Xtract concludes new mining contractor agreement for Manica

8th February 2018 By: Anine Kilian - Contributing Editor Online

JOHANNESBURG (miningweekly.com) – Aim-listed Xtract Resources’ wholly-owned Mozambican subsidiary Explorator Limitada has concluded a new mining contractor agreement with Omnia for the exploitation of alluvial gold deposits at its Manica mining concession in Mozambique.

The agreement with Omnia allows the O block of the western area to be fed into Omnia's sophisticated alluvial processing plant, which is situated adjacent thereto.

“The overall effect will be to move more alluvials and, thus, shorten the time to about six years for total depletion of the western gravels," CEO Colin Bird said in a statement on Thursday.

The agreement will be effective for ten years, or sooner, if the alluvials are depleted.

The agreement includes performance targets with the contractor obligated to have a fully operational plant with a mining capacity 100 t/h in place by March.