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

 

+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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