TSG.L Regulatory News (TSG)

 http://www.rns-pdf.londonstockexchange.com/rns/6024S_1-2020-7-9.pdf

10 July 2020

Trans-Siberian Gold plc

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

Vein 25 development well advanced in the

East Zone of the Asacha Gold Mine

Trans-Siberian Gold plc (TSG.LN), a low cost, high grade gold producer in Kamchatka, Russia, is pleased to announce that the development of Vein 25 ("V25") in the East Zone of the Company's operating Asacha Gold Mine is progressing well.

Alexander Dorogov, CEO of Trans-Siberian Gold commented:

"We are excited to report the progress being made at Vein 25. Our mine development is on track and high grade results are being generated from channel sampling and high recoveries from bulk sampling activities. Bringing V25 in the East Zone into commercial production will be a significant milestone for the Company. It is a higher-grade deposit than the Main Zone and will make a significant contribution to maintaining high-grade gold production from the Asacha Gold Mine. It is pleasing to have our mine development work ahead of schedule and in line with our cost expectations."

Highlights

· Mine development works to enable commercial production from V25 are on track

· Total volume of access development work for stripping V25 completed to date is approximately 15,400m3

· Exploration development has enabled channel sampling producing excellent results, including:

o Level 200: average thickness of 1.6 metres with an average gold grade 56.2 g/t

o Level 170: average thickness of 1.4 metres with an average gold grade 51.4 g/t

· Since April 2020, approximately 9,488 tonnes of ore with an average gold grade of 19.8 g/t have been extracted from Vein 25 and processed producing approximately 6,028 oz of gold

· Ore is very similar to that found in the Main Zone with high recovery rates of +94% from existing plant

· The volume of ore mined from Vein 25 will continue to increase as the emphasis of the mine plan for Asacha transitions from the Main Zone to the East Zone

The Group is pleased to report that mine development[1] works are well advanced. V25 is located in the East Zone of the Asacha Gold Mine and has not been previously mined.

Mine development 

An exploratory adit has accessed V25 and exploratory drifts cutting across and along the strike of the ore body have been started at levels 170 and 200. These workings total approximately 240 metres. A transportation adit of approximately 59 metres in length has also been completed. The total volume of mine development on V25 completed to date is approximately 15,400m3.

Channel sampling

The exploration development have enabled channel sampling to be conducted at both level 170 and 200, producing very high grade gold results. In level 200, channel sampling results along 63 metres of the vein show an average thickness of 1.6 metres with an average gold grade of 56.2 g/t. In level 170, the results of channel sampling in the face of the stope returned an average thickness of 1.4 metres with average gold grade of 51.4 g/t.

Table 1. Channel Sampling Results at Vein 25

Figure 1. Channel Sampling locations at Vein 25

In addition, exploration works have discovered the ore body at secondary veinlet of Vein 25, which was not previously known. The results of channel sampling along 23 metres and 24 metres at levels 200 and 170, are shown below:

Table 2. Channel Sampling Results at veinlet of Vein 25

Gold production from exploration workings and bulk sampling

The Company has processed ore extracted from Vein 25 through the existing plant at the Asacha Gold Mine for metallurgical testing. The ore is very similar to that found in the Main Zone with gold recovery rates of +94%. Since April 2020, approximately 9,488 tonnes of ore with average gold grade of 19.8 g/t Au has been extracted from Vein 25 and processed producing approximately 6,028 oz of gold.

This testing has enabled the validation of the grade of the orebody at Vein 25 and also the processing ability of the existing plant to commercially produce gold from Vein 25.

Outlook

As the year progresses, the Group anticipates that ore mined from Vein 25 will continue to increase as the emphasis of the mine plan for Asacha transitions from the Main Zone to the East Zone. The Group expect that mine development will continue to produce saleable gold. The Company's production and dividend guidance remains unchanged.

TSG expects to report production results from the Asacha Gold Mine for the second quarter of 2020 in mid-July 2020.

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.