Name of the Project
Manica Fair Bride gold project.

Location
Mozambique.

Client
Xtract Resources, through its wholly owned Mozambique subsidiary Explorator Limitada.

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
Explorator Limitada has concluded a new mining contractor agreement with Omnia Mining for the exploitation of alluvial gold deposits at its Manica mining concession.

The agreement with Omnia allows for 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 has said.

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.
 
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.