Xtract Resources PLC (LON:XTR) declared itself "very pleased" with the latest resource estimate for its Manica gold project in Mozambique, which sees the total resource lifted by 36%.
The work was carried out by Minxcon at the Fair Bride gold deposit at the Manica licence.
The total resource now stands at 1.257mln ounces from 17.3mln tonnes (Mt) at 2.26g/t compared to a previous estimate by Auroch Minerals, which showed 923,000 ounces from 9.54mln tonnes at 3.01 g/t gold.
The combined measured and indicated resource is now 22% higher - at 678,000 ounces at 8.71Mt at 2.42 g/t compared to 555,000 ounces of material for 5.55Mt at a grade of 3.11 g/t, while the inferred resource has increased by 57%, the firm revealed.
Chief executive Jan Nelson said: "We are extremely pleased with this significant increase in the Manica resource ahead of the completion of the BFS.
"Not only has the gold content increased significantly but the total Measured and Indicated volume available to be mined has also increased by over 56%.
"This creates flexibility from an open pit perspective, considering our revised mine plan. The significant increase in the Inferred category also shows that the life of mine of the project has the potential to be increased well beyond 12 years with further drilling."
In March this year, in house estimates had increased the net present value (NPV) and underlying earnings potential of the project.
NPV was increased to US$70mln compared to US$50mln in a previous preliminary economic assessment (PEA), while the start-up capital costs were US$35 million compared to a PEA capital estimate of US$28.4 million for open pit and plant.
Yesterday, the firm drew down US$2.4mln on its Yorkville facility to gain capital to see it through development and fund the BFS until project funding for the project is agreed.
A first tranche of US$1.65mln was drawn immediately, while a second of US$750,000 will be taken on July 1.