21 Apr 2017 11:57
Trans-Siberian Gold plc
("TSG" or the "Company")
Q1 Production Update
Trans-Siberian Gold plc ("TSG" or the "Company") (TSG.L) announces its production update at the Asacha Gold Mine for the three months to 31 March 2017 ("Q1" or the "Period").
Highlights:
· Q1 gold production of 7,644oz (Q1 2016: 9,343oz)
· Full year production expected to be in the range of 32,000oz - 36,000oz
· No lost time injuries for the Period
Production Summary:
Mining and production data for the Period at Asacha is shown in the following table:
Q1-2017 | Q1-2016 | |
Mine development (m) | 1,263 | 1,115 |
Ore mined (mt) | 46,155 | 44,067 |
Ore processed (mt) | 44,320 | 40,300 |
Average gold grade (g/t) | 5.35 | 7.38 |
Average silver grade (g/t) | 8.99 | 10.75 |
Gold recovery rate (%) | 94.24 | 94.95 |
Silver recovery rate (%) | 76.69 | 77.36 |
Gold in dore (oz) | 7,246 | 9,202 |
Silver in dore (oz) | 10,148 | 10,818 |
Gold refined (oz) | 7,644 | 9,343 |
Silver refined (oz) | 12,356 | 11,542 |
Q1 gold production was 7,644oz compared to 9,343oz for the same period in 2016.
During the Period, 40.8% of ore delivered to the plant was new stoping ore, with an average grade of 7.9 g/t. In order to maintain monthly plant throughput of at least 12,500 mt it was necessary to process earlier run-of-mine ore which contained lower grades of gold. As a result, gold production is lower on a comparative basis with the same period in 2016.
Extraction of new stoping ore was hindered during the Period by a lack of underground equipment, flooding at lower levels and the failure of mobile pump equipment which also led to a slowdown in some of the major mine development activities, including the installation of stationary high power pumps at the 150 m level and construction of the transportation tunnel from the 150 m level to the 100 m level. However, with new mobile pumps now in place and the arrival of new underground machines the Company expects to be able to accelerate all mining activities.
The Company has started preparation for ore cutting in the upper part of the interval between the 150 m and 100 m levels, which should facilitate access to higher grade ore, and thus expects to gradually increase gold production from Q3 onwards.
The Company expects to achieve gold production for the full year in the range of 32,000-36,000oz (2016: 35,550oz).
TSG intends to provide a production update for the second quarter of 2017 in July 2017.
GKZ approval of Reserves & Resources:
In March 2017 the reserves and resources of the Asacha deposit were re-approved by the State Commission of Reserves ("GKZ"), which are set out below.
Mineral Resources - Russian State Commission for Reserves (GKZ) | |||||
as at 31 December 2016 | |||||
Au | Ag | Cut-off g/t | |||
C1 & C2 oz | Grade g/t | C1 & C2 oz | Grade g/t | ||
Asacha | 623 943 | 19.8 | 1 476 612 | 46.8 | 2 |
P1+P2 Resources | |||||
Au | Ag | Cut-off g/t | |||
Р1 & Р2 oz | Grade g/t | Р1 & Р2 oz | Grade g/t | ||
Asacha | 0 | 0 | 0 | 0 | 2 |
The figures in the above table (which do not include the results of 2016 exploration) have been prepared under the Russian system of reporting reserves and resources.
Approval from GKZ is an important step in the process to obtain an extension of the Asacha licence in 2018. The Company expects to provide an updated JORC compliant reserves and resources statement around the end of May 2017.
Contacts:
TSG |
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Simon Olsen | +44 (0) 7770 484965 |
Stewart Dickson | +44 (0) 7799 694195
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Cantor Fitzgerald Europe | +44 (0) 207 894 7000 |
David Porter David Foreman Craig Francis |
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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.
The information in this report that relates to the reporting of mineral resources is based on information compiled or reviewed by Viktor Zhelikov. Viktor Zhelikov is the Chief Geologist within the Group and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Qualified Person as defined in the AIM Rules for Companies. Viktor Zhelikov consents to the inclusion of the mineral resources information in the form and context in which it appears.
Abbreviations
g/t grammes per tonne
oz ounce
mt metric tonne
m metre
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.