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(XTR) Xtract Resources Share Chat

Discussion in 'General Share Chat (XTR)' started by Steamy, Jul 22, 2015.

  1. Groucho

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  2. Groucho

    Groucho Member

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    For immediate release

    16 July 2018


    Xtract Resources Plc

    ("Xtract" or the "Company")

    Manica Concession Alluvial Gold Quarterly Update


    The Board of Xtract Resources Plc ("Xtract" or the "Company") announces preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month period ended 30 June 2018 (the "Period").


    Highlights

    · Total alluvial mining contractor gold production of 52.98Kg (equivalent to approximately 1,703 ounces) (increase of 41.93% from previous quarter).

    · Total of 13.24Kg (equivalent to approximately 426 ounces) attributable to Explorator (including Nexus under the Collaboration Agreement).

    · Combined attributable revenue to Explorator from gold sales for the Period amounted to US$291,000.

    · Xtract are constantly reviewing alluvial operations and are currently in discussions to separate the higher topography alluvials (terraces) from the river side alluvials and anticipate making new arrangements shortly.



    Colin Bird, Executive Chairman said: "These results demonstrate an increasing trend in quarterly production. The 1st quarter was adversely affected by the rainy season and difficult processing conditions in the West. The 2nd quarter was rid of the rains but was affected by difficult processing conditions as a result of fine gold and erratic gold occurrence. We have taken the decision to employ different contractors for the terraces and adjacent to the river alluvials and the appointment is expected to be announced shortly. Since alluvial production commenced in 2017, Explorator has been self-funding and we are encouraged by production levels being maintained by one contractor."


    Production summary


    Preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month periods ended 30 June 2018, 31 March 2018 and 31 December 2017 are set out in the table below. In addition to the information included in the table set out in the announcement dated 27 April 2018, the table below provides a further breakdown of costs between operational costs, production tax and land resettlement costs:

    6BD7F992-3741-44AE-B34E-43536C60DF3B.jpeg

    As previously announced on 25 June 2018, Moz Gold had halted production on the Western Half and Xtract continues to review new contractor proposals and expects to be able to announcement a new appointment shortly. Xtract has security over Moz Gold's processing plant and no decision has yet been taken by Company whether to utilise the plant for its own account or, alternatively make it available to new contractors who would be responsible for all necessary modifications.


    Further details are available from the Company'swebsite which details the company's project portfolio as well as a copy of this announcement: www.xtractresources.com
     
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  3. Groucho

    Groucho Member

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    RNS Number : 0535Z
    Xtract Resources plc
    29 August 2018


    For immediate release

    29 August 2018


    Xtract Resources Plc

    ("Xtract" or the "Company")

    Hard Rock Collaboration Agreement Update


    The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to provide an update on the hard rock collaboration agreement ("Omnia Agreement") with Omnia Mining Ltd ("Omnia") as announced on 19 February 2018, for the exploitation of the hard rock gold deposits at Xtract's Manica mining concession in Mozambique other than the Fair Bride project, which remains under the sole control and management of Xtract.


    Highlights

    · Twelve potential mining sites identified within 15 km radius of Omnia plant

    · Eight of the potential mining sites identified are already within the existing license areas of the Joint Venture parties

    · Construction by Omnia of its 40kt per month free gold processing plant completed, with commissioning planned in November 2018

    · Newly discovered quartz vein/alteration system, named André Zone,has been channel sampled in trenches and gold grades vary from 1.1m at 0.89g/t (Trench TOM003) to 0.5m at 20.8g/t (Trench TOM002) (see Table 1 below)

    · The AndréZone will be further explored by opening an underground adit

    · Working with outside engineering consultant to optimise plant upgrade to treat transitional and sulphide ores


    Colin Bird, Executive Chairman said: "The general Manica area has abundant gold mineralisation occurrences with varying mineralisation hosts and types. The objective of the Omnia Agreement is to allow us to process these ore types with no alternative sophisticated processing equipment available in the area. We are currently carrying out financial and technical exercises to assist us to decide whether to work the various veins sequentially or to install a total capability plant suitable for all ore types. Should we elect the latter route, then Fair Bride may well be processed through the Omnia plant subject to final agreement with Omnia".


    Background

    As previously announced on 19 February 2018, the Omnia Agreement was entered into by the Company and the Company's wholly-owned subsidiary, Explorator Limitada ("Explorator"), (the "Group"), and Omnia.


    The objective of the Omnia Agreement was to investigate, explore and evaluate all hard rock exploration targets within the Manica concession (excluding the Fair Bride Project) with the aim of being able to convert these targets into a joint mining operation with Omnia. Omnia currently has a gold processing plant installed within its adjacent concession which has a capability to process free gold. The plant has a milling capacity of 40kt a month with a gravity circuit which handles the feed. The Omnia plant is unable currently to process fine gold which requires liberation by a combination of flotation and cyanidation. Omnia will manage and operate all the processing of material approved and delivered through Explorator to Omnia's processing plant.


    Xtract will provide technical personnel capable of evaluating the hard rock gold potential of the Omnia concession and surrounding areas for mutual development and will be solely responsible for all exploration and future mining on all target areas.


    The implementation of the Omnia Agreement was structured in five phases. The parties have completed the desktop study (Phase 1), and the initial exploration primarily comprising trenching (Phase 2) and are currently undertaking further follow-up exploration work. No drilling has been undertaken by the parties at this time (Phase 3).


    During phase 2 the parties have identified 12 potential mining sites within a 15km radius from the Omnia Plant. A number of these sites (Guy Fawkes, Dots Luck and Boa Esperanza) have under prior ownership had some exploration drilling and mining activities but none of these sites would justify the construction of a plant solely for their production. The parties have agreed to re-visit these sites with an objective of identifying "open-pittable" mines or slots in order to supply a constant feed of 500 tonnes a day for at least the next 2 years, with the capacity to grow production further.


    The following potential mining sites are already within the existing license areas of Omnia and Xtract:

    · André Mine,

    · Guy Fawkes,

    · Dots Luck,

    · Mushongarokwa,

    · Boa Esperanza,

    · Duke Mine,

    · Try Again

    · Munhena Extension.


    The first exploration target is the André Mine Zone (Mining Area A) which is situated approximately 300m from the Omnia plant. Recently completed exploration work by Xtract included the following operations and observations:


    · A programme of six trenches totalling 511m was completed on mining Concession 3373C, in order to understand previously inconsistent drilling assay results and to try to establish "open-pittable" resources for possible immediate mining, targeting an area near old historical workings.

    · It was established from historical workings and field observations that the gold at André Mine Zone is related to bleached calcium or potassium-altered zones within talc chlorite schist invaded by quartz veins varying from stringers to 15cm in width.

    · The general orientation of the schistose rocks is approximately east-west, dipping toward south, while most of the quartz veins are concordant to subparallel to the schist structures.

    · The altered package which consists of alternations between bleached and unaltered zones, has as its foot and hanging-walls tremolite schist with a total length along strike of about 170m so far established, with a possibility to extend eastward for an additional 250m, toward historic drill hole OMN016. A maximal width of about 25m has been established for the André Zone in the eastern margin of the trenched area.


    Channel sampling was carried out across intervals of interest totalling 322m in the trenches (quartz veining and alteration zones). Assay test reports were prepared externally by Performance Laboratories Zimbabwe.


    Table 1: André Mine Zone - Selected Channel Sample Assay Results

    261301B3-CB74-45A9-AF83-388F23EF0A1D.jpeg

    The parties plan to map these zones on site in order to establish their continuity. Of the sampled quartz veins, one may represent a single vein located in four adjoining trenches over about 120m strike extent along the northern margin of the André Zone. While the leached zone gold content is low, with good plant efficiency and grades greater than 0.8g/t, open pit mining may potentially be profitable, subject to the very limited availability of volume of ore. Furthermore, it is known from other gold sites at Manica that the gold content of near-surface leached zones may not reflect the true gold content of unweathered bedrock below the water table. Therefore, it is proposed to develop an underground adit to test the André Zone beneath the intercepts obtained from the trenching programme.


    In addition, further exploration is planned on 3 other areas of the André Zone not yet tested by trenching. An in-house feasibility study (Phase 4 of the Omnia Agreement) is planned to be completed during September 2018.


