REG - Xtract Resources plc - Third quarter 2022 production update

Xtract ResourcesAnnouncement

09/01/2023 13:30

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RNS Number : 1300M  Xtract Resources plc  09 January 2023

 

 

For immediate release

9 January 2023

 

Xtract Resources Plc

("Xtract" or the "Company")

Third Quarter 2022 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 and production at Fair Bride, for the
three-month period ended 30 September 2022 (the "Period").

 

Highlights

·    Total mining contractor gold production of 66.38Kg for the quarter,
equivalent to approximately 2,134 ounces

·    Total of 11.90Kg (equivalent to approximately 382 ounces)
attributable to Explorator

·    Value of Explorator share of gold produced US$651,641

·    Exploratory share of gold sales in period of 343 ounces

·    Combined attributable revenue to Explorator from gold sales and other
income for the Period amounted to US$534,899

·    First mining contractor gold production from the Fair Bride deposit
of 35.35Kg for the quarter, equivalent to approximately 1,136 ounces

 

 

Colin Bird, Executive Chairman said: "The alluvial and smaller hard rock
deposits' performance continued generally in a similar manner to previous
quarters with the hard rock being determined by the vagaries of grade and vein
consistency. I am pleased to report that Fair Bride has commenced production
and throughout the quarter the activities were concentrated in two areas, by
developing a protocol for open pit grade control and troubleshooting the
numerous issue which inevitably occur on commission of a new processing plant.
We anticipate that the financial results from Fair Bride, where we have a 23
per cent. net profit share will initially be reported semi-annually."

 

Production summary

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

 

The Company is also pleased to report on significant progress at the recently
completed plant in Manica, Mozambique.  On 21 July 2022, the Company
announced that Mutapa Mining and Processing, LDA ("MMP") poured the first gold
from ore that they mined at the Fair Bride concession with a total of 35.35Kg
production in the third quarter of 2023. Plant commissioning continued
throughout the quarter with progressive improvements in throughput. The
Company remains very confident for a positive 2023 as the operation matures
and stabilises.

 

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 the unaudited financial results
from the alluvial as well as the hard rock operations (other than Fair Bride
hard rock operation in which Xtract has a 23 per cent. net profit share and
which it is anticipated will initially be reported semi-annually).

 

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

                                                                            ended            ended        ended        ended

                                                                           30 September     30 June      31 March     31 December

                                                                           2022             2022         2022          2021

 Production (ex-Fair Bride)
 Total contractor gold production -alluvial (equivalent ounces) (Note 1)   1,074            1,344        1,370        2,306
 Total contractor gold production- hard rock (equivalent ounces) (Note 2)  1,060            397          805          505
 Total contractor gold production (equivalent ounces)                      2,134            1,741        2,176        2,811
 Total Explorator share of gold produced (equivalent ounces)(Note 3)       382              344          425          767

 Production - Fair Bride
 Total gold production - Fair Bride (equivalent ounces)                    1,136            -            -            -

 Sales and income (ex- Fair Bride)
 Value of Explorator share of gold produced (value in US$)(Note 5)         U$651,641        US$639,271   US$794,797   US$1,383,125
 Explorator share of gold sold (equivalent ounces) (Note 4)                343              465          384          360

 Explorator attributable revenue from gold sales                           US$534,899       US$642,115   US$617,422   US$589,914
 Other Income                                                              -                -            US$37,866    US$24,343
 Direct Operational Production Costs (ex-Fair Bride)
 Explorator total direct operational production costs (Note 1)             US$161,789       US$179,969   US$172,460   US$180,791
 Total Costs (ex-Fair Bride)
 Explorator total direct production costs (Note 2)                         US$285,426       US$321,401   US$251,045   US$258,523

 Cost per ounce of gold produced                                           US$747           US$934       US$590       US$338

 

 

 

Notes:

 

Note 1:

 

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

                                                                ended            ended        31 March   2022     31 December   2021

                                                                 30 September     30 June

                                                                2022             2022
 3990C *                                                        512              852          986                  1 359
  7569L **                                                      562              491          385                 947

 

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

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

 

Note 2:

 

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

                                                                 ended            ended        31 March   2022     31 December   2021

                                                                  30 September     30 June

                                                                 2022             2022
 Guy Fawkes                                                      600              228          213                 164
  Boa Esperanza                                                  460              169          592                 341

 

Note 3:

 

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

                                                              ended            ended        31 March   2022     31 December   2021

                                                               30 September     30 June

                                                              2022             2022
 3990C                                                        97               171          195                 378
  7569L                                                       107              93           73                  269

 Guy Fawkes                                                   109              55           51                  43

 Boa Esperanza                                                69               24           107                 69

 

Note 4:

 

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

                                                    ended            ended        31 March   2022     31 December   2021

                                                     30 September     30 June

                                                    2022             2022
 3990C                                              136              157          190                 261
  7569L                                             196              190          36                  66

 Guy Fawkes                                         11               77           37                  34

 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:

 

 

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

                          ended            ended        31 March   2022     31 December   2021

                           30 September     30 June

                          2022             2022
 Production Tax           US$123 019       US$98 386    US$74 807           US$77 732
 Land resettlement costs  US$     619      US$43 046    -                   -

 

 

Note 8:

 

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

                                                       ended            ended        31 March   2022     31 December   2021

                                                        30 September     30 June

                                                       2022             2022
 Alluvial deposits                                     US$104 013       US$119 480   US$107 475          US$139 533
  Hard rock deposits                                   US$57 776        US$60 489    US$64 985           US$41 258

 

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

 

 

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