PERTH (miningweekly.com) – ASX-listed junior Auroch Minerals has completed the sale of its Manica gold project, in Mozambique, after receiving final approvals from local mining authorities.
South Africa’s Xtract Resources in 2015 agreed to pay $10-million in cash and shares for the project, which was expected to require an initial capital investment of about $28.4-million, with underground development expected to cost a further $14.8-million.
Auroch MD Glenn Whiddon said on Wednesday that the company was pleased to complete the transaction with Xtract, and was looking forward to the success of the Manica project in a rising gold market.
The Manica project has a Joint Ore Reserves Committee-compliant resource of 900 000 oz, and was capable of generating revenues of $55-million a year at steady-state production, delivering about 50 000 oz/y of gold at a cash cost of $650/oz.