29th Aug 2018 10:27
LONDON (Alliance News) - Shares in Xtract Resources PLC rose Wednesday as it said it has identified 12 possible new mining sites near the processing plant of partner Omnia Mining Ltd.
Xtract shares were 14% higher Wednesday at 1.05 pence each.
In February, Xtract signed a further collaboration with Omnia which will see the former use the latter's hard-rock processing plant near Xtract's Manica gold concession in Mozambique.
All 12 new sites are within 15 kilometres of the plant, Xtract said Wednesday, and eight of them are within already held licensing areas.
Xtract said it has also found gold mineralisation as high as 1.1 metres at a grade of 0.9 grammes of gold per tonne of ore at the newly discovered Andre Zone.
Further, Xtract said Omnia has now completed building the 40,000 tonne a year plant, and it is planned to be commissioned in November.
Xtract Executive Chairman Colin Bird said: "The general Manica area has abundant gold mineralisation occurrences with varying mineralisation hosts and types. The objective of the Omnia agreement is to allow us to process these ore types with no alternative sophisticated processing equipment available in the area.
"We are currently carrying out financial and technical exercises to assist us to decide whether to work the various veins sequentially or to install a total capability plant suitable for all ore types. Should we elect the latter route, then Fair Bride may well be processed through the Omnia plant subject to final agreement with Omnia."
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