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").
· 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 ".
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:
31 December 2018
Amended 3rd Quarter ended
30 September 2018
2nd Quarter ended
30 June 2018
1st Quarter ended
Production and Sales:
Total contractor alluvial gold production (equivalent ounces) (Note 4)
Explorator share of gold produced (equivalent ounces)
Explorator share of gold sold (equivalent ounces)
Explorator attributable revenue from gold sales
Xtract share of Explorator attributable revenue from gold sales (Note 1)
Direct Operational Production Costs:
Explorator total direct alluvial operational production costs (Note 2)
Xtract share of Explorator alluvial direct alluvial operational production costs (Note 2)
Explorator total direct alluvial production costs (Note 3)
Cost per ounce of gold produced
Xtract share of Explorator alluvial direct alluvial production costs (Note 3)
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
Land resettlement costs
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'swebsite 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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
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