Additional Manica Gold Hard Rock Mining Agreement
The Board of Xtract Resources Plc (“Xtract” or the “Company”) is pleased to announce that the Company’s wholly-owned Mozambican subsidiary, Explorator Limitada (“Explorator”) has concluded an additional mining contractor agreement (“Boa EsperanzaAgreement”) with Longhau Tianci Mining Co Ltd (“Longhau” or”Contract Miner”) for the exploitation of the Boa Esperanza hard rock gold deposit at its Manica mining concession in Mozambique.
· Longhau appointed to mine the Boa Esperanza hard rock gold deposit for 6 years or until the ore body is depleted or no longer viable
· Boa Esperanza Agreement provides for Explorator to receive 20% of gold production (after settlement by Explorator of the Mining Production Tax)
· Explorator will remit 35% of its share of Boa Esperanza gold production (after applicable expenses and tax) to Mutapa Mining and Processing LDA, Explorator’s existing hard rock collaboration partner
· Longhau to commence adit mining and initial underground development during the processing build phase
· Previously reported SAMREC-compliant Inferred Resource of 143,000 tonnes @ 0.77g/t Au
· Shallow drill intercept of 15.45m @ 1.35g/t Au highlights potential for higher grade ore shoots
· Further gold potential along sparsely drilled structural extension to the west-northwest
Colin Bird, Executive Chairman said: “I am pleased to report the conclusion of negotiations and signing of the Boa Esperanza agreement with Longhau. Boa Esperanza has had only limited drilling and as such the contractor plans to open the veins progressively and follow the vein and ore shoot.
This approach is common to this type of ore body and it is not unusual for mines to still be in production for many years after their original ore estimate. This new agreement provides the Company with another potential source of cash flow concurrent with the Guy Fawkes agreement.
We are also pleased to report that the previous onerous Covid-19 lockdown protocols in South Africa have been reduced and we are confident that border restrictions will be lifted to allow the importing of machinery from South Africa to Mozambique.”
Full update link https://www.share-talk.co.uk/announcements/rns/xtract-resources-plc/additional-manica-gold-hard-rock-mining-agreement/202008250700050186X