Xtract Resources collaboration will create "fast track hard rock operation"

The agreement, which expands a previous contract signed on 8 February, will see Xtract gain access to Omnia’s new hard rock processing plant which is capable of processing 400,000 tonnes per annum, while mining contractor Omnia will be permitted to exploit Xtract’s alluvial gold deposits at its Manica mining concession in Mozambique.

The agreement targets all hard rock occurrences at Manica, apart from the Fair Bride project which will remain under the sole control and management of Xtract.

Colin Bird, executive chairman of Xtract, said: "The agreement provides Xtract with access to a new fully installed and operational processing plant able to extract gold from ore types available in the Manica Area. Within the partner’s concession areas, there exists numerous hard rock occurrences most of which have undergone limited, superficial or no exploration."

All gold recovered from the processing plant during the operating phase will be split 50:50, and a steering committee made up of two members appointed by each company will manage the joint venture.

Xtract will conduct initial investigations of potential targets, while further costs of exploration will be shared between the companies.

"The agreement provides Omnia with the company's mining and processing expertise and gives the company the opportunity for a fast track hard rock operation. A number of hard rock occurrences within the company's concession area have demonstrated that they could well be suited for the Omnia's processing plant," said Bird.

Xtract is a London based resource development and mining company whose focus is on acquiring brown field resource projects.