    Further details are available from the Company'swebsite which details the company's project portfolio as well as a copy of this announcement: www.xtractresources.com
     
    Last edited: Aug 29, 2018
  4. Groucho

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    28 September 2018

    Xtract Resources Plc

    ("Xtract" or "the Company")


    Unaudited Interim Results for the six months ended 30 June 2018


    Xtract Resources Plc (AIM: XTR), the gold producer, exploration and development company with projects in Mozambique, announces an update of operations and projects and its unaudited interim results for the six months ended 30 June 2018 ("Period").


    Financial


    · Revenue from gold sales of £0.46m (inclusive of Nexus' share under the Collaboration Agreement) (H1 17: £Nil)

    · Net loss of £0.41m (H1 17: £0.64m)

    · Operating expenses £0.83m (H1 17: £0.42m)

    · Cash of £1.01m (FY 17: £1.66m)

    · Net assets of £11.08m (FY 17: £11.48m)


    Operational & Corporate Highlights


    · Total alluvial mining contractor gold production of 90.3kgs (equivalent to 2,903 ounces) (H1 17: Nil)

    · Total of 22.47Kg (equivalent to 723 ounces) attributable to Explorator (inclusive of Nexus' share under the Collaboration Agreement) (H1 17: Nil)

    · Manica Hard Rock collaboration agreement concluded with Omnia Mining Ltd

    · Appointment of new company broker



    Colin Bird, Executive Chairman commented: The Period under review was focused entirely on the Manica concession and surrounding opportunities.


    The alluvial mining operations remained cash positive and progress continues to be made with monthly performance.


    The alluvials, like the hard rock mineralisation, have shown themselves to be extremely variable in their gold content and physical presentation. Moz Gold had problems recovering the fine gold that was evident in the western part of the concession whilst the terraces proved to have too much overburden for the gold yields obtained. However, Sino Minerals on the Eastern side continued to get satisfactory results throughout the period although they experienced similar variability but more in the amount of overburden than the fineness of the gold. The varying results necessitated that the Company revisit the apportionment of the contract areas ensuring that contractors had the necessary equipment, both processing and mining to operate in the areas to which they are assigned. The Company is currently discussing with various contractors new contracts or revised contracts for the newly apportioned concessions. The discussions are based around a dividing line between river alluvials and terrace alluvials and our discussions are directed towards concluding agreements in the near future.


    The contract with Moz Gold was terminated during the Period and following the Period end the Company is now in the process of taking possession of Moz Gold's plant over which it has security. We are looking at a number of opportunities to employ this processing plant within the concession or elsewhere. Whilst the processing plant is unsuitable for the recovery of fine gold at Manica, it is a substantial plant which will undoubtably return value to the Company or any acquirer of the plant.



    Overall in the Period the alluvial operations were cash positive and total alluvial production amounted to 1,200 oz in the first quarter and 1,703 oz in the second quarter.



    Our hard rock plans for area consolidation have proceeded favorably and we have undertaken significant reef exposure exploration in a number of areas including the use of excavators to establish continuity of existing reefs or newly discovered reefs. This will be followed by drilling for depth where appropriate.



    Post Period end, we announced that we had identified twelve potential mining sites within 15 kilometers radius of the Omnia plant. We identified within the Omnia concession a new quartz vein named the Andre zone which is showing good potential. Adjacent to this zone, we have identified a number of adits at various levels that, once made safe and entered, will give us insight as to the vertical continuity of the vein. The channel sampling of the vein was very encouraging with the best trench result being 0.5m at 20.8 g/t of gold. Our collaboration agreement with Omnia has led to an evaluation of the current plant and we are in discussion with various engineering contractors to assess the work and cost required to upgrade the plant to treat most of the ore types within the Manica area. We are also developing conceptual open pit mine plans to work known surface deposits within the collaboration area.



    The gold price over the period under review has declined somewhat, which we consider is a function of reduced geopolitical tension and increased financial and political stability. The work to consolidate the Manica area is accelerating and the possibility of including Fair Bride in the agreement is being considered. We expect that the fourth quarter of 2018 we will prepare a three-year operation plan together with costings.



    As always, the Company is active in seeking out other opportunities which may diversify commodity risk, and at time when we are debt free which will help to add further potential for significant shareholder value growth.

    Xtract Resources plc - Half-year Report https://www.voxmarkets.co.uk/rns/announcement/e8e0ae84-98fb-429f-a256-606980731470
     
  5. Groucho

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    25 October 2018


    Xtract Resources Plc

    ("Xtract" or the "Company")

    Manica Concession Alluvial Gold Quarterly 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 30 September 2018 (the "Period").


    Highlights


    · Total alluvial mining contractor gold production of 56.34Kg (equivalent to approximately 1,811 ounces) (increase of 6.35% from previous quarter)

    · Total of 14.09Kg (equivalent to approximately 453 ounces) attributable to Explorator (including Nexus under the Collaboration Agreement)

    · Combined attributable revenue to Explorator from gold sales for the Period amounted to US$242,000

    · Xtract continue to review the alluvial operations and discussions to separate the higher topography alluvials (terraces) from the river side alluvials

    · Pit and process planning underway to commence hard rock mining in the 1st Quarter of 2019



    Colin Bird, Executive Chairman said: "The production results continue to show improvement and the operation has remained self-funding since production commenced. We continue to discuss with our collaboration partners and contractors routes to improved performance and distributable income. The high topography alluvials continue to be investigated for higher quantities of gold in the gravel. The cost of overburden removal requires high in situ gold values.

    The hard rock methodology is likely to be incremental, in that we commence in hard rock areas where gold can be separated by gravity methods. Thereafter installing a leaching capability and finally the production of a floating concentrate. Discussions are progressing well with our partners and we will update the market shortly on our more definitive plans."


    Production summary

    Preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month periods ended 30 September 2018, 30 June 2018 and 31 March 2018 are set out in the table below:

    1A6B35E6-47B5-4A35-8960-99EA9430BBA9.jpeg
     
  6. Groucho

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    For immediate release

    30 October 2018


    Xtract Resources Plc

    ("Xtract" or the "Company")

    Alluvial Collaboration Agreement terms amended


    The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to announce that Xtract and Nexus Capital Limited (previously Mineral Technologies International Limited, "Nexus") have today agreed to revise the terms of the collaboration agreement for the exploitation of alluvial gold deposits at Manica, which was previously amended and agreed to by the parties as announced on 20 June 2017.


    Highlights

    · The new collaboration agreement ("New Agreement") signed between the Company and Nexus

    · Net gold production attributable to the Company to be shared equally with Nexus

    · All Entry Fees received from the Contract Miners after 31 May 2018 to be divided equally between the Company and Nexus

    · Agreed settlement of US$76,000 to be paid by the Company to Nexus for fees accrued between 1 January 2018 and 31 May 2018

    · The New Agreement provides Xtract with more favourable terms and potential additional income with minimal operating risk


    Colin Bird, Executive Chairman said:

    "The New Agreement is the result of prolonged negotiations between Nexus and Xtract targeted towards an equitable agreement which reflects concession ownership and our responsibilities. This agreement has removed key aspects of negative control by Nexus and remains in the general interest of both parties. I am very pleased that agreement has been reached with Nexus and now look forward to working to increase the production of the Manica alluvials by revising the current contracting arrangements."


    Background to the new Collaboration Agreement

    On 13 February 2017, the Company announced that it had entered into an agreement with Nexus (a private Hong Kongregistered company) and agreed to develop the alluvial gold interest of the Mining Concession together through the appointment of third-party contract miners, who would have the exclusive right to mine unconsolidated alluvial deposits on specified areas of the Mining Concession area ("February Agreement"). The Company would operate a smelter ("Smelter") to smelt the alluvial gold recovered by the Contract Miners from the Mining Concession.


    On 20 June 2017, the Company announced that the parties had agreed to revise the terms of the February Agreement signed on the 13 February 2017 ("June Agreement"). The parties agreed that Nexus would receive all front-end fees received from the Contract Miners. The parties also agreed that Explorator Limitada, the Company's wholly-owned Mozambican subsidiary ("Explorator") would be responsible for all transportation costs and 40% of the smelter costs capped at US$16,000 per month, in addition to other operating costs (including gold export royalties and taxes). Nexus would be responsible for all refining costs, 60% of the smelter costs capped at US$24,000 as well as all capital costs including project equipment and project vehicles. Nexus would be paid a refining administration fee ("Refining Admin Fee") equal to 5.5% of all alluvial gold delivered on Explorator's account to a refiner for refining and a service fee equal to 60% of all alluvial contract mining proceeds received by Explorator from Contract Miners less the applicable Refining Admin Fee and Nexus' 60% share of the smelter costs.


