London-listed diversified metals producer Xtract Resources has reported that the alluvial mining contractor for the Manica Concession, in Mozambique, produced 994 oz of gold during the quarter ended September 30.
This compares with the 1 088 oz produced in the third quarter ended September 30, 2018.
Further, contractors Explorator and Nexus’ share of gold production at the site amounted to 278 oz and generated $467 683 of attributable revenue, while Xtract’s share of attributable revenue from gold sales amounted to $233 482.
Xtract and the two companies had signed a collaboration agreement whereby Xtract’s net share of Explorator’s gold revenue and costs was 40%. Under a newer collaboration agreement, Explorator’s gold revenue and costs increased to 50%.
The alluvial production at the Manica concession continued to be profitable for the company and also provided the necessary cash flow while the company develops the Fairbride project, in Mozambique, and the Kalengwa project, in Zambia.
The alluvials had provided positive cash flow on a monthly basis despite there being volatility in the gold yield, excess overburden removal or a combination of the two.
“At the same time, we have generally been quite cost efficient with matters under our control, which has assisted to maintain profitability during difficult operational periods.
“We are pleased with all aspects of the Manica hard rock development, as well as the initial results of the Kalengwa tailings test work, and we will report the full set of results as soon as they are available,” noted Xtract chairperson Colin Bird.
The company had carried out several field reviews of the Matrix, Eureka and Kalengwa projects and had identified drilling targets for all properties.
“We have reviewed our management structure and are making several changes to meet the requirements of the company's aggressive production development and new exploration targets in Zambia,” Bird said.