TIDMXTR
RNS Number : 0000R
Xtract Resources plc
23 October 2023
23 October 2023
Xtract Resources Plc
("Xtract" or the "Company")
Manica Q2 2023 Gold Production Update
Xtract Resources Plc ("Xtract" or the "Company") announces the
preliminary unaudited results for gold production for the Fair
Bride deposit and other mining within the Manica Concession in
Mozambique, for the three-month period ended 30 June 2023 ("Q2
2023").
Highlights
Fair Bride:
-- Fair Bride, where Xtract has a 23% share of net profit, is
now moving towards target production. Fair Bride gross gold
production continued to increase during Q2 2023 and was reported to
be 192Kg (equivalent to approximately 6,456 ounces) by the
operator
-- Fair Bride's average gold sales price for Q2 2023 was
US$1,989 per ounce as per the operator's accounts
-- Month-on-month, gold production has increased from 35.4kg in
December Q4 2022 to 82.9kg in July (Q3 2023) as reported by the
operator
-- Project performance indicators for Q2 2023 have again
improved across the board with gains in ore production, mill
throughput, and ounces gold produced.
-- The impact of a new grade control programme has resulted in a
further improvement in recovered grade
-- An intense in-pit drilling programme for grade control
purposes has increased costs and therefore cost per ounce in Q2
2023.
Other Manica Projects:
-- For the other projects at the Manica Concession, including
the Alluvial and other hard rock production, Xtract is entitled to
a percentage share of the gold produced ("Other Manica
Projects")
-- The total gold production for the Other Manica Projects in Q2
2023 was 12.3Kg (equivalent to approximately 395 ounces) of which
the Xtract's share was 84 ounces
-- Other Manica Projects' average gold sales price for Q2 2023 was US$1,963 per ounce
Colin Bird, Executive Chairman said: "During the first half of
the year the Fair Bride operation progressed in every aspect of
production with financial control and reporting systems being
modified and developed by the Operator to meet international
reporting standards. Similarly, mining and processing was managed
by the Operator moving towards an operation which will satisfy the
requirements necessary for the reporting and management of a small
gold operation not withstanding its remoteness. We continue to work
with and encourage the Operator to achieve sustainability and
excellence with a view to reducing mine costs to below US$1,000 per
ounce which we feel is achievable against all of the critical
parameters of the operation. The Company continues to monitor the
operation and where appropriate insist on statutory and legal
adherence and similarly to improve administrative and financial
reporting and contractual obligations where appropriate to the
benefit of all stakeholders."
Fair Bride Operation
The Fair Bride gold deposit is within the Manica concession
situated 270km NW of the city of Beira within Licence 3990C in the
Odzi-Mutare-Manica Greenstone Belt of Mozambique.
Mutapa Mining and Processing, LDA ("MMP"), is the Operator of
the Manica carbon-in-leach plant (CIL).
Table 1 shows the quarterly gold production and sales prices for
Quarters 1 & 2 2023 for the Fair Bride project and year to date
figures for 2023. The production statistics for Fair Bride are
provided by Contract miner, MMP.
Table 1: Operator's Report - Total Gold production
and sales prices - Fair Bride (Xtract 23% share of
net profit)
Q2 Q1
Year to
2023 2023 date 2023
----------------------------- --- ------- -------- -------- ---------------
Tonnes Mined & Processed
(tons) 124,523 107,023 231,547
----------------------------- ----------- -------- -------- ---------------
Average grade (g/t) 1.74 1.51 -
----------------------------- ----------- -------- -------- ---------------
Au Production (ounces) 6,456 4,522 10,978
----------------------------- ----------- -------- -------- ---------------
Au recovery (%) 89.05 87.70 -
----------------------------- ----------- -------- -------- ---------------
Average sales price per
ounce in US$ 1,989 1,859 -
----------------------------- ----------- -------- -------- ---------------
Cost per oz of Au (US$) 1,215 1,185 -
----------------------------- ----------- -------- -------- ---------------
Gross monthly mine production from Fair Bride has increased
month-on-month as the operation has bedded down and typical
post-commissioning issues have been resolved. Steady improvement
has been reported in throughput tonnes processed, run of mine
grade, mill throughput rate and mill availability as set out in
table 2-4 below
Xtract and its subsidiary, Explorator, continued and will
continue to monitor and make recommendations for all safety aspects
of the operation and where necessary make proposals regarding
future operations.
