REG - Xtract Resources plc - Manica Alluvial Gold & Corporate Update

Xtract ResourcesAnnouncement

26/03/2021 17:00

RNS Number : 7057T
  
Xtract Resources plc
  
26 March 2021
  
 

 
 
For immediate release
26 March 2021
 
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 31 December 2020 (the "Period").
 
Highlights
·    Total alluvial mining contractor gold production of 12.44 Kg for the quarter (equivalent to approximately 400 ounces) 
·    Total of 3.48 Kg (equivalent to approximately 112 ounces) attributable to Explorator 
·    Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$201,310 
·    Operations were impacted by continuing COVID 19 restrictions and local storms 
·    Guy Fawkes preparatory development continued during the period and limited earthworks at Fairbride were progressed 
 
 
Colin Bird, Executive Chairman said: "The quarter ended 31 December 2020, proved to be a challenging period, impacted by local storms as well ongoing COVID 19 restrictions imposed on our contractors, reducing our operating capabilities. However, despite this our contractor was able to carry out limited production. Local weather conditions worsened during Q1 2021 again impacting operating capability and operations at  Guy Fawkes and our second alluvial license are being progressed. The Company is expecting a drier season from Q2 2021 onwards with improved operating conditions."
 
 
Production summary
Preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month periods ended 31 December 2020, September 2020, 30 June 2020 and 31 March 2020 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 second half of this year. The Company's current focus is to continue to progress the Manica hard rock operations.
 
 
 
 
 
 
 







4th Quarter
 ended 
31 December 
 2020


3rd Quarter
 ended 
30 September 
 2020


2nd Quarter
 ended 
30 June 
 2020


1st Quarter
 ended 
31 March 2020




Production and Sales:




















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


400


787


566


467




Explorator share of gold produced (equivalent ounces)


112


220


158


131




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


US$205,900


US$426,916


US$274,959


US$208,396




Explorator share of gold sold (equivalent ounces)
 


117


145


162


354




Explorator attributable revenue from gold sales


US$201,310


US$250,968


US$261,679


US$508,573




Direct Operational Production Costs:




















Explorator total direct alluvial operational production costs (Note 1)
 


US$95,595


US$72,630


US$75,158


US$147,575




Total Costs:




















Explorator total direct alluvial production costs (Note 2)
 


US$153,549


US$134,688


US$109,898


US$175,982




Cost per ounce of gold produced 


US$1,371


US$611


US$694


US$1,346



 
                       
 
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 and Land Resettlement Costs as detailed below:
 
                      







4th Quarter ended
31 December   2020


3rd Quarter ended
30 September   2020


2nd Quarter ended
30 June
2020


1st Quarter 
ended
 31 March
 2020




Production Tax 


US$20,429


US$30,136


US$18,854


US$16,109




Land resettlement costs 


US$37,525


US$31,922


US$15,887


US$12,297



 
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.
 
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                   


 
Jon Bellis 
Colin Rowbury 


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

















 

ENDS

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