TIDMXTR
RNS Number : 9972N
Xtract Resources plc
27 May 2020
For immediate release
27 May 2020
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 2020 (the "Period").
Highlights
-- Total alluvial mining contractor gold production of 14.52 Kg
for the quarter (equivalent to approximately 467 ounces)
-- Total of 4.06 Kg (equivalent to approximately 131 ounces) attributable to Explorator
-- Combined attributable revenue to Explorator from gold sales
and other income for the Period amounted to US$508,573
-- Mining on the adjacent licence to be contracted to another
Chinese group based on similar terms to the agreements currently in
place
-- Discussions in place with a group to mine the Guy Fawkes and
Boa Esperanca free milling small hard rock deposits
-- Manica hard rock continues to progress and all aspects of operations advancing satisfactorily
Colin Bird, Executive Chairman said : " The results are a little
disappointing for the first quarter based on the rainy season, but
particularly the effect of the Coronavirus on spare parts delivery
from China. We continue to experience low grade together with high
overburden stripping. The spare parts arrived 2 weeks ago, and
operations are already showing a significant improvement, despite
tough operating conditions.
We intend over the next month to commence a further contract
with another Chinese group on an adjacent licence. The agreement
with the group will be similar to existing agreements in place.
We are actively engaging with another group on working the Guy
Fawkes and Boa Esperanca small hard rock deposits. These deposits
have indicated free milling gold at good grades. Preparations are
underway to ship major components for the Fairbride gold project,
once border restrictions are lifted, which is expected the middle
to late June 2020. The equipment will be accompanied by the
necessary lifting equipment for installation."
Production summary
Preliminary unaudited results for alluvial mining contractors
for the Manica Concession for the three-month periods ended 31
March 2020, 31 December 2019, 30 September 2019, and 30 June 2019
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 latter part of the current year. The
Company's current focus is to progress the Manica hard rock
operations.
1st Quarter 4th Quarter 3(rd) Quarter 2(nd) Quarter
ended ended ended ended
31 March 31 December 30 September 30 June
2020 2019 2019 2019
Production and Sales
:
------------ ------------- -------------- --------------
Total contractor alluvial
gold production (equivalent
ounces) (Note 4) 467 1,045 994 1,088
------------ ------------- -------------- --------------
Explorator share of
gold produced (equivalent
ounces) 131 293 278 305
------------ ------------- -------------- --------------
Value of Explorator US$208,396 US$438,119 US$409,560 US$404,251
share of gold produced
(value in US$)(Note
4)
------------ ------------- -------------- --------------
Explorator share of
gold sold (equivalent
ounces) 354 163 337 533
------------ ------------- -------------- --------------
Explorator attributable US$508,573 US$241,284 US$467,683 US$643,568
revenue from gold sales
------------ ------------- -------------- --------------
Explorator share of US$508,573 US$120,642 US$233,482 US$321,784
Explorator attributable
revenue from gold sales
(Note 1)
------------ ------------- -------------- --------------
Direct Operational
Production Costs:
------------ ------------- -------------- --------------
Explorator total direct US$147,575 US$173,419 US$140,477 US$125,666
alluvial operational
production costs (Note
2)
------------ ------------- -------------- --------------
Xtract share of Explorator US$147,575 US$110,090 US$70,238 US$62,833
alluvial direct alluvial
operational production
costs ( Note 2)
------------ ------------- -------------- --------------
Total Costs:
------------ ------------- -------------- --------------
Explorator total direct US$175,982 US$239,470 US$231,462 US$199,595
alluvial production
costs (Note 3)
------------ ------------- -------------- --------------
Cost per ounce of gold US$1,346 US$818 US$832 US$655
produced
------------ ------------- -------------- --------------
Xtract share of Explorator US$175,982 US$148,960 US$115,731 US$99,797
alluvial direct alluvial
production costs (
Note 3)
------------ ------------- -------------- --------------
Note 1: Under the Collaboration Agreement between Explorator and
Nexus Capital Limited (previously Mineral Technologies
International Limited, "Nexus") as previously announced on 28
October 2018 Xtract's net share of Explorator's gold revenue and
costs was 50%. On 12 December 2019, the Company announced that the
Collaboration Agreement had been terminated by Nexus (as explained
further below) with an effective date of 2 December 2019, following
which Explorator's net share of gold revenue and costs is 100%.
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 ended ended ended
31 March 31 December 30 September 30 June
2020 2019 2019 2019
------------------
Production Tax US$16,109 US$42,066 US$64,492 US$67,564
Land resettlement US$12,297 US$23,985 US$26,494, US$6,365
costs
------------ ------------- -------------- ------------
Note 4: Calculation based on the number of ounces produced
during each month of the quarter multiplied by
the closing month end spot rate.
Note 5: 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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