For immediate release
25 October 2018
Xtract Resources Plc
("Xtract" or the "Company")
Manica Concession Alluvial Gold Quarterly Update
The Board of Xtract Resources Plc ("Xtract" or the "Company") announces the preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month period ended 30 September 2018 (the "Period").
Highlights
· Total alluvial mining contractor gold production of 56.34Kg (equivalent to approximately 1,811 ounces) (increase of 6.35% from previous quarter)
· Total of 14.09Kg (equivalent to approximately 453 ounces) attributable to Explorator (including Nexus under the Collaboration Agreement)
· Combined attributable revenue to Explorator from gold sales for the Period amounted to US$242,000
· Xtract continue to review the alluvial operations and discussions to separate the higher topography alluvials (terraces) from the river side alluvials
· Pit and process planning underway to commence hard rock mining in the 1st Quarter of 2019
Colin Bird, Executive Chairman said: "The production results continue to show improvement and the operation has remained self-funding since production commenced. We continue to discuss with our collaboration partners and contractors routes to improved performance and distributable income. The high topography alluvials continue to be investigated for higher quantities of gold in the gravel. The cost of overburden removal requires high in situ gold values.
The hard rock methodology is likely to be incremental, in that we commence in hard rock areas where gold can be separated by gravity methods. Thereafter installing a leaching capability and finally the production of a floating concentrate. Discussions are progressing well with our partners and we will update the market shortly on our more definitive plans."
Production summary
Preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month periods ended 30 September 2018, 30 June 2018 and 31 March 2018 are set out in the table below:
|
3rd Quarter ended 30 September 2018 |
2nd Quarter ended 30 June 2018 |
1st Quarter ended 31 March 2018 |
Production and Sales: |
|
|
|
Total contractor alluvial gold production (equivalent ounces) (Note 4) |
1,811 |
1,703 |
1,200 |
Explorator share of gold produced (equivalent ounces) |
453 |
426 |
297 |
Explorator share of gold sold (equivalent ounces) |
251 |
283 |
314 |
Explorator attributable revenue from gold sales |
US$242,000 |
US$291,000 |
US$333,000 |
Xtract share of Explorator attributable revenue from gold sales (Note 1) |
US$96,800 |
US$116,400 |
US$133,200 |
Direct Operational Production Costs: |
|
|
|
Explorator total direct alluvial operational production costs (Note 2) |
US$129,150 |
US$148,696 |
US$155,882 |
Xtract share of Explorator alluvial direct alluvial operational production costs (Note 2) |
US$51,660 |
US$59,478 |
US$62,352 |
Total Costs: |
|
|
|
Explorator total direct alluvial production costs (Note 3) |
US$292,181 |
US$315,581 |
US$268,000 |
Cost per ounce of gold produced |
US$645 |
US$741 |
US$902 |
Xtract share of Explorator alluvial direct alluvial production costs (Note 3) |
US$116,873 |
US$126,232 |
US$107,200 |
Note 1: Under the Collaboration Agreement between Explorator and Nexus Capital Limited (previously Mineral Technologies International Limited, "Nexus") as previously announced on 20 June 2017, Xtract's net share of Explorator's gold revenue and costs is 40%, with the balance being attributable to Nexus.
Note 2: Direct operational production costs include and not limited to Explorator salaries, rent, vehicles expenses and utilities.
Note 3: Total costs comprises direct operational production costs plus total Production Tax (6% of the value of total production which varies according to the level of production) and Land Resettlement Costs as detailed below:
|
3rd Quarter ended 30 September 2018 |
2nd Quarter ended 30 June 2018 |
1st Quarter ended 31 March 2018 |
Production Tax |
US$115,400 |
US$104,448 |
US$76,118 |
Land resettlement costs |
US$47,631 |
US$62,437 |
US$36,000 |
Note 4: Presence of gold in alluvial deposits is unpredictable and therefore operational results will vary month-to-month.
Further details are available from the Company's website which details the company's project portfolio as well as a copy of this announcement: www.xtractresources.com
This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014 on market abuse. The person who arranged for the release of this announcement on behalf of the Company was Joel Silberstein, Director.
Enquiries:
Xtract Resources Plc |
Colin Bird, Executive Chairman |
+44 (0)20 3416 6471 www.xtractresources.com |
Beaumont Cornish Limited Nominated Adviser and Joint Broker |
Roland Cornish Michael Cornish Felicity Geidt |
+44 (0)207628 3369 www.beaumontcornish.co.uk |
Novum Securities Limited Joint Broker |
Colin Rowbury |
+44 (0)207 399 9427 www.novumsecurities.com |
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ENDS
