Business
Manica hard rock collaboration agreement
Manica hard rock collaboration agreement.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n \nRNS Number : 4822A Xtract Resources plc 29 May 2019 \n\n \nFor immediate release\n 29 May 2019\n \nXtract Resources Plc\n(\"Xtract\" or the \"Company\")\nManica licence 3990C Hard Rock Collaboration Agreement\n \nThe Board of Xtract Resources Plc (\"Xtract\" or the \"Company\") is pleased to announce that the Company has today concluded a collaboration agreement (\"Collaboration Agreement\" or \"Agreement\") with Mutapa Mining and Processing LDA (\"MMP\") for the mining and mineral processing of the Company's Manica hard rock gold deposits (\"Manica Project\") at Xtract's Manica mining concession licence 3990C in Mozambique. \n \nHighlights of the Agreement\n \n· Funding and operational agreement for Manica hard rock gold deposits signed on 29 May 2019\n· MMP, in partnership with Omnia, appointed as independent mineral processing contractor on the various gold bearing mineral deposits on the concession \n· Agreement provides for MMP to build and operate a carbon-in-leach (CIL) plant \n· MMP to finance and conduct the mining operations to include all capital and operating costs\n· Xtract will receive between 20% and 23% (dependent on prevailing gold price) of the hard rock after tax operating cash flow\n· Concession exploration programme to be initiated with an objective to enlarge the gold resource within current known areas not yet tested\n· Gravity recoverable gold to be exploited during the CIL plant-build phase, assuming suitable material is available\n \n \nColin Bird, Executive Chairman said: \"This agreement allows for the extraction of CIL 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. 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 CIL plant will undoubtedly open up new feed material sou...