    The New Collaboration Agreement


    The parties have today agreed to enter into a New Collaboration Agreement which takes effect as of 1 June 2018.


    Gold Production & Nexus Fees

    The total amount of gold produced from the Mining Concession Area, less the percentage Mining Production Tax and gold paid the Contract Miners, ("Net Gold Production"), will now be shared equally the Company and Nexus. Nexus will be entitled to an amount equal to 100% of the sales' price of Nexus's share of the Net Gold Production, less Nexus's pro rata share of transport costs, and 50% of any transporter costs and refinery fees recovered from the Contract Miners.


    Any Entry Fees payable by any Mining Contractor to Explorator after 31 May 2018 will now be divided equally between the Company and Nexus.


    Project costs

    Nexus will be responsible for contributing US$20,000 towards monthly costs and expenses of the project ("Project Costs") as well 50% of any land compensation costs (comprising any ad hoc compensation payments made to local inhabitants of the Mining Concession Area to allow the alluvial mining of the Mining Concession Area).


    Settlements

    The Company will pay a settlement amount of US$76,000 in relation to fees due to Nexus for the period 1 January and 31 May 2018. The parties have further agreed that the Company and Explorator will take all necessary steps to recover amounts owed by Moz Gold under the terms of the Moz Gold Agreement (entered into on 6 March 2018), and that any amounts recovered will be divided between the parties on the basis of the June Agreement, being 60% payable to Nexus and 40% to the Company.


    Quarterly alluvial gold production update

    As the New Agreement takes effect from 1 June 2018, Xtract's previously reported share of Explorator's attributable revenue from gold sales and total direct alluvial production costs for the three-month period ended 30 September 2018 (see announcement dated 25 October 2018), will increase to 50% (from 40%) and as now amended will be as follows:

    974A5AE0-AE3B-4AB8-874B-F0900B69FD6B.jpeg

    Further details are available from the Company'swebsite which details the company's project portfolio as well as a copy of this announcement: www.xtractresources.com
     
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  7. Groucho

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    For immediate release

    16 January 2019


    Xtract Resources Plc

    ("Xtract" or the "Company")

    Manica Gold Alluvial Mining Contractor 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 ("Mining Contractor Agreement" or "Agreement") with Huafei Gold Resources Co Limitada (formerly Sino Minerals Investment Company Limited) ("Contract Miner") for the exploitation of alluvial gold deposits at Manica at its Manica mining concession in Mozambique.


    Highlights

    · Established and experienced current alluvial mining contractor now appointed to mine the alluvials of the entire concession

    · An entry fee to be paid to the Company: Initial US$150,000 to be paid on the date of the Agreement, and the remaining US$200,000 to be recovered through future alluvial gold production

    · Agreement provides for Explorator to be entitled to retain net percentage of the gold mined (after settlement by Explorator of the Mining Production Tax) of 22% until the entry fee has been settled in full, and 20% thereafter

    · Initial contract period of 10 years or the depletion of alluvials, with an option to extend for a further 5 years if the alluvials are not yet depleted


    Colin Bird, Executive Chairman said:"A number of contractors have expressed interest in mining the other areas of the alluvials in the Manica concession. Huafei Gold Resources was chosen because of their willingness to pay an upfront payment and demonstrated consistency of operation with their existing contract. They provided extra equipment into the concession and we look forward to increased production over the coming months and on completion of the rainy season."


    Contract Mining Agreement

    The Company's wholly-owned Mozambican subsidiary, Explorator, has today appointed the Contract Miner who will have the exclusive right to mine the entire unconsolidated alluvial deposits on the Permitted Area of the Mining Concession area. The Agreement will endure for a period of 10 years or the depletion of alluvials, with the option to extend for a further period of 5 years, if the alluvials have not depleted, by the Contract Miner as well as rights of early termination either by Explorator or the Contract Miner.

    The Agreement includes performance targets whereby the Contract Miner from 1 February 2019 will be required to have 2 fully operational plants with a minimum throughput of 200 tonnes per hour on a consistent 24 hours per day basis.

    Explorator will be responsible for recording the gold concentrate produced from the permitted area on a daily basis. The Contractor will be responsible for the smelting of the gold concentrate and delivery of gold dore bars.

    Explorator will be responsible for all statutory and legal requirements regarding the license and for payment of the Mining Production Tax of 6%.


    Consideration and Payments

    The Agreement is subject to the condition precedent that the Contractor pays a total entry fee of US$350,000 to Explorator ("Entry Fee"). An initial US$150,000 is to be paid on or before the date signing of the Agreement, and the remaining US$200,000 to be recovered through future alluvial gold production.


    In consideration for the appointment of the Mining Contractor, Explorator will initially pay the Mining Contractor a net fee of 72% of gold produced by the Mining Contractor and Explorator will therefore initially retain 28% of the sales value of all gold produced (equivalent to 22% after payment by Explorator of the applicable Mining Production Tax of 6%) and will continue with the above fee arrangement until the Entry Fee has been settled in full. Thereafter, Explorator will pay the Mining Contractor a fee of 74% of gold produced by the Mining Contractor and Explorator will therefore retain 26% of the sales value of all gold produced, equivalent to 20% after payment by Explorator of the applicable Mining Production Tax of 6% (the "Net Sales Balance").


    The Net Sales Balance and the Entry Fee will be apportioned between Xtract and Nexus on the basis of the agreed the terms of the amended collaboration agreement for the exploitation of alluvial gold deposits at Manica ("Collaboration Agreement") as announced on 30 October 2018.


    Other

    The Contract Miner will be responsible and liable for any rehabilitation of the mining concession to the extent mined by the Contract Miner as required under the relevant mining laws.

    The Agreement contains an indemnity from the Mining Contractor to Explorator and further customary terms and conditions (including termination).


    Further details are available from the Company'swebsite which details the company's project portfolio as well as a copy of this announcement: www.xtractresources.com
     
  8. Groucho

    Groucho Member

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    29 January 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 December 2018 (the "Period").


    Highlights

    · Total alluvial mining contractor gold production of 41.29Kg (equivalent to approximately 1,328 ounces)

    · Total of 10.32Kg (equivalent to approximately 332 ounces) attributable to Explorator (including Nexus under the Collaboration Agreement)

    · Combined attributable revenue to Explorator from gold sales for the Period amounted to US$310,000

    · Xtract continue to review the alluvial operations and introduce more equipment

    · Plans being made to concurrently work the upper terraces

    · Test work carried out over the border in Zimbabwe to extend alluvial income

    · DFS revised to accommodate less complex ore with the technical and financial study to be released shortly


    Colin Bird, Executive Chairman said: "The quarter under review produced modest results compared to previous quarters and reflects the lower grade areas having been ceded back to the Company together with compensation paid to local farmers . The areas mined during this quarter were marginal but considered appropriate for processing, despite lower grades. We expect to see improving production against an improving gold price. We recognise the inconsistency of alluvials, but over the last year have gained considerable insights into the intricacies of alluvial miming and this has moved up into test work programme in neighbouring countries. We now have a very clear vision how to effectively mine the hard rock occurrences which are less metallurgically challenging. The Company is talking to potential partners and investors to develop the Manica project and the board intend to release revised scoping numbers in the near future ".


    Production summary

    Preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month periods ended 31 December 2018, 30 September 2018, 30 June 2018 and 31 March 2018 are set out in the table below. In addition to the information included in the table set out in the announcement dated 16 July 2018, the table below provides a further breakdown of costs between operational costs, production tax and land resettlement costs:
    5096F344-2D1B-43F3-98B5-3A72F0950FC2.jpeg

    2DCA11A8-EF85-448B-B8E6-BABAF04A2F85.jpeg

    Further details are available from the Company'swebsite which details the company's project portfolio as well as a copy of this announcement: www.xtractresources.com
     
  9. Groucho

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    11 February 2019

    Xtract Resources Plc

    ("Xtract" or the "Company")

    Zambia Copper Exploration Agreement


    The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to announce that the Company has today concluded a Memorandum of Agreement ( "Agreement") with a consortium ("Consortium") to jointly undertake exploration works on the copper / gold small scale mining license number 8370-HQ-SML ("Licence") located at Kajevu, Kasempa, North Western Province In The Republic of Zambia ("Matrix Project").



