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.