Xtract Resources extends partnership with Omnia for Manica project

21 February 2018 (Last Updated February 21st, 2018 16:05)

UK-based Xtract Resources has reached a new collaboration agreement with Omnia Mining for the exploitation of hard rock gold deposits at the Manica concession in Mozambique. 

UK-based Xtract Resources has reached a new collaboration agreement with Omnia Mining for the exploitation of hard rock gold deposits at the Manica concession in Mozambique.

The agreement does not include the Fair Bride project, which remains to be solely controlled and managed by Xtract.

The new partnership will see Omnia use its new processing plant, which has a processing capacity of 400,000t per annum, to target all hard rock gold occurrences, subject to their development resulting in an internal rate of return of more than 25%.

Under the agreement, Xtract is responsible for undertaking the initial investigation on potential targets, while the companies will equally share expenditure incurred on further exploration work.

Xtract Resources executive chairman Colin Bird said: “The agreement provides Xtract with access to a new fully installed and operational processing plant able to extract gold from ore types available in the Manica area.

“A number of hard rock occurrences within the company’s concession area have demonstrated that they could well be suited for the Omnia’s processing plant.”

“Within the partners’ concession areas, there exists numerous hard rock occurrences most of which have undergone limited, superficial or no exploration.

“A number of hard rock occurrences within the company’s concession area have demonstrated that they could well be suited for the Omnia’s processing plant.”

Through the deal, the company intends to convert hard rock exploration targets into a joint mining operation with Omnia.

The agreement builds on the deal signed between the parties earlier this month for exploitation of Xtract’s alluvial gold deposits at the Manica mining concession.

Pursuant to the latest deal, the companies will equally share all gold recovered from the processing plant in the operating phase.

The joint venture project is expected to be carried out in five phases, namely desktop study, exploration phase, drilling, in-house feasibility, and development.