Production update

RNS Number : 2524B
Xtract Resources plc
30 September 2022

Xtract Resources Plc
(“Xtract” or the “Company”)

Production 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 June 2022 (the “Period”).

 Highlights

·    Total mining contractor gold production of 54.15Kg for the quarter, equivalent to approximately 1,344 ounces

·    Total of 10.69Kg (equivalent to approximately 344 ounces) attributable to Explorator

·    Value of Explorator share of gold produced US$639,271

·    Gold sales in period of 465 ounces

·    Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$642,115

 

Colin Bird, Executive Chairman said: “The results for the June quarter are fairly consistent with previous quarters with Guy Fawkes slowly opening up areas for production. Fair Bride is now in production and teething problems of the plant and the mine are being reduced and eliminated. We anticipate gold production will increase significantly in the final quarter of this year”.

Production summary

Preliminary unaudited results for both the alluvial and hard rock mining contractors for the Manica Concession for the three-month periods ended 30 June 2022 ,31 March 2022, 31 December 2021 and September 2021 and are set out in the table below. In addition to the information included in the table, the notes below provide a further breakdown of costs between operational costs, production tax and land resettlement costs. The table includes results from the alluvial as well as the hard rock operations (other than Fair Bride hard rock operation).

  2nd Quarter

 ended

30 June

2022

 

1st Quarter

 ended

31 March

2022

 

4th Quarter

 ended

31 December

 2021

3rd Quarter

 ended

30 September

 2021

Production and Sales:        
Total contractor gold production -alluvial (equivalent ounces) (Note 1) 1,344 1,370 2,306 1,416
Total contractor gold production- hard rock (equivalent ounces) (Note 2) 397 805 505 170
Total contractor gold production (equivalent ounces) 1,741 2,176 2,811 1,586
Total Explorator share of gold produced (equivalent ounces)(Note 3) 344 425 767 437
Value of Explorator share of gold produced (value in US$)(Note 5) US$639,271 US$794,797 US$1,383,125 US$784,998
         
Explorator share of gold sold (equivalent ounces) (Note 4)

 

465 384 360 152
Explorator attributable revenue from gold sales US$642,115 US$617,422 US$589,914 US$220,737
Other Income US$37,866 US$24,343 US$153,044
Direct Operational Production Costs:        
Explorator total direct operational production costs (Note 1)

 

US$179,969 US$172,460 US$180,791 US$142,786
Total Costs:        
Explorator total direct production costs (Note 2)

 

US$321,401 US$251,045 US$258,523 US$210,344
Cost per ounce of gold produced US$934 US$590 US$338 US$474

Note 1:    

 

Total contractor gold production-alluvial (equivalent ounces) 2nd Quarter

ended

 30 June

2022

1st Quarter ended

31 March   2022

4th Quarter ended

31 December   2021

3rd Quarter ended

30 September   2021

3990C * 852 986  1 359 651
 7569L ** 491 385 947 765

*Licence 3990C Mining Concession (Alluvial & hard rock), Manica Province.

**Licence 7569L Mining Concession (Alluvial), Manica Province.

Note 2:

 

Total contractor gold production-hard rock l (equivalent ounces) 2nd Quarter

ended

 30 June

2022

1st Quarter ended

31 March   2022

4th Quarter ended

31 December   2021

3rd Quarter ended

30 September   2021

Guy Fawkes 228 213 164 174
 Boa Esperanza 169 592 341 16

Note 3:

 

Total Explorator share of gold produced (equivalent ounces 2nd Quarter

ended

 30 June

2022

1st Quarter ended

31 March   2022

4th Quarter ended

31 December   2021

3rd Quarter ended

30 September   2021

3990C 171 195 378 186
 7569L

Guy Fawkes

Boa Esperanza

93

55

24

73

51

107

269

43

69

207

45

Note 4:

 

Explorator share of gold sold (equivalent ounces 2nd Quarter

ended

 30 June

2022

1st Quarter ended

31 March   2022

4th Quarter ended

31 December   2021

3rd Quarter ended

30 September   2021

3990C 157 190 261 125
 7569L

Guy Fawkes

Boa Esperanza

190

77

41

36

37

122

66

34

27

Note 5:   Calculation based on the number of ounces produced during each month of the quarter multiplied by the closing month end spot rate. 

Note 6: Direct operational production costs include and not limited to Explorator salaries, rent, vehicles expenses and utilities for both alluvial and hard rock operations

Note 7: Total costs comprises direct operational production costs plus total Production Tax and Land Resettlement Costs as detailed below:

 

 

  2nd Quarter

ended

 30 June

2022

1st Quarter ended

31 March   2022

4th Quarter ended

31 December   2021

3rd Quarter ended

30 September   2021

Production Tax US$98 386 US$74,807 US$77,732 US$33,743
Land resettlement costs US$43 046 US$33,815

Note 8:

 

Explorator total direct operational production costs 2nd Quarter

ended

 30 June

2022

1st Quarter ended

31 March   2022

4th Quarter ended

31 December   2021

3rd Quarter ended

30 September   2021

Alluvial deposits US$119 480 US$107 475 US$139 533 US$109 914
 Hard rock deposits US$60 489 US$64 985 US$41 258 US$32 872

Note 9: Alluvial deposits are the natural concentration of heavy minerals caused by the effect of gravity on moving particles. Various natural actions known as weathering can and did dislodge gold from its hard rock containment. Once the gold is liberated it migrates by gravity and water flow into larger or subsidiary streams. The net effect of this migration into streams is concentration of the gold into gold ore bodies. 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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END