Manica Alluvial Gold & Corporate Update

RNS Number : 9076V

Xtract Resources plc

12 August 2020

 

For immediate release

12 August 2020

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 30 June 2020 (the "Period").

Highlights

· Total alluvial mining contractor gold production of 17.59 Kg for the quarter (equivalent to approximately 566 ounces)

· Total of 5.65 Kg (equivalent to approximately 158 ounces) attributable to Explorator

· Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$261,679

Colin Bird, Executive Chairman said : "The operating results over the year have been fairly consistent, reflecting difficult operating conditions. During the current quarter we have seen a reduction in overall costs and once again operating income over expenditure. We anticipate a modest increase in production during the third quarter, which should also result in an improved financial performance with an increasing gold price . Negotiations to introduce further mining and processing for both alluvial and hard rock production are progressing . and we look forward to updating our shareholders in due course.''

Production summary

Preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month periods ended 30 June 2020, 31 March 2020, 31 December 2019 and 30 September 2019, 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. The Company now expects that at current rates of activity, the alluvial mining contractors  are likely to continue their operations into next year. The Company's current focus is to progress the Manica hard rock operations.

	2nd Quarter  ended 30 June  2020	1st Quarter  ended 31 March  2020	4th Quarter  ended 31 December 2019	3rd Quarter  ended 30 September 2019
Production and Sales :
Total contractor alluvial gold production (equivalent ounces) (Note 4)	566	467	1,045	994
Explorator share of gold produced (equivalent ounces)	158	131	293	278
Value of Explorator share of gold produced (value in US$)(Note 4)	US$274,959	US$208,396	US$438,119	US$409,560
Explorator share of gold sold (equivalent ounces)	162	354	163	337
Explorator attributable revenue from gold sales	US$261,679	US$508,573	US$241,284	US$467,683
Explorator share of Explorator attributable revenue from gold sales (Note 1)	US$261,679	US$508,573	US$120,642	US$233,482
Direct Operational Production Costs:
Explorator total direct alluvial operational production costs (Note 2)	US$75,158	US$147,575	US$173,419	US$140,477
Xtract share of Explorator alluvial direct alluvial operational production costs ( Note 2)	US$75,158	US$147,575	US$110,090	US$70,238
Total Costs:
Explorator total direct alluvial production costs (Note 3)	US$109,898	US$175,982	US$239,470	US$231,462
Cost per ounce of gold produced	US$694	US$1,346	US$818	US$832
Xtract share of Explorator alluvial direct alluvial production costs ( Note 3)	US$109,898	US$175,982	US$148,960	US$115,731

 Note 1:        Under the Collaboration Agreement between Explorator and Nexus Capital Limited (previously Mineral Technologies International Limited, "Nexus") as previously announced on 28 October 2018  Xtract's net share of Explorator's gold revenue and costs was 50%. On 12 December 2019, the Company announced that the Collaboration Agreement had been terminated by Nexus (as explained further below) with an effective date of 2 December 2019, following which Explorator's net share of gold revenue and costs is 100%.

Note 2:    Direct operational production costs include and not limited to Explorator salaries, rent, vehicles expenses and utilities.

Note 3:   Total costs comprises direct operational production costs plus total Production Tax (6% of the value of total production which varies according to the level of production) and Land Resettlement Costs as detailed below:

	2nd Quarter ended  30 June  2020	1st Quarter ended  31 March  2020	4th Quarter ended 31 December   2019	3rd Quarter  ended 30 September  2019
Production Tax	US$18,854	US$16,109	US$42,066	US$64,492
Land resettlement costs	US$15,887	US$12,297	US$23,985	US$26,494

Note 4:  Calculation based on the number of ounces produced during each month of the quarter multiplied by

 the closing month end spot rate.  

Note 5: 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	Colin Rowbury	[phone] www.novumsecurities.com

ENDS

 

END

 

 

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