Business
Definitive Feasibility Study
Definitive Feasibility Study.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n \nRNS Number : 1114Y Xtract Resources plc 28 February 2017 \n\n \nFor immediate release\n28 February 2017\nXtract Resources Plc \nResults of completed Definitive Feasibility Study\n \nThe Board of Xtract Resources Plc (\"Xtract\" or the \"Company\") are pleased to announce that the Definitive Feasibility Study (\"DFS\") for the open pit operation of the Company's Manica Fair Bride Gold Project in Mozambique (\"Project\" or \"Fair Bride\") has been completed by Minxcon (Pty) Ltd (\"Minxcon\") and the results of which are summarised below. A copy of the DFS is available from the Company's website, www.xtractresources.com\n \nHighlights:\n \n· After-tax Internal Rate of Return (\"IRR\") of 41.1% at a gold price of US$ 1,262 per ounce\n· Project life of 7 years with average gold grade of 2.62 g/t producing 215,293 recovered ounces \n· Project payback within 2 years\n· Direct cash cost (\"C1\") of US$556 per ounce\n· All-in sustainable cost (including royalties and capital)(\"AISC\") of US$862 per ounce\n· Total capital expenditure of US$43.68 million \n· The Net Present Value (\"NPV\") of US$ 42 million at 8.4% discount rate\n· Significant exploration potential in immediate vicinity\n· A further 992,000 ounces in resource for additional evaluation and future exploitation\n· Considerable exploration potential within the concession and nearby\n \nColin Bird, Executive Chairman, said: \"I am pleased to report that the DFS has produced a robust Project which is neither complex nor capital demanding. The Project has major upside potential which can be exploited later against a fully paid for processing plant. Opportunity exists for hard rock consolidation which we are exploring. The alluvial opportunity is extensive and we are currently discussing and negotiating third party mining contracts. We are already working on reducing capital numbers and introducing practical engineering to further reduce risk and enhance project financial parameters.\"\n \nDaan van Heerden of Minxcon, said: \"The Manica study has produced a robust project targeted toward simplicity and predictability. We concur with managements a...