Xtract secures mining contract agreement for Manica concession
JOHANNESBURG (miningweekly.com) – Aim-listed Xtract Resources’ wholly-owned subsidiary Explorator has concluded a mining contractor agreement that will result in the exploitation of alluvial gold deposits at its Manica mining concession, in Mozambique.
Contract miners Omnia Mining and Moz Gold will have the exclusive right to mine unconsolidated alluvial deposits on the western half of the permitted area of the mining concession area for the next ten years.
“The alluvial agreement is a very positive move for Xtract, providing potential significant cash flows with upside based on contractual minimums,” said Xtract chairperson Colin Bird in an update to shareholders on Monday.
The company is also continuing negotiations for the eastern half of the concession with other contractors, with expectations of an announcement by the end of July.
Subject to obtaining the environmental-impact assessment authorisation, initial mining is set to start by September 1, targeting a minimum capacity of 220 000 t/m by November 1. The contractors are obligated to have a fully operational plant with a mining capacity of 100 t/h in place by October 31.
The minimum targeted mining capacity is expected to increase from November, with an eventual yearly production target of 2.64-million tonnes of alluvial materials expected.
The agreement also provides for monthly payments against the monthly run-of-mine performance, adjusted against the gold price with a floor price of $1 250/oz and capped at $1 600/oz.
Assuming the base gold price of $1 250/oz, Explorator expects attributable monthly revenue of $165 000 from November.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Showroom
Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...
VISIT SHOWROOM
For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
