18th Jun 2015 10:41
LONDON (Alliance News) - Xtract Resources PLC Thursday said the Chepica gold and copper mine in Chile turned to profit in May, and the company has identified two "major" drill targets which could substantially improve the mine life.
The company acquired the Chepica gold mine in February 2014 and immediately began extending the operation to improve grades and production. Back in April 2014, Xtract said it expected the Chepica mine to become profitable in the second quarter of 2015, which has now been achieved after it delivered a USD150,000 profit before capital expenditure in May.
"We are delighted that Chepica has returned to profitability and expect it to deliver on target moving forward. Development is progressing well, and we anticipate having three major areas ready for stoping within the next four months, which will greatly improve the flexibility on the mine," said Chief Executive Jan Nelson.
Stoping is the process of extracting the desired ore or other mineral from an underground mine, leaving behind an open space known as a stope.
The two "major" new areas that have been identified are in the Colin mining area and the Theoni mining area at the project. The target at the Colin area is thought to hold around 100,000 ounces of gold, said the company. Geological modelling is underway, and a detailed drilling programme is being planned to prove this drill target up over the next four months.
"If our estimates are confirmed, our planned drilling programme could significantly extend the life of mine, and we expect to provide a resource update within the next three months," said Nelson.
Xtract shares were down 6.5% to 0.360 pence per share late Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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