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Xtract Resources seeks new contractor for western half of Manica concession

The AIM-listed gold miner said mining results for the western half of the concession had been unsatisfactory primarily due to the nature of the gold

Molten Gold
It added that Moz Gold’s contribution to the overall production had not been material

Xtract Resources PLC (LON:XTR) said its reviewing new contractor proposals for the western half of its Manica concession after the current contractor, Moz Gold, halted production.

The AIM-listed gold miner said mining results for the western half of the concession had been unsatisfactory primarily due to the nature of the gold, being fine gold and a plant not fit for purpose for recovering this gold, and as such Moz Gold had halted production.

READ: Xtract Resources updates on operations at Manica concession

It added that Moz Gold’s contribution to the overall production had not been material, with most of the alluvial production contributed by Sino Minerals, which has exclusive mining rights to the eastern half of the Manica concession.

Xtract added that the convertible loan agreement entered with Moz Gold in December 2017, provides Xtract with security over the processing plant and test work needs to be completed before the company decides either to utilise the plant for its own account or, alternatively, make it available to new contractors who would be responsible for all necessary modifications.

The firm also said that Moz Gold had made no payments in respect of previously announced historic performance penalties and accrued but unpaid run-of-mine payments and these remain due.

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Price: 1.175 GBX

LSE:XTR
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Market Cap: £5.15 m
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