26 Mar Manica Alluvial Gold & Corporate Update
Xtract Resources Plc
(“Xtract” or the “Company”)
Manica Alluvial Gold & Corporate 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 31 December 2020 (the “Period”).
· Total alluvial mining contractor gold production of 12.44 Kg for the quarter (equivalent to approximately 400 ounces)
· Total of 3.48 Kg (equivalent to approximately 112 ounces) attributable to Explorator
· Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$201,310
· Operations were impacted by continuing COVID 19 restrictions and local storms
· Guy Fawkes preparatory development continued during the period and limited earthworks at Fairbride were progressed
Colin Bird, Executive Chairman said: “The quarter ended 31 December 2020, proved to be a challenging period, impacted by local storms as well ongoing COVID 19 restrictions imposed on our contractors, reducing our operating capabilities. However, despite this our contractor was able to carry out limited production. Local weather conditions worsened during Q1 2021 again impacting operating capability and operations at Guy Fawkes and our second alluvial license are being progressed. The Company is expecting a drier season from Q2 2021 onwards with improved operating conditions.”
Preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month periods ended 31 December 2020, September 2020, 30 June 2020 and 31 March 2020 are set out in the table below. In addition to the information included in the table, the table below provides a further breakdown of costs between operational costs, production tax and land resettlement costs. The Company currently expects that at current rates of activity, the alluvial mining contractors will conclude their operations during the second half of this year. The Company’s current focus is to continue to progress the Manica hard rock operations.
31 March 2020
|Production and Sales:|
|Total contractor alluvial gold production (equivalent ounces) (Note 3)||400||787||566||467|
|Explorator share of gold produced (equivalent ounces)||112||220||158||131|
|Value of Explorator share of gold produced (value in US$)(Note 3)||US$205,900||US$426,916||US$274,959||US$208,396|
|Explorator share of gold sold (equivalent ounces)
|Explorator attributable revenue from gold sales||US$201,310||US$250,968||US$261,679||US$508,573|
|Direct Operational Production Costs:|
|Explorator total direct alluvial operational production costs (Note 1)
|Explorator total direct alluvial production costs (Note 2)
|Cost per ounce of gold produced||US$1,371||US$611||US$694||US$1,346|
Note 1: Direct operational production costs include and not limited to Explorator salaries, rent, vehicles expenses and utilities.
Note 2: Total costs comprises direct operational production costs plus total Production Tax and Land Resettlement Costs as detailed below:
|4th Quarter ended
31 December 2020
|3rd Quarter ended
30 September 2020
|2nd Quarter ended
|Land resettlement costs||US$37,525||US$31,922||US$15,887||US$12,297|
Note 3: Calculation based on the number of ounces produced during each month of the quarter multiplied by the closing month end spot rate.
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.
|Xtract Resources Plc||Colin Bird,
|+44 (0)20 3416 6471|
|Beaumont Cornish Limited
Nominated Adviser and Joint Broker
|+44 (0)207628 3369|
Novum Securities Limited
+44 (0)207 399 9427