(Ecofin Agency) - Xtract Resources announced it has ended the mining contract agreement with Moz Gold for the Block M of its Manica concession’s western half. Today June 25, it reported an unsatisfactory gold recovery rate due to the “fine” nature of the gold and a processing plant which doesn’t fit for recovery purpose.

“Moz Gold’s contribution to the overall production had not been materialized and now it has halted production,” the company revealed, saying it is considering proposals to hire a new contractor.

The agreement with Moz Gold provides Xtract Resources with security over the processing plant and test work needs to be completed before the company decides either to operate the plant for its own account or, alternatively, make it available to new contractors who would be responsible for all necessary modifications.

Let’s note that at the eastern half of the Manica concession, operated by Sino Minerals, production has progressed well and results are scheduled for mid-July.