Proactive Investors - Run By Investors For Investors

Xtract nets US$155,000 from Manica gold sales in final quarter of 2018

The AIM All-Share-listed firm said total alluvial mining contractor gold production at Manica in the period was 41.3kg, equivalent to approximately 1,328 ounces
alluvial gold mining
The contractor mined lower-grade areas in the final quarter

Alluvial gold production at Xtract Resources PLC’s (LON:XTR) Manica mine in Mozambique totalled 41.3kg – equivalent to 1,328 ounces – in the final quarter of 2018.

AIM-quoted Xtract said the “modest results” reflected the lower-grade areas mined during the three-month period.

READ: Xtract appoints contractor to mine alluvials at Manica

Of the total gold produced, 10.3kg (332 ounces) was attributable to Explorator – Xtract’s joint venture with Nexus – bringing in US$310,000. From that, Xtract’s cut was US$155,000.

“The quarter under review produced modest results compared to previous quarters and reflects the lower grade areas having been ceded back to the company together with compensation paid to local farmers,” said executive chairman Colin Bird.

“The areas mined during this quarter were marginal but considered appropriate for processing, despite lower grades.

We expect to see improving production against an improving gold price. We recognise the inconsistency of alluvials, but over the last year have gained considerable insights into the intricacies of alluvial miming and this has moved up into test work programme in neighbouring countries.

“We now have a very clear vision how to effectively mine the hard rock occurrences which are less metallurgically challenging. The company is talking to potential partners and investors to develop the Manica project and the board intend to release revised scoping numbers in the near future.”

Xtract shares were down 16% to 0.97p in early-afternoon trading on Tuesday.

View full XTR profile View Profile

Xtract Resources PLC Timeline

Related Articles

1528370432_cobalt-on-periodic-table.jpg
June 07 2018
Primary Cobalt Corp is a project generator in growth mode
Tungsten in periodic table
October 23 2018
Apollo is looking to capitalise on a resurgent tungsten price
1532518239_Vanadium-electrolyte-batteries.jpg
November 12 2018
The vanadium price is riding high and so is Bushveld Minerals

© Proactive Investors 2019

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