Xtract Resources on Tuesday reported alluvial mining contractors operating at its Manica project, in Mozambique, had produced about 1 328 oz of gold in the quarter ended December 31.
Xtract continues to review the alluvial operations and introduce more equipment.
Plans are being made to concurrently work the upper terraces.
Test work was also carried out in Zimbabwe to extend alluvial income.
Further, the project’s definitive feasibility study was revised to accommodate less complex ore, with a technical and financial study to be released shortly.
“The quarter under review produced modest results compared with previous quarters and reflects the lower grade areas having been ceded back to the company, together with compensation paid to local farmers,” commented chairperson Colin Bird.
“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 mining and this has moved up into a 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 intends to release revised scoping numbers in the near future, he informed.