The start of exploration of alluvial gold deposits at the Manica concession in central Mozambique is expected to begin later this month, said Xtract Resources, which is listed on the London Stock Exchange’s Alternative Investment Market (AIM).
The company also announced on Wednesday that the activity of the companies contracted to carry out mining operations is progressing “favourably” in particular with regard to facilities and equipment.
Explorator, the Mozambican subsidiary of Xtract Resources, signed contracts with mining companies Omnia Mining and Moz Gold in June and Sino Minerals Investment Company in July to explore alluvial deposits.
Omnia Mining and Moz Gold have exclusive rights to explore the western half of the mining concession, while Sino Minerals Investment Company has the eastern half.
These contracts are valid for a period of 10 years or until alluvial deposits are exhausted, with a five-year extension if deposits have not been exhausted.
By November, contracted companies are expected to process 220,000 tonnes of materials per month under contracts that stipulate processing of 2.64 million tonnes of alluvial materials per year. (macauhub)