Xtract Resources reports disappointing gold output in Mozambique

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Mining group Xtract Resources reported disappointing quarterly mining production at the Manica concession in Mozambique owing to wet weather and Covid-19 disruptions.

Alluvial mining contractor gold production for the three months through March was 14.52 kilograms, equivalent to about 467 ounces.

'The results are a little disappointing for the first quarter based on the rainy season, but particularly the effect of the coronavirus on spare parts delivery from China,' executive chairman Colin Bird said.

'We continue to experience low grade together with high overburden stripping.'

'The spare parts arrived two weeks ago, and operations are already showing a significant improvement, despite tough operating conditions.'

'We intend over the next month to commence a further contract with another Chinese group on an adjacent licence.'

'The agreement with the group will be similar to existing agreements in place.'

At 9:47am: (LON:XTR) Xtract Resources Plc share price was -0.2p at 1.35p