Mozambique: Petroleum Institute cancels tender for acquisition of seismic data
Xtract Resources shares rocket after collaboration deal in Mozambique
2:48 CAT | 29 May 2019
Manica gold project, Mozambique. [File photo: Xtract Resources]
Xtract Resources PLC said Wednesday it has concluded a collaboration agreement with Mutapa Mining & Processing LDA for the mining and mineral processing of the hard rock gold deposits at Xtract’s Manica mining concession licence 3990C in Mozambique.
Shares in the metals and minerals producer were up 76% in midday trading at 1.23 pence each.
The agreement allows MMP to build and operate a carbon-in-leach plant, with MMP set to finance the mining operations – including all capital and operating costs.
“This agreement allows for the extraction of carbon-in-leach 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,” said Executive Chair Colin Bird.
Xtract will receive between 20% and 23%, depending on the gold price, of the hard rock operating cash flow.
Construction of the plant will begin “as soon as possible” with commercial production targeted by July 2020.
Bird continued: “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 carbon-in-leach 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.”
By Paul McGowan
Source: Alliance News
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