Xtract Resources PLC (LON:XTR) has given investors an update on its contracted alluvial mining operations at the Manica concession, in Mozambique, for the quarter ended December 31, a period in which the operation worked through some teething problems.
Chairman Colin Bird said: “The last quarter represented the commencement of operations with its attendant set-backs and problems.
“The contractors solved the issues with design modifications, extraction scheduling changes and increased equipment.
“The operations are progressing favourably, and we expect first quarter results for the period ending 31 March 2018 to show an overall improvement in productivity and attributable income to Xtract.”
In Thursday’s statement, Xtract said combined attributable contractor income for the period amounted to US$801,000, meaning the AIM-quoted company’s share was US$320,000 (40% of the contractor income).
The company noted that at the end the period, some 2.828 kilograms of gold was on account but not yet sold.
Xtract also highlighted that it continues to explore opportunities to work with other operators and review other concessions in the Manica and surrounding areas
“We have a clear mission on the opportunities presented in the district,” Bird said.
“We are highly encouraged by a positive start and industry interest in our Fair Bride hard rock project."