XTRACT RESOURCES PLC — Regulatory Filings 2016

Jun 16, 2016

National Storage Mechanism | Additional information

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RNS Number : 4313B

Xtract Resources plc

16 June 2016

16 June 2016

Xtract Resources Plc

("Xtract" or "the Company")

Presentation to shareholders and update on Chepica

Xtract Resources Plc (AIM: XTR) announces that the presentation to be presented to shareholders today at 12.30pm can be accessed by the following link: http://www.xtractresources.com/reports.htm

The Company will present the following operational highlights at its Chepica mine:

Further scope to increase volume from underground:

·      Chepica is consistently delivering on volume of 280t/day

·      Upgrading crushing circuit to provide capacity to produce volume of up to 340t/day (next six months)

·      Upgrade in crushing circuit is improving milling capacity and grind (improved recoveries)

·      Underground grade is running at 3.5g/t (highest grade ever mined)

·      Mineralised zone at Chepica almost 10m wide

·      Continue to expose reef along strike on 5, 6 and 7 level

·      Almost at the position to drive 2 reef ends at Chepica on 8 level

·      Total of 7 ends on reef (when Chepica intersects 8 level)

·      Making up total milling target of 10kt from development only

·      Mine pre-developed on 3 levels ready for stoping

·      Do not have to install any roof bolts on 7 level at Colin (rock extremely competent)/rheology has improved

Lead-Zinc concentrate in addition to Gold concentrate:

·      Ore body at depth at Colin has significant quantities of lead and zinc

·      Up to 1% zinc in rock samples and core

·      Lead-zinc has caused a problem in past 2 months in terms of floating gold

·      We have changed the plant circuit and will now produce a lead-zinc and gold concentrate

·      The lead-zinc concentrate will result in additional revenue

·      We need to install additional floatation cells to increase grade and quantity of concentrate produced

·      Build a lead-zinc circuit and expand gold circuit

·      Capex of U$150,000 to US$250,000 (over 2 months)

Increased production from tailings operation by 10kt/month:

·      We are allocating debt capital to start construction of 6 tailings ponds that will leach an additional 10kt/mth

·      Capital of US$1.25m to complete the project

·      Have completed raising the current tailings dam wall by 4m and have doubled the wall thickness in preparation for the tailings operation (moved over 1Mt of material)

·      Need to complete additional sampling and metallurgical test work (2 months - samples have been dispatched to lab)

·      Need to build a gold elution facility that will produce dorey gold bars from alluvial operation

·      Increase recoveries to 85%

·      Increase the effective gold price we receive from US$800/oz to the current spot gold price

·      Tailings operation will double monthly production output from the mine within 4 months

Earn-in Option

We were pleased to renegotiate the earn-in option agreement on Chepica, with payment schedule deferred, and the renegotiation of the option payments remains ongoing.

Enquiries:

Xtract Resources Plc	Jan Nelson, CEO	+44 (0)20 3416 6471
Cenkos Securities plc	Derrick Lee Beth McKiernan	+44 (0)131 220 6939
Beaufort Securities	Jon Belliss	+44 (0)207 382 8300
St James's Corporate Services Limited	Phil Dexter	+44 (0)20 7796 8647 +44 (0)7798 634398
Gable Communications	John Bick xtract@gablecommunications.com	+44 (0)20 7193 7463 +44 (0) 7872 061007

This information is provided by RNS

The company news service from the London Stock Exchange

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