Xtract Resources plc Company & Manica Alluvial Gold Update (7460X)
May 01 2019 - 5:57AM
UK Regulatory
TIDMXTR
RNS Number : 7460X
Xtract Resources plc
01 May 2019
For immediate release
1 May 2019
Xtract Resources Plc
("Xtract" or the "Company")
Company & Manica Alluvial Gold 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 2019 (the "Period").
Highlights
-- Total alluvial mining contractor gold production of 40.20Kg
(equivalent to approximately 1,293 ounces)
-- Total of 11.26Kg (equivalent to approximately 323 ounces)
attributable to Explorator (including Nexus under the Collaboration
Agreement)
-- Combined attributable revenue to Explorator from gold sales
for the Period amounted to US$408,197
-- Discussions advancing favourably with hard rock production plan
Colin Bird, Executive Chairman said: "The results from
operations were a little flat due to the rainy season and high
stripping ratio against low grade gravel. The recent cyclone did
not affect production directly but had a knock-on effect on
material transport and in particular diesel. The modest alluvial
results are mitigated by the improved percentage the Company
receives from operations and in the coming months this could
produce improved results notwithstanding the vagaries of gold
distribution in the gravel. The hard rock production planning is
progressing favourably with a number of options being considered.
The Company expects to announce a decision before the end of the
second Quarter 2019".
Production summary
Preliminary unaudited results for alluvial mining contractors
for the Manica Concession for the three-month periods ended 31
March 2019, 31 December 2018, 30 September 2018 and 30 June 2018
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:
1(st) Quarter 4(th) Quarter Amended 3(rd) 2(nd) Quarter
ended ended Quarter ended ended
31 March 31 December 30 September 30 June
2019 2018 2018 2018
Production and Sales:
-------------- -------------- --------------- --------------
Total contractor alluvial
gold production (equivalent
ounces) (Note 4) 1,293 1,328 1,811 1,703
-------------- -------------- --------------- --------------
Explorator share of
gold produced (equivalent
ounces) 323 332 453 426
-------------- -------------- --------------- --------------
Explorator share of
gold sold (equivalent
ounces) 340 307 251 283
-------------- -------------- --------------- --------------
Explorator attributable US$408,197 US$310,000 US$242,000 US$291,000
revenue from gold sales
-------------- -------------- --------------- --------------
Xtract share of Explorator US$204,099 US$155,00 US$121,000 US$116,400
attributable revenue
from gold sales (Note
1)
(Note 1)
-------------- -------------- --------------- --------------
Direct Operational
Production Costs:
-------------- -------------- --------------- --------------
Explorator total direct US$138,634 US$146,299 US$129,150 US$148,696
alluvial operational
production costs (Note
2)
-------------- -------------- --------------- --------------
Xtract share of Explorator US$69,317 US$73,149 US$64,575 US$59,478
alluvial direct alluvial
operational production
costs (Note 2)
(Note 1)
-------------- -------------- --------------- --------------
Total Costs:
-------------- -------------- --------------- --------------
Explorator total direct U$238,610 US$254,296 US$292,181 US$315,581
alluvial production
costs (Note 3)
-------------- -------------- --------------- --------------
Cost per ounce of gold US$738 US$820 US$645 US$741
produced
-------------- -------------- --------------- --------------
Xtract share of Explorator US$119,305 US$127,148 US$146,090 US$126,232
alluvial direct alluvial
production costs (Note
3)
(Note 1)
-------------- -------------- --------------- --------------
Note 1: Under the Collaboration Agreement between Explorator and
Nexus Capital Limited (previously Mineral Technologies
International Limited, "Nexus") as previously announced on 20 June
2017, Xtract's net share of Explorator's gold revenue and costs was
40% for the three-month period ended 30 June 2018. Under the New
Collaboration Agreement for the three-month period ended 30
September 2018, 31 December 2018 and 31 March 2019, Explorator's
gold revenue and costs increased to 50%. The previously announced
revenue and costs for the 3(rd) Quarter ended 30 September 2018
reflect the amended terms under the New Collaboration
Agreement.
Note 2: Direct operational production costs include and not
limited to Explorator salaries, rent, vehicles expenses and
utilities.
Note 3: Total costs comprises direct operational production
costs plus total Production Tax (6% of the value of total
production which varies according to the level of production) and
Land Resettlement Costs as detailed below:
1st Quarter 4th Quarter 3rd Quarter 2nd Quarter
ended 31 ended 31 ended 30 ended 30 June
March 2019 December September 2018
2018 2018
------------------
Production Tax US$81,571 US$100,675 US$115,400 US$104,448
Land resettlement US$18,405 US$7,322 US$47,631 US$62,437
costs
------------ ------------ ------------ ---------------
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, +44 (0)20 3416 6471
Executive Chairman www.xtractresources.com
Beaumont Cornish Limited Roland Cornish +44 (0)207628 3369
Nominated Adviser and Michael Cornish www.beaumontcornish.co.uk
Joint Broker Felicity Geidt
Novum Securities Limited Colin Rowbury +44 (0)207 399 9427
Joint Broker www.novumsecurities.com
ENDS
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END
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