TSG.L Regulatory News (TSG)

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27 April 2020

Trans-Siberian Gold plc

("TSG", the "Company" or the "Group")

Drilling Results & Exploration Update

Significant extension of Vein 25 North at Asacha Gold Mine

Trans-Siberian Gold plc (TSG.LN), a low cost, high grade gold producer in Kamchatka, Russia, is pleased to provide an exploration update on Vein 25 North ("V25N"), discovered in September 2019 following a successful drilling campaign. V25N is located approximately 400 metres north of Vein 25 within the East Zone of the Company's operating Asacha Gold Mine.

Alexander Dorogov, CEO of Trans-Siberian Gold commented:

"We are highly encouraged by this consecutive set of exciting drilling results from the drill campaign succesfully carried out at the promising East Zone of Asacha. These findings continue to demonstrate high-grade mineralisation and the potential substantially to expand the in-situ mineral resources. Thanks to these excellent results we are not only planning to expand the drilling programme, but now expect to commence production at Vein 25 ahead of schedule this year. We are very excited about the potential of the East Zone and look forward to updating the market on further progress in due course."

Drilling Campaign Highlights

· Extensive drilling enabled definition of V25N over at least 500 metres laterally and 200 metres vertically

· Still open at depth and to the North and just 100 metres from Vein 25 South ("V25S")

· Excellent progress made with the planned 2019-2020 drilling campaign over the Asacha licence area with 10,371 metres of the scheduled 25,000 metres completed during Q1 2020

· Total of 11,441 metres drilled on V25N since its discovery in September 2019

· Highly encouraging selected results from recent surface drilling[1] indicate high grade mineralisation:

o 235 g/t Au, 134 g/t Ag over 1.4 m Hole ID C2012

o 56 g/t Au, 366 g/t Ag over 5.6 m Hole ID C2037

o 51 g/t Au, 55 g/t Ag over 5.5 m Hole ID C2020

o 49 g/t Au, 98 g/t Ag over 5.4 m Hole ID C2050 

o 61 g/t Au, 176 g/t Ag over 4.0 m Hole ID C2047 

o 18 g/t Au, 229 g/t Ag over 8.1m Hole ID C2053 

o 83 g/t Au, 231 g/t Ag over 1.2 m Hole ID C2043

o 38 g/t Au, 450 g/t Ag over 2.1 m Hole ID C2049 

o 35 g/t Au, 225 g/t Ag over 1.4 m Hole ID C2045 

o 10 g/t Au, 90 g/t Ag over 4.8 m Hole ID C2022

o 30 g/t Au, 255 g/t Ag over 1.3 m Hole ID C2035

o 26 g/t Au, 21 g/t Ag over 1.2 m Hole ID C2011

The Company will update its existing geological modelling with the results of the drilling campaign to date, whilst the drilling programme is ongoing with two full-time rigs utilised.

During the first quarter of 2020, the Group's drilling programme has been focused on V25N, which was discovered in September 2019 and has produced very positive drilling results to date. This auriferous zone is now at least twice as large as V25S and extends to within 50 metres of the existing adit that was dug to reach that area. A longitudinal section showing true horizontal widths and gold grade intercepts in both V25S and V25N together with the best drilling results obtained to date from the 2019-2020 drilling campaign are shown in Figure 1.  

Figure 1. Drill assay results and metal factors on Vein 25 longitudinal.

Table 1: 2020 drilling assay results on Vein 25N

Commentary

The vein intersections encountered at V25N show mineralogy and textures typical of a high level low sulphidation, epithermal gold system. The high-grade vein intersections usually exhibit chalcedonic and/or colloform textures and hydrothermal breccias, with lots of voids, strong clay alteration, trace to 2% manganese oxides and sometime fragments of ginguro (black mix of electrum, sulphides and sulfosalts).

The vein is sub-vertical dipping 80 to 85 degrees to the East. It pinches and swells, sometimes quite rapidly, but is reasonably well defined over at least 500 meters laterally (North-South) and 200 meters vertically. The high-grade auriferous zone is assessed to remain open at depth and to the North.

From a portal started in Q4 2019, 630m of underground workings have been completed in order to reach V25S. The second crosscut traversing the zones, close to holes C-1669 and U-25-1, revealed a 0.50 meters vein grading 254.7 g/t Au and 143.3 g/t Ag (see Figure 1 and 3).

While drilling for V25N, a series of sub-parallel gold veins were also intersected. Even if they seem to be less continuous than V25N, some exhibit interesting assay results:

· V25b

o C-2024 : 17.9 g/t Au, 9.1 g/t Ag over 0.9m

· V25c

o C-2053 : 29.5 g/t Au, 458.0 g/t Ag over 0.9m

o C-2009 : 12.6 g/t Au, 194.3 g/t Ag over 2.3m

o C-2002 : 88.5 g/t Au, 109.0 g/t Ag over 0.5m

· Vein New

o C-2006 : 27.9 g/t Au, 41.7 g/t Ag over 2.0m

A total of 43 diamond drill holes for 11,441m has been drilled on V25N since its discovery in September 2019. Drilling will continue on the property with two rigs for at least 3 months. Apart from V25N, there are three other high potential targets close to the Main Zone (currently being mined) that will be drill-tested during the next few months (see Figure 2). The Board of Directors has approved a 2019-2020 drilling program of 25,000 metres. In view of the excellent results to date, the program is expected to be expanded. Further results will be announced as soon as practicable.

QA/QC Program

A revised and upgraded QA/QC program has been implemented since H2 2019. It consists mainly of the insertion of one standard, one blank and one pulp duplicate in every batch sent for analysis to the laboratory at the Asacha Gold Mine. It is complemented by sending a batch of coarse duplicates to the laboratory every 600 assays and a batch of pulp duplicates to an independent external laboratory after about 600 assays. Overall, this represents some 20% of QA/QC samples.

Figure 2. Asacha Property geology and drilling targets

Figure 3. Zone 25 detailed surface plan.

ENDS

About TSG

TSG is focused on low cost, high grade mining operations and stable gold production from its 100% owned Asacha Gold Mine in Far East Russia. The Company also holds the licence for the development and exploration of the Rodnikova deposit, one of the largest gold fields in South Kamchatka.

Additional information, including figures and table of this press release, is available from the Company's website: www.trans-siberiangold.com

Qualified Person Review

Information in this announcement that relates to exploration results is based on information compiled by Mr. Jacquelin Gauthier, P.Geo., a consulting geologist to Trans-Siberian Gold plc. Mr Gauthier has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which has been undertaken to qualify as a "Qualified Person" pursuant to Canada National Instrument 43-101 and a "Competent Person" in accordance with the AIM Rules Guidance Note for Mining and Oil & Gas Companies. Mr Gauthier consents to the inclusion in the announcement of the matters based on the information in the form and context in which it appears .

Glossary of Technical Terms

Market Abuse Regulations

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

Disclaimer

This announcement contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets, fluctuations in interest and/or exchange rates and metal prices; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements.