Third quarter 2022 production update

RNS Number : 1300M

Xtract Resources plc

09 January 2023

 

For immediate release

9 January 2023

Xtract Resources Plc

("Xtract" or the "Company")

Third Quarter 2022 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 and production at Fair Bride, for the three-month period ended 30 September 2022 (the "Period").

Highlights

· Total mining contractor gold production of 66.38Kg for the quarter, equivalent to approximately 2,134 ounces

· Total of 11.90Kg (equivalent to approximately 382 ounces) attributable to Explorator

· Value of Explorator share of gold produced US$651,641

· Exploratory share of gold sales in period of 343 ounces

· Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$534,899

· First mining contractor gold production from the Fair Bride deposit of 35.35Kg for the quarter, equivalent to approximately 1,136 ounces

Colin Bird, Executive Chairman said : "The alluvial and smaller hard rock deposits' performance continued generally in a similar manner to previous quarters with the hard rock being determined by the vagaries of grade and vein consistency. I am pleased to report that Fair Bride has commenced production and throughout the quarter the activities were concentrated in two areas, by developing a protocol for open pit grade control and troubleshooting the numerous issue which inevitably occur on commission of a new processing plant. We anticipate that the financial results from Fair Bride, where we have a 23 per cent. net profit share will initially be reported semi-annually."

Production summary

Preliminary unaudited results for both the alluvial and hard rock mining contractors for the Manica Concession for the three-month periods ended September 2022, 30 June 2022 ,31 March 2022, and 31 December 2021 are set out in the table below.

The Company is also pleased to report on significant progress at the recently completed plant in Manica, Mozambique.  On 21 July 2022, the Company announced that Mutapa Mining and Processing, LDA ("MMP") poured the first gold from ore that they mined at the Fair Bride concession with a total of 35.35Kg production in the third quarter of 2023. Plant commissioning continued throughout the quarter with progressive improvements in throughput. The Company remains very confident for a positive 2023 as the operation matures and stabilises.

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 the unaudited financial results from the alluvial as well as the hard rock operations (other than Fair Bride hard rock operation in which Xtract has a 23 per cent. net profit share and which it is anticipated will initially be reported semi-annually ).

	3rd Quarter  ended 30 September  2022	2nd Quarter  ended 30 June 2022	1st Quarter  ended 31 March 2022	4th Quarter  ended 31 December  2021
Production (ex-Fair Bride)
Total contractor gold production -alluvial (equivalent ounces) (Note 1)	1,074	1,344	1,370	2,306
Total contractor gold production- hard rock (equivalent ounces) (Note 2)	1,060	397	805	505
Total contractor gold production (equivalent ounces)	2,134	1,741	2,176	2,811
Total Explorator share of gold produced (equivalent ounces)(Note 3)	382	344	425	767
Production - Fair Bride
Total gold production - Fair Bride (equivalent ounces)	1,136	-	-	-
Sales and income (ex- Fair Bride)
Value of Explorator share of gold produced (value in US$)(Note 5)	U$651,641	US$639,271	US$794,797	US$1,383,125
Explorator share of gold sold (equivalent ounces) (Note 4)	343	465	384	360
Explorator attributable revenue from gold sales	US$534,899	US$642,115	US$617,422	US$589,914
Other Income	-	-	US$37,866	US$24,343
Direct Operational Production Costs (ex-Fair Bride)
Explorator total direct operational production costs (Note 1)	US$161,789	US$179,969	US$172,460	US$180,791
Total Costs (ex-Fair Bride)
Explorator total direct production costs (Note 2)	US$285,426	US$321,401	US$251,045	US$258,523
Cost per ounce of gold produced	US$747	US$934	US$590	US$338

Notes:

Note 1:  

Total contractor gold production-alluvial (equivalent ounces)	3rd Quarter ended  30 September 2022	2nd Quarter ended  30 June 2022	1st Quarter ended 31 March  2022	4th Quarter ended 31 December  2021
3990C *	512	852	986	1 359
7569L **	562	491	385	947

*Licence 3990C Mining Concession (Alluvial & hard rock), Manica Province.

**Licence 7569L Mining Concession (Alluvial), Manica Province.

Note 2:

Total contractor gold production-hard rock (equivalent ounces)	3rd Quarter ended  30 September 2022	2nd Quarter ended  30 June 2022	1st Quarter ended 31 March  2022	4th Quarter ended 31 December  2021
Guy Fawkes	600	228	213	164
Boa Esperanza	460	169	592	341

Note 3:

Total Explorator share of gold produced (equivalent ounces)	3rd Quarter ended  30 September 2022	2nd Quarter ended  30 June 2022	1st Quarter ended 31 March  2022	4th Quarter ended 31 December  2021
3990C	97	171	195	378
7569L Guy Fawkes Boa Esperanza	107 109 69	93 55 24	73 51 107	269 43 69

Note 4:

Explorator share of gold sold (equivalent ounces)	3rd Quarter ended  30 September 2022	2nd Quarter ended  30 June 2022	1st Quarter ended 31 March  2022	4th Quarter ended 31 December  2021
3990C	136	157	190	261
7569L Guy Fawkes Boa Esperanza	196 11 -	190 77 41	36 37 122	66 34 -

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:

	3rd Quarter ended  30 September 2022	2nd Quarter ended  30 June 2022	1st Quarter ended 31 March  2022	4th Quarter ended 31 December  2021
Production Tax	US$123 019	US$98 386	US$74 807	US$77 732
Land resettlement costs	US$  619	US$43 046	-	-

Note 8:

Explorator total direct operational production costs	3rd Quarter ended  30 September 2022	2nd Quarter ended  30 June 2022	1st Quarter ended 31 March  2022	4th Quarter ended 31 December  2021
Alluvial deposits	US$104 013	US$119 480	US$107 475	US$139 533
Hard rock deposits	US$57 776	US$60 489	US$64 985	US$41 258

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	[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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