Xtract Resources (LON:XTR ) has noted an update from Mutapa Mining and Processing LDA ("MMP") detailing progress and development plans at the Manica hard rock open pit mine.
The diversified metals and minerals producer entered into a collaboration agreement back in May 2019 granting MMP the exclusive right to mine and process hard rock gold deposits from its Manica project in Mozambique over 10 years, with an option to extend.
A large part of bulk cut and fill works have already been undertaken, MMP said, and construction group Tayanna, which is locally based Mozambique, will complete the final trim.
Manica Alluvial Mining
(Source: Xtract Resources)
The group said onsite process plant activities will commence after pre-establishment work is completed. This will include an initial focus on civil concrete installations to allow for the arrival and placement of civils where possible of equipment fabricated in South Africa.
Shares in Alien Metals have more than doubled from lows of 0.61p in May 2020 to open at 1.3p this morning.
Further work, including crusher feed refurbishment, cone crusher work and mill rectification works including lubrication system and liquid resistor starter connection, is to also commence ‘in the coming weeks’, the Company noted.
Mining consultant, Scott Wilson, have also completed an updated design of tailings dam and will oversee work on site. Meanwhile, the group has agreed a tailings construction contract with Tayanna with dam construction to commence within 7 days of signing the agreement.
It said Tayanna have commenced mobilising earth moving equipment to site to optimise construction time and will commence clearing and topsoil removal as soon as possible.
"The updated plan provided by our collaboration partners MMP has been supplied to allow the Company to fully update shareholders on the progress and we are confident that there are no fatal flaws to prevent the project build,” said Colin Bird, Xtract’s Executive Chairman.
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