REG - Xtract Resources plc - Company & Manica Alluvial Gold Update

Xtract ResourcesAnnouncement

29/01/2019 12:30

RNS Number : 4279O
Xtract Resources plc
29 January 2019
 


 
 
For immediate release
29 January 2019
 
Xtract Resources Plc
("Xtract" or the "Company")
Company & Manica Alluvial Gold Update
 
The Board of Xtract Resources Plc ("Xtract" or the "Company") announces the preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month period ended 31 December 2018 (the "Period").
 
Highlights
 
·    Total alluvial mining contractor gold production of 41.29Kg (equivalent to approximately 1,328 ounces)
·     Total of 10.32Kg (equivalent to approximately 332 ounces) attributable to Explorator (including Nexus under the Collaboration Agreement)
·     Combined attributable revenue to Explorator from gold sales for the Period amounted to US$310,000
·     Xtract continue to review the alluvial operations and introduce more equipment
·     Plans being made to concurrently work the upper terraces
·     Test work carried out over the border in Zimbabwe to extend alluvial income
·    DFS revised to accommodate less complex ore with the technical and financial study to be released shortly
 
 
Colin Bird, Executive Chairman said: "The quarter under review produced modest results compared to previous quarters and reflects the lower grade areas having been ceded back to the Company together with compensation paid to local farmers . The areas mined during this quarter were marginal but considered appropriate for processing, despite lower grades. We expect to see improving production against an improving gold price. We recognise the inconsistency of alluvials, but over the last year have gained considerable insights into the intricacies of alluvial miming and this has moved up into test work programme in neighbouring countries. We now have a very clear vision how to effectively mine the hard rock occurrences which are less metallurgically challenging. The Company is talking to potential partners and investors to develop the Manica project and the board intend to release revised scoping numbers in the near future ".
 
Production summary
Preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month periods ended 31 December 2018, 30 September 2018, 30 June 2018 and 31 March 2018 are set out in the table below. In addition to the information included in the table set out in the announcement dated 16 July 2018, the table below provides a further breakdown of costs between operational costs, production tax and land resettlement costs:
 
 
 
 
 




 


4th Quarter
 ended
31 December 2018


Amended 3rd  Quarter ended
30 September 2018


2nd  Quarter ended
30 June 2018


1st  Quarter ended
31 March
2018




Production and Sales:


 


 


 


 




Total contractor alluvial gold production (equivalent ounces) (Note 4)


1,328


1,811


1,703


1,200




Explorator share of gold produced (equivalent ounces)


332


453


426


297




Explorator share of gold sold (equivalent ounces)
 


307


251


283


314




Explorator attributable revenue from gold sales


US$310,000


US$242,000


US$291,000


US$333,000




Xtract share of Explorator attributable revenue from gold sales (Note 1)


US$155,00


US$121,000
(Note 1)


US$116,400


US$133,200




Direct Operational Production Costs:


 


 


 


 




Explorator total direct alluvial operational production costs (Note 2)
 


US$146,299


US$129,150


US$148,696


US$155,882




Xtract share of Explorator alluvial direct alluvial operational production costs (Note 2)
 


US$73,149
 


US$64,575
(Note 1)


US$59,478


US$62,352




Total Costs:


 


 


 


 




Explorator total direct alluvial production costs (Note 3)
 


US$254,296


US$292,181


US$315,581


US$268,000




Cost per ounce of gold produced


US$820


US$645


US$741


US$902




Xtract share of Explorator alluvial direct alluvial production costs (Note 3)


US$127,148


US$146,090
(Note 1)


US$126,232


US$107,200




 
Note 1:         Under the Collaboration Agreement between Explorator and Nexus Capital Limited (previously Mineral Technologies International Limited, "Nexus") as previously announced on 20 June 2017, Xtract's net share of Explorator's gold revenue and costs was 40% for the two three-month periods ended 30 June 2018. Under the New Collaboration Agreement for the three-month period ended 30 September 2018 and 31 December 2018, Explorator's gold revenue and costs increases to 50%. The previously announced revenue and costs for the 3rd Quarter have therefore been updated for the amended  terms under the New Collaboration Agreement.
 
Note 2:         Direct operational production costs include and not limited to Explorator salaries, rent, vehicles expenses and utilities.
 
Note 3:   Total costs comprises direct operational production costs plus total Production Tax (6% of the value of total production which varies according to the level of production) and Land Resettlement Costs as detailed below:
 
                     




 


4th Quarter ended 31 December 2018


3rd Quarter ended 30 September 2018


2nd Quarter ended 30 June 2018


1st Quarter ended 31 March 2018




Production Tax


US$100,675


US$115,400


US$104,448


US$76,118




Land resettlement costs


US$7,322


US$47,631


US$62,437


US$36,000




 
 
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 
 
This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014 on market abuse. 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,
Executive Chairman
 


+44 (0)20 3416 6471
www.xtractresources.com




Beaumont Cornish Limited
Nominated Adviser and Joint Broker


Roland Cornish
Michael Cornish
Felicity Geidt


+44 (0)207628 3369
www.beaumontcornish.co.uk




 
Novum Securities Limited
Joint Broker                  


 
Colin Rowbury 


 
+44 (0)207 399 9427 
www.novumsecurities.com  




 


 


 




 

ENDS




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