Xtract Resources disappointed over poor first-quarter gold output
Mining News Pro - Total alluvial mining contractor gold production was 467 oz at the Manica concession for the first quarter, ended March 31, 2020, diversified metals and minerals producer Xtract Resources reports, noting that the results “are a little bit disappointing for the first quarter”.
This compares with the 1 045 oz produced in the fourth quarter of 2019, ended December 31.
The Manica concession is in Mozambique.
Executive chairperson Colin Bird says the results were affected by the rainy season, as well as the effect of the Covid-19 pandemic on spare parts delivery from China.
The spare parts from China arrived two weeks ago, and operations are already showing a significant improvement, Bird says.
The company, however, expects that it will continue to experience low grades and high overburden stripping.
Meanwhile, over the course of the next month, the company intends to start a further contract with another Chinese group on an adjacent licence, where the agreement with the group will be similar to the existing agreements already in place.
“We are actively engaging with another group on working the Guy Fawkes and Boa Esperenca small hard rock deposits,” Bird notes.
These deposits have indicated free milling gold at good grades, according to Xtract, and preparations are under way to ship major components for the Fairbride gold project, once border restrictions are lifted, which is expected in middle to late June.
The equipment will be accompanied by the necessary lifting equipment for installation.