REG - Xtract Resources plc - Manica alluvial gold & corporate update

Xtract ResourcesAnnouncement

08/12/2020 14:10

RNS Number : 9575H
  
Xtract Resources plc
  
08 December 2020
  
 

 
 
For immediate release
8 December 2020
 
Xtract Resources Plc
("Xtract" or the "Company")
Manica Alluvial Gold & Corporate Update 
 
The Board of Xtract Resources Plc ("Xtract" or the "Company") announces the preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month period ended 30 September 2020 (the "Period").
 
Highlights
·    Total alluvial mining contractor gold production of 24.48 Kg for the quarter (equivalent to approximately 787 ounces) 
·    Total of 6.85 Kg (equivalent to approximately 220 ounces) attributable to Explorator 
·    Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$250,968 
·    Cost per ounce decrease on previous quarters
·    Good progress on additional production sources on the Manica concession
 
 
Colin Bird, Executive Chairman said: "The total production for the quarter has increased moderately compared to previous quarters. The cost per ounce was lower and it appears that the operation has stabilised around these stated levels. Our activities regarding increased production around Manica are all advancing satisfactorily, with the Guy Fawkes plant having been built and hard rock access mining commencing. Our second alluvial concession is making good progress with equipment on site, the camp erected and production to commence later this week. 
 
The Fair Bride hard rock open pit project continues to progress on all fronts with the tailings dam in construction, plant earthworks in progress and heavy plant being completed in South Africa. 
 
Overall, we expect consistent gold production in December, advancing in January with a target for Fair Bride production being towards the latter part of the first half of 2021."
 
 
Production summary
Preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month periods ended September 2020, 30 June 2020, 31 March 2020, 31 December 2019 and are set out in the table below. In addition to the information included in the table, the table below provides a further breakdown of costs between operational costs, production tax and land resettlement costs. The Company currently expects that at current rates of activity, the alluvial mining contractors will conclude their operations during the first half of the next year. The Company's current focus is to progress the Manica hard rock operations.
 
 
 
 
 




 


3rd Quarter
 ended 
30 September 
 2020


2nd Quarter
 ended 
30 June 
 2020


3rd Quarter
 ended 
30 September 2020


4th Quarter
 ended 
31 December 2019




Production and Sales:


 


 


 


 




Total contractor alluvial gold production (equivalent ounces) (Note 3)


787


566


467


1,045




Explorator share of gold produced (equivalent ounces)


220


158


131


293




Value of Explorator share of gold produced (value in US$)(Note 3)


US$426,916


US$274,959


US$208,396


US$438,119




Explorator share of gold sold (equivalent ounces)
 


145


162


354


163




Explorator attributable revenue from gold sales


US$250,968


US$261,679


US$508,573


US$241,284




Direct Operational Production Costs:


 


 


 


 




Explorator total direct alluvial operational production costs (Note 1)
 


US$72,630


US$75,158


US$147,575


US$173,419




Total Costs:


 


 


 


 




Explorator total direct alluvial production costs (Note 2)
 


US$134,688


US$109,898


US$175,982


US$239,470




Cost per ounce of gold produced 


US$611


US$694


US$1,346


US$818




 
                       
 
Note 1:      Direct operational production costs include and not limited to Explorator salaries, rent, vehicles expenses and utilities.
Note 2:   Total costs comprises direct operational production costs plus total Production Tax (6% of the value of total production which varies according to the level of production) and Land Resettlement Costs as detailed below:
 
                      




 


3rd Quarter ended
30 September   2020


2nd Quarter ended
30 June
2020


1st Quarter 
ended
 31 March
 2020


4th Quarter 
ended 
31 December  
 2019




Production Tax 


US$30,136


US$18,854


US$16,109


US$42,066




Land resettlement costs 


US$31,922


US$15,887


US$12,297


US$23,985




 
Note 3:   Calculation based on the number of ounces produced during each month of the quarter multiplied by 
 the closing month end spot rate.  
 
Note 4: Presence of gold in alluvial deposits is unpredictable and therefore operational results will vary month-to-month.
 
As announced on 12 August, negotiations to introduce further mining and processing for alluvial production was progressing and the Company subsequently agreed an alluvial processing agreement with Omnia Mining Limitada ("Omnia") over the Company's existing licence 7569L at Manica. The contract covers an area of 1,727 hectares. Good progress has been made by Omnia with equipment on site, the camp erected and production is expected to commence later this week.
 
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 
 
This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014 on market abuse. 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,
Executive Chairman
 


+44 (0)20 3416 6471
www.xtractresources.com 




Beaumont Cornish Limited
Nominated Adviser and Joint Broker


Roland Cornish
Michael Cornish 
Felicity Geidt


+44 (0)207628 3369
www.beaumontcornish.co.uk 




 
Novum Securities Limited 
Joint Broker                   


 
Colin Rowbury 


 
+44 (0)207 399 9427 
www.novumsecurities.com  




 


 


 




 

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