TIDMXTR

RNS Number : 7337Y

Xtract Resources plc

18 January 2022

For immediate release

18 January 2022

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 31 December 2021 (the "Period").

Highlights

-- Total mining contractor gold production of 87.44Kg for the quarter, equivalent to approximately 2,811 ounces

   --    Total of 23.85Kg (equivalent to approximately 767 ounces) attributable to Explorator 
   --    Value of Explorator share of gold produced US$1,383,125 
   --    Gold sales in period of 360 ounces 

-- Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$614,257

   --    Fair bride project continued to progress satisfactorily 

Colin Bird, Executive Chairman said : "The quarter ended 31 December 2021, was the best period for production since we commenced gold mining at Manica, with production performance well surpassing previous quarters despite any lost time due to rain. The development at Guy Fawkes continued with the objective of exploring veins revealed by surface drilling. Construction work for the Fair Bride project advanced satisfactorily and we are very pleased with the engineering standards employed on the build. The contribution of Fair Bride, ongoing Mozambican production and Zambian operations progressing favorably, leads us to be optimistic for production during 2022."

Production summary

Preliminary unaudited results for alluvial and hard rock mining contractors for the Manica Concession for the three-month periods ended 31 December 2021, September 2021, 30 June 2021, and 31 March 2021 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. The Company's current focus is to continue to progress the Fair Bride hard rock operation.

 
                                  4(th) Quarter     3rd Quarter   2nd Quarter   1st Quarter 
                                          ended           ended         ended         ended 
                                    31 December    30 September       30 June      31 March 
                                           2021            2021          2021          2021 
 Production and Sales 
  : 
                                 --------------  --------------  ------------  ------------ 
 Total contractor gold 
  production -alluvial 
  (equivalent ounces)                 2,306           1,416           427           284 
                                 --------------  --------------  ------------  ------------ 
 Total contractor gold 
  production- hard rock 
  (equivalent ounces)                  505             170             -             - 
                                 --------------  --------------  ------------  ------------ 
 Total contractor gold 
  production (equivalent 
  ounces)                             2,811           1,586           427           284 
                                 --------------  --------------  ------------  ------------ 
 Total Explorator share 
  of gold produced (equivalent 
  ounces)                              767             437            120           79 
                                 --------------  --------------  ------------  ------------ 
 Value of Explorator              US$1,383,125     US$784,998     US$218,413    US$143,848 
  share of gold produced 
  (value in US$)(Note 
  3) 
                                 --------------  --------------  ------------  ------------ 
 
 Explorator share of 
  gold sold (equivalent 
  ounces)                              360             152            139            - 
                                 --------------  --------------  ------------  ------------ 
 Explorator attributable           US$589,914      US$220,737     US$213,576         - 
  revenue from gold sales 
                                 --------------  --------------  ------------  ------------ 
 Other Income                       US$24,343      US$153,044          -             - 
                                 --------------  --------------  ------------  ------------ 
 Direct Operational 
  Production Costs: 
                                 --------------  --------------  ------------  ------------ 
 Explorator total direct           US$180,791      US$142,786     US$130,697    US$121,093 
  operational production 
  costs (Note 1) 
                                 --------------  --------------  ------------  ------------ 
 Total Costs: 
                                 --------------  --------------  ------------  ------------ 
 Explorator total direct           US$258,523      US$210,344     US$150,681    US$145,367 
  production costs (Note 
  2) 
                                 --------------  --------------  ------------  ------------ 
 Cost per ounce of gold              US$338          US$474        US$1,258      US$1,828 
  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:

 
                      4th Quarter     3rd Quarter   2nd Quarter   1st Quarter 
                            ended           ended         ended         ended 
                      31 December    30 September       30 June      31 March 
                             2021            2021          2021          2021 
------------------ 
 Production Tax         US$77,732       US$33,743     US$19,948      US$7,933 
 Land resettlement              -       US$33,815             -     US$16,341 
  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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January 18, 2022 02:00 ET (07:00 GMT)

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