22 Jun 2012 07:00
Trans-Siberian Gold plc
Asacha mining and production update
LONDON: 22 June 2012 - Trans-Siberian Gold plc ("TSG" or the "Company") (TSG.L) will provide an update on mining and production at Asacha in the first five months of 2012 at the Company's Annual General Meeting today.
Mine development in April and May 2012 comprised 674 metres, while ore extraction (including ore from stoping and mine development) amounted to 20,080 mt. In the same period, an average 10,284 mt per month was processed through the Asacha plant. Plant throughput has improved following the resolution of problems with the size of the ore and with the plant's power supply in the first quarter of 2012.
Plant performance has continued to be affected by the low grade of ore, principally due to dilution. The mining method prescribed in the design of the Asacha mine involves long hole blasting, however a review by a Moscow design institute has concluded that, although appropriate for the mine as a whole, long hole blasting is not as suitable for the more fractured rock enclosing the main stoping zone in the 2012 mine plan. Although that mine block has been fully prepared for long hole blasting, the Company plans to introduce shallow hole blasting for the adjacent blocks, from which it is planned to extract approximately 30% of 2012's stoping ore, with only minor dilution.
The ore extracted using shallow hole blasting will be blended with the ore from the main stoping block, which is expected to lead to an increase in the average grade of processed ore to 10-11 g/t in the fourth quarter. On this basis TSG expects 2012 production of 31,000 oz gold and 48,500 oz silver.
The introduction of shallow hole blasting will require additional equipment which has already been purchased. We are also recruiting additional staff with the relevant experience.
On 24 April 2012 TSG reported problems with the non-availability of one of the trucks used to bring mined ore to the surface. An additional truck has been purchased and will be delivered to site in September 2012.
Additional equipment for the site laboratory has increased its sample capacity to more than 100 assays per day. The additional drilling rig purchased to improve the quality of geologic sampling in the mine is expected to be delivered to site by the end of June 2012.
Mining and production at Asacha in the first five months of 2012 is shown in the following table.
| 1st quarter 2012 | April 2012 |
May 2012 | Year to date |
Mine development (m) | 1,023 | 357 | 317 | 1,697 |
Ore extracted (mt) | 33,525 | 10,927 | 9,153 | 53,605 |
Ore processed (mt) | 28,877 | 8,645 | 11,924 | 49,446 |
Average gold grade (g/t) | 7.03 | 5.78 | 5.61 | 6.47 |
Gold recovery rate (%) | 95.14 | 94.78 | 95.30 | 95.11 |
Gold in dore (oz) | 6,689 | 1,606 | 2,026 | 10,321 |
Gold refined (oz) | 6,281 | 2,549 | 1,369 | 10,199 |
Silver refined (oz) | 6,975 | 2,735 | 2,147 | 11,857 |
TSG will report Asacha's full second quarter 2012 gold production in July 2012.
Ends
Contacts
TSG |
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Simon Olsen | + 44 (0) 1480 811871 + 44 (0) 7770 484965 |
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Seymour Pierce Ltd | +44 (0) 207 107 8000 |
Stewart Dickson / David Foreman (Corporate Finance) |
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Jeremy Stephenson (Corporate Broking) |
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