    Highlights of the Agreement

    · Agreement to jointly undertake exploration work on the copper / gold Licence in Zambia

    · Matrix Project's breccia vein system extends for at least 3km, with initial target section of 800m within the Licence

    · Recent small scale open pit recovered high grade hand-picked copper as well as alluvial gold nuggets

    · Selective grab samples taken from the pit outcrop indicate values ranging between 3.99-7.28% Cu and 1.0-3.42g/t Au

    · Bulk sample material stockpiled at surface

    · Objective to identify a copper / gold resource within a period of 24 months

    · Xtract to acquire a 50 per cent. share in the project

    · Parties agree to jointly fund an exploration works programme up to US$1 million in aggregate


    Colin Bird, Executive Chairman said: " The iron oxide copper gold (IOCG) exploration potential in Zambia has not been fully explored and several highly prospective opportunities exist. We have identified the Matrix Project as being high in potential and are currently investigating other areas which possess similar potential. In developing our activities into Zambia, we are providing a country balance and also introducing copper as a commodity hedge against gold. The Board of Xtract believes that the fundamentals for copper in the future are stronger than have been experienced for a considerable time."


    Matrix Project Summary

    There is a small open pit trial mine approximately 150 metres long and 15 metres deep that was previously developed over a copper-gold mineralised, hydrothermally altered quartz vein zone striking slightly north of west and dipping steeply towards the north. At the western end of the pit a breccia zone of iron-rich quartz is exposed within siltstone host rock over a minimum width of 3 metres, with strong visible copper mineralisation in the form of malachite and chalcocite throughout the matrix and on fractures. Selective composite grab samples taken by the Company from the exposed mineralisation at the western end of the main pit were assayed by the Geochemical Analytical Laboratory at the University of Lusaka School of Mines. These returned values ranging 3.99-7.28% Cu, 1.0-3.42g/t Au. The pit operators did not have the necessary equipment to process the ore but they reported recovery and sale of high grade copper from hand-picked material, as well as recovery of alluvial gold nuggets. Bulk sample material from the open pit was stockpiled at surface for possible future processing.

    The vein system can be traced continuously within the Licence for at least 800 metres from the eastern end of the open pit to the western margin of the Licence. The system continues to be strongly altered and brecciated, with iron-rich matrix as seen at the mineralised pit exposure, however there is no visible copper mineralisation at surface outside the pit, probably due to near-surface leaching. To the east the vein partly tracks outside the license. Here it is generally less altered and brecciated, but strong copper mineralisation is exposed in a trial digging within the southeast corner of the license, more than 2 kilometres from the open pit. A selective grab sample taken from mineralised material at this locality returned assay values of 4.49% Cu, 2.94g/t Au.

    The target can be classified as iron oxide copper gold (IOCG) type. Several mineral deposits of this type have recently been recognised in Zambia, genetically and spatially related to the major sediment-hosted deposits of the nearby Copperbelt. They are generally underexplored compared to the Copperbelt deposits. The Matrix Project has not previously been systematically explored and no historic drilling is known which might have tested its' extension to depth.


    Memorandum of Agreement

    Background

    The Memorandum of Agreement has been entered today by the Company and the Consortium (the "Parties"). The Company has to date been involved in gold and copper exploration and mining, while the consortium has to date invested in assets within Africa. The objective of the Agreement is to collectively undertake exploration works on the Licence area and the intent of this agreement is to identify a copper/gold resource which the Parties are targeting to achieve within a period of 24 months.


    Key terms of the Agreement

    The parties have agreed to incorporate a special purpose company ("Newco") to acquire the shares of Starshine Mineral Exploration Limited ("Starshine"), incorporated in the Republic of Zambia. This Agreement shall come into force and effect upon signature and shall endure for a term of 24 months. Xtract will hold a 50% share in Newco with one of the two directors of Newco being a representative of Xtract. Within 14 days of incorporation, Newco will be issued with 90% shares of Starshine, with the remaining 10% of the Starshine to held by a local shareholder (with no voting rights). Xtract will appoint one of the two directors of the board of Sunshine. The Licence is currently being transferred to Starshine. Under the current licence agreement, only in the event that Starshine builds a mine and commences production and reaches a target of 15,000 tonnes of copper per annum for 15 years, an aggregate amount of US$4,900,000 in deferred consideration will become payable in 49 instalments of US$100,000 to the former Licence holder.


    Exploration programme

    To date, the Consortium has undertaken preliminary studies at the Matrix Project and the Parties have agreed that the preliminary prospecting work shall be undertaken on the License within 6 months from the date of the Agreement.

    Upon completion of preliminary prospecting works and in the event that the prospect is not worthy of development, none of the Parties will be obliged to contribute any further funding.

    Upon completion of the preliminary prospecting works and agreement from both Parties to proceed, the Parties have agreed that further detailed exploration work shall be undertaken on the Licence area for a period of no more than 18 months from the date of the Agreement.


    Budget

    The Parties have agreed that the total budget for exploration works shall not exceed US$1,000,000, apportioned as follows:

    · US$200,000 in relation to preliminary prospecting works; and

    · US$800,000 in relation to detailed exploration works.


    Early termination during the Exploration Works Period

    · Neither party shall be compelled to remain as a shareholder in the event of a party requiring to exit as shareholder;

    · The exiting party shall have no claims against the Company or its shareholders;

    · The exiting party will ensure that it acts in good faith to ensure that the remaining party has all the benefits and obligations of the license.


    Further details are available from the Company'swebsite which details the company's project portfolio as well as a copy of this announcement: www.xtractresources.com
     
  10. Groucho

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    5 March 2019

    Xtract Resources Plc

    ("Xtract" or the "Company")

    Option Agreement Eureka Copper/Gold Project Zambia ("Eureka")


    The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to announce that the Company has today concluded a Memorandum of Agreement ("Agreement") with KPZ International Ltd. ("KPZ")to enter into an Option Agreement for the Eureka project on the copper-gold small scale mining licence number 22134-HQ-SML ("Licence") located in the Central part of The Republic of Zambia ("Eureka Project").


    Highlights

    · Roan Selection Trust ("RST") carried out limited drilling between 1951 and 1969 which intersected copper mineralisation

    · Caledonia Mining Corporation Plc explored the project between 1994 and 2006 including completion of a short programme of reverse circulation drilling

    · Caledonia's best intersection recorded was 25.7m @ 3.30% Cu and 0.25g/t Au, including 9.7m @ 5.9% Cu and 0.26g/t Au

    · A small pit at Eureka West operated by artisanal miners with composite grab sample taken by the Company from boulder piles at the site returned 9.81% Cu, 1.94g/t Au, 13.77g/t Ag.


    Colin Bird, Executive Chairman said: "This option is for a large concession with a well-defined strike and splays that have not been fully investigated. We believe there is potential for a large mineralised body as previous work was relatively superficial and did not pursue targets which are valid today. The traditional Zambian Copper belt mineralisation was well understood receiving all of the exploration funding to establish long life mines against relatively simple mineralisation trends. The Central Zambian IOCG (iron oxide copper gold), whilst identified as having exploration potential, was subordinated to conventional copper belt trends. Only in recent years has their potential been revisited and then only with direct-to-surface mineralisation exposure. The previous works, whilst limited, were 3 dimensional which provides a platform for an exploration programme that may lead to a large-scale copper-gold resource".


    Eureka Project Summary

    The Eureka copper-gold property with thesmall-scale mining licence number 22134-HQ-SML comprising approximately 345 hectares is accessed by a 100km dirt road from Kabwe, west of the Zambian Copperbelt district. The licence application was submitted in August 2017 and has been validated and the licence when issued will be for period of 10 years with no minimum spend.

    Rock exposure on the property is limited due to the presence of irregular laterite and saprolite cover, and near-surface leaching of metals also occurs. Mapped bedrock comprises primarily metasedimentary rocks of the Katanga Supergroup, similar to those hosting the world-class deposits of the Copperbelt to the east.

