JOHANNESBURG (miningweekly.com) – Mining contractor Omnia Mining has started production on the western half of Aim-listed Xtract Resources’ Manica concession, in Mozambique.
Earlier this year, Xtract’s subsidiary Explorator signed mining contractor agreements with Omnia and Sino Minerals Investment Company for the exploitation of alluvial gold deposits at the concession.
Omnia has the exclusive right to mine the unconsolidated alluvial deposits on the western half of the concession and Sino the exclusive right to mine the alluvial deposits on the eastern half of the concession.
“I am pleased to report that after having completed all of the process preparation, Omnia is now in commercial production. We look forward to a stable operation and rapid increase in production to 400 t/h or more,” Xtract chairperson Colin Bird said on Thursday.
Under the terms of the agreement between Explorator and Omnia, Omnia is obligated to make monthly payments to Explorator against the monthly run-of-mine performance. Xtract expects to receive the first income at the end of November.
Meanwhile, Sino earlier this week also started production on the eastern half of the concession.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
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