Quarter      2nd Quarter  1st Quarter ended

                                                                 ended           ended            ended        31 March   2022

                                                                  31 December     30 September     30 June

                                                                 2022            2022             2022
 Guy Fawkes                                                      219             600              228          213
  Boa Esperanza                                                  614             460              169          592

 

Note 3:

 

 Total Explorator share of gold produced (equivalent ounces)  4th Quarter     3rd Quarter      2nd Quarter  1st Quarter ended

                                                              ended           ended            ended        31 March   2022

                                                               31 December     30 September     30 June

                                                              2022            2022             2022
 3990C                                                        113             97               171          195
  7569L                                                       33              107              93           73

 Guy Fawkes                                                   33              109              55           51

 Boa Esperanza                                                90              69               24           107

 

Note 4:

 

 Explorator share of gold sold (equivalent ounces)  4th Quarter     3rd Quarter      2nd Quarter  1st Quarter ended

                                                    ended           ended            ended        31 March   2022

                                                     31 December     30 September     30 June

                                                    2022            2022             2022
 3990C                                              169             136              157          190
  7569L                                             137             196              190          36

 Guy Fawkes                                         127             11               77           37

 Boa Esperanza                                      -               -                41           122

 

 

Note 5:      Calculation based on the number of ounces produced during
each month of the quarter multiplied by  the closing month end spot rate.

 

Note 6:      Direct operational production costs include and not limited
to Explorator salaries, rent, vehicles expenses and utilities for both
alluvial and hard rock operations.

 

Note 7:      Total costs comprises direct operational production costs
plus total Production Tax and Land Resettlement Costs as detailed below:

 

 

                          4th Quarter       3rd Quarter      2nd Quarter  1st Quarter ended

                          ended             ended            ended        31 March   2022

                           31 December       30 September     30 June

                          2022              2022             2022
 Production Tax           US$44,674         US$123 019       US$98 386    US$74 807
 Land resettlement costs  US$1,267          US$     619      US$43 046    -

 

 

Note 8:

 

 Explorator total direct operational production costs  4th Quarter     3rd Quarter      2nd Quarter  1st Quarter ended

                                                       ended           ended            ended        31 March   2022

                                                        31 December     30 September     30 June

                                                       2022            2022             2022
 Alluvial deposits                                     US$117,513      US$104 013       US$119 480   US$107 475
  Hard rock deposits                                   US$72,673       US$57 776        US$60 489    US$64 985

 

Note 9:     Alluvial deposits are the natural concentration of heavy
minerals caused by the effect of gravity on moving particles. Various natural
actions known as weathering can and did dislodge gold from its hard rock
containment. Once the gold is liberated it migrates by gravity and water flow
into larger or subsidiary streams. The net effect of this migration into
streams is concentration of the gold into gold ore bodies. Presence of gold in
alluvial deposits is unpredictable and therefore operational results will vary
month-to-month.

 

Further details are available from the Company's website which details the
company's project portfolio as well as a copy of this
announcement: www.xtractresources.com (http://www.xtractresources.com)

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018.The person who arranged for the release
of this announcement on behalf of the Company was Joel Silberstein, Director.

 

Enquiries:

 

 Xtract Resources Plc                               Colin Bird,          +44 (0)20 3416 6471

                                                    Executive Chairman   www.xtractresources.com (http://www.xtractresources.com)

 Beaumont Cornish Limited                           Roland Cornish       +44 (0)207628 3369

 Nominated Adviser and Joint Broker                 Michael Cornish      www.beaumontcornish.co.uk (http://www.beaumontcornish.co.uk)

                                                    Felicity Geidt

 Novum Securities Limited                           Jon Bellis           +44 (0)207 399 9427

 Joint Broker                                       Colin Rowbury        www.novumsecurities.com

 

 

ENDS

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