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

Xtract reports increase in quarterly gold production at Manica project in Mozambique

Wet weather meant production dipped in the first quarter, but those issues have now passed, although “difficult processing conditions” meant the amount of gold actually sold fell
Mozambique map
Xtract's 40%-owned subsidiary, Explorator, receives 25% of the gold produced at Manica

Xtract Resources PLC (LON:XTR) has reported a rise in second-quarter gold production from the Manica project in Mozambique.

Sino Minerals, a contract miner working on the project, produced a total of 1,703 ounces of gold in April, May and June – up 42% from the previous quarter (1,200 oz).

READ: Xtract seeks new contractor for western half of Manica concession

Xtract’s subsidiary Explorator receives 25% of all the gold produced, meaning its share this time was around 426 oz (Q1: 297 oz).

But problems processing the gold meant only 283 oz of Explorator’s portion of the precious metal was sold, bringing in US$291,000 (Q1: US$333,000).

As Xtract owns a 40% stake in Explorator, its take-home pay was US$116,400 (Q1: US$133,200).

“These results demonstrate an increasing trend in quarterly production,” said Xtract’s executive chairman Colin Bird.

“The 1st quarter was adversely affected by the rainy season and difficult processing conditions in the West. The 2nd quarter was rid of the rains but was affected by difficult processing conditions as a result of fine gold and erratic gold occurrence.

He added: “We have taken the decision to employ different contractors for the terraces and adjacent to the river alluvials and the appointment is expected to be announced shortly.

“Since alluvial production commenced in 2017, Explorator has been self-funding and we are encouraged by production levels being maintained by one contractor.”

Xtract shares fell 6.9% in afternoon trading to 1.21p.

View full XTR profile View Profile

Xtract Resources PLC Timeline

Related Articles

Workers underground at Prieska
October 25 2018
The company hopes to drill and define satellite deposits near the old mine.
August 02 2018
Shefa Yamim has a highly prospective gemstone project in Israel
map of australia with project locations marked
October 09 2018
The East Pilbara projects are prospective for conglomerate-hosted gold.

© 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