Xtract Resources PLC (LON:XTR) has provided an update on operations at the Manica project in Mozambique.
The AIM-listed gold miner said in the update that there had been a substantial improvement in alluvial mining contractor gold production for the current quarter to date and ahead of the first quarter of 2018.
READ: Xtract Resources reports increase in quarterly gold sales from Manica project
The firm added that its hard rock collaboration agreement with Omnia Mining Ltd had uncovered concealed extensions to hard rock exposure, with channel samples and rock chips being sent away for assay sampling.
Xtract also said that the parties were investigating the cost of upgrading the current plant to feed all types of oxidation from oxides to sulphides.
The group was also reviewing further contractor proposals for the western half of the Manica concession.
Colin Bird, executive chairman, said: "The continued overall improvement in alluvial gold production from the prior quarter shows pleasing progress and we hope to build on this and look forward to reporting our Q2 production in mid-July. We are seriously considering dividing the concession into North-South halves as oppose to East-West since the river beds and terraces require different processing plant configuration.
He added: “We are currently in the process of identifying more hard rock mining positions irrespective of whether the crop is oxide transition or sulphide and concurrently evaluating the cost and time of operating the plant to treat all gold mineralisation types. The co-ownership of an all-purpose plant will position the Collaboration Agreement very strongly in the Manica area."