LONDON (ShareCast) - (Sharecast News) - Xtract Resources updated the market on the hard rock collaboration agreement with Omnia Mining, as announced on 19 February, on Wednesday.
The AIM-traded firm said the agreement was for the exploitation of the hard rock gold deposits at Xtract's Manica mining concession in Mozambique other than the Fair Bride project, which remained under the sole control and management of Xtract.

It said 12 potential mining sites had been identified within 15 km radius of the Omnia plant, with eight of the potential mining sites already within the existing license areas of the joint venture parties.

Construction by Omnia of its 40kt per month free gold processing plant was now complete, with commissioning planned in November, the board said.

A newly-discovered quartz vein/alteration system, named André Zone, had been channel sampled in trenches, and gold grades varying from 1.1m at 0.89g/t to 0.5m at 20.8g/t.

The André Zone would be further explored by opening an underground adit, the company reported.

It also said it was working with an outside engineering consultant to optimise the plant upgrade to treat transitional and sulphide ores.

"The general Manica area has abundant gold mineralisation occurrences with varying mineralisation hosts and types," said Xtract Resources chairman Colin Bird.

"The objective of the Omnia Agreement is to allow us to process these ore types with no alternative sophisticated processing equipment available in the area."

Bird said the company was currently carrying out financial and technical exercises to assist it to decide whether to work the various veins sequentially, or to install a total capability plant suitable for all ore types.

"Should we elect the latter route, then Fair Bride may well be processed through the Omnia plant subject to final agreement with Omnia."

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE