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Xtract Resources hires new mining contractor for Manica alluvial project

“The overall effect will be to move more alluvials and thus shorten the time to about 6 years for total depletion of the western gravels"

gold mining
Xtract will receive monthly payments

Xtract Resources PLC (LON:XTR) told investors that its Mozambique subsidiary Explorator Limitada has entered into a new mining contractor agreement with Omnia Mining Ltd for an alluvial gold operation at the Manica project.

Omnia Mining will produce gold from the O block, in the western portion of the Manica area. The agreement will see Explorator receive monthly payments based on the run-of-mine performance.

The contractor will begin the building of dams and processing from February 12, and it is committed to have a fully operational plant (with a minimum throughput of 100 tonnes per hour) by no later than May 15.

It is expected that the agreement will run for a maximum of 10 years, or sooner if the alluvials are depleted.

"The agreement with Omnia allows the O block of the western area to be fed into Omnia's sophisticated alluvial processing plant which is situated adjacent thereto,” said Colin Bird, Xtract executive chairman.

“The overall effect will be to move more alluvials and thus shorten the time to about 6 years for total depletion of the western gravels.

“We continue to make to good progress in exploring further opportunities in the Manica area."

Quick facts: Xtract Resources PLC

Price: 1.05 GBX

LSE:XTR
Market: LSE
Market Cap: £4.6 m
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