16 June 2016
Xtract Resources Plc
("Xtract" or "the Company")
Presentation to shareholders and update on Chepica
Xtract Resources Plc (AIM: XTR) announces that the presentation to be presented to shareholders today at 12.30pm can be accessed by the following link: http://www.xtractresources.com/reports.htm
The Company will present the following operational highlights at its Chepica mine:
Further scope to increase volume from underground:
· Chepica is consistently delivering on volume of 280t/day
· Upgrading crushing circuit to provide capacity to produce volume of up to 340t/day (next six months)
· Upgrade in crushing circuit is improving milling capacity and grind (improved recoveries)
· Underground grade is running at 3.5g/t (highest grade ever mined)
· Mineralised zone at Chepica almost 10m wide
· Continue to expose reef along strike on 5, 6 and 7 level
· Almost at the position to drive 2 reef ends at Chepica on 8 level
· Total of 7 ends on reef (when Chepica intersects 8 level)
· Making up total milling target of 10kt from development only
· Mine pre-developed on 3 levels ready for stoping
· Do not have to install any roof bolts on 7 level at Colin (rock extremely competent)/rheology has improved
Lead-Zinc concentrate in addition to Gold concentrate:
· Ore body at depth at Colin has significant quantities of lead and zinc
· Up to 1% zinc in rock samples and core
· Lead-zinc has caused a problem in past 2 months in terms of floating gold
· We have changed the plant circuit and will now produce a lead-zinc and gold concentrate
· The lead-zinc concentrate will result in additional revenue
· We need to install additional floatation cells to increase grade and quantity of concentrate produced
· Build a lead-zinc circuit and expand gold circuit
· Capex of U$150,000 to US$250,000 (over 2 months)
Increased production from tailings operation by 10kt/month:
· We are allocating debt capital to start construction of 6 tailings ponds that will leach an additional 10kt/mth
· Capital of US$1.25m to complete the project
· Have completed raising the current tailings dam wall by 4m and have doubled the wall thickness in preparation for the tailings operation (moved over 1Mt of material)
· Need to complete additional sampling and metallurgical test work (2 months - samples have been dispatched to lab)
· Need to build a gold elution facility that will produce dorey gold bars from alluvial operation
· Increase recoveries to 85%
· Increase the effective gold price we receive from US$800/oz to the current spot gold price
· Tailings operation will double monthly production output from the mine within 4 months
Earn-in Option
We were pleased to renegotiate the earn-in option agreement on Chepica, with payment schedule deferred, and the renegotiation of the option payments remains ongoing.
Enquiries:
Xtract Resources Plc |
Jan Nelson, CEO |
+44 (0)20 3416 6471 |
Cenkos Securities plc |
Derrick Lee Beth McKiernan |
+44 (0)131 220 6939 |
Beaufort Securities |
Jon Belliss |
+44 (0)207 382 8300 |
St James's Corporate Services Limited |
Phil Dexter |
+44 (0)20 7796 8647 +44 (0)7798 634398 |
Gable Communications |
John Bick [email protected] |
+44 (0)20 7193 7463 +44 (0) 7872 061007 |