    Historic exploration has been carried out periodically by several companies from the early 1950s until 2006, comprising soil sampling, geophysical surveying and pitting, as well as limited core and reverse circulation ('RC') drilling. Work focussed on a NW-SE structural corridor with associated bedrock alteration, quartz veining and copper mineralisation in at least two localities, known as Eureka and Eureka West.

    Between 1951 and 1969 RST carried out a programme of diamond drilling at Eureka comprising mostly angled holes which cut intersections of supergene chalcocite-malachite mineralisation in a steeply-dipping zone and identified copper mineralisation. No gold assaying was carried out. Subsequent RC drilling by Caledonia Mining between 1994 and 2006 confirmed the mineralised zone and identified additional gold mineralisation. A summary of historic mineralised drilling intercepts (which has not been independently verified by the Company) is set out in the table below.

    EDCD230E-1B8E-4562-B582-7F2353C5535A.jpeg

    A subsequent small non-JORC compliant mineral resource was estimated by Caledonian Mining (which has not been verified).


    A small open pit was developed by a local operator within this resource in 2008, when about 1,000 tonnes of ore at 3% Cu was reportedly recovered. The open pit is currently flooded, but mineralised boulder piles at site comprise brecciated vein quartz, heavily oxidised in places with hematite, limonite and malachite evident. A recent composite grab sample taken by Xtract from this material was assayed by the Geochemical Analytical Laboratory at the University of Lusaka School of Mines: This returned values of 2.01% Cu, 1.00g/t Au, 3.99g/t Ag. Based on review of the historical drilling, the copper-gold zone at Eureka remains open along strike to the northwest and southeast as well as to depth.

    The Eureka West target is situated almost a kilometre to the west-southwest of the Eureka open pit. Limited shallow drilling by previous explorers discovered low-grade mineralisation in what appears to be a separate zone from the Eureka open pit. A recent site visit located a shallow informal pit dug by local villagers through laterite cover into copper mineralised rocks. Bedrock comprises heavily altered dolomite, with banded iron carbonates and vuggy quartz, containing much malachite mineralisation disseminated and on surfaces. A composite grab sample taken by Xtract from boulder piles at the site was assayed at the Lusaka School of Mines laboratory and returned 9.81% Cu, 1.94g/t Au, 13.77g/t Ag. It appears that this target was missed by earlier exploration and it has not been tested by drilling to date.

    Several other targets on the Eureka property also remain to be tested and as indicated by the assay results at the Eureka West villager open pit, the Board believes that much of the previous exploration may have been ineffective due to the masking effect of laterite cover and near-surface leaching. Therefore, historic drilling of intervals of copper-gold mineralisation as well as recent mineral finds may just give an indication of the potential within the licence area.

    The proposed exploration programme on the Eureka area includes geophysical surveying to track the main structures and mineral trends, further trenching/pitting to expose and extend the known mineralisation, followed by drilling to test mineralisation along strike and down-dip, as well as testing of new targets.

    The Eureka and Eureka West prospects can be classified as iron oxide copper gold (IOCG) target types. Several mineral deposits of this type have recently been recognised in Zambia, genetically and spatially related to the major sediment-hosted deposits of the nearby Copperbelt. They are generally underexplored compared to the Copperbelt deposits.


    Memorandum of Agreement


    Background

    The Memorandum of Agreement has been entered today by the Company and KPZ International (the "Parties"). The Company has to date been involved in gold and copper exploration. The objective of the Agreement is to collectively undertake exploration works on the Licence area and the intent of this agreement is to identify a copper/gold resource.


    Key terms of the Agreement

    The Company has agreed to spend up to US$200,000 ("Initial Expenditure Phase") to assess the suitability of the Eureka Project for a resource drilling programme and thereafter feasibility study. In the event that the Company does not wish to proceed with the Eureka Project, the Company will be required to provide to KPZ all information and results gathered from the Initial Expenditure Phase.

    If the Company decides to proceed, then by no later than 1 October 2019, and following the Initial Expenditure Phase, the Company has an option to acquire 50% of the Eureka Project for the amount expended by it on the Initial Expenditure Phase.

    KPZ has agreed to incorporate a local Zambian newly-formed special purpose vehicle to hold the Eureka Project ("SPV"). KPZ will initially hold 100% (less 1 share to be held by a Zambian Shareholder) in the SPV. In the event that the Company exercises its option described above, KPZ's shareholding in the SPV will be transferred to a second newly-formed company ("Newco") such that Newco holds 100% (less 1 share held by a Zambian Shareholder) in the SPV, and the Company and KPZ will therefore each hold 50% (less 1 share) in Newco.

    No later than 1 December 2019, the Company will be required to present a detailed budget to KPZ to continue to scoping study. Should KPZ wish to fund their 50% share of the scoping study costs then they will be required to confirm this by 1 February 2020 and each party will equally fund the Project. If KPZ do not wish to further fund the Project, they will be diluted to 25% in Newco with the Company's interest increasing from 50% to 75%.

    The Company may at any time during the period withdraw, should they deem the Project unsuitable for further investment and at the same time will forfeit any rights they have to the Project.


    Further details are available from the Company'swebsite which details the company's project portfolio as well as a copy of this announcement: www.xtractresources.com
     
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  11. Groucho

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  12. Groucho

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    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:
    038E559B-597A-4BB1-8AD6-3A636EE3A607.jpeg
     
  13. Groucho

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    16 May 2019


    Xtract Resources Plc

    ("Xtract" or the "Company")

    Zambia Copper Exploration Update


    The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to provide an update on exploration works on the copper / gold small scale mining license number 8370-HQ-SML ("Licence") located at Kajevu, Kasempa, North Western Province in The Republic of Zambia ("Matrix Project"), as well as its Eureka project on the copper-gold small scale mining licence number 22134-HQ-SML (" Eureka Licence") located in the Central part of The Republic of Zambia ("Eureka Project").


    Highlights

    · Exploration work commenced on Matrix Project

    · Soil sample results suggest that quartz-hematite breccia zone may be copper-mineralised for over 600m westwards from previous open pit mine

    · Accompanying elements particularly potassium indicate larger zone of alteration up to 2.5km long

    · Contract signed for magnetic survey to delineate sub-surface extent of alteration/mineralisation

    · Eureka visited and large data bank acquired for analysis

    · Conclusion from visit and data interrogation to be digitised with a view of selecting targets


    Colin Bird, Executive Chairman said: "This is a very good start to our preliminary exploration programme and I am particularly pleased with the relatively high potassium trend potential indicating alteration. The apparent mineralised zone is quite wide and the magnetic survey currently under way will hopefully further assist in targeting our proposed drilling programme. A further visit to the Eureka project and an archive search made it very clear that Eureka is drill-ready. The proposed digitising of all information will greatly assist the targeting of drill-holes".


    Summary of work completed

    Preliminary exploration work by Xtract commenced on the Matrix Project in April 2019 where previous bedrock sampling and small-scale mining confirmed the presence of strong copper-gold mineralisation (as previously announced on 11 February 2019). A Southern / Central African based consulting and services company, GeoQuest Limited, was commissioned to carry out a soil sampling survey on a 100 x 50m grid. 789 samples were collected and sieved on site, where they were analysed using a hand-held XRF spectrometer for a range of elements, including copper and associated minerals, but excluding gold which cannot be accurately detected by this methodology.

    Results returned values up to 177ppm Cu close to the vicinity of the copper-gold mineralisation in the former open pit, above an anomalous threshold of 25ppm Cu. It was noted that anomalous values extend for over 600m to the west as far as the licence boundary. This coincides with the mapped extension of the IOCG-type quartz hematite breccia zone which has been mined in the open pit. The soil geochemistry provides encouragement that the zone may be copper-bearing in the unmined area to the west where near-surface leaching appears to mask mineralisation.

    Accompanying elements, including iron and potassium, show a marked east-west trend over a strike of up to 2.5km which may reflect a more extensive alteration zone surrounding the main mineralised structure.

    In the southeast sector of the licence, some further trends were discernible from the geochemical data, while it appears that the small mineralised artisanal pit in this area may be part of a separate structure to that worked in the main pit.

    At the Eureka Project the Company has acquired an extensive historic exploration database and is currently compiling and reviewing the data to guide future exploration, with a primary focus on the two areas of high grade copper-gold mineralisation already identified.
     
