TIDMXTR

RNS Number : 0194P

Xtract Resources plc

14 October 2021

For immediate release

14 October 2021

Xtract Resources Plc

("Xtract" or the "Company")

Manica Gold Update

The Board of Xtract Resources Plc ("Xtract" or the "Company") announces the preliminary unaudited results for all alluvial and hard rock mining contractors for the Manica Concession for the three-month period ended 30 September 2021 (the "Period").

Highlights

-- Total mining contractor gold production of 49.34Kg for the quarter, equivalent to approximately 1,586 ounces including initial hard rock production from Guy Fawkes of 170 equivalent ounces of gold

   --    Total of 13.60Kg (equivalent to approximately 437 ounces) attributable to Explorator 
   --    Value of Explorator share of gold produced US$784,998 
   --    Gold sales in period of 152 ounces 

-- Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$373,781

   --    Guy Fawkes development continued during the period and Fair bride progressed 

Colin Bird, Executive Chairman said : "The quarter ended 30 September 2021, was the third best period for production since we commenced alluvial mining at Manica and production in September 2021 was 46% higher any other previous month. Our policy is to have a number of sites operated by different contractors and continue on this basis into 2022. The Fair Bride and Guy Fawkes hard rock projects are both advancing satisfactorily, and we look forward to increased production from Guy Fawkes in the final quarter and initial production from Fair Bride towards the end the of 2021."

Production summary

Preliminary unaudited results for alluvial and hard rock mining contractors for the Manica Concession for the three-month periods ended September 2021, 30 June 2021, 31 March 2021 and 31 December 2020 and are set out in the table below. In addition to the information included in the table, the table below provides a further breakdown of costs between operational costs, production tax and land resettlement costs. To date, the Company has only reported results from alluvial operations. The quarter ended 30 September 2021 is the first quarter which includes results from hard rock operations. The Company's current focus is to continue to progress the Fair Bride hard rock operation.

 
                                    3rd Quarter   2nd Quarter   1st Quarter    4th Quarter 
                                          ended         ended         ended          ended 
                                   30 September       30 June      31 March    31 December 
                                           2021          2021          2021           2020 
 Production and Sales 
  : 
                                 --------------  ------------  ------------  ------------- 
 Total contractor gold 
  production -alluvial 
  (equivalent ounces)                 1,416           427           284           400 
                                 --------------  ------------  ------------  ------------- 
 Total contractor gold                 170             -             -             - 
  production- hard rock 
  (equivalent ounces) 
                                 --------------  ------------  ------------  ------------- 
 Total contractor gold 
  production (equivalent 
  ounces)                             1,586           427           284           400 
                                 --------------  ------------  ------------  ------------- 
 Total Explorator share 
  of gold produced (equivalent 
  ounces)                              437            120           79            112 
                                 --------------  ------------  ------------  ------------- 
 Value of Explorator               US$784,998     US$218,413    US$143,848     US$205,900 
  share of gold produced 
  (value in US$)(Note 
  3) 
                                 --------------  ------------  ------------  ------------- 
 
 Explorator share of 
  gold sold (equivalent 
  ounces)                              152            139            -            117 
                                 --------------  ------------  ------------  ------------- 
 Explorator attributable           US$220,737     US$213,576         -         US$201,310 
  revenue from gold sales 
                                 --------------  ------------  ------------  ------------- 
 Other Income                      US$153,044          -             -             - 
                                 --------------  ------------  ------------  ------------- 
 Direct Operational 
  Production Costs: 
                                 --------------  ------------  ------------  ------------- 
 Explorator total direct           US$142,786     US$130,697    US$121,093     US$95,595 
  operational production 
  costs (Note 1) 
                                 --------------  ------------  ------------  ------------- 
 Total Costs: 
                                 --------------  ------------  ------------  ------------- 
 Explorator total direct           US$210,344     US$150,681    US$145,367     US$153,549 
  production costs (Note 
  2) 
                                 --------------  ------------  ------------  ------------- 
 Cost per ounce of gold              US$474        US$1,258      US$1,828       US$1,371 
  produced 
                                 --------------  ------------  ------------  ------------- 
 

Note 1: Direct operational production costs include and not limited to Explorator salaries, rent, vehicles expenses and utilities for both alluvial and hard rock operations

Note 2: Total costs comprises direct operational production costs plus total Production Tax and Land Resettlement Costs as detailed below:

 
                       3rd Quarter   2nd Quarter   1st Quarter    4th Quarter 
                             ended         ended         ended          ended 
                      30 September       30 June      31 March    31 December 
                              2021          2021          2021           2020 
------------------ 
 Production Tax          US$33,743     US$19,948      US$7,933      US$20,429 
 Land resettlement       US$33,815             -     US$16,341      US$37,525 
  costs 
                    --------------  ------------  ------------  ------------- 
 

Note 3: Calculation based on the number of ounces produced during each month of the quarter multiplied by

the closing month end spot rate.

Note 4: Presence of gold in alluvial deposits is unpredictable and therefore operational results will vary month-to-month.

Further details are available from the Company's website which details the company's project portfolio as well as a copy of this announcement: www.xtractresources.com

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. The person who arranged for the release of this announcement on behalf of the Company was Joel Silberstein, Director.

Enquiries :

 
 Xtract Resources Plc         Colin Bird,           +44 (0)20 3416 6471 
                               Executive Chairman    www.xtractresources.com 
 Beaumont Cornish Limited     Roland Cornish        +44 (0)207628 3369 
  Nominated Adviser and        Michael Cornish       www.beaumontcornish.co.uk 
  Joint Broker                 Felicity Geidt 
 
   Novum Securities Limited     Jon Bellis            +44 (0) 207 399 9427 
   Joint Broker                 Colin Rowbury         www.novumsecurities.com 
 

ENDS

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END

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October 14, 2021 02:00 ET (06:00 GMT)

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