Production update

RNS Number : 2524B
Xtract Resources plc
30 September 2022
 


 

For immediate release

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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