Name of the Project
Manica Fair Bride gold project.

Location
Mozambique.

Client
Xtract Resources.

Project Description
Manica has total proven and probable reserves of 3.21-million tonnes grading 2.62 g/t gold, and total mineral resources of 13.95-million tonnes grading 176 g/t gold.

Contractor mining with conventional openpit mining methods using truck-and-excavator combinations will be used. The drill-and-blast technique will be used to mine harder material.

The material will be crushed in a three-stage crushing circuit before processing in a ball milling and classification circuit.

The project is expected to produce an estimated 215 293 oz of gold over its seven-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8.4% discount rate, of $42-million and an internal rate of return of 41.1%, with a payback of two years.

Value
Project value is estimated at $43.68-million.

Duration
Not stated.

Latest Developments
Xtract Resources’ subsidiary, Explorator, completed a mining contractor agreement with Sino Minerals Investment in July for the exploitation of alluvial gold deposits at the Manica mining concession.

Xtract and Nexus Capital in February agreed that the alluvial gold deposit at Manica would be developed jointly through the appointment of third-party contract miners.

Explorator signed a mining contractor agreement with Omnia Mining and Moz Gold in June, giving it the exclusive right to mine unconsolidated alluvial deposits on the western half of the permitted area of the mining concession for the next ten years.

Under the terms of the agreement signed between Explorator and Sino, Explorator will be entitled to 25% of the gold mined, with mining to start no later than October 15. The contract is for ten years or until the alluvials have been depleted, and may be extended for a further five years if the alluvials are not yet depleted. The agreement also includes performance targets, with Sino required to have a fully operational plant with a capacity of 200 t/h in place from October 15. Plant capacity will have to increase to 400 t/h from January 15, 2018.

Xtract expects the initial monthly income under the agreement with Sino to be at least $160 000.

Key Contracts and Suppliers
Sino Minerals Investment (mining contractor agreement for alluvial gold deposits) and Omnia Mining and Moz Gold (mining contractor agreement for alluvial deposits).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Xtract Resources, tel +44 20 3416 6471 or email info@xtractresources.com.