Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Xtract Resources extends partnership with Omnia Mining for Manica project

Xtract Resources said the deal with Omnia gives the company "the opportunity for a fast track hard rock operation".
Omnia will use its processing plant to target hard rock occurrences at Manica

Xtract Resources PLC (LON:XTR) has agreed a new collaboration with Omnia Mining Ltd for the exploitation of hard rock gold deposits at the Manica mining concession in Mozambique.

Omnia will use its processing plant to target all hard rock occurrences at Manica, apart from the Fair Bride project, which remains under the sole control and management of Xtract.

READ: Xtract Resources says contracted gold operations are “progressing favourably”

The plant is capable of processing 400,000 tonnes per year.

Xtract will carry out the initial investigation on potential targets while costs of further exploration work will be shared equally between the two companies.

Hard rock occurrences that meet the agreed target hurdle rate of return of 25% will be mined and the benefits shared on a 50:50 basis.

“Within the partners concession areas, there exists numerous hard rock occurrences most of which have undergone limited, superficial or no exploration,” said Xtract executive chairman Colin Bird.

“The agreement provides Omnia with the company's mining and processing expertise and gives the company the opportunity for a fast track hard rock operation.”

The deal extends a collaboration agreed earlier this month between Xtract and Omnia to exploit alluvial gold deposits at Manica.

READ: Xtract Resources hires new mining contractor for Manica alluvial project

Xtract said the aim of the agreement is to convert hard rock exploration targets into a joint mining operation with Omnia.

The Fair Bride project will be developed separately by Xtract. 

View full XTR profile View Profile

Xtract Resources PLC Timeline

Related Articles

Graphite drill core samples at Caula Vanadium-Graphite Project
September 17 2018
One of the highest-grade graphite deposits in the world with grades up to 28% total graphitic carbon.
October 29 2018
The company more than quadrupled its Garden Gully prospective strike and will focus exploration efforts exclusively on the project.
October 30 2018
Rainbow is continuing to drive towards a production rate of 400 tonnes per month

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use