The first gold has been poured at the Fair Bride hard-rock gold mining operations at the Manica concession in Mozambique, according to mining contractor Mutapa Mining and Processing (MMP), which works with Xtract Resources, an Aim-listed company.
Low-grade ore was first introduced into the production process in order to fully activate the processing circuit.
As soon as the plant begins normal production, according to Xtract, the company will release more information.
Xtract in May 2019 appointed MMP as an independent mineral processing contractor to, among others, conduct hard-rock mining on the Manica project permitted area and to process the mined ore for the recovery of gold for a period of ten years with an option to extend.
Under the terms of the collaboration agreement, MMP will receive 77% of all the operating profit produced from the permitted area through the performance of the contract by MMP when the prevailing price of gold is greater than $1 250 /oz.
MMP’s entitlement increases to 78.5% at a prevailing gold price between $1 175 /oz and $1 249 /oz, and to 80% when the prevailing gold price is less than $1 100 /oz.