Manica Gold Update

RNS Number : 0194P
Xtract Resources plc
14 October 2021

 

Xtract Resources Plc

(“Xtract” or the “Company”)

Manica Gold Update

 

The Board of Xtract Resources Plc (“Xtract” or the “Company”) announces the preliminary unaudited results for all alluvial and hard rock mining contractors for the Manica Concession for the three-month period ended 30 September 2021 (the “Period”).

Highlights

·    Total mining contractor gold production of 49.34Kg for the quarter, equivalent to approximately 1,586 ounces including initial hard rock production from Guy Fawkes of 170 equivalent ounces of gold

·    Total of 13.60Kg (equivalent to approximately 437 ounces) attributable to Explorator

·    Value of Explorator share of gold produced US$784,998

·    Gold sales in period of 152 ounces

·    Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$373,781

·    Guy Fawkes development continued during the period and Fair bride progressed

 

Colin Bird, Executive Chairman said: “The quarter ended 30 September 2021, was the third best period for production since we commenced alluvial mining at Manica and production in September 2021 was 46% higher any other previous month. Our policy is to have a number of sites operated by different contractors and continue on this basis into 2022. The Fair Bride and Guy Fawkes hard rock projects are both advancing satisfactorily, and we look forward to increased production from Guy Fawkes in the final quarter and initial production from Fair Bride towards the end the of 2021.”

Production summary

Preliminary unaudited results for alluvial and hard rock mining contractors for the Manica Concession for the three-month periods ended September 2021, 30 June 2021, 31 March 2021 and 31 December 2020 and 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. To date, the Company has only reported results from alluvial operations. The quarter ended 30 September 2021 is the first quarter which includes results from hard rock operations.  The Company’s current focus is to continue to progress the Fair Bride hard rock operation.

 

  3rd Quarter

 ended

30 September

 2021

2nd Quarter

 ended

30 June

 2021

1st Quarter

 ended

31 March

 2021

4th Quarter

 ended

31 December

 2020

Production and Sales:        
Total contractor gold production -alluvial (equivalent ounces) 1,416 427 284 400
Total contractor gold production- hard rock (equivalent ounces) 170
Total contractor gold production (equivalent ounces) 1,586 427 284 400
Total Explorator share of gold produced (equivalent ounces) 437 120 79 112
Value of Explorator share of gold produced (value in US$)(Note 3) US$784,998 US$218,413 US$143,848 US$205,900
         
Explorator share of gold sold (equivalent ounces)

 

152 139 117
Explorator attributable revenue from gold sales US$220,737 US$213,576 US$201,310
Other Income US$153,044
Direct Operational Production Costs:        
Explorator total direct operational production costs (Note 1)

 

US$142,786 US$130,697 US$121,093 US$95,595
Total Costs:        
Explorator total direct production costs (Note 2)

 

US$210,344 US$150,681 US$145,367 US$153,549
Cost per ounce of gold produced US$474 US$1,258 US$1,828 US$1,371

 

Note 1:     Direct operational production costs include and not limited to Explorator salaries, rent, vehicles expenses and utilities for both alluvial and hard rock operations

Note 2:   Total costs comprises direct operational production costs plus total Production Tax and Land Resettlement Costs as detailed below:

 

                     

  3rd Quarter ended

30 September   2021

2nd Quarter

ended

 30 June

 2021

1st Quarter

ended

 31 March

 2021

4th Quarter ended

31 December   2020

Production Tax US$33,743 US$19,948 US$7,933 US$20,429
Land resettlement costs US$33,815 US$16,341 US$37,525

 

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 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. 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                  

 

Jon Bellis

Colin Rowbury 

 

+44 (0)207 399 9427

www.novumsecurities.com  

 

ENDS

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