Name of the Project
Manica Fair Bride gold project.

Location
Mozambique.

Client
Xtract Resources.

Project Description
Manica has total proven and probable reserves of 3.21-million tonnes grading 2.62 g/t gold, and total mineral resources of 13.95-million tonnes grading 176 g/t gold.

Contractor mining with conventional openpit mining methods using truck-and-excavator combinations will be used. The drill-and-blast technique will be used to mine harder material.

The material will be crushed in a three-stage crushing circuit before processing in a ball milling and classification circuit.

The project is expected to produce an estimated 215 293 oz of gold over its seven-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8.4% discount rate, of $42-million and an internal rate of return of 41.1%, with a payback of two years.

Value
Project value is estimated at $43.68-million.

Duration
Not stated.

Latest Developments
One of Xtract Resources’ alluvial mining contractors at the Manica concession, 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 last for ten years or until the alluvials deplete before the ten years are over, with the option to extend for a further 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. 

Key Contracts and Suppliers
Sino Minerals Investment (mining contractor agreement for alluvial gold deposits) and Omnia Mining and Moz Gold (mining contractor agreement for alluvial deposits).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Xtract Resources, tel +44 20 3416 6471 or email info@xtractresources.com.