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 30 September 2019 (the "Period").
· Total alluvial mining contractor gold production of 30.92Kg for the quarter (equivalent to approximately 994 ounces)
· Total of 8.66Kg (equivalent to approximately 278 ounces) attributable to Explorator (including Nexus under the Collaboration Agreement)
· Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$467,683
· Post-period end in October a total of 14.96Kg of mining contractor gold produced with a current gross value of US$699,000
· Manica hard rock continues to progress and all aspects of operations advancing satisfactorily with long lead items ordered before due date
· Preparation to commence drilling program in Zambia currently being finalised
· Kalengwa metallurgical test work being carried out in South Africa and Zambia including separation and flotation test work
· Review of the Company's corporate structure to facilitate new projects and their implementation
Colin Bird, Executive Chairman said: "The alluvial production at the Manica concession continues to be profitable for the Company and also provides the necessary cash flow whilst we develop the Fairbride Project in Mozambique as well as the Kalengwa Project in Zambia. The alluvials have provided positive cash flow on a monthly basis despite there being volatility in the gold yield, excess overburden removal or a combination of the two. At the same time, we have generally been quite cost efficient with matters under our control, which has assisted to maintain profitability during difficult operational periods.
We are pleased with all aspects of the Manica hard rock development as well as the initial results of the Kalengwa tailings test work and we will report the full set of results as soon as they are available. The Company has carried out several field reviews of the Matrix, Eureka and Kalengwa projects and have identified drilling targets for all properties.
We have reviewed our management structure and are making several changes to meet the requirements of the Company's aggressive production development and new exploration targets in Zambia."
Preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month periods ended 30 September 2019, 30 June 2019, 31 March 2019 and 31 December 2018 are set out in the table below. In addition to the information included in the table, the table below provides a further breakdown of costs between operational costs, production tax and land resettlement costs:
30 September 2019
30 June 2019
31 March 2019
31 December 2018
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%.Under the New Collaboration Agreement, Explorator's gold revenue and costs increased to 50%.
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:
3rd Quarter ended 30 September 2019
2nd Quarter ended 30 June 2019
1st Quarter ended 31 March 2019
4th Quarter ended 31 December 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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