REG - Xtract Resources plc - Shareholder Presentation - 16 June <Origin Href="QuoteRef">XTR.L</Origin>

Xtract ResourcesAnnouncement

16/06/2016 12:30

RNS Number : 4313B
Xtract Resources plc
16 June 2016
16 June 2016
Xtract Resources Plc 
("Xtract" or "the Company")
Presentation to shareholders and update on Chepica
Xtract Resources Plc (AIM: XTR) announces that the presentation to be presented to shareholders today at 12.30pm can be accessed by the following link: http://www.xtractresources.com/reports.htm
The Company will present the following operational highlights at its Chepica mine:
Further scope to increase volume from underground:
 Chepica is consistently delivering on volume of 280t/day
 Upgrading crushing circuit to provide capacity to produce volume of up to 340t/day (next six months)
 Upgrade in crushing circuit is improving milling capacity and grind (improved recoveries)
 Underground grade is running at 3.5g/t (highest grade ever mined)
 Mineralised zone at Chepica almost 10m wide
 Continue to expose reef along strike on 5, 6 and 7 level
 Almost at the position to drive 2 reef ends at Chepica on 8 level
 Total of 7 ends on reef (when Chepica intersects 8 level)
 Making up total milling target of 10kt from development only
 Mine pre-developed on 3 levels ready for stoping
 Do not have to install any roof bolts on 7 level at Colin (rock extremely competent)/rheology has improved
Lead-Zinc concentrate in addition to Gold concentrate:
 Ore body at depth at Colin has significant quantities of lead and zinc
 Up to 1% zinc in rock samples and core
 Lead-zinc has caused a problem in past 2 months in terms of floating gold 
 We have changed the plant circuit and will now produce a lead-zinc and gold concentrate
 The lead-zinc concentrate will result in additional revenue
 We need to install additional floatation cells to increase grade and quantity of concentrate produced
 Build a lead-zinc circuit and expand gold circuit
 Capex of U$150,000 to US$250,000 (over 2 months)
Increased production from tailings operation by 10kt/month:
 We are allocating debt capital to start construction of 6 tailings ponds that will leach an additional 10kt/mth
 Capital of US$1.25m to complete the project
 Have completed raising the current tailings dam wall by 4m and have doubled the wall thickness in preparation for the tailings operation (moved over 1Mt of material)
 Need to complete additional sampling and metallurgical test work (2 months - samples have been dispatched to lab)
 Need to build a gold elution facility that will produce dorey gold bars from alluvial operation
 Increase recoveries to 85%
 Increase the effective gold price we receive from US$800/oz to the current spot gold price
 Tailings operation will double monthly production output from the mine within 4 months
Earn-in Option
We were pleased to renegotiate the earn-in option agreement on Chepica, with payment schedule deferred, and the renegotiation of the option payments remains ongoing.
Enquiries:
Xtract Resources Plc
Jan Nelson, CEO
+44 (0)20 3416 6471
Cenkos Securities plc
Derrick Lee
Beth McKiernan
+44 (0)131 220 6939
Beaufort Securities
Jon Belliss
+44 (0)207 382 8300
St James's Corporate Services Limited
Phil Dexter
+44 (0)20 7796 8647
+44 (0)7798 634398
Gable Communications 
John Bick
xtract@gablecommunications.com
+44 (0)20 7193 7463
+44 (0) 7872 061007

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