Business
Update on Manica Gold Project
Update on Manica Gold Project.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n \nRNS Number : 1825R Xtract Resources plc 07 March 2016 \n\n7 March 2016 \n \nXtract Resources Plc\n(\"Xtract\" or \"the Company\")\n \nUpdate on Manica Gold Project\n \nXtract Resources Plc (AIM: XTR), the gold mining and development Company, which announced on 1 March 2016 that it had received approval from the Mozambique Government to acquire a 100% of the Manica Gold Project (the 'Manica Project'), is pleased to confirm that it has completed an in-house update on the economic metrics of the Manica Project, as part of the Definitive Feasibility study ('DFS') that is currently being undertaken by independent consultants. \n \nOn 29 June 2015 the Company reported on certain economic metrics for the Manica Project, which had been completed by Auroch Minerals NL ('Auroch') as part of the Preliminary Economic Assessment report ('PEA'). Following the development work undertaken by Xtract since this time, based on the Company's in-house estimates, the Board now has the following expectations regarding the Manica Project:\n \nKey metrics (all based on Xtract's in-house estimates)\n \n· Project Net Present Value ('NPV') (discounted at 10%) increased to US$70 million (PEA NPV: US$50 million) with an Internal Rate of Return ('IRR') of 50% (PEA IRR: 58%) assuming a gold price of US$1,250/oz\n· Life of Mine ('LOM') increased to 12 years (PEA LOM: 8 years)\n· Production expected to commence in Q4 2017\n· Annual LOM production of 6.3mt at a head grade of 2.93g/t recovering 477koz (PEA Annual LOM production: 3.4mt at a head grade of 3.49g/t recovering 316koz of gold)\n· Recoveries for oxide ore is 96%, 82% for transitional ore and 80% for sulphide ore\n· Start-up capital cost of US$35 million compared to PEA capital estimate of US$28.4 million for open pit and plant. Additional capital of US$14 million, from cash flow, will be expended in years three and four of the Manica Project as part of underground access development compared to US$8.7 million capital for underground development planned in PEA (8 years of underground mining projected vs 3 years under the PEA)\n· Cash cost of US$757/oz compare...