Xtract Resources : Manica Alluvial Gold & Corporate Update

26 MarManica Alluvial Gold & Corporate Update

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RNS Number : 7057T

Xtract Resources plc

26 March 2021

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 December 2020 (the 'Period').

Highlights

· Total alluvial mining contractor gold production of 12.44 Kg for the quarter (equivalent to approximately 400 ounces)

· Total of 3.48 Kg (equivalent to approximately 112 ounces) attributable to Explorator

· Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$201,310

· Operations were impacted by continuing COVID 19 restrictions and local storms

· Guy Fawkes preparatory development continued during the period and limited earthworks at Fairbride were progressed

Colin Bird, Executive Chairman said: 'The quarter ended 31 December 2020, proved to be a challenging period, impacted by local storms as well ongoing COVID 19 restrictions imposed on our contractors, reducing our operating capabilities. However, despite this our contractor was able to carry out limited production. Local weather conditions worsened during Q1 2021 again impacting operating capability and operations at Guy Fawkes and our second alluvial license are being progressed. The Company is expecting a drier season from Q2 2021 onwards with improved operating conditions.'

Production summary

Preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month periods ended 31 December 2020, September 2020, 30 June 2020 and 31 March 2020 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 second half of this year. The Company's current focus is to continue to progress the Manica hard rock operations.

	4th Quarter ended 31 December 2020	3rd Quarter ended 30 September 2020	2nd Quarter ended 30 June 2020	1st Quarter ended 31 March 2020
Production and Sales:
Total contractor alluvial gold production (equivalent ounces) (Note 3)	400	787	566	467
Explorator share of gold produced (equivalent ounces)	112	220	158	131
Value of Explorator share of gold produced (value in US$)(Note 3)	US$205,900	US$426,916	US$274,959	US$208,396
Explorator share of gold sold (equivalent ounces)	117	145	162	354
Explorator attributable revenue from gold sales	US$201,310	US$250,968	US$261,679	US$508,573
Direct Operational Production Costs:
Explorator total direct alluvial operational production costs (Note 1)	US$95,595	US$72,630	US$75,158	US$147,575
Total Costs:
Explorator total direct alluvial production costs (Note 2)	US$153,549	US$134,688	US$109,898	US$175,982
Cost per ounce of gold produced	US$1,371	US$611	US$694	US$1,346

Note 1: Direct operational production costs include and not limited to Explorator salaries, rent, vehicles expenses and utilities.

Note 2: Total costs comprises direct operational production costs plus total Production Tax and Land Resettlement Costs as detailed below:

	4th Quarter ended 31 December 2020	3rd Quarter ended 30 September 2020	2nd Quarter ended 30 June 2020	1st Quarter ended 31 March 2020
Production Tax	US$20,429	US$30,136	US$18,854	US$16,109
Land resettlement costs	US$37,525	US$31,922	US$15,887	US$12,297

Note 3: Calculation based on the number of ounces produced during each month of the quarter multiplied by the closing month end spot rate.

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, Executive Chairman	[phone] www.xtractresources.com
Beaumont Cornish Limited Nominated Adviser and Joint Broker	Roland Cornish Michael Cornish Felicity Geidt	[phone] www.beaumontcornish.co.uk
Novum Securities Limited Joint Broker	Jon Bellis Colin Rowbury	[phone] www.novumsecurities.com

ENDS

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