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

Xtract ResourcesAnnouncement

02/07/2021 15:05

RNS Number : 0609E
  
Xtract Resources plc
  
02 July 2021
  
 

 
 
 
 
For immediate release
2 July 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 March 2021 (the "Period").
 
Highlights
·    Total alluvial mining contractor gold production of 8.83Kg for the quarter (equivalent to approximately 284 ounces) 
·    Total of 2.47Kg (equivalent to approximately 79 ounces) attributable to Explorator 
·    Value of Explorator share of gold produced US$143,848
·    Operations were impacted by continuing COVID 19 restrictions and local storms 
·    Guy Fawkes development continued during the period and Fairbride progressed 
 
 
Colin Bird, Executive Chairman said: "Operations in the period ended 31 March 2021 continued to be adversely affected due to COVID 19, with most of the mining contactor's key personnel returning to their homeland for medical treatment or vaccination. During the period operations were stopped or seriously curtailed and despite this we still managed to maintain an operation with production managing to hold our own and prepare for better all-round operating conditions. Guy Fawkes development continued and there has been positive progress at Fairbride. With all contractors having returned, we anticipate improving operations in line with the final quarter of 2020".
 
 
 
 
Production summary
Preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month periods ended 31 March 2021, 31 December 2020, September 2020 and 30 June 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.
 
 
 
 
 







1st Quarter
 ended 
31 March 
2021


4th Quarter
 ended 
31 December 
 2020


3rd Quarter
 ended 
30 September 
 2020


2nd Quarter
 ended 
30 June 
 2020




Production and Sales:




















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


284


400


787


566




Explorator share of gold produced (equivalent ounces)


79


112


220


158




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


US$143,848


US$205,900


US$426,916


US$274,959




Explorator share of gold sold (equivalent ounces)
 


-


117


145


162




Explorator attributable revenue from gold sales


-


US$201,310


US$250,968


US$261,679




Direct Operational Production Costs:




















Explorator total direct alluvial operational production costs (Note 1)
 


US$121,093


US$95,595


US$72,630


US$75,158




Total Costs:




















Explorator total direct alluvial production costs (Note 2)
 


US$145,367


US$153,549


US$134,688


US$109,898




Cost per ounce of gold produced 


US$1,828


US$1,371


US$611


US$694



 
                       
 
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:
 
                      







1st Quarter 
ended
 31 March
 2021


4th Quarter ended
31 December   2020


3rd Quarter ended
30 September   2020


2nd Quarter ended
30 June
2020




Production Tax 


US$7,9339


US$20,429


US$30,136


US$18,854




Land resettlement costs 


US$16,341


US$37,525


US$31,922


US$15,887



 
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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