Manica Gold Resource increased 36% to 1.257Moz

RNS Number : 8551X

Xtract Resources plc

11 May 2016

 

11 May 2016

Xtract Resources Plc

("Xtract" or "the Company")

Manica Gold Resource increased by 36% to 1.257Moz

ahead of completion of Bankable Feasibility Study

Xtract Resources Plc (AIM:XTR) announces that Minxcon (Pty) Ltd has completed an independent technical report (the "Report") on the mineral resources of the Company's Fair Bride gold deposit at the 3990 Mining Concession ("Manica") in Mozambique. The Report confirms that the resource at Manica has increased by 36% to 1.257Moz at a cut-off of 1g/t.  The content of the Report will form a key part of the Bankable Feasibility Study on the Manica project ("BFS"), which is nearing completion.

Auroch Minerals NL completed the previous resource estimate, and the following table sets out the changes between the two resource calculations:

	% change	Minxcon Resource Update	Previous results
Total Resource	36% increase	1.257moz (17.3Mt @ 2.26g/t)	923koz (9.54Mt @ 3.01g/t)
Measured Resource	71% increase	500koz (6.14Mt @ 2.53g/t)	292koz (2.89Mt @ 3.14g/t)
Indicated Resource	32% decrease	178koz (2.6Mt @ 2.16g/t)	263koz (2.66Mt @ 3.07g/t)
Measured and Indicated Resource	22% increase	678koz (8.71Mt @ 2.42g/t)	555koz (5.55Mt @ 3.11g/t)
Inferred Resource	57% increase	579koz (8.6Mt @ 2.10g/t)	368koz (23.98Mt @ 2.87g/t)

Jan Nelson, CEO of Xtract commented: "We are extremely pleased with this significant increase in the Manica resource ahead of the completion of the BFS. Not only has the gold content increased significantly but the total Measured and Indicated volume available to be mined has also increased by over 56%.  This creates flexibility from an open pit perspective, considering our revised mine plan. The significant increase in the Inferred category also shows that the life of mine of the project has the potential to be increased well beyond 12 years with further drilling."

A copy of the Resource Report will be available on the website: www.xtractresources.com 

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]

Qualified Person

In accordance with AIM Guidelines, Peter Moir, B.Sc. Civil Engineering, M.Eng. Petroleum Engineering, UK Chartered Engineer and Director of Xtract Resources plc is the qualified person as defined in the Guidance Notes for Mining, Oil and Gas Companies, February 2010, of the London Stock Exchange, that has reviewed the technical information contained in this press release. Mr Moir has more than 30 years' experience in technical, operational and commercial aspects of the E&P business.

Competent Person Sign Off - Minxcon

Mr Uwe Engelmann (Director, Minxcon): BSc (Zoo. & Bot.), BSc Hons (Geol.), Pr.Sci.Nat. (Reg. No. 400058/08), MGSSA (Reg. No. 966310).

Uwe Engelmann has gained over eighteen years' experience in the mining and exploration industry working for various mining companies in South Africa. He has been heading up the exploration division of Minxcon Exploration (formerly Agere Project Management) since 2007 where he has been involved in most aspects of exploration, predominantly in Africa, in a wide range of commodities including gold, platinum, copper, coal, manganese, chrome and iron ore.

 

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