Source - SMW
Mining group Xtract Resources said Mozambique subsidiary Explorator Limitada had concluded an additional mining contractor agreement with Longhau Tianci Mining.

The agreement was for the exploitation of the Boa Esperanza 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, and Explorator would remit 35% of its share of production to collaboration partner Mutapa Mining and Processing.

'I am pleased to report the conclusion of negotiations and signing of the Boa Esperanza agreement with Longhau,' executive chairman Colin Bird said.

'Boa Esperanza has had only limited drilling and as such the contractor plans to open the veins progressively and follow the vein and ore shoot.'

'This approach is common to this type of ore body and it is not unusual for mines to still be in production for many years after their original ore estimate.'

'This new agreement provides the company with another potential source of cash flow concurrent with the Guy Fawkes agreement.'

'We are also pleased to report that the previous onerous Covid-19 lockdown protocols in South Africa have been reduced and we are confident that border restrictions will be lifted to allow the importing of machinery from South Africa to Mozambique.'

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