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Xtract Resources updates on Manica collaboration agreement with Omnia Mining

The AIM-listed miner said that to date 12 potential mining sites had been identified within 15 kilometres of Omnia’s plant
Mine entrance
A newly discovered quartz vein/alteration system, called the André Zone, has also been sampled

Xtract Resources PLC (LON:XTR) has updated on its hard rock collaboration agreement with Omnia Mining Ltd at Xtract’s Manica mining concession in Mozambique.

The AIM-listed miner said that to date 12 potential mining sites had been identified within 15 kilometres of Omnia’s plant, with eight of the potential mining sites already within the existing license areas.

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

The firm added that a newly discovered quartz vein/alteration system, called the André Zone, had been channel sampled in trenches with gold grades ranging from 1.1 metres at 0.89 grams per tonne (g/t) and 0.5m at 20.8g/t.

The zone will be further explored through the opening of an underground adit, Xtract said, adding that Omnia has completed the construction of its 40 thousand tonnes (kt) per month free gold processing plant with commissioning planned for November 2018.

Xtract signed the agreement with Omnia in February to target all hard rock occurrences at the Manica mining concession with the exception of the Fair Bride project, which remains under the sole control of Xtract.

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.

Colin Bird, executive chairman of Xtract, said the companies were currently carrying out “financial and technical exercises” to decide whether to work on the various mineral veins at the site sequentially or to “install a total capability plant suitable for all ore types”, adding that the latter option could result in material from the Fair Bride project being processed through Omnia’s plant subject to a final agreement.

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