REG - Xtract Resources plc - Manica Gold Update

Xtract ResourcesAnnouncement

14/10/2021 07:00

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RNS Number : 0194P  Xtract Resources plc  14 October 2021

 

 

 

 

For immediate release

14 October 2021

 

Xtract Resources Plc

("Xtract" or the "Company")

Manica Gold Update

 

The Board of Xtract Resources Plc ("Xtract" or the "Company") announces the
preliminary unaudited results for all alluvial and hard rock mining
contractors for the Manica Concession for the three-month period ended 30
September 2021 (the "Period").

 

Highlights

·    Total mining contractor gold production of 49.34Kg for the quarter,
equivalent to approximately 1,586 ounces including initial hard rock
production from Guy Fawkes of 170 equivalent ounces of gold

·    Total of 13.60Kg (equivalent to approximately 437 ounces)
attributable to Explorator

·    Value of Explorator share of gold produced US$784,998

·    Gold sales in period of 152 ounces

·    Combined attributable revenue to Explorator from gold sales and other
income for the Period amounted to US$373,781

·    Guy Fawkes development continued during the period and Fair bride
progressed

 

 

Colin Bird, Executive Chairman said: "The quarter ended 30 September 2021, was
the third best period for production since we commenced alluvial mining at
Manica and production in September 2021 was 46% higher any other previous
month. Our policy is to have a number of sites operated by different
contractors and continue on this basis into 2022. The Fair Bride and Guy
Fawkes hard rock projects are both advancing satisfactorily, and we look
forward to increased production from Guy Fawkes in the final quarter and
initial production from Fair Bride towards the end the of 2021."

 

Production summary

Preliminary unaudited results for alluvial and hard rock mining contractors
for the Manica Concession for the three-month periods ended September 2021, 30
June 2021, 31 March 2021 and 31 December 2020 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. To date, the Company has only reported
results from alluvial operations. The quarter ended 30 September 2021 is the
first quarter which includes results from hard rock operations.  The
Company's current focus is to continue to progress the Fair Bride hard rock
operation.

 

 

 

 

 

 

 

 

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

                                                                     ended          ended        ended        ended

                                                                    30 September   30 June      31 March     31 December

                                                                     2021           2021         2021         2020
 Production and Sales:
 Total contractor gold production -alluvial (equivalent ounces)     1,416          427          284          400
 Total contractor gold production- hard rock (equivalent ounces)    170            -            -            -
 Total contractor gold production (equivalent ounces)               1,586          427          284          400
 Total Explorator share of gold produced (equivalent ounces)        437            120          79           112
 Value of Explorator share of gold produced (value in US$)(Note 3)  US$784,998     US$218,413   US$143,848   US$205,900

 Explorator share of gold sold (equivalent ounces)                  152            139          -            117

 Explorator attributable revenue from gold sales                    US$220,737     US$213,576   -            US$201,310
 Other Income                                                       US$153,044     -            -            -
 Direct Operational Production Costs:
 Explorator total direct operational production costs (Note 1)      US$142,786     US$130,697   US$121,093   US$95,595

 Total Costs:
 Explorator total direct production costs (Note 2)                  US$210,344     US$150,681   US$145,367   US$153,549

 Cost per ounce of gold produced                                    US$474         US$1,258     US$1,828     US$1,371

 

Note 1:     Direct operational production costs include and not limited to
Explorator salaries, rent, vehicles expenses and utilities for both alluvial
and hard rock operations

Note 2:   Total costs comprises direct operational production costs plus
total Production Tax and Land Resettlement Costs as detailed below:

 

 

 

 

 

 

 

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

                          30 September   2021     ended        ended        31 December   2020

                                                   30 June      31 March

                                                   2021         2021
 Production Tax           US$33,743               US$19,948    US$7,933     US$20,429
 Land resettlement costs  US$33,815               -            US$16,341    US$37,525

 

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 (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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