3 Apr 2019 07:00
03 April 2019
Trans-Siberian Gold plc
("TSG" or the "Company")
Statement re Rodnikova Deposit
Trans-Siberian Gold plc (TSG.LN) a low cost, high grade gold producer, developer and explorer in Russia, announces that it participated in an auction on 28 March 2019 held by the Federal Agency for Subsoil Use ("Rosnedra") for the exploration and development licence over the Rodnikova deposit in Kamchatka, Far East Russia.
Rodnikova overview
· High-grade gold-silver vein deposit is one of the largest gold fields in South Kamchatka
· Located 50km from the Company's operating Asacha Gold Mine
· GKZ Russian classified resource of 1Moz at 5.3 g/t Au and 8.3Moz at 44.6g/t Ag
According to information made public by Rosnedra, TSG's wholly owned subsidiary, ZAO Trevozhnoe Zarevo ("TZ"), submitted the highest bid with a total amount of $3 million of which $ 2.7 million has been pre-paid.
It is anticipated that Rosnedra will confirm the award of the licence shortly and that the licence for the Rodnikova deposit will be issued within the next month. Subject to the award of the licence, TSG will have the exclusive right to conduct exploration and development work over an area of 22km2 for a period of 20 years. Further announcements concerning the award of the licence will follow.
Rodnikova Deposit
Geography
Situated in Yelizovo District of the Kamchatka region, the Rodnikova mineral deposit is located approximately 50km from TSG's operational Asacha Gold Mine and approximately 120km from Petropavlovsk. The project benefits from good infrastructure with sealed road access to within 5km of the site and is situated in close proximity to the Mutnovskaya Geothermal Power Station. The Mutnovskaya plant is believed to be the largest geothermal power plant in Russia and is operated by Geotherm JSC, a subsidiary of the RusHydro Group (MICEX:MOEX; LSE:HYDR).
Geology
The Kamchatka peninsula is well known for its abundant hydrothermal activity and rich underground mineralisation. The licence area comprises the Rodnikova deposit (southeastern part), Carbonate (northeastern part) and Vilyucha (western flank) ore occurrences. The Rodnikova deposit consists of low-sulfidation quartz adularia veins in a host rock of diorite.
Project History
Rodnikova was discovered by Soviet geologists in 1977 when initial mapping and evaluation works were conducted, which lasted until 1992. Following a tender held in 1994, the Kamchatka Department of the Geological Committee of the Russian Ministry for Natural Resources issued a licence to TZ. In 2011 a report on Rodnikova's Mineral Reserves & Resources was published and approved by the Kamchatka authorities. In September 2014, the Company announced that the licence had expired.
Resource Statement
In accordance with the Mineral Resources report, approved by the Russian State Commission for Reserves ("GKZ") as at 31 December 2013, Rodnikova deposit is estimated to contain 933koz of C1 & C2 reserves of gold with an average grade of 5.3g/t.
Resource Category | Resource Area | Au (oz) | Au Grade (g/t) | Ag (oz) | Ag Grade (g/t) | Cut off (g/t) |
C1 + C2 | Rodnikova | 818,000 | 4.9 | 7,159,000 | 42.8 | 2 |
C2 | Vilucha | 175,000 | 9.3 | 1,144,000 | 60.9 | 2 |
C1 + C2 | Total | 993,000 | 5.3 | 8,303,000 | 44.6 | 2 |
ENDS
Contacts: |
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TSG |
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Stewart Dickson | +44 (0) 7799 69419 |
Arden Partners plc |
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Paul Shackleton / Alex Penney (Corporate Finance)Tim Dainton / Fraser Marshall (Equity Sales) | +44 (0) 207 894 7000 |
Hudson Sandler (Financial PR) | +44 (0) 207 796 4133 |
Charlie Jack / Katerina Parker |
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.
Additional information is available from the Company's website: www.trans-siberiangold.com
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.