Manica alluvial gold & corporate update

RNS Number : 0609E

Xtract Resources plc

02 July 2021

 

For immediate release

2 July 2021

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 March 2021 (the "Period").

Highlights

· Total alluvial mining contractor gold production of 8.83Kg for the quarter (equivalent to approximately 284 ounces)

· Total of 2.47Kg (equivalent to approximately 79 ounces) attributable to Explorator

· Value of Explorator share of gold produced US$143,848

· Operations were impacted by continuing COVID 19 restrictions and local storms

· Guy Fawkes development continued during the period and Fairbride progressed

Colin Bird, Executive Chairman said : "Operations in the period ended 31 March 2021 continued to be adversely affected due to COVID 19, with most of the mining contactor's key personnel returning to their homeland for medical treatment or vaccination. During the period operations were stopped or seriously curtailed and despite this we still managed to maintain an operation with production managing to hold our own and prepare for better all-round operating conditions. Guy Fawkes development continued and there has been positive progress at Fairbride. With all contractors having returned, we anticipate improving operations in line with the final quarter of 2020".

Production summary

Preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month periods ended 31 March 2021, 31 December 2020, September 2020 and 30 June 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.

	1st Quarter  ended 31 March 2021	4th Quarter  ended 31 December  2020	3rd Quarter  ended 30 September  2020	2nd Quarter  ended 30 June  2020
Production and Sales :
Total contractor alluvial gold production (equivalent ounces) (Note 3)	284	400	787	566
Explorator share of gold produced (equivalent ounces)	79	112	220	158
Value of Explorator share of gold produced (value in US$)(Note 3)	US$143,848	US$205,900	US$426,916	US$274,959
Explorator share of gold sold (equivalent ounces)	-	117	145	162
Explorator attributable revenue from gold sales	-	US$201,310	US$250,968	US$261,679
Direct Operational Production Costs:
Explorator total direct alluvial operational production costs (Note 1)	US$121,093	US$95,595	US$72,630	US$75,158
Total Costs:
Explorator total direct alluvial production costs (Note 2)	US$145,367	US$153,549	US$134,688	US$109,898
Cost per ounce of gold produced	US$1,828	US$1,371	US$611	US$694

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:

	1st Quarter ended  31 March  2021	4th Quarter ended 31 December  2020	3rd Quarter ended 30 September  2020	2nd Quarter ended 30 June 2020
Production Tax	US$7,9339	US$20,429	US$30,136	US$18,854
Land resettlement costs	US$16,341	US$37,525	US$31,922	US$15,887

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.

Enquiries :

Xtract Resources Plc	Colin Bird, Executive Chairman	[phone] www.xtractresources.com
Beaumont Cornish Limited Nominated Adviser and Joint Broker	Roland Cornish Michael Cornish Felicity Geidt	[phone] www.beaumontcornish.co.uk
Novum Securities Limited Joint Broker	Jon Bellis Colin Rowbury	[phone] www.novumsecurities.com

ENDS

 

END

 

 

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