  14. Groucho

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    29 May 2019


    Xtract Resources Plc

    ("Xtract" or the "Company")

    Manica licence 3990C Hard Rock Collaboration Agreement


    The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to announce that the Company has today concluded a collaboration agreement ("Collaboration Agreement" or "Agreement") with Mutapa Mining and Processing LDA ("MMP") for the mining and mineral processing of the Company's Manica hard rock gold deposits ("Manica Project") at Xtract's Manica mining concession licence 3990C in Mozambique.


    Highlights of the Agreement

    · Funding and operational agreement for Manica hard rock gold deposits signed on 29 May 2019

    · MMP, in partnership with Omnia, appointed as independent mineral processing contractor on the various gold bearing mineral deposits on the concession

    · Agreement provides for MMP to build and operate a carbon-in-leach (CIL) plant

    · MMP to finance and conduct the mining operations to include all capital and operating costs

    · Xtract will receive between 20% and 23% (dependent on prevailing gold price) of the hard rock after tax operating cash flow

    · Concession exploration programme to be initiated with an objective to enlarge the gold resource within current known areas not yet tested

    · Gravity recoverable gold to be exploited during the CIL plant-build phase, assuming suitable material is available


    Colin Bird, Executive Chairman said: "This agreement allows for the extraction of CIL amenable resources to be commenced in the mid-term whilst alluvial operations continue. The income to Xtract once commercial levels of production are achieved, is expected to be significant and continuing for in excess of 6 years. During the construction period, we plan to process, those mineral resources which are amenable to gravity processing and continue with the alluvial operations. A concession exploration programme will be initiated with a view to enlarging the currently known resource by drilling at depth and testing areas not yet investigated. The CIL plant will undoubtedly open up new feed material sources outside the concession and where appropriate we will strike deals with the concession owners to treat their ore on a commercial basis."


    Fairbride Hard Rock Mining and Collaboration Agreement

    Background

    The Collaboration Agreement has been entered into on 29 May 2019 inter alia by the Company, the Company's wholly owned subsidiary, Explorator Limitada ("Explorator"), and Mutapa Mining and Processing LDA ("MMP") (the "MiningContractor").


    MMP is currently the owner of a 42,000 tonne per month hardrock processing plant, that includes crushing, milling and gravity recovery circuits and a furnace, for mining and mineral processing, located in the Manica region of Mozambique.

    The MMP plant has already had over US$11 million invested to date and, so far as the Company is aware, represents the only sophisticated hard rock processing capacity in the Manica region. The MMP plant is the key reason supporting the rationale of agreeing the Collaboration Agreement, as it reduces both capital expenditure requirement and the time to production of the Manica Project. Xtract are satisfied that MMP has the necessary technical and operational capability to execute the proposed development plan at Manica, including the installation, commissioning and operation of the proposed CIL.


    Key terms of the Collaboration Agreement

    The terms of the Collaboration Agreement are as follows:

    Appointment

    The Company has appointed MMP an independent mineral processing contractor, to provide a technical solution for processing the Explorator's material, to conduct hard rock mining on the Manica Project permitted area and to process the mined ore for the recovery of Gold for a period of 10 years with an option to extend.

    MMP will provide all personnel and goods as may be necessary for the performance of the services in accordance with the prescripts and requirements of Mining Rights, the Mining Laws and the requirements of all Regulatory Authorities. MMP will be responsible for the construction of a suitable sized tailings dam in accordance with international standards at a site to be pre-agreed with Explorator.


    Conditions Precedent

    MMP have agreed to contribute their hard rock processing plant to be utilised to process all oxide materials and, if appropriate, transition and sulphide material, together with all infrastructure and services contained within the fenced area of their mining concession that relate to the processing plant and the services as well as commit to the purchase and commission of suitable CIL plant to carry out the services.


    Conditions Subsequent

    MMP has undertaken to commence construction of the CIL plant and to provide Xtract with a schedule of purchases and an activity chart indicating initial production and a target date for commercial production of no later than 1 July 2020. MMP will also be responsible for obtaining all rights, permits and licenses required to carry out the services in accordance with the Mining Laws.


    Targets and Performance

    MMP has agreed to commence construction (as demonstrated by the placement of an order for the CIL), as soon as possible but in any event no later than 1 November 2019 (with a long stop date of 1 February 2020). Construction installation work on the CIL is planned to be completed with commercial production being achieved by 1 July 2020 (with a long stop date of 1 October 2020). Commercial production is defined in the Collaboration Agreement as a being installation of a processing plant with a throughput capacity of not less than 29,000 tonnes per month (being 70% of the planned 42,000 tonnes per month throughput).


    Mining Rights

    Explorator will maintain the Concession and the Mining Rights in good standing and will grant MMP exclusive rights to the hard rock mining aspects of the Concession and the Mining Rights for the duration of the Term.


    Consideration & Payments

    In consideration for the granting of exclusive rights to act as the appointed hard rock mineral processing contractor at Manica, MMP will pay Explorator an arrangement fee of US$20,000 for every month of commercial production achieved.

    MMP will receive 77% of all the operating profit produced from the permitted area through the performance of the contract by MMP when the prevailing price of Gold is greater than US$1,250per ounce. MMP's entitlement shall be increased to 78.5% at a prevailing Gold price greater than US$1,175, and to 80% when the prevailing price of Gold is less than US$1,100per ounce. For the purposes of the Collaboration Agreement,

    "profit" is defined as: Revenue on Sale lessdeductible costs (excluding non-cash items) and corporation tax.

    Exploration

    The Company and MMP have agreed to incorporate a gold mining exploration special purpose vehicle, on a 50:50 owned basis, and with a monthly budget to be agreed by the parties from time to time. Participation in exploration projects will be decided on a case by case basis. The costs of exploration shall be divided on a case by case basis. Each party may submit a project exploration plan to the other party for review. The reviewing party may elect to contribute up to 50 per cent. of the costs of exploration on that project and will be awarded participation in the project on a pro rata basis with its share of the costs.

    MMP and Xtract have further agreed that, if with increased knowledge of the Manica Concession it is deemed appropriate to undertake a major drilling campaign to identify and delineate a larger mineral resource then currently known in the Permitted Area, the parties will agree to invest on a 50:50 basis to identify a larger potential gold mining resource. The parties will form a new SPV for this activity and it will be separately managed with both parties having an equal interest. A larger mineral resource is defined as all resources in the Permitted Area in excess of those currently known, with a minimum threshold being 2,500,000 ounces.

    In the event of a significant new discovery, each party will have first right of refusal, should they wish to sell their share in the SPV. If during the exploration phase either partner dilutes to less than 25 per cent. of the SPV by not participating in the exploration expenses, it will enter into a drag/tag along agreement with the other party should they wish to dispose of the overall enlarged asset.


    Option to purchase the concession

    The Company has granted MMP an option to purchase the Fairbride concession, subject to all parties receiving necessary regulatory approvals including, but not limited to, the Company obtaining shareholder approval, for an amount equal to the greater of:

    · An amount equal to 80% of the net present value using a discount rate of 15%; or

    · US$20 million


    This option to purchase has a term of 2 years and is only in respect of the known resources in the Permitted Area. In the event that the parties agree that the operation has extended life potential (beyond 8 years) or alternatively discovers a larger deposit then the parties may agree a buyout by mutual consent on the basis of an amount equal to 80% of the net present value of the larger resource, again using a discount rate of 15%.


    This agreement replaces the Joint Venture and Collaboration Agreement entered into with Omnia Mining Ltd on 19 February 2018.

    Shareholders should note that there is no certainty that the outcome of production and operating results at Manica pursuant to the Collaboration Agreement will be as currently expected and a number of factors could cause actual results to differ materially from those expected and set out in the forward-looking statements contained in this announcement.

    Further details are available from the Company'swebsite which details the company's project portfolio as well as a copy of this announcement: www.xtractresources.com
     
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  15. Groucho

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    29 May 2019


    Xtract Resources Plc

    ("Xtract" or the "Company")

    Audited results for the 12 months ended 31 December 2018

    Notice of Annual General Meeting


    The Board of Xtract Resources Plc ("Xtract" or the "Company") announces its audited financial results for the 12 months ended 31 December 2018. The 2018 Audited Annual Report and Accounts ("Accounts") have been posted to shareholders and is available from the Company's websitewww.xtractresources.com

    The Accounts include the notice of annual general meeting ("AGM"). The AGM will be held at the offices of Fladgate LLP, 16 Great Queen Street, London WC2B 5DG on Friday 21 June 2019 at 3:00 p.m.

