REG - Xtract Resources plc - Manica Gold Update

Xtract ResourcesAnnouncement

18/01/2022 07:05

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RNS Number : 7337Y  Xtract Resources plc  18 January 2022

 

 

 

 

For immediate release

18 January 2022

 

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 31
December 2021 (the "Period").

 

Highlights

·    Total mining contractor gold production of 87.44Kg for the quarter,
equivalent to approximately 2,811 ounces

·    Total of 23.85Kg (equivalent to approximately 767 ounces)
attributable to Explorator

·    Value of Explorator share of gold produced US$1,383,125

·    Gold sales in period of 360 ounces

·    Combined attributable revenue to Explorator from gold sales and other
income for the Period amounted to US$614,257

·    Fair bride project continued to progress satisfactorily

 

 

Colin Bird, Executive Chairman said: "The quarter ended 31 December 2021, was
the best period for production since we commenced gold mining at Manica, with
production performance well surpassing previous quarters despite any lost time
due to rain. The development at Guy Fawkes continued with the objective of
exploring veins revealed by surface drilling. Construction work for the Fair
Bride project advanced satisfactorily and we are very pleased with the
engineering standards employed on the build.  The contribution of Fair Bride,
ongoing Mozambican production and Zambian operations progressing favorably,
leads us to be optimistic for production during 2022."

 

Production summary

Preliminary unaudited results for alluvial and hard rock mining contractors
for the Manica Concession for the three-month periods ended 31 December 2021,
September 2021, 30 June 2021, and 31 March 2021 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's current focus is to continue to
progress the Fair Bride hard rock operation.

 

 

 

 

 

 

 

 

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

                                                                     ended          ended          ended        ended

                                                                    31 December    30 September   30 June      31 March

                                                                     2021           2021           2021         2021
 Production and Sales:
 Total contractor gold production -alluvial (equivalent ounces)     2,306          1,416          427          284
 Total contractor gold production- hard rock (equivalent ounces)    505            170            -            -
 Total contractor gold production (equivalent ounces)               2,811          1,586          427          284
 Total Explorator share of gold produced (equivalent ounces)        767            437            120          79
 Value of Explorator share of gold produced (value in US$)(Note 3)  US$1,383,125   US$784,998     US$218,413   US$143,848

 Explorator share of gold sold (equivalent ounces)                  360            152            139          -

 Explorator attributable revenue from gold sales                    US$589,914     US$220,737     US$213,576   -
 Other Income                                                       US$24,343      US$153,044     -            -
 Direct Operational Production Costs:
 Explorator total direct operational production costs (Note 1)      US$180,791     US$142,786     US$130,697   US$121,093

 Total Costs:
 Explorator total direct production costs (Note 2)                  US$258,523     US$210,344     US$150,681   US$145,367

 Cost per ounce of gold produced                                    US$338         US$474         US$1,258     US$1,828

 

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:

 

 

 

 

 

 

 

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

                          31 December   2021     30 September   2021     ended        ended

                                                                          30 June      31 March

                                                                          2021         2021
 Production Tax           US$77,732              US$33,743               US$19,948    US$7,933
 Land resettlement costs  -                      US$33,815               -            US$16,341

 

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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