AMN - MOZAMBIQUE: Manica production by end of month

Xtract Resources expects first alluvial mining to commence at the Manica Gold Project in Mozambique by the end of this month. Contractors Omnia Mining and Sino Minerals Investment are advancing with development and much of the equipment required in on site and being installed.

Xtract signed a contractor agreement with Omnia on June 19 and with Sino Minerals on July 11 and both have been busy on site since. The initial 200 tonnes per hour plant has been secured and is in country.

In addition, Sino Minerals has paid its first initial payment, which was a condition of allowing it to set up.

Xtract says the mine planning and logistical layouts are being developed to facilitate mining by the end of August and the Omnia settling dams are being excavated

The Omnia contract is for 10 years or until such time as the alluvials in the western half of the concession are depleted. Omnia is a local gold producer that is working alluvial deposits near the Manica concession.

The Sino Minerals contract covers the eastern half of the concession alluvials.

Xtract chairman Colin Bird said, “Omnia Mining and Sino Minerals are aggressively pursuing development of the proposed mining operations on our Manica gold property.

“The work to date gives us confidence that operations will start on or before time and that the two operators are competent in this type of mining. We continue to pursue various financing and development proposals for the hard rock propositions.”

The project is 4km north of Manica town and 270km west-northwest of the city of Beira. It is set to produce 35,000 ounces per annum at a cash cost of US$556/ounce.

www.xtractresources.com