29th Jan 2019 18:02
LONDON (Alliance News) - Xtract Resources PLC said Tuesday that its alluvial mining contractor gold production dipped in the fourth quarter, as the firm looks to expand its Manica project.
Xtract shares closed down 25% at 0.86 pence each.
For the three months to the end of 2018, the company's total alluvial mining contractor gold production was 41.29 kilograms, equivalent to 1,328 ounces, lower than the 1,811 ounces produced in the third quarter.
The company said it continues to review the alluvial operations and plans to introduce more equipment.
Chair Colin Bird said: "The quarter under review produced modest results compared to previous quarters and reflects the lower grade areas having been ceded back to the company together with compensation paid to local farmers.
"We expect to see improving production against an improving gold price. We recognise the inconsistency of alluvials, but over the last year have gained considerable insights into the intricacies of alluvial miming and this has moved up into test work programme in neighbouring countries."
Furthermore, the company said it is in talks with potential partners and investors to develop the Manica project in Mozambique.
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