Table 2: Ore Tonnes Processed Q3 2022
to Q2 2023
Month Ore Processed
(tpm)
------------------
September 2022 21,300
------------------
December 2022 28,200
------------------
March 2023 40,800
------------------
June 2023 42,000
------------------
Table 3: Mill throughput Rate Q3 2022 to Q2 2023
Month Ore Tonnes Milled per hour
(t/hr)
-------------------------------
September 2022 39.3
-------------------------------
December 2022 48.9
-------------------------------
March 2023 69.2
-------------------------------
June 2023 72.5
-------------------------------
Table 4: Fine Gold Poured Q3 2022 to
Q2 2023
Month Fine Gold Poured
(kg)
-------------------
September 2022 28.70
-------------------
December 2022 36.20
-------------------
March 2023 50.99
-------------------
June 2023 62.60
-------------------
At the start of the first rainy season it took time for the
Project operating team to adapt to the wet clay-rich mined material
being fed to the plant and by the end of Q2 2023, month-on-month
ore processing and throughput had risen from 28,200 tonnes per
month in December Q4 2022 to approximately 42,000 tonnes in June Q2
2023, an increase of approximately 49%.
A significant amount of additional close-spaced drilling was
completed during Q1 2023 specifically to improve grade control and
the ability to better predict the Run of Mine grade that could be
anticipated by the processing plant. This work had an almost
immediate impact on improvement in the run of mine grade with the
average grade rising to a reported grade for Q2 2023 of
approximately 1.74g/t Au.
Xtract Resources and Manica Project Revenue Stream and
Reporting
Production at Manica is now dominated by Fair Bride. The gold
mined at Manica projects other than Fair Bride is now significantly
scaled down as the mineable resource for these projects is
significantly reduced. Accordingly, the Company has adopted a new
format for quarterly reporting. Xtract will report production and
gold price statistics only for Fair Bride on a quarterly basis.
Xtract's 23% net profit share will be reported on semi-annually in
Xtract's annual and interim financial accounts.
The Net Profit share due to Xtract for the 6 months ended 30
June 2023 is estimated to be US$2.1 million. Xtract receives 23% of
the net profit at Fair Bride when the prevailing price of Gold is
greater than US$1,250 per ounce. Xtract's share reduces to 21.5% if
the prevailing gold price is greater than US$1,175 but less than
US$1,250 and to 20% if the prevailing price of Gold is less than
US$1,100 per ounce. Profit is defined as: Revenue on Sale less
deductible costs (excluding non-cash items) and corporation tax of
32% after utilising any tax losses. At the current gold price
Xtract is due 23% of the net profit.
Other Manica Projects production will no longer be reported
quarterly.
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
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 Michael Cornish www.beaumontcornish.co.uk
and Joint Broker Felicity Geidt
Novum Securities Limited Jon Bellis +44 (0) 207 399 9427
Joint Broker Colin Rowbury www.novumsecurities.com
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").
The person who arranged for the release of this announcement on
behalf of the Company was Colin Bird, Executive Chairman and
Director.
Qualified Person:
The technical information contained in this announcement has
been reviewed, verified, and approved by Colin Bird, C.Eng, FIMMM,
South African and UK Certified Mine Manager and Director of African
Pioneer plc, with more than 40 years' experience mainly in hard
rock mining.
Glossary
Au Gold
oz Ounces
-------------------------------
Kg Kilogrammes (there are 32.1507
ounces in a Kilogramme
-------------------------------
ENDS
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