Source - SMW
Mining group Xtract Resources said Mozambican unit Explorator Limitada had concluded a mining contractor agreement with Longhau Tianci Mining.

The agreement was for the exploitation of the Guy Fawkes hard rock gold deposit at the Manica mining concession in Mozambique.

Longhau had been appointed to mine the deposit for six years or until the ore body was depleted or no longer viable.

The agreement would see Explorator receive 20% of gold production, after settlement of mining taxes.

Explorator would remit 35% of its share of Guy Fawkes gold production. after applicable expenses and tax, to Mutapa Mining and Processing, its existing hard rock collaboration partner.

'The Guy Fawkes deposit shows considerable variation both in mining width and grade, demonstrating propensity for selective higher-grade mining,' executive chairman Colin Bird said.

'Longhau intends to work a portion of the deposit by open cast methods where drilling indicates that suitable grades locally can run close to surface. Underground mining will be selective.'


At 1:58pm: (LON:XTR)  Xtract Resources Plc  share price was +0.13p at 1.65p



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