Chepica Gold Mine - Operational Update

RNS Number : 2873H

Xtract Resources plc

30 November 2015

 

30 November 2015

Xtract Resources Plc

("Xtract" or "the Company")

 Chepica Gold Mine - Operational Update

Xtract Resources Plc (AIM:XTR) has made good progress at its Chepica Gold and Copper Mine in Chile ("Chepica") and is pleased to provide an operational update on progress to date in Q4 2015.

Progress highlights for Q4 2015

Colin prospect

·    Two reefs have been developed on 5 level that is ready for stoping operations, they are:

-  Connie 1 reef: 3.4g/t gold over width of 3.58m* over strike length of 75m

-  Connie 2 reef: 3.06g/t gold over width of 3.00m* over strike-length of 45m

·    The combined tonnage available for stoping from the two reefs on 5 level is 7,000t (assuming a lift of 6m to be blasted in December 2015)

·    The incline development from 5 level to 4 level have intersected reef and development to expose the reef will commence in December 2015

·    The decline development from 5 to 6 level has intersected reef and development on reef will commence in December 2015

Chepica prospect

·    The decline has been developed from surface to a depth of 90m (another 85m from intersecting 8 level) and support is currently being installed from the portal or entrance of the development

Total Operation

·    A total of 5,770t have been milled to date on a plan of 11,999t for Q4 2015

·    In addition a surface ore stockpile of 6,480t has been accumulated and trucking is continuing in December 2015 to increase the size of the stockpile

·    The plant is currently processing ore from the stockpile in addition to the underground ore

·    Drilling is continuing at the Colin prospect where a resource upgrade is expected in Q1 of 2016

* The full width of the reef has not been exposed by development and from drilling the true width of the reef when stoping commences is estimated at 4 to 5m

Jan Nelson, CEO of Xtract, said: "Excellent progress has been made at the mine in Q4 2015. Our new development plan is on target and we have now not only fully developed the two reefs on 5 level at the Colin prospect, but we have also opened up reefs on 4 and 6 level. Together with the tons that the reef development and the stoping of the two reefs on 5 level will generate we are confident of achieving our tonnage target for the quarter. In addition we have also built up a significant ore stockpile on surface that feeds into the mill in addition to production from underground. I look forward to reporting the key metrics for Q4 2015 early in the new year."

Work is progressing well on the Manica acquisition and on the O'Kiep, Caroulsberg and Concordia Copper Dumps and an update will provided on each of these in the coming weeks.

Enquiries:

Xtract Resources Plc	Jan Nelson, CEO	[phone]
Cenkos Securities plc	Derrick Lee Beth McKiernan	[phone]
Beaufort Securities	Jon Belliss	[phone]
St James's Corporate Services Limited	Phil Dexter	[phone] [phone]
Gable Communications	Justine James [e-mail]	[phone] [phone]

 

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