Manica alluvial gold & corporate update

RNS Number : 0609E
Xtract Resources plc
02 July 2021
 

 

 

 

 

For immediate release

2 July 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 March 2021 (the "Period").

 

Highlights

· Total alluvial mining contractor gold production of 8.83Kg for the quarter (equivalent to approximately 284 ounces)

· Total of 2.47Kg (equivalent to approximately 79 ounces) attributable to Explorator

· Value of Explorator share of gold produced US$143,848

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

· Guy Fawkes development continued during the period and Fairbride progressed

 

 

Colin Bird, Executive Chairman said : "Operations in the period ended 31 March 2021 continued to be adversely affected due to COVID 19, with most of the mining contactor's key personnel returning to their homeland for medical treatment or vaccination. During the period operations were stopped or seriously curtailed and despite this we still managed to maintain an operation with production managing to hold our own and prepare for better all-round operating conditions. Guy Fawkes development continued and there has been positive progress at Fairbride. With all contractors having returned, we anticipate improving operations in line with the final quarter of 2020".

 

 

 

 

Production summary

Preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month periods ended 31 March 2021, 31 December 2020, September 2020 and 30 June 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.

 

 

 

 

 


1st Quarter

 ended

31 March

2021

4th Quarter

 ended

31 December

 2020

3rd Quarter

 ended

30 September

 2020

2nd Quarter

 ended

30 June

 2020

Production and Sales :





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

284

400

787

566

Explorator share of gold produced (equivalent ounces)

79

112

220

158

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

US$143,848

US$205,900

US$426,916

US$274,959

Explorator share of gold sold (equivalent ounces)

 

-

117

145

162

Explorator attributable revenue from gold sales

-

US$201,310

US$250,968

US$261,679

Direct Operational Production Costs:





Explorator total direct alluvial operational production costs (Note 1)

 

US$121,093

US$95,595

US$72,630

US$75,158

Total Costs:





Explorator total direct alluvial production costs (Note 2)

 

US$145,367

US$153,549

US$134,688

US$109,898

Cost per ounce of gold produced

US$1,828

US$1,371

US$611

US$694

 

 

 

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:

 

 


1st Quarter

ended

 31 March

 2021

4th Quarter ended

31 December  2020

3rd Quarter ended

30 September  2020

2nd Quarter ended

30 June

2020

Production Tax

US$7,9339

US$20,429

US$30,136

US$18,854

Land resettlement costs

US$16,341

US$37,525

US$31,922

US$15,887

 

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

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