REG - Xtract Resources plc - Production update

Xtract ResourcesAnnouncement

30/09/2022 07:01

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RNS Number : 2524B  Xtract Resources plc  30 September 2022

 

For immediate release

30 September 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 30
June 2022 (the "Period").

 

Highlights

·    Total mining contractor gold production of 54.15Kg for the quarter,
equivalent to approximately 1,344 ounces

·    Total of 10.69Kg (equivalent to approximately 344 ounces)
attributable to Explorator

·    Value of Explorator share of gold produced US$639,271

·    Gold sales in period of 465 ounces

·    Combined attributable revenue to Explorator from gold sales and other
income for the Period amounted to US$642,115

 

 

Colin Bird, Executive Chairman said: "The results for the June quarter are
fairly consistent with previous quarters with Guy Fawkes slowly opening up
areas for production. Fair Bride is now in production and teething problems of
the plant and the mine are being reduced and eliminated. We anticipate gold
production will increase significantly in the final quarter of this year".

 

Production summary

Preliminary unaudited results for both the alluvial and hard rock mining
contractors for the Manica Concession for the three-month periods ended 30
June 2022 ,31 March 2022, 31 December 2021 and September 2021 and are set out
in the table below. In addition to the information included in the table, the
notes below provide 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).

 

 

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

                                                                            ended        ended        ended          ended

                                                                           30 June      31 March     31 December    30 September

                                                                           2022         2022          2021           2021

 Production and Sales:
 Total contractor gold production -alluvial (equivalent ounces) (Note 1)   1,344        1,370        2,306          1,416
 Total contractor gold production- hard rock (equivalent ounces) (Note 2)  397          805          505            170
 Total contractor gold production (equivalent ounces)                      1,741        2,176        2,811          1,586
 Total Explorator share of gold produced (equivalent ounces)(Note 3)       344          425          767            437
 Value of Explorator share of gold produced (value in US$)(Note 5)         US$639,271   US$794,797   US$1,383,125   US$784,998

 Explorator share of gold sold (equivalent ounces) (Note 4)                465          384          360            152

 Explorator attributable revenue from gold sales                           US$642,115   US$617,422   US$589,914     US$220,737
 Other Income                                                              -            US$37,866    US$24,343      US$153,044
 Direct Operational Production Costs:
 Explorator total direct operational production costs (Note 1)             US$179,969   US$172,460   US$180,791     US$142,786

 Total Costs:
 Explorator total direct production costs (Note 2)                         US$321,401   US$251,045   US$258,523     US$210,344

 Cost per ounce of gold produced                                           US$934       US$590       US$338         US$474

 

Note 1:

 

 Total contractor gold production-alluvial (equivalent ounces)  2nd Quarter  1st Quarter ended   4th Quarter ended      3rd Quarter ended

                                                                ended        31 March   2022     31 December   2021     30 September   2021

                                                                 30 June

                                                                2022
 3990C *                                                        852          986                  1 359                 651
  7569L **                                                      491          385                 947                    765

 

*Licence 3990C Mining Concession (Alluvial & hard rock), Manica Province.

**Licence 7569L Mining Concession (Alluvial), Manica Province.

 

Note 2:

 

 Total contractor gold production-hard rock l (equivalent ounces)  2nd Quarter  1st Quarter ended   4th Quarter ended      3rd Quarter ended

                                                                   ended        31 March   2022     31 December   2021     30 September   2021

                                                                    30 June

                                                                   2022
 Guy Fawkes                                                        228          213                 164                    174
  Boa Esperanza                                                    169          592                 341                    16

 

Note 3:

 

 Total Explorator share of gold produced (equivalent ounces  2nd Quarter  1st Quarter ended   4th Quarter ended      3rd Quarter ended

                                                             ended        31 March   2022     31 December   2021     30 September   2021

                                                              30 June

                                                             2022
 3990C                                                       171          195                 378                    186
  7569L                                                      93           73                  269                    207

 Guy Fawkes                                                  55           51                  43                     45

 Boa Esperanza                                               24           107                 69                     -

 

Note 4:

 

 Explorator share of gold sold (equivalent ounces  2nd Quarter  1st Quarter ended   4th Quarter ended      3rd Quarter ended

                                                   ended        31 March   2022     31 December   2021     30 September   2021

                                                    30 June

                                                   2022
 3990C                                             157          190                 261                    125
  7569L                                            190          36                  66                     -

 Guy Fawkes                                        77           37                  34                     27

 Boa Esperanza                                     41           122                 -                      -

 

Note 5:   Calculation based on the number of ounces produced during each
month of the quarter multiplied by

 the closing month end spot rate.

 

Note 6: Direct operational production costs include and not limited to
Explorator salaries, rent, vehicles expenses and utilities for both alluvial
and hard rock operations

 

Note 7: Total costs comprises direct operational production costs plus total
Production Tax and Land Resettlement Costs as detailed below:

 

 

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

                          ended        31 March   2022     31 December   2021     30 September   2021

                           30 June

                          2022
 Production Tax           US$98 386    US$74,807           US$77,732              US$33,743
 Land resettlement costs  US$43 046    -                   -                      US$33,815

 

 

Note 8:

 

 Explorator total direct operational production costs  2nd Quarter  1st Quarter ended   4th Quarter ended      3rd Quarter ended

                                                       ended        31 March   2022     31 December   2021     30 September   2021

                                                        30 June

                                                       2022
 Alluvial deposits                                     US$119 480   US$107 475          US$139 533             US$109 914
  Hard rock deposits                                   US$60 489    US$64 985           US$41 258              US$32 872

 

 

Note 9: Alluvial deposits are the natural concentration of heavy minerals
caused by the effect of gravity on moving particles. Various natural actions
known as weathering can and did dislodge gold from its hard rock containment.
Once the gold is liberated it migrates by gravity and water flow into larger
or subsidiary streams. The net effect of this migration into streams is
concentration of the gold into gold ore bodies. 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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