Xtract Resources plc Manica Concession Alluvial Gold Quarterly Update (1949F)
25 October 2018 - 9:04PM
UK Regulatory
TIDMXTR
RNS Number : 1949F
Xtract Resources plc
25 October 2018
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 1(st) 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 2nd Quarter 1st Quarter
ended 30 ended 30 ended 31 March
September June 2018 2018
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 US$242,000 US$291,000 US$333,000
revenue from gold sales
------------ ------------ ----------------
Xtract share of Explorator US$96,800 US$116,400 US$133,200
attributable revenue from
gold sales (Note 1)
------------ ------------ ----------------
Direct Operational Production
Costs:
------------ ------------ ----------------
Explorator total direct US$129,150 US$148,696 US$155,882
alluvial operational production
costs (Note 2)
------------ ------------ ----------------
Xtract share of Explorator US$51,660 US$59,478 US$62,352
alluvial direct alluvial
operational production
costs (Note 2)
------------ ------------ ----------------
Total Costs:
------------ ------------ ----------------
Explorator total direct US$292,181 US$315,581 US$268,000
alluvial production costs
(Note 3)
------------ ------------ ----------------
Cost per ounce of gold US$645 US$741 US$902
produced
------------ ------------ ----------------
Xtract share of Explorator US$116,873 US$126,232 US$107,200
alluvial direct alluvial
production costs (Note
3)
------------ ------------ ----------------
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 2nd Quarter 1st Quarter
ended 30 ended 30 ended 31 March
September June 2018 2018
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, +44 (0)20 3416 6471
Executive Chairman www.xtractresources.com
Beaumont Cornish Limited Roland Cornish +44 (0)207628 3369
Nominated Adviser and Michael Cornish www.beaumontcornish.co.uk
Joint Broker Felicity Geidt
Novum Securities Limited Colin Rowbury +44 (0)207 399 9427
Joint Broker www.novumsecurities.com
ENDS
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END
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