    This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged the release of this announcement on behalf of the Company was Joel Silberstein, Director.

    Xtract Resources plc - Final Results https://www.voxmarkets.co.uk/rns/announcement/bc8f13b4-1a62-4c83-b1a2-4c08c1a05511

    Financial highlights
    ● Revenue from gold sales of £0.89m (2017: £0.17 m)

    ● Administrative and operating expenses of £1.65m (2017: £1.06m)

    ● Cash of £0.44m (2017: £1.66m)

    ● Net loss of £0.74m (2017: £1.26m)

    ● Net assets of £10.71m (2017: £11.48m)

    Operational highlights
    ● Total alluvial mining contractor gold production of 187.93kg (equivalent to 6,042 ounces) (2017: 39.77kg (equivalent to 1,279 ounces))

    ● Total of 46.88kg (equivalent to 1,508 ounces) attributable to Explorator (inclusive of Nexus' share under the Collaboration Agreement) (2017: 9.94kg (equivalent to 320 ounces))


    Corporate highlights

    ● Manica Hard Rock collaboration agreement concluded with Omnia Mining Ltd
    ● Appointment of new company broker
    ● Alluvial Collaboration Agreement terms amended

    Chairman's Statement
    The period under review has seen the continuation of alluvial mining at our Manica project in Mozambique. Up to the year end and beyond, the operation has performed moderately well producing overall positive cashflow at a local operating level We have not reached results to our satisfaction because of adverse technical factors such as high stripping ratios and low grades of gold in gravel. This being further exacerbated by the fineness of the gold making recovery difficult. On 30 October 2018, we announced revised terms for the collaboration agreement with Nexus. The key terms of the revised agreement were that the Company would now receive 50% of income after costs, and that the cost sharing would generally be divided equally between the parties.

    Following the year end, the alluvial operations have continued to produce income in excess of cost and have endured indirectly the cost of the two cyclones which struck northern Mozambique. Whilst there was no direct damage, there was significant interference with material supply logistics particularly diesel.

    The Company announced today that it has entered into an agreement with Mutapa Mining and Processing LDA (MMP) for the mining and mineral processing of the Manica hard rock gold deposits at Xtract's Manica mining concession in Mozambique. MMP, in partnership with Omnia, has been appointed as independent mineral processing contractor on Fairbride for the financing and operation of the Manica hard rock properties. In essence, the agreement facilitates using MMP's existing hard rock processing plant, the building by MMP of a carbon-in-leach plant and mining without any capital cost to the Company. The Company will benefit from a direct operating profit interest of between 20% and 23% dependent on gold price. If the gold price is above US$1,250 per oz then the Company will receive 23% and if it falls below US$1,100 per oz, the Company will receive 20% of operating profit. This agreement should endure for a number of years whilst, we further explore the concession and develop a plan to treat sulphides and all mineralisation types within the Manica concession.

    The Board made a decision to broaden the Company's interests to another country and another commodity i.e. copper. This decision was made on the basis of our belief in the mid-term fundamentals for copper and the enormous prospectivity of Zambia for future copper production. Whilst Zambia for over a century has been a significant copper producer, there exists considerable opportunities for discovery outside the main "copper belt trend". The mineralisation style in Central Zambia is considered as iron oxide copper gold (IOCG) and academic research makes references to Olympic Dam type mineralisation which could lead to even bigger projects than those currently being mined in Zambia. It is this style of mineralisation that we intend to pursue, and the Company entered into two exploration option agreements in the first quarter 2019.

    With the prospect of significant gold production from Manica and pursuance of our copper/gold projects in Zambia, we feel that we are now well balanced and as such future investment activities will be directed to shareholder enhancement in both arenas. The climate for junior resource companies is quite difficult and is not much better for the majors. World geo-political tensions have resulted in flat base metal prices when general opinion had been of significant price increases. The subdued metal prices have led to major base metal projects being shelved and exploration being difficult to finance. Our view is that these fundamentals can only lead to the supply situation being threatened and thus prices in due course increasing rather dramatically for most base metals, particularly copper and nickel. Patience will be required for the price increase, but in my opinion 2020 will see a dramatic up-tick in overall base metal prices, which will in turn should result in improved financing capability. We feel that with our balance of production and exploration we are well poised to meet the challenges facing our sector and progress through the difficult interim period.

    I would like to thank my fellow directors and management colleagues for their untiring efforts in what has been a very challenging and difficult year for the Company and the industry in general. During 2019 we will carry out best effort to accelerate Manica hard rock production and improve alluvial performance whilst adding value to our Zambian projects.

    Colin Bird

    Executive Chairman

    https://www.xtractresources.com/investor/fin/Xtract Resources AR2018.pdf
     
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  16. Groucho

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    Colin Bird, Executive Chairman of Xtract Resources (XTR)
    Xtract Resources (XTR) is a resource, development and mining company whose focus is and will be to acquire brown field resource projects . The projects targeted is to be in regions where mining and infrastructure is prevalent and the mining regulations transparent. (Interview starts at 15:26)
    https://www.voxmarkets.co.uk/articles/audioboom-xtract-resources-vast-resources-03282de/
     
  17. Groucho

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    15 July 2019


    Xtract Resources Plc

    ("Xtract" or the "Company")

    Kalengwa Processing Copper Project Zambia ("Kalengwa") Agreement


    The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to announce that the Company has concluded a Memorandum of Agreement ("Agreement") with KPZ International Ltd ("KPZ")for Xtract to act as contractor for the Kalengwa Processing project on the copper large scale mining license number 24401-HQ-LEL ("Licence") located in the central part of The Republic of Zambia ("Kalengwa Project"). The historic Kalengwa Copper Mine was one of the highest-grade copper mines in Zambia with a mineralised high-grade core reported to have yielded an average grade of 27% Cu.


    Highlights

    · Xtract has conditionally been appointed as contractor to oversee and commence initial production from the Kalengwa dumps of approximately 1.34 million tonnes with a potential to contain 25,000 tonnes of copper metal.

    · Xtract and KPZ have agreed a 90-day due diligence period following completion of which, should Xtract wish to proceed to act as contractor, Xtract will pay USD200,000 to KPZ to be settled through the issuance of new Xtract ordinary shares.

    · Kalengwa Mine produced in the 1970s and is believed to have been one of the highest grade copper deposits in Zambia.

    · High grade ore in excess of 26% Cu are reported to have made up approximately 20% of the ore body which was trucked for direct smelting at copper belt mines.

    · Xtract intends to commence a simple ore sorting programme, building up to a more significant ore processing operation within the next 8 months, with an annual production target rate of 6,000 tonnes of copper metal.

    · Xtract will receive, if it elects to proceed as Contractor, 33.33% of net profits from the operations and will incur the further estimated capital cost as set out below.

    · An exploration programme will determine the extent of previously reported potential strike extensions to the North and South of the historic open pit to determine the potential for a new open pit operation.


    Colin Bird, Executive Chairman said: "I am pleased to have completed this processing arrangement which makes immediately available to us, relatively high-grade dump material for processing. We will also commence exploration operations to identify the possible extensions of the open pit ore both on strike and depth.

    On signing the agreement, we will recommence operations and advance to the initial operation. The initial operation will be upgraded to a mechanised sophisticated ore sorting system. During this initial phase, the Company will explore for extensions of the open pit both North and South. The results from the exploration will determine the size and operating requirements of a larger operation. We will also assess the possibility of dewatering the former open pit with a view to access the high-grade ore left at the bottom.

    The redevelopment of Kalengwa should create job opportunities for the local community. The resumption of operations will be much assisted by local knowledge and a strong desire to see the Kalengwa mine once again flourish."


    Kalengwa Processing Project Summary

    Kalengwa is located in the North-western province of Zambia 800 km north-west of Lusaka and 400 km south-west of Kitwe. KPZ, has been awarded a large-scale exploration permit 24401-HQ-LEL, which was issued on 2 April 2019 and is valid for an initial period of 4 years.

