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Xtract Resources subsidiary inks Manica gold mining contractor deal
5:17 CAT | 11 Jul 2017
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Xtract Resources PLC on Tuesday said its Mozambican subsidiary Explorator Limitada has secured its second mining contractor agreement with Sino Minerals Investment Co Ltd for the exploitation of alluvial gold deposits at its Manica mining concession.
Explorator has appointed Sino Minerals as a contract miner, with exclusive right to mine on the eastern block of the Manica concession area in Mozambique. This agreement includes performance targets, and is for an initial contract period of 10 years, with an option to extend this for a further five if the alluvials are not yet depleted.
Based on district grades of 0.5 grammes per tonne and the current gold price, initial monthly income is expected to be no less than USD160,000, increasing to USD320,000 once a second plant is fully operational.
“The conclusion of this contract for the eastern section of the Manica concession is an important milestone. The combined revenue, once achieved, is expected to be significant and will form a substantial platform from which the company can develop both at Manica and globally. We continue to discuss financing and operational agreements for the hard rock and on receipt of income of the alluvials will commence further hard rock exploration potential which we know exist in the area. We will keep shareholders fully informed of construction developments as they occur,” said Chairman Colin Bird in a statement.
Shares in Xtract were up 25% at 2.5 pence Tuesday.
Source: Alliance News
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