Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Xtract Resources' Manica project robust and relatively simple, study concludes

“We are already working on reducing capital numbers and introducing practical engineering to further reduce risk and enhance project financial parameters."
picture of gold bars
Manica has two year payback time

A definitive feasibility study for its Manica project in Mozambique has indicated it is a robust project that is neither complex nor capital intensive, said Xtract Resources PLC (LON:XTR).

The junior recently scrapped plans for an underground operation to focus just on an open pit.

Using that option, for an upfront cost of US$43.7mln, payback is under two years at a gold price of US$1,262.

The gold mine will have a life of seven years producing 215,000 ounces at an average gold grade of 2.62 g/t.  

Cash costs are forecast at US$556 per ounce with all-in costs of US$862 per ounce to give a net present value of US$42mln.

 A further 992,000 ounces is available for additional evaluation and future exploitation

 Colin Bird, executive chairman, said: “The Project has major upside potential which can be exploited later against a fully paid for processing plant.

“Opportunity exists for hard rock consolidation which we are exploring. The alluvial opportunity is extensive and we are currently discussing and negotiating third party mining contracts. 

“We are already working on reducing capital numbers and introducing practical engineering to further reduce risk and enhance project financial parameters." 

Daan van Heerden of Minxcon, the study’s author, said: "The Manica study has produced a robust project targeted toward simplicity and predictability. We concur with managements approach to the concession and agree that the previously announced hybrid approach might have led to enhanced capital and operating risk."

View full XTR profile View Profile

Xtract Resources PLC Timeline

Related Articles

1506597357_Rare-earths.jpg
September 28 2017
Construction work at the mine and plant in Burundi is now nearing completion
potash-delivery.jpg
July 31 2017
As well as RHA and Zulu, the firm has assets in Mozambique and a stake in private firm Circum Minerals
1505939625_cobalt-on-periodic-table-2.jpg
September 20 2017
Cruz is cashed up and exploring across a range of properties in the US and Canada..

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use