PRESS RELEASE: Colin Bird, chairman of Xtract Resources, said: “The conclusion of this contract for the eastern section of the Manica concession is an important milestone. The combined revenue, once achieved, is expected to be significant and will form a substantial platform from which the company can develop both at Manica and globally. We continue to discuss financing and operational agreements for the hard rock and on receipt of income of the alluvials will commence further hard rock exploration potential which we know exist in the area. We will keep shareholders fully informed of construction developments as they occur.”
Sino Minerals will have the exclusive right to mine on the eastern block of the unconsolidated alluvial deposits on the permitted area of the mining concession area. The agreement will endure for a period of 10 years or the depletion of alluvials, with the option to extend for a further period of five years if the alluvials have not depleted.
The agreement includes performance targets - from October 15, 2017, Sino Minerals will be required to have a fully operational plant with a mining capacity of 200t/h. The minimum target mining capacity will increase to 400t/h on a consistent 24h/d basis from January 15, 2018.
Explorator will be responsible for recording the gold concentrate produced from the permitted area on a daily basis. Sino Minerals will be responsible for the smelting of the gold concentrate and delivering of gold doré bars equal to 25% of the gold concentrate produced.