Xtract Resources has formed a partnership with Mineral Technologies International Ltd to explore an alluvial gold concession in the province of Manica, Mozambique, the company listed on the London Stock Exchange said in a statement released this week.
Xtract Resources added that it hoped the 50/50 partnership would annually extract 32,000 ounces of gold, in addition to gold from an open pit mine.
This partnership covers only a part of the Xtract Resources concession and will be developed separately from the open pit mine, on which a feasibility study is about to be completed.
Xtract Resources estimated production costs at around US$203 per ounce, compared to a price of US$1,200 per ounce on the international market, which is why it believes it can recover the investment in less than six months.
Earlier this month the company acquired a gold mining license in Manica from Auroch Minerals, an Australian mining company, for US$10 million.