JOHANNESBERG (miningweekly.com) – One of Xtract Resources’ alluvial mining contractors at the Manica concession, in Mozambique, Sino Minerals, has started production on the eastern half of the concession.
Xtract’s Mozambique subsidiary Explorator concluded mining contractor agreements for the project with mining contractors Omnia Mining and Moz Gold in June and with Sino in July for the exploitation of the alluvial deposits.
Sino has the right to mine the deposits on the eastern half of the concession.
The agreement will endure for a period of ten years or until the alluvials deplete before the ten years are over, with the option to extend for a further period of five years, if the alluvials have not depleted.
Sino will, from October 15, be required to have a fully operational plant with a mining capacity of 200 t/h, expanding to 400 t/h by January 15, 2018.
"I am pleased to be able to report that Sino Minerals commenced commercial production on the eastern half of the Manica concession. The company expects to be in receipt of its first gold doré bars by the end of the week. We look forward in further updating the market as production stabilises and optimises," Xtract chairperson Colin Bird said in a statement.