Diversified miner Xtract Resources continues to review new contractor proposals for the Western half of its Manica gold project, in Mozambique, after previous contractor Moz Gold’s gold recovery rate was found to be unsatisfactory as a result of the fine nature of the gold and the processing plant not being fit for purpose for recovering the gold.
“Moz Gold’s contribution has not been material to overall production and it has now halted production,” the company reported on Thursday.
The convertible loan agreement entered into with Moz Gold in December provides Xtract with security over the processing plant and testwork needs to be completed before the company decides to either use the plant for its own account or make it available to new contractors who would be responsible for all necessary modifications.
Meanwhile, at the Eastern half of the Manica concession, which is contracted to Sino Minerals, production has been progressing well, with results to be reported in mid-July.