Manica Alluvial Gold & Corporate Update

RNS Number : 7057T
Xtract Resources plc
26 March 2021
 

 

 

For immediate release

26 March 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 December 2020 (the "Period").

 

Highlights

· Total alluvial mining contractor gold production of 12.44 Kg for the quarter (equivalent to approximately 400 ounces)

· Total of 3.48 Kg (equivalent to approximately 112 ounces) attributable to Explorator

· Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$201,310

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

· Guy Fawkes preparatory development continued during the period and limited earthworks at Fairbride were progressed

 

 

Colin Bird, Executive Chairman said : "The quarter ended 31 December 2020, proved to be a challenging period, impacted by local storms as well ongoing COVID 19 restrictions imposed on our contractors, reducing our operating capabilities. However, despite this our contractor was able to carry out limited production. Local weather conditions worsened during Q1 2021 again impacting operating capability and operations at  Guy Fawkes and our second alluvial license are being progressed. The Company is expecting a drier season from Q2 2021 onwards with improved operating conditions."

 

 

Production summary

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

 

 

 

 

 

 

 


4th Quarter

 ended

31 December

 2020

3rd Quarter

 ended

30 September

 2020

2nd Quarter

 ended

30 June

 2020

1st Quarter

 ended

31 March 2020

Production and Sales :





Total contractor alluvial gold production (equivalent ounces) (Note 3)

400

787

566

467

Explorator share of gold produced (equivalent ounces)

112

220

158

131

Value of Explorator share of gold produced (value in US$)(Note 3)

US$205,900

US$426,916

US$274,959

US$208,396

Explorator share of gold sold (equivalent ounces)

 

117

145

162

354

Explorator attributable revenue from gold sales

US$201,310

US$250,968

US$261,679

US$508,573

Direct Operational Production Costs:





Explorator total direct alluvial operational production costs (Note 1)

 

US$95,595

US$72,630

US$75,158

US$147,575

Total Costs:





Explorator total direct alluvial production costs (Note 2)

 

US$153,549

US$134,688

US$109,898

US$175,982

Cost per ounce of gold produced

US$1,371

US$611

US$694

US$1,346

 

 

 

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:

 

 


4th Quarter ended

31 December  2020

3rd Quarter ended

30 September  2020

2nd Quarter ended

30 June

2020

1st Quarter

ended

 31 March

 2020

Production Tax

US$20,429

US$30,136

US$18,854

US$16,109

Land resettlement costs

US$37,525

US$31,922

US$15,887

US$12,297

 

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

 

+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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
UPDEAKDKASEFEFA
UK 100

Latest directors dealings