Xtract Resources plc Increase in Concentrate Gold grades at Chepica (2785M)
May 06 2015 - 1:02AM
UK Regulatory
TIDMXTR
RNS Number : 2785M
Xtract Resources plc
06 May 2015
6 May 2015
Xtract Resources Plc
("Xtract" or "the Company")
Concentrate Gold grades at Chepica Mine increases ten-fold to
over 400g/t
as ore from Salvadori II prospect starts feeding the processing
plant
Xtract Resources Plc (AIM:XTR) has commenced mining on surface
at the Salvadori II prospect ('Salvadori') at the Chepica Gold and
Copper mine in Chile ('Chepica'). The first bench of approximately
25m has been established at the newly exposed gold bearing reef and
a total of 700t grading at between 3g/t to 8g/t has been delivered
to the mill over the past two weeks. As a result the gold
concentrate grades have now increased from 40g/t to over 400g/t.
Copper grades in the concentrate remain stable at between 10 to 15%
with Silver values of between 9 to 12g/t. This has positively
impacted revenue which is now expected to increase significantly in
May from the sale of this concentrate.
The next stage is for Xtract to cut a further two benches of 25m
each which is expected to deliver approximately 3,000t of surface
ore grading at between 3g/t to 8g/t. This will then be blended with
approximately 5,000t of underground ore grading at 2.5g/t gold from
the main Chepica mine.
The improvement in concentrate grades is the result of higher
flotation recoveries as a result of the mineralogy of the ore being
mined on surface from Salvadori II prospect.
As a result of the positive impact of surface mining operations
on both the volume and grade at the Chepica mine, a major programme
has now been initiated to identify more ore shoots that can be
mined from surface. To date two other areas have been identified.
The Francisco I prospect has yielded preliminary sampling results
of over 9g/t gold over widths of 3m and a strike-length of 50m. The
strike and depth extent of the prospect remains open and is being
investigated further. A major system of gold veins has also been
identified at the Colin prospect on surface with sampling results
yielding gold grades of 6g/t over 6m along a 50m strike. The extent
of the structure remains open along strike and depth and is also
being investigated.
Jan Nelson, CEO of Xtract, said: "Commencement of mining
operations on surface at Salvadori has not only increased our
flexibility with regards to achieving our planned daily tonnage
target but it has also delivered a substantial increase in the
grade. This increase will significantly benefit the monthly revenue
received without any major increase in costs. The team has focused
its attention on identifying more of these high grade ore shoots
which can be mined from surface seeing that there are over 25 of
these reef swarms outcropping on surface. What makes us even more
excited about this project is that we are currently only focusing
on 30% of the total area of our prospect license."
Enquiries:
+44 (0)20 3416
Xtract Resources Plc Jan Nelson, CEO 6471
Derrick Lee +44 (0)131 220
Cenkos Securities plc Nick Tulloch 6939
+44 (0)207 382
Beaufort Securities Elliot Hance 8300
+44 (0)20 7796
8647
St James's Corporate +44 (0)7798
Services Limited Phil Dexter 634398
+44 (0)20 7193
7463
Justine James +44 (0) 7525
Gable Communications xtract@gablecommunications.com 324431
Qualified Person
In accordance with AIM Guidelines, Peter Moir, B.Sc. Civil
Engineering, M.Eng. Petroleum Engineering, UK Chartered Engineer
and Director of Xtract Resources plc is the qualified person as
defined in the Guidance Notes for Mining, Oil and Gas Companies,
February 2010, of the London Stock Exchange, that has reviewed the
technical information contained in this press release. Mr Moir has
more than 30 years experience in technical, operational and
commercial aspects of the E&P business.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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