REG - Xtract Resources plc - Production Update

Xtract ResourcesAnnouncement

22/06/2022 09:15

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RNS Number : 7730P  Xtract Resources plc  22 June 2022

 

 

 

 

For immediate release

22 June 2022

 

Xtract Resources Plc

("Xtract" or the "Company")

Production 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
March 2022 (the "Period").

 

Highlights

·    Total mining contractor gold production of 67.67Kg for the quarter,
equivalent to approximately 2,176 ounces

·    Total of 13.22Kg (equivalent to approximately 425 ounces)
attributable to Explorator

·    Value of Explorator share of gold produced US$794,797

·    Gold sales in period of 384 ounces

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

·    Fair Bride continued to progress satisfactorily

 

 

Colin Bird, Executive Chairman said: "The results for Q1 of this year were
satisfactory, especially when one considers that the results were achieved
during an aggressive rain and cyclone season. As at today's date, Fair Bride
production has started with the introduction of low-grade ore to commission
all parts of the processing circuit. We expect that by the end of Q3 Fair
Bride should be up to full commercial production. The production will build up
gradually as some of the gold gets locked up in the circuit and faults are
identified and rectified. I look forward to production results from Fair Bride
as well as from the alluvial and the small hard rock deposits ".

 

 

Production summary

Preliminary unaudited results for both the alluvial and hard rock mining
contractors for the Manica Concession for the three-month periods ended 31
March 2022, 31 December 2021, September 2021 and 30 June 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 table includes results from
the alluvial as well as the hard rock operations (other than Fair Bride hard
rock operation).

 

 

 

 

 

 

 

 

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

                                                                     ended        ended          ended          ended

                                                                    31 March     31 December    30 September   30 June

                                                                    2022          2021           2021           2021

 Production and Sales:
 Total contractor gold production -alluvial (equivalent ounces)     1,370        2,306          1,416          427
 Total contractor gold production- hard rock (equivalent ounces)    805          505            170            -
 Total contractor gold production (equivalent ounces)               2,176        2,811          1,586          427
 Total Explorator share of gold produced (equivalent ounces)        425          767            437            120
 Value of Explorator share of gold produced (value in US$)(Note 3)  US$794,797   US$1,383,125   US$784,998     US$218,413

 Explorator share of gold sold (equivalent ounces)                  384          360            152            139

 Explorator attributable revenue from gold sales                    $617,422     US$589,914     US$220,737     US$213,576
 Other Income                                                       $37,866      US$24,343      US$153,044     -
 Direct Operational Production Costs:
 Explorator total direct operational production costs (Note 1)      $172,460     US$180,791     US$142,786     US$130,697

 Total Costs:
 Explorator total direct production costs (Note 2)                  US$251,045   US$258,523     US$210,344     US$150,681

 Cost per ounce of gold produced                                    US$590       US$338         US$474         US$1,258

 

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:

 

 

 

 

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

                          31 March   2022     31 December   2021     30 September   2021     ended

                                                                                              30 June

                                                                                              2021
 Production Tax           US$74,807           US$77,732              US$33,743               US$19,948
 Land resettlement costs  -                   -                      US$33,815               -

 

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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