    The Kalengwa Copper Mine is believed to have been one of the highest-grade copper mines in Zambia. It paid for its own infrastructure which at the time was in a remote location south of the main Zambian Copper belt. A mineralised high-grade supergene core was reported to have yielded an average grade of 27% Cu, making up approximately 20% of the ore body, which was trucked unprocessed to Kitwe for direct smelting. Total production of 1.9 Mt of 9.44% Cu and 50 g/t Ag was reported from the open pit resulting in circa 15,000 tonnes of copper production per annum for 12 years of production. Kalengwa Mine was owned and managed by Roan Consolidated Mines Ltd. from 1970 to 1982, who were also the proprietors of Mufulira, Luanchya, Chambishi and Chibuluma Mines.

    Kalengwa is believed to belong to the iron-oxide-copper-gold ("IOCG") deposit type which includes, amongst many others, Olympic Dam and Ernest Henry in Australia. The confirmed occurrence of intrusive igneous bodies in the mine vicinity is encouraging as such bodies typically act as source rocks/conduits for substantial IOCG mineralisation. Blackthorn Resources has defined over 1 million tonnes of copper in situ at its Kitumba project 180 km south-east of the Kalengwa Copper Mines based on IOCG copper mineralisation style. Similarities to Kalengwa include host rock age, regional scale faulting and the presence of intrusive source rocks.

    The Board of Xtract believe that it is likely that only the upper supergene mineralisation was exploited at Kalengwa and that operations terminated when Roan Consolidated Mines believed that they had exhausted the high-grade supergene core. Previous drilling of the orebody down-plunge and on the north-east and south-west flanks of the open pit have demonstrated that further resources may potentially remain unexploited in these areas. Xtract believes that additional drilling has the potential to significantly increase the historically reported resources. There is a historic resource, which was prepared in 1998 but is not compliant with a recognised standard and which has not been subsequently updated or verified ("Non-JORC compliant Resource"), of 1.45Mt @ 2.50% Cu (for 36,300 tonnes of copper metal) at the Kalengwa Mine (Source: African Minerals Ltd, Assessment of Kalengwa Mine, 1998, as reported by Lunga Resources Ltd, 2013).


    Memorandum of Agreement

    Background

    The Memorandum of Agreement was entered into on 12 July 2019 by the Company and KPZ International (the "Parties"). Xtract has agreed to collaborate with KPZ on its Kalengwa Processing Project to process copper ores from the various dumps and the in-situ ore located within the Kalengwa mine Processing Licence for commercial sale.


    Key terms of the Agreement

    KPZ has agreed to incorporate a local Zambian special purpose vehicle (the "SPV") to carry out the processing of copper concentrates from ores obtained from the Kalengwa Mine.

    The Company will act as a contractor and funder to the SPV ("Contractor"), and will be responsible for either identifying a third party, or use its own resources, to build a small scale processing copper concentrate plant ("Initial processing Plant"), and then subsequently an enlarged plant capable of producing not less than 6,000 tonnes of copper metal in concentrate per annum ("Large Scale processing Plant"). The Company will be responsible for managing and carrying out all related processing operations. Xtract will carry out exploration and metallurgical test work to assess the potential for the open pit expansion. Results from exploration and modelling will determine the ultimate size of the operation including the process plant.

    The Parties will decide no later than 30 November 2019, whether to commit to the construction of the Large Scale Processing Plant and, should the Parties mutually agree to proceed, this is to be satisfied by commencement of the construction of the Large Scale Processing Plant by no later than February 2020 or, if both Parties agree for it to be delayed, August 2020.

    On commencement of production, the Company as the Contractor, will be entitled to a monthly payment equal to 33.3% of SPV's net profits ("Xtract Profit Share"). Xtract has estimated that its capital costs to act as Contractor are up to USD 1 million, which Xtract intends to fund from its 33.3% share of SPV's net profit from processing and existing resources. The Company may at any time withdraw, should Xtract deem the Kalengwa Processing Project unsuitable for further investment. Should Xtract withdraw, it will forfeit any rights it has to the Kalengwa Processing Project.

    Xtract intends, wherever possible, to utilise local Zambian personnel as well as introduce local training and development for the local Kalengwa operation.

    The Parties will enter into a 90-day due diligence period (the "Option Period") and, on completion of the Option Period should the Company wish to proceed to act as Contractor, Xtract will pay KPZ USD200,000 to be settled through the issuance of new Xtract ordinary shares ("New Xtract Shares"). The share price used to determine the number of New Xtract Shares shall be the volume weighted average share price for the month ended 30 June 2019. From the date of issue until the date six months thereafter, KPZ may not dispose of any New Xtract Shares. Thereafter, KPZ may sell such number of New Xtract Shares as set out below in the relevant period, provided that so as to maintain an orderly market in the trading of Xtract ordinary shares, KPZ must give Xtract 60 days' notice of the number of New Xtract Shares KPZ wishes to sell and any such sale must be conducted through Xtract's Broker:

    · 20% for a period of 6-12 months;

    · 50% for a period of 12-18 months; and

    · 30% for a period of 18-24 months


    Following expiry of the lock-in period at the end of the 24th month, KPZ will be free to dispose of the balance of any New Xtract Shares it then holds without restriction.

    There is an historic debt of USD15m in respect of the Kalengwa Processing Project owed by KPZ (the "Loan"), primarily made up of previous sunk costs that relate to the dumps and has been lodged with the relevant Zambian authorities and bears interest at a rate of 6% per annum. Xtract will have no liability whatsoever in respect of this Loan or any of the interest or capital which are to be repaid by KPZ from SPV's net income (capped at 66.67% of SPV's net income taking account of the Xtract Profit Share).

    Provided that the Loan has been fully repaid (the "SPV Option"), the Company will have the right to acquire an interest of 43.33% of SPV in consideration for the transfer by Xtract to SPV of the title to the processing plant. Following any exercise of the SPV Option, payment of the Xtract Profit Share would terminate.

    The Processing Area includes all dumps and extension of the existing open or new pits and exclude any concessions which already form part of KPZ.
     
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  18. Groucho

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  19. Groucho

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    LSE CaveatEmptor
    RE: Colin on Kalengwa today


    Good, solid performance by CB and answers a lot of questions.
    KPZ is a conglomerate of businessmen that own a massive licence, of which our concession is only a small part. So KPZ couldn't handle production on the whole licence, even if the were interested in doing it.

    The current XTR strategy is to have between £300K-£500K per month income from 4 or 5 individual operations, of which the KPZ deal is the second operation after the hard rock at Manica.

    First income from this deal is expected in approximately 2 months time. We will handle the processing of the dumps material ourselves as the maths are very favourable for us to do it, but will farm out the mining of the hard rock, whilst still keeping control of the processing. The whole process will be self financing and grow organically so as not to cost anything from an XTR perspective, but will return considerable value to shareholders.

    So, by March next year the plan is to have between £7M and £12M per year net income from the first two operations, and look to develop another 2-3 operations, partially financed by this income so as to get a target net annual income for the company of around £20M per year.

    That would give us a new target SP of at least 25p!

    We shall see...

    RE: KPZ Deal
    The mining company said it has signed a memorandum of agreement with KPZ International Ltd and has conditionally been appointed as contractor to oversee and commence initial production from the Kalengwa dumps of 1.34 million tonnes with a potential to contain 25,000 tonnes of copper metal.
    Looking ahead, Xtract said it intends to start a simple ore sorting programme, building up to a more significant ore processing operation within the next eight months, with an annual production target rate of 6,000 tonnes of copper metal.

    So, at $6,000 per tonne, that means $150M just from the dumps over a 4 year LOM based on 6,000 tonnes per year.
    That means about $36M worth of copper produced each year, before proper hard rock mining starts.

    If Cu is sold at a 25% discount that still leaves revenue of $27M per year.
    Mining costs should be low as the ore is already out of the ground and been piled up in dumps awaiting hand grading and then simple processing. As the hand-graded ore will be sold first to produce immediate cash flow in order to finance the processing plant that should mean it is self-financing from an XTR point of view. - KPZ, on the other hand could take several years to pay back its debt.

    I can only surmise that it is better financially for KPZ to hand the contractorship over to XTR as then they may be able to keep a larger proportion of the income rather than paying it all over to their creditors?

    I agree that it looks like a very good deal for XTR, with the potential to provide significant fast-track income and a good question to ask CB regarding what KPZ get out of it.

    Let's see if the deal is confirmed following due diligence...
     
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  20. Groucho

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